CONSUMER PERCEPTIONS TOWARDS DIGITAL SHADOW ECONOMY – EMPIRICAL EVIDENCE FROM NORTH MACEDONIA
CONSUMER PERCEPTIONS TOWARDS DIGITAL SHADOW ECONOMY – EMPIRICAL EVIDENCE FROM NORTH MACEDONIA

Summary/Abstract: The informal economy is a global phenomenon and a threat to the entire world economy. Fueled by the rapid growth of the digital economy and the increasing use of e-commerce worldwide, the informal economy is gaining momentum in the digital space as well. As volume, variety and velocity of transactions in the digital space increase rapidly, the number of illegal digital operators and platforms is increasing as well, encouraging consumers’ participation in digital shadow trade for different reasons. Undoubtedly, one of the most significant challenges in recent years is the difficulty to define and hence detect economic shadow activities, objects and entities in the digital environment, which is the basis for the growth of the shadow economy. Although lately the interest towards the forms, channels, characteristics and scope of digital shadow activities is increasing, there isn’t a clear understanding of digital shadow economy in the scientific literature. The plethora of terms, definitions, factors and characteristics relevant to this phenomenon is quite broad, indicating a necessity for collaborative efforts aimed at achieving common understanding of the digital shadow economy. This is essential for the identification, measurement, and reduction of shadow activities within the digital space. Even though the unofficial/shadow digital trade of goods and services is common in both developing and developed countries, little is known about consumer perceptions and behavior in this growing market driven by rapid technological advances. Therefore, it is pivotal to comprehend how consumers perceive the phenomenon of digital shadow economy, are they aware of informal economy in the digital environment and how they behave online. This study aims to examine significant aspects of the digital shadow economy and to evaluate consumer perceptions and attitudes regarding this phenomenon in the country. It employs a quantitative analysis, and a questionnaire as the instrument for data collection was distributed among more than 170 respondents. The findings provide relevant theoretical and practical implications and confirm moderate level of awareness of Gen Z towards digital shadow economy in our sample. The results also reveal some valuable insights about online consumer perceptions towards determinants of digital shadow consumption and what affects consumer attitude in online shopping channels. Regardless of the efforts to reduce the informal economy in the country, there is a lack of studies and empirical evidence on digital shadow economy from consumer perspective. This study contributes to the understanding of how Gen Z perceive the phenomenon of digital shadow economy and hence can promote activities in rising awareness about the negative effects of shadow activities in the digital space, encouraging young online consumers on strong attitude in avoiding shadow channels in the digital space.

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