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An Investigation into the Factors Affecting E-Commerce Adoption Decisions by SMEs: A Study in Saudi Arabia

An Investigation into the Factors Affecting E-Commerce Adoption Decisions by SMEs: A Study in Saudi Arabia
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Author(s): Sabah Abdullah Al-Somali (King AbdulAziz University, Saudi Arabia), Roya Gholami (Aston University, UK)and Ben Clegg (Aston University, UK)
Copyright: 2015
Pages: 38
Source title: Strategic E-Commerce Systems and Tools for Competing in the Digital Marketplace
Source Author(s)/Editor(s): Mehdi Khosrow-Pour, D.B.A. (Information Resources Management Association, USA)
DOI: 10.4018/978-1-4666-8133-0.ch011

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Abstract

Electronic commerce (e-commerce) has become an increasingly important initiative among Small and Medium Enterprises (SMEs) as both a great opportunity and as a source of competition. The factors affecting adoption decisions of e-commerce by SMEs have been well documented, but there is a paucity of empirical studies that examine the adoption of e-commerce in the Arab world. The aim of this chapter is to provide insights into the salient e-commerce adoption issues by focusing on Saudi Arabian businesses. This chapter investigates the state of e-commerce adoption and analyses the factors that determine the extent to which SMEs in Saudi Arabia are inclined towards deploying e-commerce technologies. This research was designed using a qualitative approach through exploratory case studies selected from firms in Saudi Arabia. The findings contribute towards a better conceptual and practical understanding of the main factors driving SMEs to adopt e-commerce. The study has found that the level of e-commerce implementation has yet to mature and customer readiness for Internet shopping has to improve before e-commerce reaches the levels of maturity seen in other regions of the world. This study highlights several directions for future inquiry and implications for policymakers and managers who are involved in efforts to introduce complex innovations such as e-commerce into their organisations or are interested in expanding their e-commerce applications and generating more revenue.

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