IDEAS home Printed from https://ideas.repec.org/p/ift/wpaper/2263.html
   My bibliography  Save this paper

E-Commerce, and the Indian Retail and Manufacturing Sectors - An Empirical Analysis with a Special Focus on Organised Sector MSMEs

Author

Listed:
  • Nibha Bharti

    (Indian Institute of Foreign Trade (IIFT), New Delhi)

  • Sugandha Huria

    (Indian Institute of Foreign Trade (IIFT), New Delhi)

  • Ashley Jose

    (Indian Institute of Foreign Trade (IIFT), New Delhi)

  • Kanika Pathania

    (Indian Institute of Foreign Trade (IIFT), New Delhi)

Abstract

The sudden boom in the e-commerce sector (due to its key players) has been questioned in several economies in the world, particularly so in India. The country’s Traders associations have complained that the sector has been growing at the expense of the offline retail sector, primarily the MSMEs. In this context, this study is one of the first attempts to analytically evaluate the significance of booming online retail on India’s production economy (including both manufacturing and retail segments). The results indicate while e-commerce has assumed a significant role in positively impacting the sales of the overall retail and manufacturing sector of the country (on average) during the period 1992-2020, the same does not hold true for its MSMEs. The impact on MSMEs has been positive, though not significant – indicating the untapped potential of the MSMEs to take advantage of the growing online commerce. Similar results hold true for the overall retail and MSME retail when it comes to their GVC intensity. The findings advocate re-considering the country’s e-commerce policy, which is still in its draft stage presently.

Suggested Citation

  • Nibha Bharti & Sugandha Huria & Ashley Jose & Kanika Pathania, 2022. "E-Commerce, and the Indian Retail and Manufacturing Sectors - An Empirical Analysis with a Special Focus on Organised Sector MSMEs," Working Papers 2263, Indian Institute of Foreign Trade.
    • Handle: RePEc:ift:wpaper:2263
    as

    Download full text from publisher

    File URL: ftp://203.190.248.10/RePEc/ift/workingpapers/EC-22-63.pdf
    File Function: First version, 2022
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Ratchford, Brian & Soysal, Gonca & Zentner, Alejandro & Gauri, Dinesh K., 2022. "Online and offline retailing: What we know and directions for future research," Journal of Retailing, Elsevier, vol. 98(1), pages 152-177.
    2. Deleersnyder, B. & Geyskens, I. & Gielens, K.J.P. & Dekimpe, M.G., 2002. "How cannibalistic is the internet channel? A study of the newspaper industry in the United Kingdom and the Netherlands," Other publications TiSEM 16dcb25c-7ea9-4c75-bdf6-5, Tilburg University, School of Economics and Management.
    3. Andrea Pozzi, 2013. "The effect of Internet distribution on brick-and-mortar sales," RAND Journal of Economics, RAND Corporation, vol. 44(3), pages 569-583, September.
    4. Lanz, Rainer & Lundquist, Kathryn & Mansio, Grégoire & Maurer, Andreas & Teh, Robert, 2018. "E-commerce and developing country-SME participation in global value chains," WTO Staff Working Papers ERSD-2018-13, World Trade Organization (WTO), Economic Research and Statistics Division.
    Full references (including those not matched with items on IDEAS)

