Paradigm for the Foreign Direct Investors in the Virtual Market of Pakistan
DOI:
https://doi.org/10.56220/uwjms.v3i1.35Keywords:
Foreign Direct Investment, Virtual Market, Pakistani Finance and Economy, MarketingAbstract
Purpose: The Foreign Direct Investment (FDI) is currently low in Pakistan due to the recent wave of terrorism and political instability. In this situation, the impression of online global companies can be obliging. In view of that, this research assesses the attractiveness of Pakistan’s virtual sector for investment by multinational companies.
Findings: The findings reveal that conventional transaction systems, lifestyles and cultural differences, irrelevant market contents, business models, fragmentation, purchasing power, undeveloped payment systems, language differences, logistics, and unethical competitors are the major push to avoid this industry. On the other hand, the pulls are supportive government initiatives, increasing number of personal computer and Internet users, and reduced bandwidth tariff.
Implication: It is recommended that the change in global business trends, such as fast, easy and low-priced trade initiation process, does indicate future potential of e-business growth in Pakistan.
Recommendations: Although previous studies have investigated the pertinent issues about e-business. However, very few studies have been conducted in developing counties like Pakistan. Furthermore, this study proposes findings which could be helpful for online companies and financial sector of Pakistan like banks.
References
Abbas, K. 2015. Foreign Direct Investment (FDI) and Trade Liberalization Policies in Pakistan. A publication of the Islamabad Policy Research Institute (IPRI), IPRI Review, Islamabad, Pakistan. Adnan, H. (2014). An analysis of the factors affecting online purchasing behavior of Pakistani consumers. International Journal of Marketing Studies, 6(5), 133-145.
Alam, K. (2013). Online shopping shows steady growth. New York: International New York Times
Anckar, B., & D'incau, D. (2002). Value creation in mobile commerce: Findings from a consumer survey. JITTA: Journal of Information Technology Theory and Application, 4(1), 43-53.
Bohn, L. M. (2005). A cross-cultural study of E-commerce-Exploring factors that influence individual to buy (Master's thesis, University of Twente).
Bushra, H. (2002). Institutional approach to eCommerce: An integrated framework for Pakistan. The Pakistan Development Review , 41 (2), 179-192.
Central Intelligence Agency (2012). The World Fact book. Retrieved from CIA: https://www.cia.gov/library/publications/the-world-factbook/geos/pk.html.
Economic Survey of Pakistan (2007, 2012). Finance Division, Economic Advisor’s Wing.
Forrester. (2012). Retrieved from iamwire: http://www.iamwire.com/2012/04/india-to-be-the-fastest-growing-e-commerce-market-in-asia-pacific-market-set-to-grow-to-8-8-billion-by-2016/
Frederick, K., & Elliot, B. (2004). Measuring the impact of organizational constraints on the success of business-to-business e-commerce efforts: A transactional focus. Information and Management , 41 (5), 529-541.
Gunasekaran, & McGaughey, R. (2002). Information technology/information systems in 21st century manufacturing. International
Ibrahim, N. A., Angelidis, J. P., & Parsa, F. (2004). The status of planning in small businesses. American Business Review, 22(2), 52-73.
Iqbal, S. (2017). Foreign direct investment jumps 10pc. Article published in Dawn newspaper, Pakistan dated Jan 17, 2017. It was retrieved from https://www.dawn.com/news/1308895/foreign-direct-investment-jumps-10pc.
Jennex, M. E., & Amoroso, D. L. (2002). e-Business and technology issues for developing economies: a Ukraine case study. E-Business and technology ISS Electronic Journal of Information Systems in Developing Countries , 10 (5), 1-14.
Khalid, S., Ullah, D. H., & Shah, M. (2012). Declining Trends of Foreign Direct Investment in Pakistan (Causes and measures). Journal of Basic and Applied Scientific Research , 2 (5), 5148-5263.
Kundi, M. G. (2007). Journal of Internet Banking and Commerce. eBusiness in Pakistan: Opportunities and Threats , 12 (3), 1-23.
Miles, R. E., Miles, G., & Snow, C. C. (2005). Collaborative entrepreneurship: How communities of networked firms use continuous innovation to create economic wealth. Stanford University Press, Chicago
Morrison, D., & Wise, R. (2000). Beyond the exchange: The future of B2B. Harvard Business Review , 78 (6), 86-96.
Mukherjee, A., & Nath, P. (2007). Role of electronic trust in online retailing A re-examination of the commitment-trust. European Journal of Marketing, 23 (6), 82-95.
Mukti, N. A. (2002). Barriers to putting businesses on the Internet in Malaysia. Barriers to putting businesses on Electronic Journal of Information Systems in Developing Countries , 2 (6), 1-6. Nazir, S., Akhtar, M. N., & Irshad, M. Z. (2011). Why banks and financial institutions in Pakistan are turning towards Internet banking? International Journal of Computer Science Issues, 8(6), 265-274.
Pakistan Economic Survey. (2005-2006). Governmen of Pakistan. Retrieved from Ministry of Finance: http://www.finance.gov.pk/survey.
Pakistan Economic Survey. (2014-2015). Governmen of Pakistan. Retrieved from Ministry of Finance: http://www.finance.gov.pk/survey.
Pakistan Telecommunication Authority (2007). Telecom Status Quarterly Report. Islamabad. Park, C. H., & Kim, Y. G. (2003). Identifying key factors affecting consumer purchase behavior in an online shopping context. International journal of retail & distribution management, 31(1), 16-29.
Rehman, M. U., Rehman, S. U., & Ilyas, M. (2009). Studying Determinants of FDI in Pakistan. Proceedings of 2nd International Conference on Business Management.
Robertson, R. (1992). Globalization, Social theory and Global Culture, (Vol. 16). Sage, Chicago.
Sahar S. H. and V. Ahmed. (2012). Experiments with Industrial Policy: The Case of Pakistan. A publication of the Sustainable Development Policy Institute (SDPI), Working Paper No: 124.
Seyal, A. H., Awais, M. M., Shamail, S., & Abbass, A. (2004). Determinants of electronic commerce in Pakistan: Preliminary evidence from small and medium enterprises. Electronic Markets , 14 (4), 372-387.
Terzi, N. (2011). The impact of e-commerce on international trade and employment. Procedia - Social and Behavioral Sciences, 24(1), 745–753.
The World Bank (2016). GDP growth (annual %). Retrieved from World Bank national accounts data, and OECD National Accounts data files.: http://data.worldbank.org/indicator. Yang, C. D. (2000). Internal and external forces in language change. Language variation and change, 12(3), 231-250.
Yousaf, M. M., Hussain, Z., & Ahmad, N. (2008). Economic evaluation of foreign direct investment in Pakistan. Pakistan Economic and Social Review, 46 (1), 37-56.
Zarmeene, S. (2006). Phone Crazy: The ubiquitous cellphone can do so much more than just make a phone call. Spider , 8 (89), 40-43.
