The Influence Of Institutions On The Diffusion Of E-Commerce In Barbados

1. The Influence Of Institutions On The Diffusion Of E-Commerce In Barbados Alemayehu Molla RMIT University, Melbourne, Australia Rodney Taylor Government of Barbados Paul S. Licker University of Oakland, Rochester, MI, USA Presented at the 7th Annual Global Information Technology Management Association Conference, Orlando, FL, USA, June 2006 GITMA 2006

2. Agenda • The Nature of the Problem • Something about Barbados • Institutional Theory • The Story • Conclusions, Results and Recommendations GITMA 2006

3. The Nature of the Problem • E-commerce, like other forms of IT, holds out the promise of betterment of developing nations. [This is an arguable statement, however] • Diffusion and adoption of E-commerce has certain impediments, especially in developing countries. • Institutions may play a role in diffusion and adoption of e-commerce in these countries GITMA 2006

4. Questions • Uncertainty about impact, capacity and policy issues that innovations like EC raise for developing countries’ economies. • What is the best approach to facilitate the spread of EC? • What about influence of isolation and large neighbour? GITMA 2006

5. Institutional Activity Capacity for Understanding And Adaptation Economic Factors Extent of Dislocation (-) Availability Of Knowledge The Problem, Graphically Diffusion of Techno- logical Innovation GITMA 2006

6. Something About Barbados • Is an Island Country – hence is isolated • Is a Developing Country – hence is less economically well off • Is in the Caribbean – hence is influenced by the US  • Is a former British colony – hence is a place where one can get a good afternoon tea.  GITMA 2006

7. Institutional Intervention Research at Universities, eg. Awareness Campaigns Supply Push Demand Pull Influence Knowledge Building Knowledge Deploy Subsidy Innovation Directive Knowledge Deploy Subsidy Mobilization Education, Training Bringing order to “chaos” Financial Support I II III IV Regulation Knowledge Deploy Subsidy Standard Setting Innovation Directive Subsidy Standard Setting Innovation Directive Motivation, argumentation Use of IT by Gov’t, eg. Rules, commands Creating Demand for IT GITMA 2006 Creating Supply of IT

8. The Research • Data collected by personal interviews with key informants: • Centre for Institutional Services UWI (CSI) • CARICOM Regional Negotiating Machinery • Ministry of Commerce • Private Sector Trade Team • Ministry of Education • Two private consultancies • Consulted policy documents, meeting minutes and CARICOM publications GITMA 2006

9. The Story 3 Top-down planning 4 Integration & Coordination 1 Awareness 2 Reaction KD: MOE scholarships; MOC collects data on EC; SS: CIS creates guidelines for EC in CARICOM Knowledge deployment Knowledge Building Standard setting Mobilization Knowledge Building Standard Setting Knowledge Building Subsidy Knowledge Building Standard setting Innov’n Directive Mob: Free Trade Area of the Americas (1994; 1999) KB: BCC, UWI, Nat’l Council on Sci. & Tech Inn. Direct: E-gov’t (2001); SS: Electronic Transactions Act KB: MOC seminars with NCS and CIS; CARICOM e-readiness survey; CS grads from UWI SS: Prime Minister’s initiative (2000); Green Paper on Telcoms (2000); KB: CIS; Sub: $5M innovation fund GITMA 2006

10. Details of Institutional Actions and Impact on E-Commerce in Barbados GITMA 2006

11. Conclusions, Results • Regional, Governmental, Academic and private institutions have played key roles in the development of EC in Barbados • Government should be a model user, but is not yet • Telcom costs are still high; broadband may be economically unfeasible. • Banks seem reluctant; consumers may also lack interest for “online goods.” • Limited credit card security, privacy concerns GITMA 2006

12. Conclusion • To what extent will entrepreneurs take advantage of top-down activities, expand their marketing reach and drive development from the bottom up. • This question of transference is difficult and ubiquitous. GITMA 2006