57-57-1-pb

8/18/2019 57-57-1-PB

1/13

EJISDC (2002), 10, 4, 1-13

The Electronic Journal on Information Systems in Developing Countries,

http://www.ejisdc.org

Small Businesses’ Acceptance and Adoption of e-Commerce in the

Western-Cape Province of South-Africa

Eric Cloete

Email: [email protected]

Steven CourtneyJulia Fintz

Department of Information Systems,University of Cape Town

South Africa

AbstractThis paper reports on research that was undertaken in Information Systems at the University

of Cape Town on the acceptance and adoption of e-commerce amongst small businesses inthe manufacturing sector. It addresses how these small businesses in a developing country

perceive the potential benefits of e-commerce and looks at their consequent adoption of e-commerce activities in their own organisations. This includes the businesses’ perception ofthe benefits and opportunities of e-commerce activities and to determine whether these

businesses have the necessary technological capabilities for e-commerce adoption in place.A secondary aim of this research was to determine the current level of e-commerce adoption

by small manufacturing businesses in the Western Cape. This was achieved by circulating aquestionnaire to test the perception of e-commerce benefits and e-commerce adoption levelsamongst small manufacturing businesses in the Western Cape. If the global usage of the

Internet for electronic commerce by SME’s is compared with the South African case, thisresearch clearly indicates that the available technologies are not adopted to the extent that is

necessary for survival in a rapidly changing environment.

Keywords: e-commerce, adoption of e-commerce, SME’s, manufacturing industries

Acknowledgements

The authors acknowledge and appreciate the work done by Steven Davies, a part-time

honours student who has been involved in a similar research project (Davies, 2002).

1. THE ACCEPTANCE OF E-COMMERCE

Many studies have researched the benefits of the adoption of e-commerce in an organisation.

While the potential benefits have been established, a number of inhibitors to the adoption ofthese new business models still exist. For small businesses the advantages of e-commerceadoption are often not perceived to be applicable and few success stories are available toconvince owners of such firms that e-commerce offers a real benefit to their organisations.

Although previous research on e-commerce and SME’s (small to medium sizedenterprises) incorporates small businesses, there is little research done on small businesses in

particular. Although the classification of enterprises is normally based on size, turnover andnumber of employees, the definition of an SME differs in the literature and no fixeddefinition therefore exists. For this research we classified a business as an SME if it has a

single CEO and not more than fifty employees.The objective of this study is to focus on small businesses in the Western Cape

Province of South Africa. Moreover, being e-ready can support the elimination of barriersthat have traditionally stifled the flow of information and goods to and from developing

8/18/2019 57-57-1-PB

2/13

EJISDC (2002), 10, 4, 1-13



2

nations. With e-readiness being considered a prerequisite for successful e-business therebyenabling these opportunities to be harnessed (McConnell International Report, 2000).

The focus of this study is on the small manufacturing sector due to the fact that thesefirms traditionally lagged behind those in other industries with regards to technology

adoption (Poon and Swatman, 1999, Turner, 1999). We further decided to look specifically at

only this sector in order to gain a better understanding of the industry’s perceptions towardsand adoption of e-commerce. This study therefore aims to discover the consequent e-

commerce adoption levels among these businesses.There has been a marked change in perceptions towards e-commerce before the

dotcom crashes of 2000 and thereafter (Agrawal et al., 2001, Schneider and Perry, 2001).This research provides insight into the current perceptions of small manufacturing businessesin the Western Cape towards e-commerce and helps to determine to what extent e-commerce

will be adopted in the future.It is a well-known fact that e-commerce and Internet technologies can benefit an

organisation (Akkeren and Cavaye, 1999). This is particularly true for SME’s due to the factthat e-commerce improves an SME’s ability to compete with larger organisations and operate

on an international scale. E-commerce can deliver the tools to provide cost effective ways forSME’s to market themselves, launch new products, improve communications, gatherinformation, and identify potential business partners. The obvious aim of these e-activities is

to extend their capabilities to higher turnovers and larger markets. Despite these potential benefits of e-commerce to an SME, there seems to be a perception by owners of SME’s thatthere is a lack of business benefit, if the input is weighed against immediate returns (Harrison

et al.,1997). Due to the fact that the ownership and decision making power in an SME is held by just one or two people, adoption of e-commerce into such an organisation is heavily reliant

on these people’s acceptance of the technology. It is important, therefore, to understand whatfactors lead to an individual’s acceptance of a technology. The Technology AcceptanceModel (TAM) (Davis, 1986) is an appropriate tool for this study.

