Electronic Commerce Adoption through Social Commerce:

A Literature Review

Isaac Kofi Mensah

and Deborah Simon Mwakapesa

School of Economics and Management, Jiangxi University of Sciece and Technology, Ganzhou, China

School of Civil and Surveying Engineering, Jiangxi University of Scieence and Technoglogy, Ganzhou, China

Keywords: e-Commerce, Social Commerce, Literature Review, Behavioural Adoption.

Abstract: This paper conducted a literature review on the adoption of e-commerce adoption through social commerce.

The factors driving the adoption of social commerce is very important since it provides the needed

background information for policymakers to help regulate the e-commerce and social commerce industry.

Technology adoption theories were also reviewed. Some of the adoption theories or models used to explain

the adoption of e-commerce and social commerce among users are Diffusion of Innovation (DOI),

Technology Acceptance Model (TAM), Theory of Reason Action (TRA), Technology, Organizational, and

Environment (TOE), Theory of Planned Behavior (TPB), Unified Theory of Acceptance and Use of

Technology (UTAUT). These theories are vital in understanding the reasons accounting for the uptake of

social commerce.

1 INTRODUCTION

The era of social commerce has come to stay due to

the thriving presence of social media systems. The

increasing use of social commerce is also hinged on

the increase in the number of social media users

across the world. Social commerce is considered an

extension of electronic commerce (e-commerce).

Social commerce is defined as an e-commerce site

that is integrated with social media and web 2.0

technology to empower purchase online and

interactions with consumers before, during, and after

the transaction process (Hossain & Kim, 2020;

Meilatinova, 2021).

The objective of this study is to undertake a

literature review of e-commerce adoption via social

commerce system. Social commerce is a new

system that is driving the major shift in the e-

commerce structure and systems. It has brought a

new impetus and life into the traditional concept of

e-commerce. It provides wider integration of users

into the e-commerce concept through the good

environment of social media. This literature review

does will provides some ideas into the drivers of e-

commerce adoption through social commerce.

The rest of the paper is prepared in the order as

follows: a literature review that looks at e-commerce,

social commerce, information technology adoption

theories, and recent studies on e-commerce and

social commerce. This is followed by discussions and

conclusions.

2 LITERATURE REVIEW

2.1 e-Commerce

The introduction of technology-related applications

in the buying and selling of goods and services is

termed e-commerce. It is defined as the use of

internet-enabled technology to drive the exchange of

product, order, payment, and shipping information

during a business transaction process (Mangiaracina,

Perego, Seghezzi, & Tumino, 2019; Visser &

Lanzendorf, 2004; Zeng, Jia, Wan, & Guo, 2017).

E-commerce can be classified into forms such as

business to business (B2B), consumer to consumer

(C2C), and business to consumer (B2C) e-commerce

transactions (Salsabila & Saraswati, 2021; Visser &

Lanzendorf, 2004).

E-commerce can drive diverse effects in the

supply chain processes: access to information of

many other actors in the chain, shopping and

associated travel consumer behavior, activity

patterns and related travel consumer behavior,

residential and work location choices of consumers,

Mensah, I. and Mwakapesa, D.

Electronic Commerce Adoption through Social Commerce: A Literature Review.

DOI: 10.5220/0010828300003168

In Proceedings of the 1st International Conference on Finance, Information Technology and Management (ICFITM 2021), pages 16-22

ISBN: 978-989-758-576-0

the volume and nature of consumer demand and the

spatial patters of distribution systems (Giuffrida,

Mangiaracina, Perego, & Tumino, 2017; Visser &

Lanzendorf, 2004). A framework of the impact of e-

commerce B2C transactions on mobility and

accessibility is displayed in Fig. 1.

Figure 1: A framework of the impact of B2C e-commerce

transactions mobility and accessibility (Visser &

Lanzendorf, 2004).

Some constraints prevent successful e-commerce

transactions, especially from B2C e-commerce.

These constraints can be put into social and

economic factors which relate to issues such as

motivation, attitudes, and features of consumers and

data needed for shopping online (Kumar & Kaur,

2021; Visser & Lanzendorf, 2004).

The social constraints dimension is associated

with consumers’ ability to participate in e-

commerce transactions (B2C) and the elements

driving the readiness to undertake e-commerce

activities. As well widely known e-commerce

transaction is dependent on quality availability of

internet access both at home and that the workplace.

This may be a challenge for areas with less internet

connectivity. The constraints are this stage could be

technical, educational, financial, and spatial in form

(Visser & Lanzendorf, 2004; Wang, Yu, & Jin,

2019). Issues of security in payment over the virtual

environment are a type of technical constraint. In

addition, without adequate education (literacy)

among the people, the ability of users to operate e-

commerce equipment and services will be a major

challenge. Also, the financial constraints in e-

commerce are associated with buying and

maintaining equipment (e.g. anti-virus software),

cost of internet subscription and access, and

payment of yearly fees and income for the

acquisition of credit card systems (Khosla &

Kumar, 2017; Visser & Lanzendorf, 2004). The

spatial constraints have to do with the availability

and quality of virtual infrastructure and education

(Visser & Lanzendorf, 2004). For instance, age can

be a constraint when it comes to the adoption of e-

commerce activities, especially between the

younger and older generation. Younger ones are

term to be very active as compared to the aged ones

when it to comes interaction through the internet.

