 Global e-business: firm size, credibility and desirable modes of paymentXia Pan, Angappa Gunasekaran and Ronald E. McGaughey International Journal of Business Information Systems, 2006, vol. 1, issue 4, 426-438 Abstract: This paper explores the impact of company size on an important financial consideration affecting the decision to adopt e-business in international trade. We assert that firm size will influence the choice of payment method in global e-commerce. When a Letter of Credit (L/C) is used among global supply chain partners in the e-business setting, payment flows will move faster than the physical flow of products. This asymmetric speed is not preferable for importers, particularly small importers. In this case, the diffusion of e-business adoption will likely be upstream rather than down. We predict that the usance Letter of Credit and usance L/C payable at sight will become more popular as payment modes in global e-business, particularly for Small- to Medium-size Enterprises (SMEs). New ICC regulations for e-business, if actually implemented, will likely popularise a payment mode similar to the current usance Letter of Credit. Keywords: international trade; payment methods; payment credibility; e-business; electronic business; international supply chain; firm size; supply chain management; SCM; globalisation; SMEs. (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:ids:ijbisy:v:1:y:2006:i:4:p:426-438 Access Statistics for this article More articles in International Journal of Business Information Systems from Inderscience Enterprises Ltd |
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