Adaptation and Barriers of E-commerce in Tanzania Small and Medium Enterprises

E-commerce has been predicted to be a new driver of economic growth for developing countries. The SME sector plays a significant role in its contribution to the national economy in terms of the wealth created and the number of people employed. Small and Medium Enterprises (SMEs) in Tanzania  represent the greatest share of the productive units of the Tanzanian economy and the current national policy directions address ways and means of developing the capacities of SMEs. Many factors could be responsible for the low usage of e-commerce among the SMEs in Tanzania. In order to determine the factors that promote the adoption of e-commerce, SMEs adopters and non-adopters of e-commerce were asked to indicate the factors inhibiting the adoption of e-commerce. The results show that technical barriers are the most important barriers followed by legal and regulatory barriers, whereas lack of Internet security is the highest barrier that inhibit the implementation of e-commerce in SMEs in Tanzania followed by limited use of Internet banking and web portals by SMEs. Also, findings implied that more efforts are needed to help and encourage SMEs in Tanzania to speed up e-commerce adoption, particularly the more advanced applications Key words— e-commerce adoption, e-commerce adoption barriers, Small and Medium Enterprises, e-commerce adoption in SMEs in Tanzania

Electronic commerce adoption among manufacturing SMEs in Malaysia

It is widely acknowledged that electronic commerce presents a significant opportunity for Small- Medium-sized Enterprises (SMEs) to compete alongside larger enterprises. For SMEs in the developing world in particular, the opportunities afforded by electronic commerce for competing in a global marketplace, are also attractive. However, it has also been observed that electronic commerce poses a considerable challenge for SMEs, particularly with regard to the decisions that must be made about which of the available electronic commerce applications to adopt and to integrate into existing business operations. A number of studies have been conducted to investigate the adoption of electronic commerce by SMEs. These studies have tended to view electronic commerce adoption in terms of a dichotomous outcome: either e-commerce is adopted, or it is not. Such studies give little indication of the diffusion, or extent of usage, of individual e-commerce applications. The aim of this study was to address this gap in existing research by investigating both the level of adoption and extent of usage of e-commerce applications. In so doing, the study draws on research in the area of innovation diffusion theory. The focus of the study is on manufacturing SMES in Malaysia, and considers their use of B2B (Business-to-Business) e-commerce. The specific objectives of the study were to measure and characterise B2B e-commerce adoption and extent of usage among manufacturing SMEs in Malaysia; to identify factors associated with the adoption of B2B e-commerce in Malaysian SMEs; and to determine the impacts of that adoption. (Continues...)EThOS - Electronic Theses Online ServiceGBUnited Kingdo

Faktor-faktor yang mempengaruhi adaptasi perdagangan eletronik (E-dagang) dalam kalangan perusahaan kecil dan sederhana (PKS)

Advances in technology and the internet worldwide nowadays have sparked a revolution of digital business concept known as e-commerce. The outbreaks of e-commerce arena produce a new concept of business operation and radically expected to be new phenomenon of economic development in developing countries. Intervention of the Small and Medium Enterprises (SMEs) in electronic commerce institutions make ecommerce more generally accepted and proving that the world currently is in a new era of electronic. Migrations of SMEs to use e-commerce applications become important agenda by the government due to the role of SMEs as the engine of the national economy and their contribution to the economic development of the country. Various benefits received by SMEs who had adopted e-commerce and this scenario should be the essence of their incentive to use more ICT. However, the facts have proved among previous research of e-commerce adoption by SMEs which particularly low in Malaysia. This scenario is due to the various obstacles which hamper SMEs to make transformation in their business. However, informative facts suggest that a variety of factors that can influence e-commerce adoption among SMEs. Thus, this research aims to identify the factors that influence SMEs to adopt e-commerce. With the use of a sample of 365 respondents or SMEs companies, a structured survey questions were distributed to the owners or top management of SMEs in Terengganu which involves three main areas such as Northern, South and Kuala Terengganu. This study tested four hypotheses related to the factors of e- commerce adoption and found that organizational readiness and external pressure was significantly has a positive relationship with ecommerce adoption. Meanwhile the factors of perceive ease of use and perceive usefulness relatively is not significant. In addition, the objective of the research to identify the SMEs in Terengganu whether adopt with e-commerce or not was fully achieved and found that there is low e-commerce adoption due to the SMEs are still familiar with basic applications. Hence, the results has lead to specific recommendations for SME owners to take the first step to be ready in terms of organizational readiness in their organization to adopt with e-commerce through accomplish their important source of adaptation such as financial, technology, values, culture, consistencies of work practices and locate skilled staff to ensure the use of e-commerce can effectively performed. In term of external pressure, SMEs was suggest to use e-commerce applications on a regular basis and take the initiative to use more advance e-commerce applications to enhance competitive advantages in the industr

