Factors Affecting E-Commerce Resistance Among Smes in Ethiopia: A Case Study of Addis Ababa
No Thumbnail Available
Date
2024-07
Authors
Journal Title
Journal ISSN
Volume Title
Publisher
Addis Ababa University
Abstract
This study explores the factors that affect e-commerce resistance among Small and Medium Enterprises (SMEs) in Addis Ababa, Ethiopia. E-commerce resistance is the degree to which potential adopters of e-commerce are unwilling to adopt it, due to various factors that influence their willingness and ability to do so. Despite the potential benefits of e-commerce for SMEs, such as increased market access, reduced costs, and improved efficiency, its adoption rate in Ethiopia is low, indicating a high level of e-commerce resistance. Using a quantitative approach, the study surveyed SME owners and employees using a questionnaire based on established theoretical models. The research identified ten key factors influencing e-commerce resistance, categorized into three groups: environmental, organizational, and technological. Environmental factors, such as low market maturity and limited competitive pressure, were found to have a significant impact on e-commerce resistance. Organizational factors, such as financial constraints and limited digital literacy, also emerged as barriers to e-commerce adoption. Technological factors, such as security concerns and infrastructure limitations, also contributed to e-commerce resistance. The study highlights the role of environmental, organizational, and technological factors in shaping e-commerce resistance among SMEs. It also suggests some tailored interventions, such as policy reforms, capacity-building programs, and targeted support, to overcome e-commerce resistance and foster e-commerce adoption among SMEs, especially micro and small-sized enterprises.
Keywords: SMEs, E-commerce resistance, Environmental factors, Organizational factors, Technological factors