Understanding electronic commerce from a historical perspective

The aim of this paper is to examine the macro-level phenomena associated with electronic commerce (EC), and it is mainly being informed by a study of the history of commerce. Commerce in its modem form first appeared in early 13th century in Italy where the political conditions were conducive for it. Trade facilitated the exchange of goods, thereby enhancing the efficiency between production and consumption. Even more important than this was its role in the creation of many modem business practices and institutions. Trade also raised the level of human capital, and promoted the spread of ideas and information, and with them people’s attitudes and modes of behaviour. Traders formed an important source of information for military conquerors like Genghis Khan. The current historical context favorable to EC is globalization. The emergence of network organizations has provided many of the practices supporting business-to-business electronic commerce. EC holds the potential to reduce time and transaction costs. However, the most profound implications of EC are likely to be beyond this; they are likely to be at the macro-level or socio-institutional level. Some implications are already around while others are in the process of formation. History also suggests that there is a need to pay due attention to intervention at the socio-institutional level in order