Adoption Of E-Commerce Framework For Ethiopian Banks

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Addis Ababa University


E-commerce, a relatively new concept for Ethiopian market, is giving competitive advantages across the globe in both developed and developing countries. This study is about adopting ecommerce framework for Ethiopian banks. The study has used technology organization environment (TOE) technology adoption model to identify the factors for e-commerce framework adoption for Ethiopian banks. It has also contextualized a questionnaire developed by Elizabeth and J. Michael (2004), in their research done for developing an e-commerce adoption model for developed countries Small and Medium Businesses. Following the survey results additional factors of e-commerce adoption are included on the TOE framework. Compatibility of the tailored e-commerce framework and external pressure are included as external factor of adoption to the existing TOE framework. Organizational support, organizational readiness, ease of use, usefulness, entrepreneurial orientation and perception of decision makers are also included as internal/organizational factors for e-commerce adoption. The survey responses are also used to perform strength, weakness, opportunity and threat (SWOT) analysis on each of the factors of e-commerce adoption. Based on the results a tailored e-commerce framework is proposed to suite the Ethiopian banks working environment by amending the national interoperability infrastructure–EthSwitch to interoperate among the member banks and the e-commerce application, 3-Domian secure (issuer, acquirer and interoperability), is interfaced with the merchant plug in at the merchant web site and rearranging the existing modules of the framework. As a result, the tailored e-commerce framework that is “close-controlled and close-boundary” will resolve the issues of e-commerce fraud, security related issues, settlement related issues, legislation and policy related issues. Other researchers will use the proposed framework as a startup to further study cross boarder e-commerce implementation in Ethiopia by widening the operating environment to accept major international standard cards such as the Visa and MasterCard



Ethiopian Banks