The second set of constraints concerns the

economic perspective in terms of the kind of product

provided on the internet amid the potential of e-

commerce to reduce transactional cost

(Mangiaracina et al., 2019; Visser & Lanzendorf,

2004). The idea is that e-commerce transactions

(B2C) empower both the buyer and seller to

undertake business transactions more effectively and

efficiently resulting in better outcomes at the lowest

cost (Giuffrida et al., 2017; Mangiaracina et al.,

2019; Visser & Lanzendorf, 2004).

2.2 Social Commerce

Social commerce is viewed as a sub-domain of e-

commerce. The popularity of social commerce can

be attributed to the constant rise in Facebook and

other social media systems which are making people

spend more time interacting on social media (Linda,

2010; Salvatori & Marcantoni, 2015). It can be

distilled into two components such as social media

and commercial activities (Liang, Ho, Li, & Turban,

2011; Zaglia, 2013). Social commerce is defined as

an internet-powered social media that drives

people/users to engage in the selling and marketing

of products and services in virtual

society/community and market areas (Lin, Li, &

Wang, 2017; Stephen & Toubia, 2010). It can also

be explained as the promotion and execution of e-

commerce transactions via social media and web 2.0

software(Han, Xu, & Chen, 2018; Sivaji, Downe,

Mazlan, Soo, & Abdullah, 2011). Social commerce

developed via two dimensions of mass

communication that ensures that sharing of products

or information is communicated directly between the

mass media and the consumers and the word of

mouth communication enabled between consumers

(Ho-Jung & Cho, 2016; Yahia, Al-Neama, &

Kerbache, 2018). Two kinds of social commerce

have been projected: a) social networking sites that

incorporate commercial features to allow

transactions and advertisements and b) traditional e-

commerce websites that add social tools to facilitate

social interaction and sharing (Huang & Benyoucef,

2013; Lin et al., 2017).

The phenomenon of social media in e-commerce

provides the foundation for empowering both

Electronic Commerce Adoption through Social Commerce: A Literature Review

businesses and consumers. For firms and businesses,

they can acquire more profit through good

recommendations by clients or consumers of its

brand or services which attract new consumers to the

company (Lin, Wang, & Hajli, 2019; Schaupp &

Bélanger, 2019). On the other hand, consumers are

enriched with sufficient and succinct knowledge and

expertise to make informed decisions about products

and services (Chen & Shen, 2015; Kim & Park,

2013).

Some characteristics of social commerce (web

2.0) (Linda, 2010) are:

·Harnessing collective intelligence: it provides a

competitive advantage of social commerce systems

(web 2.0) due to the presence of huge sellers and

buyers.

· Architecture participation: based on social

commerce web computing technology, it makes use

of algorithmic data management and customer-self

entered services that can spread through the whole

internet.

·Viral marketing: Social commerce through web

2.0 is depends on word-of-mouth marketing

interaction. This empowers consumers to advocate

and promote their services/products through the

sharing of their experience with such services. This

can form a form of lasting (longer) consumer

relationship and deeper attraction.

·Market disruption: Social commerce via web 2.0

creates a difference in reaching out to consumers

and business clients alike and thus can contribute to

businesses to generate more profits.

Based on the huge reliance of social commerce on

friends/family/acquaintances recommendations, the issue

of trust is very vital. Thus a synergy effect is developed

through the combination of mobile-based interactivity

like smartphones and social media and hear-say (Ho-

Jung & Cho, 2016; Yahia et al., 2018). The success of

social commerce is thus dependent on factors such as

credibility, product power, brand awareness, number of

members, and contents (Chang & Li, 2019; Ho-Jung &

Cho, 2016). It is a business concept/model that cannot

survive without an adequate component of trust and

credibility (Ho-Jung & Cho, 2016; Sharma, Menard, &

Mutchler, 2019).

2.3 Second Section Information

Technology Adoption Theories

There are several information systems adoption

models and theories are used to explain the factors

driving the use of information technology systems.

The many models are vital since no single can provide

all the elements that can drive the understanding of

enabling the adoption of innovation systems (Gangwar,

Date, & Raoot, 2014; Straub, 2009). Some of these

theories/models are The technology acceptance model

(TAM) (Davis, 1989; Davis, Bagozzi, & Warshaw,

1989), theory of planned behavior (TPB) (Ajzen, 1991),

Diffusion of innovation (DOI) (Rogers, 2003), unified

theory of acceptance and use of technology (UTAUT)

(Venkatesh, Morris, Davis, & Davis, 2003), Theory of

Reason Action (TRA) (Fishbein & Ajzen, 1977) and the

Technology, Organizational and Environment (TOE)

(Tornatzky, Fleischer, & Chakrabarti, 1990).

