Strategic Value and Electronic Commerce Adoption among small and medium sized enterprises in a transitional economy

Abstract

Purpose – This paper sets out to examine the relationship between the perceptions of the strategic value of e-commerce and e-commerce adoption among 107 owners/managers of small and medium-sized enterprises (SMEs) in a transitional economy, Ghana. Design/methodology/approach – The membership of the top 100 Ghanaian businesses, called the Ghana Club 100 (GC 100), and non-traditional exporters (NTEs) was surveyed using a structured questionnaire in face-to-face interviews. Principal axis factoring with varimax rotation was employed to identify and estimate the constructs in the model, followed by an exploratory factor analysis to test for the inclusion of all items in the model. Finally, canonical analysis was employed to study the interrelationships among the sets of multiple dependent and multiple independent variables. By so doing control for moderator effects existing among various variables was effected. Findings – Organizational support was the strongest predictor on the perceived strategic value (PSV) constructs, followed by managerial productivity, and decision aids. Perceived usefulness, compatibility, external pressure and organizational pressure were found to be statistically significant determinants of e-commerce adoption. These findings are consistent with prior studies. Additionally, it was found that ease of use was also influential in the e-commerce adoption decision of Ghanaian SMEs. Originality/value – The study shows the value that SME owners/managers in a transitional economy place on e-commerce, and the role envisaged for it. The study also provide an insight into the e-commerce adoption in a transitional economy context. Owners/managers of SMEs in other developing countries may find the study useful in making decisions relating to e-commerce adoption. The impact of the perceptions of e-commerce and e-commerce adoption on firm performance in transitional economies is a worthy area for future research. Replication of the study in other transitional economies is therefore warranted.