E‑GOVERNANCE QUALITY AND DIGITAL REGULATORY TRANSPARENCY AS CATALYSTS FOR E‑COMMERCE PERFORMANCE: A DUAL MEDIATION MODEL OF CITIZEN TRUST AND PERCEIVED USEFULNESS MODERATED BY INSTITUTIONAL SUPPORT IN PAKISTAN

Abstract

The current empirical study provides a comprehensive analytical framework to assess the systemic factors that affect e-commerce use among Small and Medium-Sized Enterprises (SMEs), specifically the socio-economic and institutional context of Pakistan. We propose that the usage and success of e-commerce among SMEs in Pakistan will be influenced by factors beyond technology and the market, particularly the quality of the digital public infrastructure. Specifically, we contend that Government Digital Infrastructure Quality-which includes the availability, usability and responsiveness of government digital portals-and Digital Regulatory Transparency-which refers to how transparent, accessible and enforceable regulations are with regard to conducting online business and managing data-will serve as important external stimuli to e-commerce development in Pakistan. However, the effects of these two variables will be mediated by two critical cognitive-affective mechanisms: the generation of Citizen Trust in the larger digital ecosystem and the perceived usefulness of e-commerce platforms. Additionally, we theorize that the presence of tangible Institutional Support (including government incentives, infrastructure and dedicated support programs) will act as an important contingency factor that will enhance the effects of these mediating variables on final e-commerce performance. Our sample consisted of 387 SME owners/managers in Pakistan who responded to our survey instrument. We utilized Structural Equation Modeling and Moderated Mediation Analysis via the PROCESS macro to analyze the data. The results of our analyses provide strong evidence to support the proposed model and confirm the significant direct and indirect paths. Notably, our results demonstrated the significant moderating effect of institutional support on the relationship between citizen trust and e-commerce performance, which highlights the importance of tangible institutional resources to complement the intangible social capital provided by digital public infrastructure. Therefore, this research develops a novel, integrated theoretical model of digital transformation in developing countries and provides actionable insights for policy makers seeking to develop a coherent and supportive digital business environment.