The various technology adoption models and

their major constructs are represented in the figures

below:

2.3.1 Diffusion of Innovation (DOI)

Figure 2: Diffusion of Innovation (DOI).

2.3.2 Technology Acceptance Model (TAM)

Figure 3: Technology Acceptance Model (TAM).

2.3.3 Theory of Reason Action (TRA)

Figure 4: Theory of Reason Action (Fishbein & Ajzen,

1977).

ICFITM 2021 - INTERNATIONAL CONFERENCE ON FINANCE, INFORMATION TECHNOLOGY AND MANAGEMENT

2.3.4 Technology, Organizational, and

Environment (TOE)

Figure 5: TOE framework.

2.3.5 Theory of Planned Behavior (TPB)

Figure 6: Theory of Planned Behavior (Adjzen & Fishbein,

1980).

2.3.6 UTAUT

Equations should be placed on a separate line,

numbered and centered. An extra line space should a

table with two columns is advisable.

Figure 7: UTAUT (Venkatesh et al., 2003).

These theories have been applied in various contexts

to provide useful illustrations of drivers for the use

of information technology systems. It has been

applied in areas such as e-commerce (Chandra &

Kumar, 2018; Ocloo, Xuhua, Akaba, Shi, &

Worwui-Brown, 2020), social commerce

(Handarkho, 2020; Sarker, Hughes, & Dwivedi,

2020; Williams, 2021), e-learning/education(Al-

Emran & Teo, 2020; Al Kurdi, Alshurideh, &

Salloum, 2020), e-tourism (Loc, Tuan, Dat, & Liem,

2020; Vila, González, Vila, & Brea, 2021), social

media(Al-Qaysi, Mohamad-Nordin, & Al-Emran,

2020; Salloum, AlAhbabi, Habes, Aburayya, &

Akour, 2021), marketing (Misganaw & Singh, 2020;

Mooya & Phiri, 2021) and mobile banking (Ho, Wu,

Lee, & Pham, 2020; Owusu, Bekoe, Addo-Yobo, &

Otieku, 2021). These studies cited above do

demonstrate that these theories and models are still

relevant especially in the context of providing

policymakers and practitioners with the needed

guidelines to regulate and promote the adoption of

new forms of technology innovations.

3 RECENT E-COMMERCE AND

SOCIAL COMMERCE

ADOPTION STUDIES

In a study that sought to determine the dividends that

farmers get from e-commerce adoption in the

context of China, it was revealed that e-commerce

adopters had higher incomes than non-adopters (X.

Li, Guo, Jin, Ma, & Zeng, 2021). The large income

was attributed to increasing sales volumes (X. Li et

al., 2021). Another study that analyzed the influence

Electronic Commerce Adoption through Social Commerce: A Literature Review

of market orientation with e-commerce adoption

towards SMES’s business performance found out

that there was a significant interaction between

entrepreneurial orientation, market orientation, and

e-commerce adoption (Octavia, Indrawijaya,

Sriayudha, & Hasbullah, 2020). In efforts to

understand the extent of vegetable e-commerce

adoption, it was discovered that factors such as

usefulness perception, logistics service quality, and

nearest vegetable market distance had a direct

influence on the willingness behavior towards

vegetable e-commerce adoption (B. Li et al., 2020).

In terms of social commerce studies, a study

demonstrated that to purchase on social commerce is

driven by trust in sharing commerce system and

perceived privacy risk while trust in sharing

commerce system influence perceived privacy risk

(Bugshan & Attar, 2020). Additionally, social

commerce information sharing activities influenced

both trusts in sharing commerce systems and

perceived privacy risk (Bugshan & Attar, 2020).

Furthermore, in Saudi Arabia, research results from

181 SMEs showed that trading partners' pressure in

the environmental context, top management support

in the organizational context, and perceived

usefulness in the technological context had a direct

significant impact on the behavioral adoption of

social commerce (Abed, 2020). Investigating the

factors influencing the repurchase and word-of-

mouth intentions on social commerce, Meilatinova

(2021) showed that repurchase and WOM intentions

are positively influenced by trust and satisfaction

while trust and satisfaction are affected positively by

repurchase and information quality.

4 DISCUSSIONS AND

CONCLUSIONS

E-commerce has taken a new dimension due to the

innovations in social media that empower users to

purchase through social commerce. Social

commerce has widened and expanded the nature of

trading and transactions that is undertaken in the

traditional concept of e-commerce. It has given

people more tools that enable the fulfillment of

individual and co-operate goals. Government and

policymakers must create a congenial environment

for e-commerce through social commerce for it to be

successful. The needed infrastructures and systems

should be put in place to facilitate the growth and

expansion of social commerce. Reduce the cost of

mobile handsets, reduced cost of mobile

broadband/internet connection, higher/faster internet

connection, and mobile technology infrastructure are

some of the basic infrastructures required for social

commerce to flourish. In addition, the promulgation

of policy regulations to regulate the nature of

business transactions that occurs on social

commerce systems can help protect both the

consumer and merchant in case of a dispute. It is

important to stress that e-commerce cannot work

properly with the full backing of the government and

its relevant agencies and department.

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