Do Shaken ‘Bricks’ Spur Foreign ‘Clicks’?
A Quasi-experimental Study of E-commerce Cross-border Traffic Amidst Regional Unrest
Speaker: Dr. Rui (Ray) YANG
Time/Date: 3 PM, Wednesday 17th, Jan. 2024
Classroom: Room 2101, Tongji Building A
Tencent Meeting ID: 368433803 / PSW: 471118
ABSTRACT
In an era marked by both de-globalization trends and the rise of digital technology, this paper presents a novel perspective on how regional armed conflicts may paradoxically facilitate international expansion via digital E-commerce. Challenging traditional views that associate geopolitical tensions with reduced international business involvement, this study reveals an unexpected catalyst for cross-border customer acquisition through digital internationalization. Utilizing a difference-in-differences quasi-experimental design, we examine the impact of the breakout of Russia-Ukraine conflict escalation on the international web-search traffic of conflict-affected European E-commerce websites in countries adjacent to the conflict zone, compared to their non-adjacent counterparts. Our findings challenge accepted wisdom and highlight a novel form of user-driven international expansion that thrives amidst geopolitical strife, offering insights into the evolving dynamics of how digital businesses thrives in physical disruptions, enriching the IB theory in the digital age. Our research contributes to the literature on geopolitical tensions in international business, non-traditional entry model, and digital internationalization process.