Figure 1: Technology Acceptance Model (Davis, 1986)

The potent ial user of e-commerce must not only be convinced of the relevantusefulness of e-commerce (advantages), but s/he must also have a positive attitude towards it

(embracing EC ). The TAM model further states that the user must be comfortable with thetechnology employed (ease of use), although s/he expects factors affecting acceptance of thetechnology to be beyond the control of the user (external variables).

2. BENEFITS OF E– COMMERCE

Adoption of e-commerce is largely based on perceived benefit. Poon and Swatman (1997)found that perceived benefit is a key reason why organisations adopt and continue to use theInternet. They classified perceived benefits into 'direct ' and 'indirect ' benefits. Direct benefits

are quantifiable by using techniques such as data analysis and measuring variables such as the

number of new customers as a result of e-commerce implementation. Indirect benefits are not

Usefulness

Ease of Use

External

VariablesIntention/Attitude

8/18/2019 57-57-1-PB

3/13

EJISDC (2002), 10, 4, 1-13



3

easily measured but rather have a positional effect on the business, e.g. customer loyalty andgoodwill as a result of added value and services provided online.

Poon and Swatman (1997) also identified short-term and long-term benefits. Short-term benefits should be realised within months, whereas long-term benefits may take longer

to be achieved and are unpredictable. Their research showed that SME’s are reaping

insignificant, marginal short-term benefits from e-commerce. They identified long-term benefits as being the key motive for ongoing Internet activities. These might include

additional customer enquiry, forming new networks, and reaching previously untappedmarkets.

Some additional benefits of e-commerce are listed below:(Harrison et al., 1997 , Iacovou et al., 1995)

• Improved Information Exchange with Customers/Suppliers

• Improved Customer Service

• Expanded Business Reach

• Access to International Markets

• Reducing Costs

3. ADOPTION OF E-COMMERCE

It is important to recognise that e-commerce activities range from entry-level activities suchas having web browsers, web sites, and email, to sophisticated activities such as online

payments, making purchases online, customer services, and video conferencing, amongstothers. Akkeren and Cavaye (1999) state that the adoption of e-commerce practices is a

progression, and therefore sophisticated technologies are unlikely to be adopted before entry

level technologies have been successfully adopted. These entry-level activities provide thenecessary technological infrastructure from which more sophisticated e-commerce activities

can be developed.As an organisation progresses up the ladder it must undergo change and become more

sophisticated in its use of technology. As the business implements these new changes it is

ultimately able to improve business efficiencies.Planning for Web presence can be summarised as three distinct stages:

• Static pages for advertisement and e-mail communication with clients. Externalcommunication will include enquiries and quotes from customers, procurement

processes between businesses and many other EDI1 exchanges.

• Database integration, involving complete and interactive catalogues. Shopping cart

technology and secure payments becomes an integral part of all the transaction processing generated by websites. To complete the transaction processes, order

information and queries need to be followed up and shipping status tracked throughweb procedures.

• The final stage involves fully-fledged e-commerce. This encapsulates all theinformation processing of the previous stages, plus more interactive features,

personalisation and CRM2 tools, for instance.

1 Electronic Data Interchange 2 Customer Relationship Management

8/18/2019 57-57-1-PB

4/13

EJISDC (2002), 10, 4, 1-13



4

The final outcome is the integration of all these activities with the internal processesof a business. The focus is a customer service orientated e-business.

4. FACTORS THAT AFFECT E-COMMERCE ADOPTION The factors that affect e-commerce adoption are useful in determining the reason why an

SME is at a certain level. These adoption factors are a result of the owner’s business outlookas well as the organisation’s characteristics (Courtney and Fintz, 2001):

• Owner's Characteristics

As mentioned earlier, adoption is heavily reliant on the acceptance of e-commerce by

the business owner. If the owner neither perceives the technology to be useful, norunderstands its potential, then s/he will be reluctant to adopt it (Iacovou et al., 1995).The level of computer literacy of the owner and a lack of knowledge on how to use

the technology will result in the business being less likely to adopt e-commerce(Kirby and Turner, 1993). Julien and Raymond (1994) found that level of

assertiveness and rationality of the owner in decision making would make the ownermore likely to adopt the use of e-commerce if it suited the organisation.

