INHIBITORS OF THE ADOPTION OF E-COMMERCE BY SMMES IN TWO SOUTH AFRICAN CITIES

Year 2018, Volume: 10 Issue: 1, 51 - 66, 01.01.2018

Patrick Ndayizigamiye Refiloe Gladys Khoase

Abstract

SMMEs play a significant role in developing countries’ economies. Literature
suggests that SMMEs stand to benefit more from e-commerce adoption than larger
companies due to their flexible organisational structure. Such benefits include
reaching a wider market compared to the traditional brick and mortar organisations.
However, various authors suggest that e-commerce is not widely adopted within
the context of SMMEs due to various factors that hinder them to take up or enhance
their online businesses. It is in this context that this paper investigates factors that
impede e-commerce adoption by SMMEs in the KwaZulu-Natal (KZN) province
of South Africa. From a sample of 247 SMMEs owners conveniently sampled from
two cities in KZN and using quantitative research methods, this paper tests the
significance of identified factors from the literature as possible hindrances to
SMMEs adopting e-commerce. Findings reveal that there are common significant
relationships between e-commerce adoption and the following limiting factors in
the two cities: low use of e-commerce amongst suppliers; low level of
computerisation within the SMME; high cost of computers and network
technologies; unreliable telecommunications services; concerns about Internet
security and concerns about legal issues, contracts and liability. Thus, the paper
recommends that SMMEs adopt a flexible organisation culture to promptly adapt
to changes within their business environment; adequate support for SMMEs;
government regulations and incentives that attract more SMMEs into the ecommerce
venture.

Keywords

SMMEs, e-commerce, inhibitors, Durban, Pietermaritzburg