Abstract

The aim of this paper is threefold: first to explore the factors that significantly and positively affect the adoption of e-commerce in SMEs; second, to determine the factors that hinder the adoption of e-commerce in these enterprises; and, finally, to investigate the impact of e-commerce-related factors on e-customer loyalty. Two samples were used for the purpose of the current study, the first of which comprised 163 managers of SMEs while the second consisted of 213 customers. Data were collected via electronic questionnaires sent to the study participants. The results identified 10 drivers of e-commerce, which are customer preferences, e-commerce perceived value, partner readiness, e-commerce cost, technical expertise, customer trust, employee knowledge and experience, top management support, perceived ease of use, and organizational culture, and 7 barriers to e-commerce adoption, which are employee technology knowledge, telecommunications, connectivity cost, technical expertise, technology cost, internet security, and legal barriers. Furthermore, the results highlighted that e-commerce ethics, information quality, customer trust, user interface quality, and customer satisfaction, respectively, are the main predictors of e-customer loyalty. Basically, organizations are called to adopt e-commerce to increase their customer loyalty. However, organizations should consider the drivers of and barriers to e-commerce adoption found in the current study.

Highlights

  • The introduction of the Internet was a critical factor for the development of e-commerce

  • The aim of this study was threefold: first, to explore the factors that affect e-commerce adoption; second, to examine the barriers that hinder the adoption of e-commerce in small and medium-sized enterprises (SMEs); and, third, to investigate the effect of some factors on e-customer loyalty

  • The factors investigated in this study as drivers of e-commerce adoption were chosen from related works; numerous studies have found similar results to those of the current study

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Summary

Introduction

The introduction of the Internet was a critical factor for the development of e-commerce. The term has been defined as completing business transactions via the Internet (Zaied, 2012). The clearest evidence of this is the increased volume of commerce around the globe among different countries using the Internet compared with business transactions conducted without the Internet. Many potential benefits of e-commerce investment have been distinguished. E-commerce provides companies with the ability to access new customers as well as global markets (Mullane, Peters, & Bullington, 2001), enhances the success of entrepreneurship ventures (Senn, 2000), and helps companies to gain a competitive advantage (Ghobakhloo, AriasAranda, & Benitez-Amado, 2011)

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