Investigating E-commerce Adoption in Small and Medium-sized Tourism Enterprises: A Case of Travel Agents in Egypt

SMEs are often described as slow adopters of technology. However, adopting e-commerce is one of many strategies taken by travel agents to re-intermediate themselves in the global travel market against the threat of disintermediation. Exploratory studies have revealed that Egyptian travel agents are laggards when it comes to technology adoption, although they perceive e-commerce as a beneficial tool that can increase their chances of survival. As many as 59.2% of Egyptian travel agents were found not to have websites (Egyptian Travel Agents Association, 2008), this study investigates the factors affecting e-commerce adoption by travel agents. Past literature has shown that there are three main factors affecting the adoption of e-commerce by SMEs. Environmental pressures push SMEs to adopt in order to bolster their survival chances. The benefits of adoption are critical factors considered by managers when making the adoption decision. Finally, there are barriers to e-commerce adoption. By modifying the technology acceptance model, this research conceptualizes the causal relationships amongst these three types of factors. The benefits and barriers to e-commerce adoption are found to mediate the relationship between environmental pressures and e-commerce adoption. This study employs mixed methods starting with a quantitative survey and following it up with qualitative interviews. A questionnaire was used to collect data from 411 adopter and non-adopter e-commerce travel agents. Later, 22 interviews were conducted with the managers of travel agents. Structural equation modelling produced findings reveal that environmental pressures significantly affect the perceived benefits of and barriers to adoption, in addition to having an indirect effect on adoption behaviour. This study contributes to theory as it responds to the claim that the factors affecting e-commerce adoption have not been well documented in the travel sector (Hung et al., 2011, Thomas et al., 2011), especially in the context of developing countries (Thulani et al., 2010). The findings reveal that the modified technology acceptance model successfully interprets e-commerce adoption. The study compares other adoption models with the research model and provides statistical criteria for this comparison. Its contribution to practice is twofold, affecting the managers of travel agencies and policy makers. Recognizing the factors affecting adoption would enable managers to devise strategies and prepare better agendas for expanding their businesses, while at the same time identifying any defects and training needs that present barriers. Meanwhile, recognizing the barriers to adoption could encourage government bodies and policy makers to implement appropriate measures, such as introducing protective and financial legislation to encourage SMEs to adopt technology, or to formulate national policies and initiatives aimed specifically at supporting the adoption of e-commerce by SMEs.Egyptian Governmen

Using competing models to evaluate the role of environmental pressures in ecommerce adoption by small and medium sized travel agents in a developing country

This study investigates the factors that influence e-commerce adoption in SME travel agents in a developing country. The research is based upon a questionnaire survey of travel agents in Egypt and employs advanced statistical techniques to test a conceptual framework that extends the technology acceptance model. Using competing models the study examines the relationship between e-commerce adoption, perceived benefits, perceived barriers and environmental pressures. The results indicate that environmental pressures significantly affect the perceived benefits and barriers of e-commerce adoption, in addition to having an indirect effect on adoption behaviour. Insights are provided into the nature of relationships between the key factors that determine e-commerce adoption and the extent to which they can be used to develop effective strategies for SME travel agent re-intermediation in the global travel market. Implications are identified for practice and government policy in relation to the use of e-commerce in SME travel businesses in developing countries

The effect of customer relationship management practices on airline customer loyalty

Customer satisfaction and loyalty are important concerns for travel providers and have a significant role in maximizing their sales. Therefore, adopting the activities of customer relationship management could help them building strong relationships with customers. This study explores the opinions of EgyptAir passengers on customer relationship management activities adopted by the company and how this affects their satisfaction and loyalty. A questionnaire was used for data collection and structural equation modelling was employed for rigorous findings. Findings revealed a positive significant effect of shared values, bonding, commitment, trust, tangibility, and handling customer conflicts on passenger satisfaction and loyalty

The Impact of Organisational Justice and Job Autonomy on Employee Retention: The Mediation of Psychological Ownership

Employee retention is critical to human resources practices in the high turnover rate tourism industry. Job autonomy, organisational justice and psychological ownership have become crucial concepts for customer retention. The present study aims to examine the contribution of organisational justice, job autonomy and psychological ownership to employee retention in the travel agencies sector in Egypt and Iraq. Data were gathered from employees of the Egyptian and Iraqi travel agencies and tested using PLS-SEM. Findings showed that organisational justice, job autonomy, and psychological ownership have significantly affected employee retention in travel agencies. It is also reported that psychological ownership partially mediates the relationships between employee retention, organisational justice, and job autonomy. The findings provide significant theoretical and practical inferences