If the owner is subjective and refers to the opinions of experienced people whorecommend the adoption of e-commerce into the organisation, then he is also more

likely to accept their opinions (Harrison et al., 1997). SME owners are alsoconcerned with return on investment. The pressure to show a return often leads tosmall firms being more concerned with medium-term survival rather than long-term

viability (Akkeren and Cavaye, 1999). As a result, owners are often hesitant to makesubstantial investments when short-term returns are not guaranteed.

• Organisation's Characteristics

A number of factors that effect adoption of e-commerce have to do with theorganization itself. The amount of technology currently in use in the organization,

such as PCs with modems and email facilities can ease the process of adoption(Iacovou et al., 1995). Adoption has also been found to be largely dependent on

external pressure from the business’ competitors as well as its supply chain (Thongand Yap, 1995; Kirby and Turner, 1993). Businesses might adopt e-commerce as aresult of their competitors using it so as not to lose their competitive advantage. If an

organisation has large amounts of data and transactions, then it is more likely toadopt IT which can help streamline operations and offer process efficiencies within

the organisation (Thong and Yap, 1995).

In their research on small businesses, Akkeren and Cavaye (1999) found two factors

affecting IT adoption that had previously not been recognised. The first was mistrustof the IT industry as some owners perceived the IT industry to be 'over-selling' the

benefits of technologies and misinforming them. The second factor was a lack oftime to get acquainted with the opportunities and challenges of the Internet due to itsquick evolution rate.

8/18/2019 57-57-1-PB

5/13

EJISDC (2002), 10, 4, 1-13



5

• Contextual characteristics

The economic benefits of moving business transactions from fax, telephone and postto the Internet are well documented in many publications (Davies, 2002). Wilde and

Swatman (2000, p.10) also noted that the forces of economic rationalism andglobalism have enhanced the market as the final arbiter of price and service with the

balance of power tilting from the manufacturer towards the consumer. Given this

erosion of margins, companies need to reduce costs, both in production andtransaction, in order to make their products and services more competitive. This again

points to the Internet as a vehicle to reduce costs and to assist in obtaining a

competitive advantage in the short term.

The traditional value chain has become virtualized to a great extent due to the factthat users of the Internet are able to order products and services online, withoutintervention of the purchasing department, while payment is made electronically

using electronic funds or purchase cards. The primary activities in the Porter ValueChain, namely incoming logistics, outgoing logistics, marketing and sales, are being

redefined in terms of how they are carried out and interact with each other, astechnology provides for more sophisticated methods of business interactions (Waltonand Miller, 1995. Porter, 1985).

These chains have become virtualised as the Internet was increasingly used as a

‘binding agent’ (Davies, 2002). Dobbs (1999, p.2) describes ‘value chain integration’as a process of collaboration that optimizes all internal and external activitiesinvolved in delivering greater perceived value to the ultimate consumer. In the

process whole portions of the previous chain are being removed, redefined ordisintermediated.

It is however necessary to note that the integration of value chains does not solve all problems. JIT (Just in Time) production is a methodology of reducing inventory stock

that has been used for many years and serves as an example to prove this point.Critics of this method have pointed out that it merely forces the lower level

manufacturer to hold stock and deliver to the client as needed. This method doeshowever reduce stock holding costs throughout the higher levels of the value chain. Itis also interesting to note that the Internet plays an increasingly important role with

JIT ordering due to the ease of ordering at short notice.

Researchers have further identified a number of additional issues that impact the

adoption of e-commerce. These are summarised by Courtney and Fintz, (2001):

• Low use of E-commerce by Customers and Suppliers. This means that there is little

incentive for SME’s to engage e-commerce until their customers and suppliers arealso using it.

• Concerns about security aspects.

• Concerns about legal and liability aspects.

• High costs of development and computer and networking technologies commerce.

• Limited knowledge of e-commerce models and methodologies.

