Applying the OTE model in determining the e-commerce adoption on SMEs in Saudi Arabia

Abdul Rahman Nasir A. Almoawi · Rosli Mahmood

26 citations0/0 files storedUniversiti Utara Malaysia Institutional Repository (Universiti Utara Malaysia)

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Abstract

The objective of this paper is to examine factors that influence the adoption of e-commerce among small and medium enterprises in Saudi Arabia using the OTE model developed by Tornatzky and Fleischer. Nine hypotheses were formulated to answer the following objectives of study; (i) to determine the significant relationship between organizational context and the e-commerce adoption, (ii) to determine the significant relationship between technology context and the e-commerce adoption, and (iii) to determine the significant relationship between environmental context and the e-commerce adoption. A quantitative research design based on the questionnaire survey was used to collect the data.A total of 1150 questionnaires were mailed to the SME owner/managers in the regions of Riyadh, Eastern Saudi Arabia, and Makkah, and 400 usable responses were received, giving a response rate of 34.78 percent. The findings reveal that owner’s attitude, firm size, information intensity and competition intensity had positive significant relationship with e-commerce adoption among SMEs in Saudi Arabia while owner’s knowledge and relative advantage had a significant negative relationship with e-commerce adoption. Other variables such as owner’s innovativeness, compatibility and complexity of technology had shown no significant relationship with e-commerce adoption.These findings may be of help to SME owner/managers and the policy makers in Saudi Arabia in finding solution for the successful implementation of e-commerce in the SMEs

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1993Research methods for business: A skill building approach 2001Strategy and the Internet.1987Electronic markets and electronic hierarchies 2008The five competitive forces that shape strategy.1995Electronic Data Interchange and Small Organizations: Adoption and Impact of Technology 1999An Integrated Model of Information Systems Adoption in Small Businesses 2001A perception-based model for EDI adoption in small businesses using a technology–organization–environment framework 1999Adoption of new information technologies in rural small businesses

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