This document discusses the emergence of self-organizing e-commerce ecosystems in remote villages in China that provide economic opportunities for rural development. It notes the societal challenges of rural poverty and hollowing in China. A case study is presented of Taobao villages, where at least 10% of residents operate online stores on Taobao, Alibaba's online marketplace, generating over $1.6 million in annual sales. The research finds that grassroots leaders are key actors who initiate, lead, and shape the development of an e-commerce ecosystem, providing initial support for e-tailers through training and product supplies.

1. The Emergence of Self-organizing E-commerce
Ecosystems in Remote Villages of China:
A Tale of Digital Empowerment for Rural
Development
Carmen Leong
UNSW Business School,
University of New South
Wales
carmen.leong@unsw.edu.au
Shan L Pan
UNSW Business School,
University of New South
Wales
shan.pan@unsw.edu.au
Sue Newell
School of Business,
Management and Economics,
University of Sussex
Sue.Newell@sussex.ac.uk
Lili Cui
Research Center for
Management Science and
Information Analytics
Shanghai University of
Finance & Economics
cui.lili@mail.shufe.edu.cn

2. Ye is a 38-year-old farmer from a rural village in Zhejiang
Province, China. In 2004, he left for a better paid job in
Guangzhou, which is 1240km away from home. “I couldn’t
take care of my family. My wife was having a hard time
taking care of our parents and the children. I missed them
dearly,” said Ye.
is a story about China’s migrant workers…
THE STORY BEHIND OUR RESEARCH

3.  Societal challenges persist
(United Nations 2013):
 Rural hollowing: small
young workforce for rural
development
 Left-behind elderly: 40
million with many suffering
physical and psychological
issues
 Left-behind children: 61
million children (1/5 of
youth in China)
RURAL POVERTY IN CHINA
Photography by Jie, Liu, Rural hollowing, 2011, Sina.com,
http://slide.news.sina.com.cn/c/slide_1_815_19147.html#p=3

4.  Taobao is an online marketplace nearly
equivalent to eBay, operated by Alibaba
Group (a China’s e-commerce giant)
 Taobao Village
 a village in which at least 10% of its residents
operate an online store, generating at least an
annual sale of RMB10 million (USD 1.6 million)
 211 Taobao villages in China (as of 2014),
selling agricultural products, consumer goods,
traditional arts and crafts products
 Create ~60,000 (2013) and ~280,000
(2014) job opportunities in rural China
TAOBAO E-COMMERCE VILLAGES

5. VISITS TO TAOBAO VILLAGES
Beijing
Zhejiang
Suichang (遂昌)Villages
& Jinyun (缙云) Villages
Shanghai
CHINA
Research Question:
“How does ICT create and empower critical actors in a marginalized community?”

6. FINDINGS: A SELF-ORGANIZING
E-COMMERCE ECOSYSTEM
Rural E-
commerce
Ecosystem
Grassroots
leaders
E-tailer
E-Supply
chain
partners
Third-party
E-
commerce
service
providers
Institutional
supporters
Digital
Platform
Sponsor
Chairman and Deputy
Chairman of the Suichang
Online Shop Association
Pioneer e-tailer of
Jinyun Village
Grassroots leaders initiate, lead, and shape the
development of an e-commerce ecosystem. They are
key actors who provide initial support for the emergence
of e-tailers (e.g., training, product supplies).

7. THANK YOU FOR
READING
More findings are available in the paper