The Diffusion and Impacts of the Internet and E-Commerce in Taiwan

The most important driver behind e-commerce in Taiwan appears to be international competitive pressure; this is especially evident in the manufacturing sector. E-commerce is more widely diffused in the manufacturing sector in Taiwan, compared to the retail/wholesale and financial sectors, which are more domestic-market oriented. The primary motivating factor behind e-commerce adoption is to better serve customers, and the Internet also allows firms to improve the efficiency of their internal processes and to enhance staff productivity levels. In comparison with manufacturing firms in other countries, Taiwanese firms are more concerned with improving forward linkages to their customers than improving backward linkages to their suppliers. The purpose of the adoption of e-commerce is predominantly to broaden their customer base by exploring new marketing channels, or to create competition for the traditional channels. This stands in sharp contrast to global firms, which tend to use it mainly to improve the traditional marketing channels.