IDEAS home Printed from https://ideas.repec.org/a/wly/apecpp/v43y2021i4p1243-1259.html
   My bibliography  Save this article

E‐commerce's fast‐tracking diffusion and adaptation in developing countries

Author

Listed:
  • Thomas Reardon
  • Ben Belton
  • Lenis Saweda O. Liverpool‐Tasie
  • Liang Lu
  • Chandra S. R. Nuthalapati
  • Oyinkan Tasie
  • David Zilberman

Abstract

E‐commerce is rapidly diffusing in developing regions of the world. Its share is still small even in modern retail, except in the frontrunner China, but it is developing quickly in Asia and Latin America and emerging in Africa. Patterns of diffusion over regions mirror the supermarket revolution but are lagged by several decades. E‐commerce firms employ strategies to “fast‐track” their spread, responding to challenges of high transaction costs, heterogeneous consumers, and persisting importance of retail small and medium enterprises. Over the past 10–15 years, e‐commerce firms in developing regions have fast‐tracked their adaptation to these challenges by bundling services as well as partnering with retail SMEs and delivery intermediaries.

Suggested Citation

  • Thomas Reardon & Ben Belton & Lenis Saweda O. Liverpool‐Tasie & Liang Lu & Chandra S. R. Nuthalapati & Oyinkan Tasie & David Zilberman, 2021. "E‐commerce's fast‐tracking diffusion and adaptation in developing countries," Applied Economic Perspectives and Policy, John Wiley & Sons, vol. 43(4), pages 1243-1259, December.
  • Handle: RePEc:wly:apecpp:v:43:y:2021:i:4:p:1243-1259
    DOI: 10.1002/aepp.13160
    as

