The Role of Artificial Intelligence in Sustaining the E-Commerce Ecosystem: Alibaba vs. Tencent

The Role of Artificial Intelligence in Sustaining the E-Commerce Ecosystem: Alibaba vs. Tencent

Md.Salamun Rashidin, Dong Gang, Sara Javed, Morshadul Hasan
Copyright: © 2022 |Pages: 25
DOI: 10.4018/JGIM.304067
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Abstract

A large number of customers have used traditional e-commerce portals, where there are no assurance of product quality, display of all features, picture search, virtual chat service, product recommendation and tracking facility. Due to these disadvantages,the customers have switched to Alibaba and Tencent products line and remain in the ecosystem.present study drew on Quo Bias theory to investigate the customer behaviour to remain on the e-commerce platform.Twenty-eight in-depth interviews were conducted to extract the variables and proposed a model based on risk theory as well as CRCB framework. An offline survey was distributed to 649 (valid) ecommerce users; valid data was assessed and analyzed using structural equation modeling (SEM). Results show CRCB was influenced by switching cost and comparative attraction. Moreover, negative (undesirable) attitudes mediate the relationship between risk perception and CRCB, has a positive impact on undesirable WoM. The study findings help the managers and policy makers to devise a new policy and serve the customers in a better way.
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Introduction

Day by day, the global ecommerce market is blooming, and a greater number of users are using online platforms, consequently creating a shopping ecosystem involving buyers and sellers. With the help of technological breakthroughs in big data, machine learning, supercomputing, and Artificial Intelligent (AI) have become more capable and more human-like of problem solving, manipulating objects, learning, and navigating physical space (Yogesh k et al 2021). More particularly, applications of AI in different aspect have developed rapidly Don and Pee (2021). E-commerce companies are using the AI system in different prospects (Leonardo et al 2018). Data works as the main component of AI. In the modern era, data (information) is backbone of every country. According to Jack Ma, Executive Chairman of Alibaba, “Large scales computing and data are the father and mother of AI”. Alibaba is working on AI “Smart Cities”, where cloud-based AI will help improve traffic congestions. In the Big data, AI not only differentiates the company from its competitors, but also increases the financial and shareholder values (Hasan et al 2020).In the new digital era, the enterprises have found solutions through AI, Big data, and unmanned technologies. To attract the digital customers, mobile and e-payment system play a key role and have significant effects on customers (Emrah et al,2017).

China is the one of the leading countries in the world, where the ecommerce market is larger than any other countries (China 782 million, USA 230 million, India 150 million). In prospect of Chinese market, Alibaba dominates the Chinese e-commerce market, followed by Tencent, which is an emerging challenger in the same market right now. Both companies provide good features for their own customers. Alibaba started investing the highest amount in AI, and Tencent followed the same path. Alibaba established 3,200 offline e-stores and employed Robotic system (Limited area), standing in the top position. Tencent has also achieved tremendous success in the same field and created trust in the online market. Some leading ecommerce platforms such as JD.com, VIP and Pinduoduo also joined the Tencent. According to the market evaluation, Tencent is a community-based service provider platform (Figure 2), and Alibaba ecommerce is a platform based on service network (Figure 1). The products of both groups are an independent player of the ecosystem and are contributing to the service and economics sectors.

Figure 1.

Alibaba Ecosystem

JGIM.304067.f01

Source: Authors’ explanation (Note: Alibaba Eco-system based on Major Products)

Figure 2.

Tencent Ecosytem

JGIM.304067.f02

Source: Authors’ explanation (Note: Tencent Eco-system based on Major Products)

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