The influence of technological preparedness on trust in e-commerce by South African SMEs with demographics as mediation variables

Abstract

This study investigates the impact of Technological Preparedness on trust in e-commerce by SMEs in South Africa. The study examined the role of an organisation’s Technological Preparedness in influencing the use of e-commerce. A positivist research paradigm and quantitative research approach underpins this study. Demographical factors were used as control variables. A total of 497 respondents participated in the research, and the findings highlighted the significance of Technological Preparedness in influencing trust in e-commerce by SMEs in South Africa. The findings suggest that demographics such as Age, Gender, Education Level, Province of origin, Business Category, and Internet Experience had little or no influence on trust in e-commerce compared to Technological Preparedness. The technological limitations SMEs experience significantly influence their trust in e-commerce, impacting their adoption and usage of e-commerce in their businesses. This study contributes to the existing literature on the adoption of technology by SMEs in developing countries. It provides insights for policymakers to develop effective policies that support the usage of e-commerce by SMEs to facilitate growth and sustainability. Based on the findings, government policies should improve to focus more on addressing technological issues and empower SMEs to enhance their preparedness to adopt e-commerce.