There are a number of benefits associated with e-commerce adoption. E-commerce provides an
opportunity for Small, Medium and Micro Enterprises (SMMEs) to expand their range of
transactions and expansion into foreign markets (OECD, 2000). In South Africa, a study on
online retail reveals that South Africans spent two (2) billion rands buying goods online in 2010
(WorldWideWorx, 2011a). The projected growth of online spending was 40% for 2011 (ibid).
In addition, at the end of the year 2011, the number of internet users in South Africa was
approximately 8.5 million (Goldstuck, 2012). Furthermore, the installation of new undersea
telecommunications cables in South Africa that will lead to an increase of the internet
bandwidth at a cheaper price, the granting of licenses that allows Internet Service Providers to
build their own networks and the growth of cell phone internet are indicators that more South
Africans will be able to access the internet in the near future. This suggests that there is a
market for internet-enabled businesses in South Africa.
It is in this context that this research examines the adoption of e-commerce by South African
SMMEs in the Pietermaritzburg and Durban areas. Particularly, this research focuses on four
(4) e-commerce options: i) customers payment by credit card through the SMME’s website, ii)
customers placing orders through the SMME’s website, iii) providing customer services
through the SMME’s website and iv) placing orders with suppliers over the internet.
From a clustered sample of 400 SMMEs from Pietermaritzburg and Durban (200 from each
area), this research examines the current usage of the 4 e-commerce options, the determinants
and inhibitors of e-commerce, e-commerce readiness in terms of e-commerce enablers that are
implemented in those areas and the knowledge that SMMEs from these locations have about the
benefits of e-commerce. Variables drawn from the Unified Theory of Acceptance and Use of
Technology (UTAUT) and the Diffusion of Innovation (DOI) theory were tested for their
significance as determinants of e-commerce within the context of SMMEs. Data were collected
by means of questionnaires hand-delivered to SMME owner/managers.
This study reveals that there is a disparity in e-commerce adoption rate by SMMEs between
Pietermaritzburg and Durban. Such difference is mainly due to the differences in size of the
businesses. In addition, it was found that three UTAUT variables influenced SMMEs’ decisions
to adopt e-commerce. These variables are i) performance expectancy, ii) effort expectancy and
iii) social influence. The social influence factor was found to be moderated by age. In addition,
i) relative advantage, ii) compatibility and iii) complexity are the DOI variables that were found
to have exerted some influence in the persuasion phase of the DOI model. The UTAUT and
DOI theories were tentatively adapted to reflect the findings emanating from this study.
This research also found that the majority of SMMEs that adopted e-commerce had knowledge
of the benefits of e-commerce. Importantly, the research found that the majority of e-commerce
adopters had an e-commerce strategy in place which is in contradiction with other research
findings from the reviewed literature.
The research shows that the majority of e-commerce adopters in both locations have i) their
own company e-mail, ii) internet access and iii) a website. However, non-adopters in
Pietermaritzburg show more readiness to e-commerce adoption compared to non-adopters in
Durban as the majority of them already have i) an online presence, and ii) electronic mail. As
expected, the majority of e-commerce adopters have a computerised inventory of company’s
products and services. There is also evidence that customers’ and suppliers’ databases are built
to carry out specific e-commerce activities.
Lastly, the research found that whilst low use of e-commerce by customers is the only inhibitor
that significantly affects the adoption of e-commerce in Durban, in Pietermaritzburg a number
of inhibitors were found to impede e-commerce adoption. These are: i) lack of conviction of the
financial and business benefits of e-commerce, ii) limited knowledge of the required
technology, iii) low use of e-commerce amongst customers, iv) low use of e-commerce amongst
suppliers, v) low level of computerisation within the company, vi) high cost of computers and
network technologies, vii) telecommunications services not dependable, viii) concerns about
internet security, and ix) concerns about legal issues, contracts and liability.
In light of the research findings, it is recommended that government and policy makers be
involved actively in promoting e-commerce adoption by SMMEs. In addition, SMME owners
are urged to consider e-commerce adoption from an early stage of their business cycles and to
take advantage of existing platforms that enable them to engage in e-commerce activities. / Thesis (M.Com.)-University of KwaZulu-Natal, Pietermaritzburg, 2012.
| Identifer | oai:union.ndltd.org:netd.ac.za/oai:union.ndltd.org:ukzn/oai:http://researchspace.ukzn.ac.za:10413/9682 |
| Date | January 2012 |
| Creators | Ndayizigamiye, Patrick. |
| Contributors | McArthur, Brian. |
| Source Sets | South African National ETD Portal |
| Language | en_ZA |
| Detected Language | English |
| Type | Thesis |
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