Paper word count about 6000 words
Please see abstract below
This study aims to investigate how innovations systems in various economies influence Ecommerce capacity. Policymakers are planning for innovation system uptake policies that may have also a significant effect on Ecommerce. Should policymakers have to consider the enabling side effects and the impact assessment derived from innovation systems, when they design Ecommerce policies? The study uses a quantitative approach to evaluate the innovation enabling factors for Ecommerce advancement. It uses open data from the Global Innovation Index related to innovation metrics and Ecommerce data from World Bank for one hundred and twenty-six countries over ten-years. The innovation system factors institutions, human capital, infrastructure, market sophistication, knowledge and creative outputs construct the set of independent variables evaluated against the dependent variable, which is Ecommerce capacity. The study uses structural equation modeling and confirmatory factor analysis to investigate the relationship between innovation system factors and Ecommerce. The results show human capital, and market sophistication are significant enabling factors to Ecommerce, when innovation system policies are applied. Also infrastructure and information-communication technology are important factors in advancing the Ecommerce capacity. This work recommends that policy makers should assess the impact of existing innovation policies related to human capital empowerment and market sophistication on Ecommerce capacity.
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