Effect of infrastructure and technological factors on slum online commerce and product delivery: A structural functionalism perspective

Abstract

The global e-commerce market has surged, with Greater China and the U.S. generating over $3 trillion in combined revenue in 2023. In contrast, Sub-Saharan Africa (SSA) remains a marginal player, contributing less than 2 % to global e-commerce. This disparity is particularly evident in SSA's slum communities, which house over 60 % of the urban population. These slums face significant barriers—socioeconomic, infrastructural, and technological—that restrict their participation in online commerce and product delivery. While research has focused on health, sanitation, and poverty alleviation in SSA slums, the challenges of digital inclusion and integration into the global digital economy have been largely ignored. This study aims to address this gap by examining the infrastructural and technological factors that hinder online commerce and product delivery in SSA slums. Using a 5-point Likert scale and Partial Least Squares Structural Equation Modeling (PLS-SEM), the study reveals that while education and digital literacy and security concerns have no significant impact on slum online product delivery, factors like addressing systems, transportation infrastructure, telecommunications, and digital divide significantly influence online commerce and product delivery. Mediation analysis further indicated that enhancing product delivery systems can partially mitigate the adverse effects of poor infrastructure online commerce. The findings highlight the urgent need to improve physical infrastructure, including transportation and addressing systems, alongside technological solutions like telecommunications and digital divide. Without addressing these barriers, slum residents will remain disconnected from the digital economy, limiting their access to economic opportunities and essential goods and services.