Electronic Commerce in Iberoamerica:

The Coming Markets and their Coming Battles

The potential of the Internet and its associated technologies to enable global electronic commerce (EC) has been widely documented in both scholarly and trade publications. A primary emphasis in most discussions of EC is the scope of the Internet and the lower cost of reaching consumers throughout the world. The rhetoric of global markets has persuaded companies worldwide to go online. The reality, however, differs a great deal depending on what part of the world is considered. In Iberoamerica, as in the rest of the world, EC has found a receptive audience, but there is also widespread evidence that it has had mixed success. The real issues for managers in this region are whether the Internet will be adopted belatedly, in a crisis atmosphere, or with foresight, in a calm and considered manner; whether the transformation agenda will be set by a company’s more prescient competitors or by its own point of view; and whether the transformation will be spasmodic and brutal or continuous and peaceful. The Iberoamerica region is a mosaic of countries with very different realities and varying spheres of cultural values, economic and institutional practices, and legal and social context. This research will explore the new challenges for firms trying to master EC both globally and locally in different countries of the region. The authors are individuals who have experience developing programs and teaching as well as conducting research and consulting in EC in the region.

Dimensions to be Included in this Research:

  1. Layers of the Internet Economy:

Researchers at the Center for Research on Electronic Commerce at the Graduate School of Business, The University of Texas at Austin, suggest that the Internet Economy can be divided into four layers (see figure below). I would recommend reading the full study that was conducted in the United States. An online version of the study can be found at:

An advantage of using the same nomenclature of this study is that it will be easier to compare and contrast our findings in these Iberoamerican countries and the United States. Having said this, it is important to realize that in contrast to the United States, many of the companies included in layers 1 and 2 do not exist in most Iberoamerican countries, so we need to identify their representatives. Furthermore, in my experience information about companies in layers 3 and 4 are not easily available and usually is very fragmented. Therefore, I propose that we concentrate only on companies that are related to the Financial Services Industry. The financial service industries in all Iberoamerica are very dynamic and have tended to pioneer the adoption of new technologies, yet they have very specific configurations in each country. Thus, their analysis will allow us to be able to compare and contrast findings not only with the United States, but more importantly with other countries in our region. To do that, however, we will have to complement the layers of the Internet Economy with environmental factors as well as national and industry-level dimensions which will be shown next.

  1. Environmental Factors:

A fundamental task is to identify and understand the external forces impacting EC in each country. It is very different if we are considering Spain, Argentina, Mexico, Brazil, or a country in Central America.

  1. The National Level:

The government is a primary shaper of the business environment. So at the national level the government’s strategy becomes a critical focal point of analysis. Dimensions to observe:

  1. its goals
  2. development strategy
  3. National strategy
  4. IT and/or EC strategy (or Initiatives).

  1. Industry level: Financial Services Industry

In order to be able to contrast and compare EC in Iberoamerica, we will focus on the competitive environment of the financial service industry within each country. This component of the research should analyze the industry structure and competitive dynamics, which are shaped not only by each country special environmental factors, but also by the new Internet Intermediary (Layer 3) and Internet Commerce (Layer 4) players.