Hotels' dependency on online intermediaries and their chosen distribution channel portfolios: Three country insights

New intermediaries are entering the market, challenging the hospitality industry to find an appropriate distribution channel portfolio. This research investigates how many channels hotels in Austria, Germany and Switzerland choose and what role the various channels play. Findings based on 1014 questionnaires reveal an average mix of 8.06 offline and online channel categories. Traditional channels, such as walk-ins and telephone, still play a major role; however, about one fifth of the bookings are completely generated online. On average, 3.61 online travel agencies (OTAs) are used. With regards to OTA penetration, an oligopolistic market structure is prevalent. Swiss and German hotels' OTA dependency is higher than Austrian's. A series of a posteriori cluster analysis results in four distribution portfolio groups hoteliers choose: multi-channel-, electronic-, real time-, and traditional distributors. Distribution portfolio profiles facilitate learning from strategies used by hotels with certain characteristics such as target group and star-rating

The determinants of conversion rates in SME e-commerce websites

© 2017 Web retailers invest significant resources to improve the proportion of website visitors that make a purchase, also known as the conversion rate. Improving this rate is particularly important to SMEs that have traditionally lagged behind larger firms as they have found it difficult to justify the significant investment involved in website development against the historical low returns associated with an online sales channel. Identifying methods that increase conversion rates reduces these perceived barriers and increases effective SME participation in the growing e-commerce sector. This paper uses 1184 observations from 6 SME websites to identify and analyse the factors, or combination of factors, that improve conversion rates. This is achieved through a process of exploratory regression analysis to select the most relevant determinants and Qualitative Comparative Analysis (QCA) to offer more ‘fine-grained’ detail on the conditions where conversion rates improve. Our findings suggest that a key factor that improves the conversion rate is a strategy that focuses upon either quality or promotion and avoids mixing such attributes within the web site offer

Nepotism, employees’ competencies and firm performance in the tourism sector: A dual multivariate and Qualitative Comparative Analysis approach

© 2018 Elsevier Ltd The paper identifies the critical competencies affecting Egyptian travel agents’ performance while assessing the negative influence of nepotism on such competencies. To address this aim, the study uses a holistic dual approach employing a multivariate technique using Partial Least Squares Structural Equation Modelling (PLS-SEM) and a configuration method through a fuzzy-set Qualitative Comparative Analysis (fsQCA). Based on a sample of 500 travel agents’ employees, the results show that: (1) none of the competencies is sufficient to drive travel agents’ performance, (2) two distinct configurations of employee competencies are likely to result in high performance, and (3) nepotism has a direct negative influence on some of these competencies. The study holds important implications for both theory and practice

Rethinking place-making: aligning placeness factors with perceived urban design qualities (PUDQs) to improve the built environment in historical district

Understanding the concept of place is critically important for urban design and place-making practice, and this research attempted to investigate the pathways by which perceived urban design qualities (PUDQs) influence placeness factors in the Chinese context. Twelve hypotheses were developed and combined in a structural equation model for validation. The Tanhualin historical district in Wuhan, China was selected for the analysis. As a result, place attachment was verified as a critical bridge factor that mediated the influence of PUDQs on place satisfaction. Among the five selected PUDQs, walkability and space quality were revealed as the most influential factors associated with place attachment and place satisfaction. Accessibility was actually indirectly beneficial to place-making via the mediation of walkability. Corresponding implications and strategies were discussed to maintain the sense of place for historic districts

Levels of Business to Business E-Commerce Adoption and Competitive Advantage in Small and Medium-Sized Enterprises: A Comparison Study Between Egypt and the United States

publicationstatus: publishedBusiness-to-business e-commerce adoption has become increasingly important for small and medium-sized enterprises, allowing them to gain and sustain competitive advantage. Business-to-business adopted at different levels based on different resource endowments leads to competitive advantage being gained and sustained in proportion to that level of adoption. This study uses structural equation modeling to investigate how levels of business-to-business e-commerce adoption affects and contributes to gaining and sustaining competitive advantage in both U.S. and Egyptian manufacturing small and medium-sized enterprises. The key finding is that small and medium-sized enterprises can achieve growth in market share and sales that helps them to improve their position in the global market through higher levels of business-to-business e-commerce adoption. Implications of the study, its limitations and directions for future research, are also discussed