The development of a framework to empower SME's in the Eastern Cape to overcome barriers in the adoption of e-commerce

The primary objective of the study was to establish the role that e-commerce can play in improving some Small and Medium Enterprises (SMEs) business processes and transactions. This was undertaken by investigating how SMEs in the Eastern Cape can be empowered to use e-commerce and overcome barriers in the adoption of e-commerce. The study was modelled on the concept that there are four key factors that influence the adoption of e-commerce, namely: level of e-commerce awareness, level of computer literacy, availability of Information Technology and telecommunication infrastructure, as well as trust and security of e-commerce applications. The literature study revealed that SMEs play a vital role in the development and growth of a country’s economy. The literature review also identified a wide-range of barriers hindering e-commerce development and adoption by SMEs, namely: lack of computer skills, low level of e-commerce awareness, lack of Information Technology and telecommunication infrastructure, as well as lack of e-commerce trust and security. Further, the literature study showed that Internet availability and affordability is key to e-commerce growth and development, as in developing countries Internet is not yet universally accessible. This is due to a lack of necessary policies and infrastructure enabling wide-spread Internet use. The empirical study consisted of a structured questionnaire distributed to a population of executive management, middle management, operational employees and directors/owners in various SMEs in the Eastern Cape. The structured questionnaire was aimed at gathering views about e-commerce development and adoption by SMEs in the Eastern Cape with a special focus on barriers to the adoption of e-commerce by SMEs. The results of the empirical study revealed that: E-commerce awareness needs to be created among SMEs. Awareness needs to be created among SMEs about all aspects surrounding the use of e-commerce. Improvements in the telecommunications infrastructure could reduce the unreliable connections experienced by SMEs. Skills development strategies could assist in equipping SMEs with skills required in the e-commerce environment. Non-governmental organizations, government and companies assisting SMEs could provide free Internet access to SMEs. Alternatively, Internet cafes could be placed at different places and charge reasonable fees. NGO’s and higher education institutions could help in developing electronic literacy skills among SMEs. Companies assisting SMEs with funding could provide more funds to allow SMEs interested in e-commerce to start e-commerce systems

Empirical Study of Barriers to Electronic Commerce Adoption by Small and Medium Scale Businesses in Nigeria

Electronic commerce (E-commerce) is a technological innovation that enables small to medium enterprises (SMEs) to compete on the same level with their larger counterparts. And it has the potential to improve efficiency and productivity in many areas and, therefore, has received significant attention in many countries of the world. A thorough analysis of the impact of the internet and e-commerce across firms, industries and economies is necessary to separate hype from reality. However, several researchers have called for the investigation of the association between the perceptions of e-commerce and the barriers to its adoption in developing countries. It is however on record that SMEs the world over are faced with significant challenges that compromise their ability to function and to contribute optimally to the respective economies where they operate. This study was conducted in three states of Nigeria (Lagos, Abuja and Enugu states) with the use of interviews to gather relevant data; the aim of which was to understand the challenges which serve as barriers to E-Commerce adoption by small and medium scale enterprises in the Nigerian context. Findings indicates that small and medium scale online present is at best unknown. The most common e-Commerce applications used by most SMEs include but not limited to the use of e-mails for communication purposes and a simple website for basic product information – information contained are usually outdated as most of these websites are hardly updated. Findings revealed, among others, that lack of and total absence of a regulatory framework on e-Commerce security, as well as technical skills, and basic infrastructures are some of the barriers to electronic commerce adoption. The findings however, provide a constructive insight to financial practitioners, governments as well as other stakeholders on the need to give e-commerce a place in all aspects of e-commerce activities

