Social capital as a driver of e-commerce development: Evidence from European panel data analysis
Social capital as a driver of e-commerce development: Evidence from European panel data analysis

Summary/Abstract: Research background: E-commerce is a key driver of global economic growth, influenced bytechnological, economic, and social factors. While prior research has focused on economic and technological determinants, the macroeconomic role of social capital—defined by trust, norms,and networks—remains underexplored. Social capital reduces transaction uncertainty,strengthens consumer trust, and facilitates business expansion, yet its cross-national impact one-commerce adoption requires further investigation.Purpose of the article: This study examines how social capital influences e-commerce devel-opment in European countries, exploring whether higher levels of social capital contribute togreater e-commerce adoption and transaction intensity while accounting for economic factorssuch as GDP per capita and disposable income.Methods: The study analyses panel data from 28 European countries (2015–2023) using theSocial Capital Index (SCI) to measure national trust and networks. E-commerce activity isassessed based on online purchase participation and business turnover from digital sales.Panel data models with fixed and random effects are applied to examine the relationshipbetween social capital and e-commerce adoption.Findings & value added: The results confirm that social capital significantly influencese-commerce adoption. Countries with stronger trust networks and social cohesion see higherparticipation in digital commerce. Economic conditions, including GDP per capita and dis-posable income, moderate this effect, with wealthier nations benefiting more from trust-driven e-commerce expansion. The study underscores the importance of fostering social capi-tal to enhance consumer confidence, lower transaction costs, and promote sustainable digitalmarket growth, offering policy recommendations to strengthen trust mechanisms and supporte-commerce ecosystems.

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