Abstract
Purpose: The purpose of the study is to complement existing literature by examining the relevant barriers contributing to the non-adoption of electronic marketing practices by SMEs in the Vaal Triangle. Methodology: Primary data was collected using a quantitative research technique with the use of a structured questionnaire as the survey instrument. A total of 168 businesses were selected randomly and visited within the various municipal areas in the Vaal Triangle. These businesses were visited between August and November 2008. Thirty-two small, medium and medium enterprises SMEs refused to participate resulting in 123 usable questionnaires for the purposes of the analysis. Factor analysis was used to examine the robustness of the factor structure using principal component analysis. Findings: A five-dimensional structure was established comprising a 16 item-scale. The major impediments towards the non-adoption of e-marketing include technology incompatibility with target markets, lack of knowledge, stakeholder unreadiness, technology disorientation and technology perception. The reliability analysis, reflected coefficient values ranging from 0.70 to 0.88 indicating satisfactory internal consistency amongst variables within each dimension. Implications: By analysing the barriers that inhibit the adoption of e-marketing strategies among SMEs, marketers are presented with recommended strategies and implications on how to approach the challenges presented by Internet technological advancements. Internet capacities of SMEs may be strengthened through nurturing e-marketing awareness and providing adequate information tools through diverse Internet Marketing training programmes. Originality/Value: SMEs can prove to be a major source of economic growth for many African countries if sufficient guidance and support on how best to overcome the challenges of adopting advanced marketing practices is available.
Highlights
Owing to the low growth rate of global economies, high unemployment and an unsatisfactorily high level of poverty in countries, the creation of the small and medium sized business sector plays a critical role in economic growth (Vuuren & Groenewald, 2007:269)
An appropriate sampling frame was assembled from various lists that included a register from the Gauteng Enterprise Propeller (GEP), the Vaal Triangle business directory as well as SME databases from the relevant municipalities in the region
The results are described taking into account the composition of the sample in terms of small and medium enterprises, demographic analysis of the data and descriptive statistics explained by the means of the variables relating to the barriers to e-marketing adoption
Summary
Owing to the low growth rate of global economies, high unemployment and an unsatisfactorily high level of poverty in countries, the creation of the small and medium sized business sector plays a critical role in economic growth (Vuuren & Groenewald, 2007:269). In line with the August report from the Parliamentary Monitoring Group (RSA, 2009), economies can benefit from the build-up of efficient SMEs in order to facilitate the government‟s plans to create about half a million jobs for South Africans targeted originally for accomplishment by the end of the year, 2009. In this regard, uptake of Internet marketing strategies has the potential to contribute to the exponential growth of the SME sector. Despite its potential as a marketing tool, actual use of e-marketing has not met expectations (Elliot & Boshoff, 2007:16)
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