    Download full text from publisher

    File URL: https://doi.org/10.1002/aepp.13160
    Download Restriction: no

    File URL: https://libkey.io/10.1002/aepp.13160?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Bart Minten & Thomas Reardon, 2008. "Food Prices, Quality, and Quality's Pricing in Supermarkets versus Traditional Markets in Developing Countries ," Review of Agricultural Economics, Agricultural and Applied Economics Association, vol. 30(3), pages 480-490.
    2. Liang Lu & Thomas Reardon, 2018. "An Economic Model of the Evolution of Food Retail and Supply Chains from Traditional Shops to Supermarkets to E-Commerce," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 100(5), pages 1320-1335.
    3. Xiaoxue Du & Liang Lu & Thomas Reardon & David Zilberman, 2016. "Economics of Agricultural Supply Chain Design: A Portfolio Selection Approach," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 98(5), pages 1377-1388.
    4. Simonin, Bernard L. & Ruth, Julie A., 1995. "Bundling as a strategy for new product introduction: Effects on consumers' reservation prices for the bundle, the new product, and its tie-in," Journal of Business Research, Elsevier, vol. 33(3), pages 219-230, July.
    5. Elinor Benami & Michael R. Carter, 2021. "Can digital technologies reshape rural microfinance? Implications for savings, credit, & insurance," Applied Economic Perspectives and Policy, John Wiley & Sons, vol. 43(4), pages 1196-1220, December.
    6. Zilberman, David & Lu, Liang & Reardon, Thomas, 2019. "Innovation-induced food supply chain design," Food Policy, Elsevier, vol. 83(C), pages 289-297.
    7. Reardon, Thomas & Berdegue, Julio A. & Timmer, C. Peter, 2005. "Supermarketization of the "Emerging Markets" of the Pacific Rim: Development and Trade Implications," Journal of Food Distribution Research, Food Distribution Research Society, vol. 36(1), pages 1-10, March.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Chong Ji & Wenhui Zhao & Hui Wang & Puyu Yuan, 2022. "Online Platform Customer Shopping Repurchase Behavior Analysis," Sustainability, MDPI, vol. 14(14), pages 1-14, July.
    2. Wanglin Ma & Christopher Gan & Puneet Vatsa & Wei Yang & Hongyun Zheng, 2022. "Factors affecting online shopping frequency: lessons from New Zealand," SN Business & Economics, Springer, vol. 2(6), pages 1-10, June.
    3. Liang Lu & Ruby Nguyen & Md Mamunur Rahman & Jason Winfree, 2021. "Demand Shocks and Supply Chain Resilience: An Agent-Based Modeling Approach and Application to the Potato Supply Chain," NBER Chapters, in: Risks in Agricultural Supply Chains, pages 107-132, National Bureau of Economic Research, Inc.
    4. Anderson, Kym, 2022. "Trade-related food policies in a more volatile climate and trade environment," Food Policy, Elsevier, vol. 109(C).
    5. Guo, Jianxin & Jin, Songqing & Zhao, Jichun & Wang, Hongbiao & Zhao, Fang, 2022. "Has COVID-19 accelerated the E-commerce of agricultural products? Evidence from sales data of E-stores in China," Food Policy, Elsevier, vol. 112(C).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Thomas Reardon & David Zilberman, 2022. "Symbiotic, Resilient, and Rapidly Transforming Food Supply Chains in LMICs: Supermarket and E-commerce Revolutions Helped by Wholesale and Logistics Co-pivoting," NBER Chapters, in: Risks in Agricultural Supply Chains, pages 13-28, National Bureau of Economic Research, Inc.
    2. A. Ford Ramsey & Barry Goodwin & Mildred Haley, 2021. "Labor Dynamics and Supply Chain Disruption in Food Manufacturing," NBER Chapters, in: Risks in Agricultural Supply Chains, National Bureau of Economic Research, Inc.
    3. Reardon, Thomas & Vos, Rob, 2022. "How resilience innovations in food supply chains are revolutionizing logistics, wholesale trade, and farm services in developing countries," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association, vol. 26(3), November.
    4. Palatnik, Ruslana Rachel & Freer, Mikhail & Levin, Mark & Golberg, Alexander & Zilberman, David, 2023. "Algae-Based Two-Stage Supply Chain with Co-Products," Ecological Economics, Elsevier, vol. 207(C).
    5. Schipmann, Christin & Qaim, Matin, 2011. "Modern food retailers and traditional markets in developing countries: Comparing quality, prices, and competition strategies in Thailand," GlobalFood Discussion Papers 108348, Georg-August-Universitaet Goettingen, GlobalFood, Department of Agricultural Economics and Rural Development.
    6. Thomas Reardon & Amir Heiman & Liang Lu & Chandra S.R. Nuthalapati & Rob Vos & David Zilberman, 2021. "“Pivoting” by food industry firms to cope with COVID‐19 in developing regions: E‐commerce and “copivoting” delivery intermediaries," Agricultural Economics, International Association of Agricultural Economists, vol. 52(3), pages 459-475, May.
    7. Liang Lu & Ruby Nguyen & Md Mamunur Rahman & Jason Winfree, 2021. "Demand Shocks and Supply Chain Resilience: An Agent-Based Modeling Approach and Application to the Potato Supply Chain," NBER Chapters, in: Risks in Agricultural Supply Chains, pages 107-132, National Bureau of Economic Research, Inc.
    8. Bellemare, Marc F. & Lee, Yu Na & Novak, Lindsey, 2021. "Contract farming as partial insurance," World Development, Elsevier, vol. 140(C).
    9. Umakanta Mishra & Abu Hashan Md Mashud & Ming-Lang Tseng & Jei-Zheng Wu, 2021. "Optimizing a Sustainable Supply Chain Inventory Model for Controllable Deterioration and Emission Rates in a Greenhouse Farm," Mathematics, MDPI, vol. 9(5), pages 1-23, February.
    10. Gómez, Miguel I. & Ricketts, Katie D., 2013. "Food value chain transformations in developing countries: Selected hypotheses on nutritional implications," Food Policy, Elsevier, vol. 42(C), pages 139-150.
    11. David Tschirley & Thomas Reardon & Michael Dolislager & Jason Snyder, 2015. "The Rise of a Middle Class in East and Southern Africa: Implications for Food System Transformation," Journal of International Development, John Wiley & Sons, Ltd., vol. 27(5), pages 628-646, July.
    12. Johan Swinnen & Alessandro Olper & Senne Vandevelde, 2021. "From unfair prices to unfair trading practices: Political economy, value chains and 21st century agri‐food policy," Agricultural Economics, International Association of Agricultural Economists, vol. 52(5), pages 771-788, September.
    13. Quentin Stoeffler & Michael Carter & Catherine Guirkinger & Wouter Gelade, 2022. "The Spillover Impact of Index Insurance on Agricultural Investment by Cotton Farmers in Burkina Faso," The World Bank Economic Review, World Bank, vol. 36(1), pages 114-140.
    14. Chandra S. R. Nuthalapati & Chaitanya Nuthalapati, 2021. "Has Open Innovation Taken Root in India? Evidence from Startups Working in Food Value Chains," Circular Economy and Sustainability, Springer, vol. 1(4), pages 1207-1230, December.
    15. Dániel Fróna & János Szenderák & Mónika Harangi-Rákos, 2019. "The Challenge of Feeding the World," Sustainability, MDPI, vol. 11(20), pages 1-18, October.
    16. Agarwal, Manoj K. & Frambach, Ruud T. & Stremersch, Stefan, 2000. "Does size matter? : disentangling consumers' bundling preferences," Serie Research Memoranda 0033, VU University Amsterdam, Faculty of Economics, Business Administration and Econometrics.
    17. Sheng, Shibin & Pan, Yue, 2009. "Bundling as a new product introduction strategy: The role of brand image and bundle features," Journal of Retailing and Consumer Services, Elsevier, vol. 16(5), pages 367-376.
    18. Mohd Fahmi Bin Mad Ali & Mohd Khairol Anuar Bin Mohd Ariffin & Aidin Delgoshaei & Faizal Bin Mustapha & Eris Elianddy Bin Supeni, 2023. "A Comprehensive 3-Phase Framework for Determining the Customer’s Product Usage in a Food Supply Chain," Mathematics, MDPI, vol. 11(5), pages 1-20, February.
    19. Zhou, Wei & Zhang, Keang & Zhang, Ying & Duan, Yunlong, 2021. "Operation strategies with respect to insurance subsidy optimization for online retailers dealing with large items," International Journal of Production Economics, Elsevier, vol. 232(C).
    20. César Salazar & Andrés Acuña‐Duarte & José Maria Gil, 2023. "Drought shocks and price adjustments in local food markets in Chile: Do product quality and marketing channel matter?," Agricultural Economics, International Association of Agricultural Economists, vol. 54(3), pages 349-363, May.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:wly:apecpp:v:43:y:2021:i:4:p:1243-1259. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Wiley Content Delivery (email available below). General contact details of provider: https://doi.org/10.1002/(ISSN)2040-5804 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.