Drivers and Inhibitors to E-Commerce Adoption among SMEs in Nigeria

Electronic commerce (E-commerce) is a technological innovation that enables small to medium enterprises (SMEs) to compete on the same level with their larger counterparts. And it has the potential to improve efficiency and productivity in many areas and, therefore, has received significant attention in many countries of the world. A thorough analysis of the impact of the internet and e-commerce across firms, industries and economies is necessary to separate hype from reality. However, several researchers have called for the investigation of the association between the perceptions of e-commerce and the barriers to its adoption in developing countries. It is however on record that SMEs the world over are faced with significant challenges that compromise their ability to function and to contribute optimally to the respective economies where they operate. This study was conducted in three states of Nigeria (Lagos, Abuja and Enugu states) with the use of interviews to gather relevant data; the aim of which was to understand the challenges which serve as barriers to E-Commerce adoption by small and medium scale enterprises in the Nigerian context. Findings indicates that small and medium scale online present is at best unknown. The most common e-Commerce applications used by most SMEs include but not limited to the use of e-mails for communication purposes and a simple website for basic product information – information contained are usually outdated as most of these websites are hardly updated. Findings revealed, among others, that lack of and total absence of a regulatory framework on e-Commerce security, as well as technical skills, and basic infrastructures are some of the barriers to electronic commerce adoption. The findings however, provide a constructive insight to financial practitioners, governments as well as other stakeholders on the need to give e-commerce a place in all aspects of e-commerce activities

ICT for Economic Development in Rwanda: Fostering E-Commerce Adoption in Tourism SMEs

Small and Medium Enterprises (SMEs) in the Rwandan tourism sector are slow in adopting information and communication technology (ICT) and especially e-commerce applications (Nibigira 2014). In the effort to pinpoint the drivers promising more extensive EC roll-out and thus economic and societal ICT-driven improvements in Rwanda, we firstly show some ongoing initiatives that of deploying ICT and e-commerce Rwanda. We then investigate more specifically the key determinants of EC adoption in the context of Rwanda. To that end, we adopt the Perceived E-Readiness Model (PERM) developed by Molla and Licker (2005) and apply it to ecommerce adoption in Rwandan tourism SMEs. From better understanding what accelerates or impedes ICT and e-commerce adoption in the Rwandan tourism sector, we hope to derive arguments for further fostering ICT roll-out in general and the e-commerce roll-out in particular in Rwanda – first throughout the Rwandan tourism sector and subsequently throughout other SME-based business sectors – and thus to contribute to the country\u27s economic and societal development along the lines of many Information and Communication Technology for Development (ICT4D) studies (Heeks 2006, Heeks and Molla 2007, Zelenika and Pearce 2013)

What are the Factors Affecting the Adoption of Business-to-Business Electronic Commerce by Ready-Made Garments export SMEs in Bangladesh?

