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A Comparison of Contrasting Cultures

Variations of E-Business Models in China & India

By IGI Global on Jul 10, 2013
Contributed by Ann Lupold, Discipline Manager

Variations of E-Business Models in China & IndiaCulture, government, societal infrastructure, and institutional organization all take part in the barrage of dissimilarities plaguing business models in countries around the world. The Internet has changed traditional business practice, inadvertently increasing disparity between firms in developed countries and those in developing countries. As the digital divide seems to grow, the question becomes: How will developing countries catch up? Representing two significantly different models for business, China and India provide a prime example of these dissimilarities.

China, a communist country with social values rooted in Confucianism and Taoism, holds in esteem principles of strong leadership, group discipline, and work ethic. The Chinese constitution includes many civil rights: free speech, press, worship, the right to trial, and the right to own private property, but the confinements and control of a Communist government still exist. The advent of the Internet and advanced digital technology has brought an onslaught of government restrictions on privacy, censorship, and public ownership.

In contrast, India, though a democracy, is defined as a highly bureaucratic system of government. Indian people value attributes of cooperation and group harmony, with less emphasis on work ethic and ownership. With more rural and poverty-stricken areas, digital technologies had a slower start in India, in turn, government control of the Internet and digital technologies is selectively practiced by both federal and state institutions in India.

The chapter “China and India: E-Business in the Developing World”, written by Peter Raven (Seattle University, USA), Xiaoqing Huang (Guangxi Institute of Supervising and Testing on Product Quality, China) and Ben Kim (Seattle University, USA), discusses how both China and India are poised for rapidly increasing e-business, however, the significant issues of poverty and inequality between urban and rural connectivity must first be resolved to take full advantage of e-business technologies. The chapter states:

“While both countries had access to new technology at about the same time, each has taken a different path to utilizing it. These approaches are based on a number of factors including government initiatives and focus, infrastructure building, experience and understanding of business operations, and culture, among others. China appears to be ahead of India in the mechanics and infrastructure, but India is ahead in e-readiness.”

By comparing and contrasting various solutions in the governmental implementation and control of Internet technologies, this chapter draws conclusions on best practices and programs for communicating and conducting e-business on a global level.

Part of the book E-Business Models, Services and Communications, this publication is a part of the Advances in E-Business Research (AEBR), a collection of essential references providing multidisciplinary research on the role of emerging technology and its impact on developed and developing countries.
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Business and ManagementGovernment and LawSocial Sciences and HumanitiesDigital Divide & Developing CountriesE-BusinessE-CommerceGlobal BusinessIT GovernanceBooks & E-BooksChaptersAsiaChinaIndia

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