• Unconvinced of benefits to the company.

8/18/2019 57-57-1-PB

6/13

EJISDC (2002), 10, 4, 1-13



6

5. R ESEARCH R ESULTS There are currently 230 small manufacturing businesses registered with the Cape Chamber of

Commerce. On analysis of these businesses, it was found that 35 businesses had been enteredtwice into the Cape Chamber of Commerce’s database. Eventually 195 questionnaires were

sent out. 15 companies informed us that they had been incorrectly classified by the CapeChamber of Commerce and were not small businesses. A further 11 businesses appeared tohave closed down or changed their contact details and were therefore unavailable. Out of the

169 businesses in the sample, we received 34 responses. This is a 20% response rate. Thesecompanies were supplied with questionnaires through e-mail, faxed or posted information.

Companies were furthermore contacted telephonically to confirm that they had received ourquestionnaire and to encourage them to respond.

(a) The first hypothesis tested whether small manufacturing businesses perceive the potential benefits of e-commerce as important (Appendix 1).

By taking the total number of answers (10 benefits*34 small businesses = 340) andcalculating the total number of answers in each category, we were able to work out the

percentage of responses in each category. It was found that 50% (170) of the answers fell inthe important and very important section, 24% (81) of answers fell in the neutral category and

26% (89) of the answers fell into the unimportant section. It can therefore be concluded that,overall, small manufacturing businesses have a positive outlook towards e-commerce andview the benefits of e-commerce as important to their business.

Important Neutral Unimportant

a) Improve information exchange with customers 61.7 38.2 0

b) Increase customer loyalty 44.1 29.4 26.4

c) Increase service to the customer 61.7 20.5 17.6d) Easier access to international markets 61.7 14.7 23.5

e) Expand business reach 61.7 17.6 20.5

f) Reduce costs of maintaining up -to-date company information 44.1 29.4 26.4

g) Improve information exchange with suppliers 61.7 23.5 14.7

h) Reduce costs through web based purchasing and procurement 17.6 35.2 47.0

i) Improve the competitive position of your company 52.9 20.5 26.4

j) Attract new investment to the company 32.3 8.8 58.8

Table 1: Percentages for Importance of E-commerce Benefits

(b) The second hypothesis tested whether small manufacturing businesses have the

necessary technological capabilities in place for e-commerce adoption (Appendix1).

For the purposes of this research, technological capabilities refer to entry-level e-commerce activities. In order to test whether small manufacturing businesses have the

necessary infrastructure in place for e-commerce adoption to occur, it was necessary toobserve current technological capabilities. The respondents were hence asked to base theirresponse on 5 criteria as in the survey. The results are indicated in Table 2.

8/18/2019 57-57-1-PB

7/13

EJISDC (2002), 10, 4, 1-13



7

Now 1Year 3Years >3Years Never

a) A company strategy for developing electronic commerce 26.4 20.5 44.1 8.8 0

b) A computerised database of your company’s customers 73.5 11.7 5.8 8.8 0

c) A computerised database of your company’s suppliers 61.7 17.6 8.8 8.8 2.9

d) A computerised inventory of your company’s products or services 67.6 14.7 8.8 8.8 0

e) Company electronic mail (e-mail) 94.1 0 0 5.8 0

f) Company access to the Internet on a dial-up line 85.2 0 2.9 5.8 5.8

g) Company access to the Internet on a dedicated or leased line 38.2 11.7 20.5 14.7 14.7

Table 2: Percentages for Adoption of Technological Capabilities

It is clear from Table 2 that the majority of businesses have adopted most of thetechnological capabilities required for the adoption of more sophisticated e-commerce

capabilities. It is also noticeable that only 26%, (9) of these businesses have a strategy fordeveloping e-commerce in their organisation, despite the high level of infrastructure currently

in place.

(c) The third hypothesis tests whether small manufacturing businesses in the WesternCape have adopted the use of sophisticated e-commerce capabilities (Appendix 1).

Table 3 presents the results as percentages of e-commerce capabilities adopted bysmall businesses within the manufacturing sector in the Western Cape. From the results it can

be concluded that most businesses surveyed did not currently have advanced e-commerce

capabilities.

