Cross Border E-commerce,and Main Implementation Determinants Among Enterprises In Mongolia

Technology has disrupted international trade by bringing countries together into an interconnected global economy.Despite custom duties and barriers,cross border ecommerce continues to grow in every part of the world.It increasingly offers new growth opportunities to developing economies,and even to landlocked countries such as Mongolia which face difficulty with access to the world markets.Mongolian economy heavily relies on its mineral resources and is very sensitive to mineral price fluctuations in world markets.In fact,in the past few years,sudden drops in the price of minerals led Mongolia into an economic crisis and has therefore recently forced the country to shift away its focus from mining industry in order to strengthen other sectors to support the economy.Mongolian enterprises are now eager to expand their business scope and raise their competitiveness in the world trade by leveraging an access to enter international markets through the implementation of cross border e-commerce.Understanding the business interests and the economy as a whole is an essential process to assess the obstacles and the potential of cross border ecommerce.It is in fact crucial,to identify the development stage of cross border e-commerce,to study its main predictors and factors that are influencing the enterprise' decision to implement cross border e-commerce.In this paper,we developed and tested an integrated model of e-commerce implementation,on the basis of “New” new trade model combining the original Technology,Organization and Environment framework(TOE)with Transaction Cost theory as an additional factor,and we finally constructed a conceptual model to test the main predictors of cross border ecommerce implementation.Based on the conceptual model,hypothesis put forward and administrative stakeholders in Mongolian enterprises were interviewed,and filled out online questionnaires.First of all,the main data used in this empirical study was collected by the means of an online questionnaire.We then tested the validity and reliability of its data and conducted the empirical study.Using Cluster Analysis,we divided the sample into two groups based on their level of cross border e-commerce development and ran a logistic regression to test the fitness of the conceptual model and to study the main predictors of e-commerce implementation.The key findings in this study are:Technology factors including perceived usefulness and technology readiness are positively,and perceived risk is negatively,influencing the developments of advanced cross border e-commerce implementation,whereas Organizational factor of scope of business impacted e-commerce implementation positively.Environmental factors including government regulatory support,trade partner readiness have also shown a positive impact.Transaction cost factor,cross border e-commerce pose impact of reducing both internal and external transaction costs.This is the first empirical study of cross border e-commerce implementation predictors in Mongolia,and stated the importance of strategic benefits,government support,technology resources in cross border e-commerce implementation.In addition,we provided suggestions for further investigation and cross border e-commerce development in Mongolia.