Investigating the adoption of E-Business Technology by Small and Medium Enterprises

Abstract

The main purpose of this study is to identify factors affecting E-business technology adoption and organizational performance. Firms in Libya are facing competitive pressure that creates urgency of working efficiently in the competitive market. This makes an urgent need of e-business adoption strengthening their capacity and capability. Quantitative method was utilized for the data collection and statistical analysis. Data is collected using non-probability random sampling technique and the respondents were the managers having experience of using E-business. Data were analyzed using structural equation modelling technique to confirm the hypothesis developed. The quantitative findings revealed that beta coefficient of trial-ability and observability was having high influence on adoption of E-business technology by 0.466 and 0.371. With the significant standardized regression weights of all the constructs and items, the overall square multiple correlation was found to be 0.55 (55%) which is considered as very strong and significant finding of the study. This paper contributes to the adoptiondebate extending the Diffusion Innovation Theory framework by the inclusion of trial-ability and observability towards E-business and organizational performance as an antecedent factor. E-business has potential to increase revenues, operational efficiency and relationship development. The present study adds to the limited empirical work performed in this area investigating the antecedents and outcomes of e-business adoption, within the context of a highly competitive and rapidly evolving industry.