Does the Digital Environment Impact E-Commerce Performance in Brunei Darussalam After the COVID-19 Pandemic?

Abstract

The difference between the levels of e-commerce adoption before and after the COVID-19 pandemic is debatable and poorly explored in the literature. This study examines the digital environment's impact on e-commerce performance in Brunei Darussalam post-COVID-19. This research is required to understand the changing dynamics of e-commerce performance in Brunei Darussalam, particularly in the post-COVID-19 era where the digital environment has emerged as a critical driver of business operations. A structured survey was conducted with 248 respondents, including consumers and businesses from various demographic groups, including students, lecturers, civil servants, and entrepreneurs. Data collection was facilitated by using standardized questionnaires to ensure consistency and reliability of responses. Estimates from four regression models suggest that the digital environment moderately affects the performance of e-commerce in four ways: the expansion of cross-border e-commerce, the improvement of the security and value of the online financial transaction, the prioritization of the protection of intellectual property, and the strengthening of e-commerce specialties in B2C, the e-commerce specialties in B2C, priority of B2B and G2C sectors. However, environmental challenges such as limited platform access, capital constraints, and regulatory issues remain. The study confirms the importance of the digital environment, supports institutional and transaction cost economics theories, and highlights the need to remove regulatory and transactional barriers to sustainable economic growth in Brunei.