Title: The promise of e-business for less developed countries (LDCs)

Authors: Sagren Moodley

Addresses: Industrial Restructuring Project, School of Development Studies, University of Natal, Durban 4041, Republic of South Africa

Abstract: Industrial development options for less developed countries (LDCs) hinge increasingly on leveraging e-business as a means of promoting upgrading within global value chains. E-business represents a major opportunity for third world companies (TWCs) that can access and use it effectively and a threat to those companies that cannot. E-business holds great promise for TWCs in four key areas: leveraging the potential productivity gains from internet-based B2B e-commerce; maximising operating synergies; exploiting systemic efficiencies; and connecting and deepening links to global production and trade networks. By not making the transition to e-business, TWCs may be placing themselves at risk of becoming less competitive in the globally interconnected market, impacting on both their current market positions and long-term viability. The concordant effects of marginalisation and exclusion are likely to be a combination of: deepening poverty; high unemployment; widening inequality; a weak and rapidly eroding export base and low and even negative growth rates.

Keywords: e-business; developing countries; internet; B2B e-commerce; industrial development; third world.

DOI: 10.1504/IJEB.2003.002165

International Journal of Electronic Business, 2003 Vol.1 No.1, pp.53-68

Published online: 21 Jul 2003 *

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