    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. Melis, Kristina & Campo, Katia & Lamey, Lien & Breugelmans, Els, 2016. "A Bigger Slice of the Multichannel Grocery Pie: When Does Consumers’ Online Channel Use Expand Retailers’ Share of Wallet?," Journal of Retailing, Elsevier, vol. 92(3), pages 268-286.
    2. van Heerde, Harald J. & Dinner, Isaac M. & Neslin, Scott A., 2019. "Engaging the unengaged customer: The value of a retailer mobile app," International Journal of Research in Marketing, Elsevier, vol. 36(3), pages 420-438.
    3. Gebhardt, Georg, 2018. "Measuring the competitive impact of the internet: Evidence from a natural experiment in broadband access," International Journal of Industrial Organization, Elsevier, vol. 57(C), pages 84-113.
    4. Peng Vincent Zhang & Seoyoung Kim & Anindita Chakravarty, 2023. "Influence of pull marketing actions on marketing action effectiveness of multichannel firms: A meta-analysis," Journal of the Academy of Marketing Science, Springer, vol. 51(2), pages 310-333, March.
    5. Gonca Soysal & Lakshman Krishnamurthi, 2016. "How Does Adoption of the Outlet Channel Impact Customers’ Spending in the Retail Stores: Conflict or Synergy?," Management Science, INFORMS, vol. 62(9), pages 2692-2704, September.
    6. Ratchford, Brian & Soysal, Gonca & Zentner, Alejandro & Gauri, Dinesh K., 2022. "Online and offline retailing: What we know and directions for future research," Journal of Retailing, Elsevier, vol. 98(1), pages 152-177.
    7. Timoumi, Ahmed & Gangwar, Manish & Mantrala, Murali K., 2022. "Cross-channel effects of omnichannel retail marketing strategies: A review of extant data-driven research," Journal of Retailing, Elsevier, vol. 98(1), pages 133-151.
    8. Donna, Javier D. & Pereira, Pedro & Trindade, Andre & Yoshida, Renan C., 2020. "Direct-to-Consumer Sales by Manufacturers and Bargaining," MPRA Paper 105773, University Library of Munich, Germany.
    9. Neslin, Scott A., 2022. "The omnichannel continuum: Integrating online and offline channels along the customer journey," Journal of Retailing, Elsevier, vol. 98(1), pages 111-132.
    10. Kumar, V. & Sunder, Sarang & Sharma, Amalesh, 2015. "Leveraging Distribution to Maximize Firm Performance in Emerging Markets," Journal of Retailing, Elsevier, vol. 91(4), pages 627-643.
    11. Kinshuk Jerath & Anuj Kumar & Serguei Netessine, 2015. "An Information Stock Model of Customer Behavior in Multichannel Customer Support Services," Manufacturing & Service Operations Management, INFORMS, vol. 17(3), pages 368-383, July.
    12. Auktor, Georgeta Vidican, 2022. "The opportunities and challenges of Industry 4.0 for industrial development: A case study of Morocco's automotive and garment sectors," IDOS Discussion Papers 2/2022, German Institute of Development and Sustainability (IDOS).
    13. Anuj Kumar & Rahul Telang, 2012. "Does the Web Reduce Customer Service Cost? Empirical Evidence from a Call Center," Information Systems Research, INFORMS, vol. 23(3-part-1), pages 721-737, September.
    14. Marion Debruyne & David J. Reibstein, 2005. "Competitor See, Competitor Do: Incumbent Entry in New Market Niches," Marketing Science, INFORMS, vol. 24(1), pages 55-66, December.
    15. Sharma, Dheeraj, 2016. "An Exploratory Investigation of Impact of Perceived Cannibalization on Salesperson’s Trust, Commitment, Job Satisfaction, Job Performance and Relational Capital," IIMA Working Papers WP2016-03-39, Indian Institute of Management Ahmedabad, Research and Publication Department.
    16. Emrich, Oliver & Paul, Michael & Rudolph, Thomas, 2015. "Shopping Benefits of Multichannel Assortment Integration and the Moderating Role of Retailer Type," Journal of Retailing, Elsevier, vol. 91(2), pages 326-342.
    17. Filistrucchi, L. & Gerardin, D. & van Damme, E.E.C. & Keunen, S. & Klein, T.J. & Michielsen, T.O. & Wileur, J., 2010. "Mergers in Two-Sided Markets - A Report to the NMa," Other publications TiSEM f901d1fe-8878-444e-a685-8, Tilburg University, School of Economics and Management.
    18. Schulz, Petra & Shehu, Edlira & Clement, Michel, 2019. "When consumers can return digital products: Influence of firm- and consumer-induced communication on the returns and profitability of news articles," International Journal of Research in Marketing, Elsevier, vol. 36(3), pages 454-470.
    19. Arnaud Riviere & Rémi Mencarelli & Bertrand Belvaux & Jessie Pallud, 2016. "Channel proliferation and perceived value of the digital offer in the newspaper industry: a complementary effect? [Multiplication des canaux et valeur perçue de l’offre digitale dans la presse écri," Post-Print hal-01591784, HAL.
    20. Alberto Sa Vinhas & Sharmila Chatterjee & Shantanu Dutta & Adam Fein & Joseph Lajos & Scott Neslin & Lisa Scheer & William Ross & Qiong Wang, 2010. "Channel design, coordination, and performance: Future research directions," Marketing Letters, Springer, vol. 21(3), pages 223-237, September.

    More about this item

    Keywords

    E-commerce; India; Retail Sector; Manufacturing Sector; MSMEs;
    All these keywords.

    JEL classification:

    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business
    • L86 - Industrial Organization - - Industry Studies: Services - - - Information and Internet Services; Computer Software
    • D22 - Microeconomics - - Production and Organizations - - - Firm Behavior: Empirical Analysis

    NEP fields

    This paper has been announced in the following NEP Reports:

    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:ift:wpaper:2263. 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: S. Balasubramanian (email available below). General contact details of provider: https://edirc.repec.org/data/iifttin.html .

    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.