Now 1Year 3Years >3Years Never

a) A website demonstrating the company’s products or services 64.7 14.7 11.7 8.8 0

b) Customer orders received through an Internet Website 17.6 20.5 35.2 20.5 5.8

c) Customer payment by credit card through the Internet 14.7 14.7 35.2 14.7 20.5

d) Customer services provided on the Internet 23.5 17.6 26.4 17.6 14.7

e) Placing orders with suppliers over the Internet 20.5 23.5 38.2 11.7 5.8

f) Making payments to suppliers over the Internet 55.8 2.9 26.4 2.9 11.7

Table 3: Percentages for Adoption of E-commerce

(d) Figure 2 summarises the individual analysis of each inhibitor that was tested inthis survey (Appendix 1). A clearer picture of whether or not respondents agreed

or disagreed with the identified inhibitor can be seen in some detail.

8/18/2019 57-57-1-PB

8/13

EJISDC (2002), 10, 4, 1-13



8

0 5 10 15 20 25 30 35 40

Company not convinced of the financial and business benefits

Company has limited knowledge of the required technology

E-commerce use is too low among customers

E-commerce use is too low among suppliers

Level of computerisation is too low in the company

Cost of computers and network technologies are too high

Telecommunications services not dependable

Company has concerns about internet security

Company has concerns about legal issues, contracts and liability

I n h i b i t o r s t o E - c o m m e r c e

Number of Respondents

Strongly Disagree Disagree Neutral Agree Strongly Agree

Figure 2: Summary of Inhibitors to E-commerce Adoption

The above information on the inhibitors of e-commerce adoption shows an

inconclusive response. The only two conclusive results are that 64,7% (22) of respondentsfelt that a major inhibitor to the adoption of e-commerce is that e-commerce use is too lowamong customers. A further 50% (17) of respondents felt that e-commerce use among

suppliers is too low. It would seem that because e-commerce use among customers andsuppliers is low, there would be little incentive to adopt e-commerce first.

Other relatively significant limitations to the adoption of e-commerce include that the business has limited knowledge of the required technology, and the business has concernsabout Internet security (both inhibitors have 38,2% (13) of respondents agreeing). 32,3% (11)

of respondents mentioned that they are concerned about the legal issues, contracts andliability linked to e-commerce activities. No conclusive results could be drawn from the

remaining four identified inhibitors.

6. DISCUSSION

The use of the Internet by SME’s in South Africa would appear to be in its infancy. BMI-Tech-Knowledge report ‘SME Technology Barometer 1999-2000’ claims that only 16% of

SA’s SME’s are already conducting some form of electronic commerce, while 31% believethey will never use electronic commerce (Trialogue, 2000, p182). In another survey, Viviersand Sootinis (1999, p.5), found SME’s only use the Internet for 10% of information

acquisition requirements, the rest was via journals, trade fairs, business contacts, and the like.

These figures, viewed in relation with the research results for the Western Cape, clearly showthe need for governmental, or private, assistance to help with the provision of infomediaryservices in this sector.

This research paper looked at small manufacturing businesses’ perception of the

benefits of e-commerce in order to determine their acceptance of this business method.Current levels of e-commerce adoption, as well as future intentions to adopt, were

determined. Analysis of the data led to the following conclusions:

Hypothesis One: Small Manufacturing Businesses perceive the potential benefits of e-

commerce as important.By asking small manufacturing businesses to evaluate the benefits of e-commerce for

their business, it was found that the potential benefits were perceived to be important. It is

8/18/2019 57-57-1-PB

9/13

EJISDC (2002), 10, 4, 1-13



9

now up to the SME’s, with or without assistance from governmental or other incentives, touse this technological tool to improve their business scope.

Hypothesis Two: Small Manufacturing Businesses have the necessary technological

capabilities in place for e-commerce adoption.

The vast majority of small manufacturing businesses have the required technologicalcapabilities in place. This infrastructure can be used as a foundation on which to build more

sophisticated e-commerce capabilities, such as online ordering, payment and transactions.

