Cross-Border E-Commerce and Small Medium Enterprises (SMEs)

Abstract

The emergence of cross-border e-commerce (CBE) has its relevance in this digital age and thus brings about the discussion regarding the challenges and potentials of CBE on the local business especially small medium enterprises (SMEs). The wide availability of technology has made CBE possible across geographical, political, and cultural borders. It is a new driving force to promote the upgrading of industrial structure. The method used throughout the research is independent reviews from various studies and articles. Despite the dynamic development of CBE, communication in other languages, the form of payment, currency, legal, and tax conditions, as well as the delivery of products remain barriers to the CBE. The findings of the study show that there are four major drivers affecting CBE performance. These are economics, politics and policies, socio-cultural, and technology.