An Analysis of Emerging Patterns of Consumption in the Age of Globalization and Digitalization
From FIIB Business Review.
In the past three decades, two substantial and interrelated phenomena, namely globalization and digitalization, have been reshaping the world in an unprecedented manner. Globalization is a complex and multifaceted phenomenon resulting in more interdependence and mutual awareness among economic, political, and social units across the world (Guillén, 2001; Held, McGrew, Goldblatt, & Perraton, 1999; Steger, 2010). Digitalization or digital transformation may be defined as the application of digital technology in all aspects of human society including business and trade (Stolterman & Fors, 2004). Digitalization has changed how businesses create and deliver value within local and foreign markets (Nambisan, 2017; Ojala, Evers, & Rialp, 2018; Tilson, Lyytinen, & Sorensen, 2010; Yoo, 2010).
The two phenomena are interrelated, as globalization often relies on digitalization to connect different parts of the world and increase cross-national movements of goods, services, capital, and people.
For that reason, globalization is increasingly marked by flows of information across the world. Global trade was once dominated by tangible goods and was confined to advanced economies. Currently, new digital platforms allow smaller countries and enterprises to have an active presence in the global economy (Manyika et al., 2016).
Globalization and digitalization have reshaped the world by transforming the concepts of time, space, materiality, work, wealth, and production (Alden, Steenkamp, & Batra, 1999; Cleveland & Bartsch, 2018; Hannerz, 1990). In the past three decades, the circulation of culture, capital, commodities, and people have become constantly easier and faster.
At the same time, the world economy has shifted to the service sector and many manufacturing jobs have moved to countries with lower income standards. Globalization and digitalization are drastically changing the economics of doing business across borders by bringing down the cost of international interactions and transactions. As a result, new markets and communities are created and small businesses and individuals use digital platforms to shop, sell, and communicate on a global scale.
Under the pressures of globalization and digitalization, the consumption process is undergoing significant transformations, so markets, consumers, products, advertisement, promotion, distribution, and even the very concept of value and utility are being recreated, reformed and redefined (Alden et al., 1999; Cleveland & Bartsch, 2018; Hannerz, 1990; Spais & Beheshti, 2016; Spais & Kaufmann, 2016).
A review of the literature reveals that the effects of globalization and digitalization on consumption and consumer behaviour have not received enough attention (Cleveland & Bartsch, 2018). Hence, the current study focusses on the globalization and digitalization phenomena to identify, analyze, and evaluate the emerging patterns of consumption in the present world.
Article details
An Analysis of Emerging Patterns of Consumption in the Age of Globalization and Digitalization
Hamid Yeganeh
First Published November 27, 2019
DOI: 10.1177/2319714519873748
FIIB Business Review