The impact of innovation systems on e-commerce capacity: An evaluation on fragile eight countries

The concept of an information society represents a structure with its own unique processes, encompassing the dynamics of globalization. Economic, social, legal, and cultural relations between countries have shifted, leading to the establishment of international connections and collaborations. In this context, intense competition and technological advancements have transformed traditional forms of interaction into a new shape, especially through developments in information and communication technology, which have increased international interaction and elevated competition to a global level. Individuals and businesses that keep up with these changes have gained the power to compete comfortably in both local and international markets. One of the key factors enabling this strength is the ability to participate in the international goods and services market by using technology through e-commerce beyond borders. The digital world has made it possible for producers and consumers to meet effortlessly anytime and anywhere, transforming markets into structures operating through electronic systems and perceiving the entire world as a customer base. In this context, identifying the factors influencing this transformation has become important. This study aims to analyze the factors affecting e-commerce volume by examining the fragile eight group of countries (Brazil, Indonesia, South Africa, India, Turkey, Argentina, Russia, Chile) from 2014 to 2023. Key variables such as internet penetration, mobile usage rate, R&D expenditures, ICT Index, and Global Innovation Index (GII) were analyzed for their impact on e-commerce through panel data analysis. The findings reveal that internet penetration and mobile usage rate positively support e-commerce volume, while GII, unexpectedly, has a long-term negative effect on e-commerce. This situation highlights the infrastructure and access requirements of the knowledge economy for sustainable growth. The findings emphasize the importance for fragile economies to prioritize investments in digital infrastructure and sustainable innovation strategies to support development based on the knowledge economy