An Empirical Study of Problems in Implementation of Electronic Commerce in Kingdom of Saudi Arabia

Iftekhar Ahmad,Anand Mohan Agrawal

doi:10.5539/ijbm.v7n15p70

Abstract

This research paper has examined the statistical significance of various problems in implementation ofe-commerce solution in business organizations in Kingdom of Saudi Arabia. KSA (Kingdom of Saudi Arabia)has witnessed substantial progress in the field of ICT related infrastructural development in the first decade of21st century. However, despite these positive developments and abundant resources, Kingdom of Saudi Arabia(KSA) in particular and GCC member countries in general have not been able to catch up with the pace of digitaldevelopment in the rest of the world. The research paper attempts to identify the problems in implementinge-commerce in Kingdom of Saudi Arabia. This research paper on the basis of analysis of data throughhierarchical multiple regression modeling and multiple response analysis of the data has identified statisticallysignificant problems in implementation of e-commerce in Kingdom of Saudi Arabia and outlined key policyoptions that this country as well as other GCC nations can consider in formulation of policies to stimulate,support and maximize the effect e-commerce has on their economies.

Highlights

Rapid advancements in the field of information and telecommunications technologies in the first decade of 21st century, have been truly remarkable and has resulted in amazing transformation of some societies into information-based cultures
As the standardized beta values (β) are measured in standard deviation units and they are directly comparable. They provide a better insight into the ‘importance of predictor in the model. In this model out of the five predictors, “Lack of supporting business law for ecommerce”, “Concern for cyber crime, data security & privacy”, and “Difficulty in integrating e-commerce software with existing system” are having positive standardized Beta values which proves that they affect the implementation of ecommerce while both “Shortage of skilled human resources” and “Small size of market for e-commerce” are having negative standardized Beta values and they may be considered as statistically non significant in contributing to obstacle in ecommerce implementation
From the Multiple Response Analysis and Hierarchical Regression Modeling of data obtained through survey, it has been found that the major problem in implementing e-commerce is because of following obstacles

Summary

Introduction

Rapid advancements in the field of information and telecommunications technologies in the first decade of 21st century, have been truly remarkable and has resulted in amazing transformation of some societies (notably Western) into information-based cultures. Fast emergence and acceptance of e-commerce has resulted in effecting deep positive impact on business world. It is being implemented rapidly in business establishments in different sectors of the economy worldwide. Multi National Companies are early adopters of e-commerce. As these companies are conducting business in multiple countries and working through numerous supply chain components such as suppliers, original equipment manufacturers, dealers, importers and carry & forward ( C&F) agents , distributors and retailers etc., the coordination between these entities has become vital so as to be successful in the competitive environment. An integrated supply chain with a well designed e-commerce infrastructure has dramatically improved their performance and minimized costs

Objectives

Methods

Results

Conclusion