The Impact of Global Logistics Disruptions on Cross-border E-Commerce Performance: Evidence from Nigeria

Abstract

Cross-border e-commerce is quickly expanding worldwide phenomenon; import and export activities related to it are impacted by the disruptions associated with global logistics. To increase cross-border e-commerce trade, efficient global logistics are needed for the timely delivery of goods across international borders. There are many obstacles that disrupt global logistics, which have an impact on the performance of cross-border e-commerce. There is a study gap because most existing studies were conducted in developed economies but institutional frameworks and legislation differ among nations, making it crucial to comprehend the obstacles from Nigerian point of view. Examining the impact of global logistics disruptions on cross-border e-commerce performance in Nigeria, this study adopted the probit regression method. Probit model estimation results showed that cross-border e-commerce imports and exports in Nigeria are adversely and significantly impacted by global logistics disruptions. Furthermore, the regression analysis showed that the disruptions encountered by global logistics firms surpassed all attempts to guarantee that global logistics effectively supports cross-border e-commerce transactions. In light of this, the study came to the conclusion that global logistics disruptions impede the expansion of cross-border e-commerce in Nigeria, which has an impact on commodity pricing, global competitiveness, and the advancement of trade infrastructure technology. Customs regulations, tariffs, and taxes present difficulties for businesses, which affect planning and forecasting. The valuable insights from these findings provide practical policy implications for policymakers and businesses to reduce disruptions and ensure effective global logistics to enhance cross-border e-commerce trade.