Hypothesis Three: Small Manufacturing Businesses have adopted the use of e-commerce.The majority of small manufacturing businesses have not currently adopted e-commerceactivities into their businesses. It was found that most of these businesses have plans to

implement e-commerce activities within the next three years.To advise these SME’s on the road forward, it might be interesting to note what

happened in the Australian case. Castleman and Cavill (2001, p8) reported on advice fromSME’s who had implemented electronic commerce:

• Realistic knowledge and expectations of electronic commerce and its export

potential: much information was misleading or useless, physical contact and

interaction was necessary to gain information as virtual presences were insufficient todeal with relationship building, problem resolution and other issues.

• Linking electronic commerce to business goals: a good understanding of thestrategic goals and how government incentives and EC drive from the private sector

can help to achieve these goals. The role of planning cannot be overstated in thisregard.

• Implementation arrangements: senior management commitment was crucial; skills

requirements needed to be redefined as well as adequate training needed.

7. CONCLUSION

A number of factors affect e-commerce adoption. These are a result of the owner’s perceptionand acceptance of e-commerce, characteristics of the organisation, and the context in which

the business finds itself. Various benefits and inhibitors to e-commerce adoption have beenidentified. As e-commerce matured over the last few years, a growing awareness andunderstanding of the benefits and uses of e-commerce among SME’s emerged.

On the other hand, Akkeren and Cavaye (1999), and Poon and Swatman (1999) have

found that many SME’s often perceive the benefits to be irrelevant or not appropriate to theirorganisation. As a result of this lack of acceptance, they say the tendency is for SME’s to beextremely cautious and hesitant when deciding to adopt e-commerce activities into theirorganisation.

There has been a lack of research undertaken in South Africa to determine small businesses’ perception of the benefits of e-commerce and the current level of e-commerce

adoption. This study has shown that manufacturing businesses in the Western Province ofSouth Africa have not yet adopted sophisticated e-commerce procedures and are unlikely todo so, unless some organisational incentives or government assistance are offered. The study

also indicates the reasons why the deployment of e-commerce in this sector is slow. Furtherresearch is strongly recommended to monitor e-commerce perceptions and adoption

strategies as an ongoing study, extended to a wider population to monitor and compareregions in Southern Africa.

8/18/2019 57-57-1-PB

10/13

EJISDC (2002), 10, 4, 1-13



10

8. R EFERENCES

Agrawal, V., Arjona, L. D. and Lemmens, R. (2001) E-performance: The Path to Rational

Exuberance, The McKinsey Quarterly, No. 1, 30-43.

Akkeren, J. and Cavaye, A. (1999) Factors Affecting the Adoption of E-commerceTechnologies by Small Business in Australia – An Empirical Study.

http://www.acs.org.au/act/events/io1999/akkern.html Castelman, T. and Cavill, M. (2001) Voices of Experience: Developing Export Capability

Through Electronic Commerce in Australian SME’s, Proceedings of the 14th Bled Electronic Commerce Conference, http://mis/deakin/edu.au/research/working_papers_2001/2001_02_castleman.pdf

Courtney, S. and Fintz, J. (2001) Small Businesses’ Acceptance and Adoption of e-Commerce in the Western-Cape Province of South-Africa, Empirical Research Project,

Department of Information Systems, UCT.Davis, F.D. (1986) A Technology Acceptance Model for Empirically Testing New End-User

Information Systems: Theory and Results, Doctoral Dissertation, MIT Sloan School ofManagement, Cambridge, MA.

Davies, S. (2002) South African SME’s and Internet Based Electronic Business, Empirical

Research Project, Department of Information Systems, UCT.Dobbs, J. (1999) You’ll Never Walk Alone. The Economist : Survey on Business and the

Internet, 351, 8125, 11-21.

Harrison, D.A., Mykytyn, P.P. and Rienenschneider, C.K. (1997) Executive Decisions AboutIT Adoption in Small Business: Theory and Empirical Tests, Information Systems

Research, 8, 2, 171-195.Iacovou, C.L., Benbasat, I., and Dexter, A.A. (1995) Electronic Data Interchange and Small

Organisations: Adoption and Impact of Technology, MIS Quarterly, 19, 4, 465-485.

Julien, P.A. and Raymond, L. (1994) Factors of New Technology Adoption in the RetailSector. Entrepreneurship: Theory and Practice,18, 5, 79-90.

