Resistance to change: six reasons why businesses don’t use e-signatures

Abstract

Over the last decade, various pieces of legislation have been enacted and policies developed both on national and international fronts in order to promote the usage of electronic signatures. However, paper-based signatures are still the preferred instrument to electronic signatures for entering into contracts and commercial transactions. What are the causes of this apathy on the part of the business community? Why is there a resistance towards electronic signatures in this era of e-business? This paper conducts a comprehensive empirical investigation to examine factors that have contributed to the low acceptance of electronic signatures, in particular the digital signature, in the Australian business community. The six main factors that have been identified are: the prevailing culture and customs associated with manuscript signatures; ignorance about the electronic signature technology; legal concerns; security issues; the cost of using the technology; and the complexity associated with its setting up and usage. The paper also makes some useful suggestions that may encourage businesses to use electronic signatures in order to facilitate the growth of e-commerce.