Exploring the potential of electronic commerce tools in South African SME tourism service providers

Abstract

The World Wide Web, together with other ICT enabling technologies, offers a platform for organizations to arrange their business processes, address their marketplaces, and partner with other enterprises. This paper reports on the diffusion and adoption of electronic commerce tools by small and medium enterprise (SME) tourism service providers in Pretoria, the capital of South Africa. In order to achieve the stated aim, the following research questions were addressed: What types of e-commerce tools have been adopted in the SMEs? What were the reasons for the adoption of e-commerce? What benefits do e-commerce tools provide to SMEs? What are the barriers that SMEs face with the adoption of e-commerce? What are the e-commerce training needs of SMEs service providers? Roger’s Diffusion of Innovations framework was found to be useful as the study sought to examine the diffusion and use of modern ICTs by SME tourism service providers. The study adopted a descriptive survey research design in which a systematic sampling technique is used. The data was analysed by using descriptive statistics. The results demonstrated that a variety of e-commerce tools have been adopted in the SMEs studied. E-commerce tools are also very effective in reaching new customers, increasing sales and improving marketing. It is therefore important that SMEs have access to relevant e-commerce tools in order to enjoy and reap the benefits of ICTs. SMEs should ensure that they offer their staff adequate varieties and levels of ICT competence.