Factors Affecting The Adoption Of E-Commerce In Tour Oprators In Ethiopia

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Date

2019-05

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Addis Ababa University

Abstract

Tourism which is regarded as information intensive sector is the mostly affected sector by technology revolution and its traditional trading structures have been totally changed. The adoption and use of e-commerce in tourism sector is regarded as a tool to widen market reach and improve efficiency and effectiveness of business operations. This study considers e-commerce adoption by TOs in Ethiopia. This study is motivated by the fact that the adoption of e-commerce by tourism sector, especially in Ethiopia, is very important but still very farbehind. This study used TAM, innovation diffusion; e-readiness theories identified nine factorsas the determinant factors of e-commerce adoption, which are top management support,organizational competency, IT capacity, perceived benefits, perceived compatibility, perceivedcomplexity, market e-readiness, supporting industry and government e-readiness. A surveywas conducted with 217 Ethiopian tour operators that have already been listed by MoTC.SPSS was used to analyze the data. . The findings indicated that All variables have a positiveand significant correlation. Based on multiple linear regression analysis, it reveals that theimpact of each determining factors in e-commerce adoption and their significance. The impactof Market E-Readiness, IT Capability, Perceived Benefit, Supporting industries,Organizational Competency, Government E-Readiness, Perceived Compatibility, Topmanagement support and Perceived Complexity on e-commerce adoption with Tour operatorsin Ethiopia in their descending order. By examining this beta weight of data analysis result thefinding shown that Market e-readiness followed by IT Capability and Perceived Benefit wasmaking relatively larger contribution to the prediction model. The model summary reveals that the proportion of the variation in e-commerceAdoption is explained by the nine independent variables collectively are 92.2% andthe remaining 7.8% of the variance is explained by other variables This thesismakes a contribution to theory and practice by providing for Ethiopian tourism in particularto TOs , a holistic picture of e-commerce adoption; the extent of e-commerce adoption; and,the determinant factors leading to adoption.

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Keywords

E-commerce, Tour operators TOs, ecommerce adoption

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