The Impact of the Emerging Coronavirus (COVID-19) on E-Commerce in the Kingdom of Saudi Arabia

Abstract

-Despite efforts by some governments to encourage online commerce during the pandemic, it remains out of reach for some groups due to entrenched digital divides. Additionally, regulations that are not suitable for e-commerce can create barriers for businesses. Although many of these challenges predate the outbreak of the virus, the current crisis and the new role of e-commerce for consumers and businesses heightens the need for public action. This research aimed to study the effects of the coronavirus pandemic on customer orientation in electronic commerce by understanding the influence of precautionary measures (home quarantine, travel limits, anxiety, and psychological anxiety) on electronic commerce (e-commerce). For this purpose, a questionnaire was distributed to a sample size of 492 individuals in the Kingdom of Saudi Arabia. Further, to analyze the study data, the SEM structural equations method was used via the Smart PLS. After analyzing and testing the hypotheses of the study, it was found that there is a direct positive impact of the emerging coronavirus (COVID-19) on customer behavior toward e-commerce in Saudi Arabia. There is a positive, direct effect of home quarantine on the orientation of individuals toward e-commerce. Moreover, there is a positive, direct impact of movement restriction on the orientation of individuals toward e-commerce. Finally, there is a positive, direct effect of psychological anxiety on the attitude of individuals toward e-commerce.