Kirby, D. and Turner, M. (1993) IT and the Small Retail Business, International Journal of Retail and Distribution Management , 21, 7, 20-27.

McConnell, B. (Ed.) (2000) Risk E-Business: Seizing the Opportunity of Global E-

Readiness. A McConnell International Report:http://www.mcconnellinternational.com/ereadiness/EreadinessReport.htm

Poon, S. and Swatman, P. (1999) An Exploratory Study of Small Business InternetCommerce Issues, Information and Management, 35, 1, 9-18.

Porter, M. (1985) Competitive Advantage. Free Press, NY.

Schneider, P. and Perry, J.T. (2001) Electronic Commerce. ITP, Boston.Thong, J. andYap, C.S. (1995) CEO Characteristics, Organisational Characteristics, and

Information Technology Adoption in Small Business, Omega, 23, 4, 429-442.Turner, C. (1999) E-Commerce Opportunities in South Africa. International Market Insight,

(IMI).

Viviers, W. and Sootinis, W. (1999) South African SME’s: Obstacles to Export to the SADC,Potchefstroom University, http://www.sbaeur.uca.edu/DOCS/98icsb/j011.htm

Walton, L.W. and Miller, L.G. (1995) Moving Toward IS Theory Development: AFramework of Technology Adoption Within Channels, Journal of Business Logistics, 16,2, 117-135.

Wilde, W.D. and Swatman, P.A. (2000) Studying Telecommunication Enhanced

Communities: An Economic Lens. Deakin University, School of Management

8/18/2019 57-57-1-PB

11/13

EJISDC (2002), 10, 4, 1-13



11

Information Systems, Victoria, Australia,http://mis.deakin.edu.au/research/working_papers_2000/2000_07_wilde.pdf

Worthington-Smith, R. (Ed.) (2000) Trialogue: The eCommerce Handbook . TrialoguePublications, Cape Town.

APPENDIX 1 : TESTS FOR ASSOCIATION

Association Test for Hypothesis One

Correspondence Analysis was used to determine whether an association exists between theidentified benefits of e-commerce. The hypotheses are:

H0 : No Association Exists between the benefits of E-commerceH1 : Association Exists between the benefits of E-commerce

The table below shows the statistical method used to test if an association exists between the benefits of e-commerce.

Eigen Values and Inertia for all Dimensions (benefits.sta)

Input Table (Rows x Columns): 10 x 3

Total Inertia=.16767 Chi²=57.008 df=18 p=.00001

Singular Eigen- Perc. of Cumulatv Chi

Values Values Inertia Percent Squares

1 0.357837 0.128047 76.36884 76.3688 43.53612

2 0.199053 0.039622 23.63116 100 13.47158

This table calculates the Chi-squared value of 57,008 with a p-value = 0,0001. As p

8/18/2019 57-57-1-PB

12/13

EJISDC (2002), 10, 4, 1-13



12

The table below shows the statistical method used to test if an association exists between the

e-commerce capabilities tested.

Eigen Values and Inertia for all Dimensions (capabilities.sta)

Input Table (Rows x Columns): 7 x 5Total Inertia=.36723 Chi²=87.401 df=24 p=0.0000



1 0.508243 0.25831 70.34039 70.3404 61.47788

2 0.290488 0.084383 22.9783 93.3187 20.08316

3 0.152885 0.023374 6.36488 99.6836 5.56294

4 0.034089 0.001162 0.31644 100 0.27657


8/18/2019 57-57-1-PB

13/13

EJISDC (2002), 10, 4, 1-13



13

Association Test for Inhibitors of E-commerce Adoption

Correspondence Analysis was used to determine whether an association exists between themain capabilities of e-commerce. The hypotheses are:

H0 : No Association Exists between the inhibitors of e-commerce adoptionH1 : Association Exists between the inhibitors of e-commerce adoption

The table below shows the statistical method used to test if an association exists between theinhibitors of e-commerce adoption.

Eigen Values and Inertia for all Dimensions (inhibitors.sta)

Input Table (Rows x Columns): 9 x 3

Total Inertia=.11449 Chi²=35.035 df=16 p=.00394



1 0.275131 0.075697 66.11483 66.1148 23.16333

2 0.196968 0.038796 33.88517 100 11.87167


57-57-1-pb

Documents