Main Focus: This study aimed to investigate the factors that affect B2B e-commerce adoption by the RMG export SMEs in the developing country context of Bangladesh. All over the world, e-commerce has considerably transformed ways of conducting business. A great deal of evidence shows, however, that SMEs in developing countries are lagging behind their counterparts in developed countries. This research will guide manufacturing SMEs in developing countries, such as Bangladeshi RMG export SMEs, in the adoption of B2B e-commerce. Data Collection Techniques: This research undertaken, using an interpretive paradigm for collecting data from the selected RMG export SMEs, large RMG export organisations and experts associated with the RMG export business. The principal data collection tools and techniques used were open-ended semi-structured questions through face-to-face interviews, as well as document analysis. Conceptual Framework: A conceptual framework developed to gather different factors associated with e-commerce adoption as defined in the research question: "What are the factors affecting the adoption of Business-to-Business (B2B) Electronic Commerce (E-commerce) by Ready-Made Garments (RMG) export SMEs in Bangladesh?". Data collected from the interviews were analysed to gather deeper insights into the findings based on the elements of the TOE framework and CATWOE analysis. The elements of data include: 1) The nature and characteristics of the business; 2) The use of ICT and web applications by the company; 3) Senior management’s perceptions of B2B e-commerce adoption; 4) The factors that affect and influence B2B e-commerce adoption; 5) Identification of government initiatives for the adoption of B2B e-commerce, and 6) Suggestions to ease the adoption of B2B e-commerce by the RMG export SMEs in Bangladesh. Principal Findings: Several factors have been identified that have a negative impact on the adoption of B2B e-commerce by the RMG export SMEs in Bangladesh. These mentioned below- A lack of senior management knowledge about the global scope and benefits of B2B e-commerce for organisations; a lack of financial ability in the organisations and more comprehensive investment for adopting technology; a lack of financial support from financial institutions; a lack of quality B2B e-commerce software; a lack of combination of IT skilled human resources with RMG business knowledge; a lack of support from business partners and their readiness to take part in B2B e-commerce; a lack of support from government and BGMEA to improve ICT infrastructure in the RMG sector; the complexity of legal issues related to online transactions; political instability and uncertainty; language and communication problems when using the internet. Also, there are some of the other factors identified in this research that will influence the adoption decision of B2B e-commerce by the RMG export SMEs in Bangladesh. These are as follows, access to new markets; the sourcing of raw materials; improving communication with clients and better marketing opportunities; the availability of a third-party website for B2B e-commerce; support from the government and BGMEA. Contribution to Knowledge: This study makes a theoretical contribution to this research area by combining the TOE framework with a CATWOE analysis of the factors identified for a broader perspective of B2B e-commerce adoption. That has, until now, been absent from the current literature of B2B e-commerce adoption in the context of SMEs. Also, this study provides a conceptual framework to guide government of Bangladesh, BGMEA, RMG export SMEs, software developer and other associated stakeholders in creating a system so that RMG export SMEs can efficiently adopt B2B e-commerce without massive changes to their businesses. This conceptual framework can potentially be used in the context of manufacturing industries of different developing countries

Electronic commerce adoption model based on moderating role of trust and organization culture in Iraq

Electronic commerce (E-commerce) has an important role in the development and growth of Small and medium-sized enterprises (SMEs) where it allows them rivalry worthily in both local and international markets. As such, Iraq has an objective to increase the diffusion of this technology, despite extensive government efforts, the adoption of e-commerce is still limited in Iraq SMEs. Consequently, there have been limited studies regarding e-commerce adoption in SMEs to better understand the phenomena. Yet, documented findings regarding the determinants of the adoption are not altogether consistent. To provide more insight, this study developed a research model utilizing the technological, organizational, and environmental (TOE) framework to identify the determinants of the firms’ propensity to adopt E-commerce. In seeking to gain more understanding, TOE has been integrated with diffusion of innovation (DOI), resource-based view (RBV) and institutional theory. Then examine how such effects are moderating by trust and organizational culture in order to present an interactionist model for E-commerce, which assists SMEs who currently considering or conducting business using E-commerce. The online questionnaire survey was used in this quantitative study, where data was collected from 378 responses (manager, deputy manager and IT employees) of Iraqi SMEs. This study utilized two statistical applications to analyze the collected data and for answering the research questions. SPSS was used to measure the normality and reliability of data, PLS-SEM technique was adopted for data analysis to support and validate the result found using SPSS. E-commerce adoption in Iraqi SMEs was found affected by (relative advantage, compatibility, social media network, e-payment systems, organization readiness, top management support, organization size, competition pressure, government support and legal adequacy). On the other hand, the results also show that trust plays a moderation effect with (relative advantage, social media network and E-payment systems). Meanwhile, the moderation effect of organizational culture is supported by organization readiness, top management support, competition pressure, and government support. In addition, the proposed model in this study was validated to be more effective for the adoption of e-commerce in Iraqi SMEs by experts. This study contributes to providing a model that helps SMEs to follow the right path to successfully E-commerce adoption and contribute to the E-commerce literature by filling the gap