The impact of risks in limiting E-commerce

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Abstract

Most E-commerce transactions nowadays are electronically executed via well-known internet websites (Amazon, Alibaba, eBay, and others). Online sales in the Middle East, including Jordan, are estimated to count 2% of the overall retail sales, that is too much lower than the 15% in developed markets (Mehta & Bhandari, n.d.); and online sales in Jordan are still limited (Statista, 2020). Therefore, this study comes to determine the threats limiting E commerce in Jordan. The services sector accounts for about two thirds of the Jordanian economy and the insurance sector is considered an important component of it (Ghazal, 2015). The problem is to what extent threats from risks accompanied with E-commerce limit it from the viewpoint of Jordanian insurance companies’ employees. Five (5) insurance companies out of twenty-five (25) are randomly selected for analysis and a questionnaire is conducted according to a psychometric method for data collection. The results show that perceived ease of use, perceived usefulness, and perceived risk with products/services are the main effective factors for predicting transaction loss, while delay time is significantly affected by perceived ease of use and perceived risk with product/service. Policymakers can rely on the results of this study to avoid the risks facing online shopping in Jordan and enhancing it. This study contributes to the literature by reducing the dearth of previous research regarding the determinants of threats and risks limiting online shopping and E-commerce in emerging markets.

Keywords: E-commerce, Insurance Companies, Perceived Risk, Transaction Loss, Perceived Usefulness, Jordan

Authors’ individual contribution: Conceptualization — W.A.S. and M.E.; Methodology — M.A.S. and M.E.; Formal Analysis — W.A.S. and M.E.; Resources — M.E.; Writing — Original Draft — M.E.; Writing — Review & Editing — W.A.S.; Supervision — W.A.S.; Project Administration — W.A.S.

Declaration of conflicting interests: The Authors declare that there is no conflict of interest.

JEL Classification: G22, G32, G52, M31

Received: 04.06.2021
Accepted: 31.08.2021
Published online: 02.09.2021

How to cite this paper: Al Salamat, W., & Elian, M. (2021). The impact of risks in limiting E-commerce. Journal of Governance & Regulation, 10(4), 27–39. https://doi.org/10.22495/jgrv10i4art3