Empirical Study of Barriers to Electronic Commerce Adoption by Small and Medium Scale Businesses in Nigeria
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IGI Global.
Abstract
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Electronic commerce (E-commerce) is a technological innovation that enables small to medium enterprises
(SMEs) to compete on the same level with their larger counterparts. And it has the potential to improve efficiency
and productivity in many areas and, therefore, has received significant attention in many countries
of the world. A thorough analysis of the impact of the internet and e-commerce across firms, industries and
economies is necessary to separate hype from reality. However, several researchers have called for the
investigation of the association between the perceptions of e-commerce and the barriers to its adoption in
developing countries. It is however on record that SMEs the world over are faced with significant challenges
that compromise their ability to function and to contribute optimally to the respective economies where they
operate. This study was conducted in three states of Nigeria (Lagos, Abuja and Enugu states) with the use
of interviews to gather relevant data; the aim of which was to understand the challenges which serve as
barriers to E-Commerce adoption by small and medium scale enterprises in the Nigerian context. Findings
indicates that small and medium scale online present is at best unknown. The most common e-Commerce
applications used by most SMEs include but not limited to the use of e-mails for communication purposes
and a simple website for basic product information – information contained are usually outdated as most
of these websites are hardly updated. Findings revealed, among others, that lack of and total absence of
a regulatory framework on e-Commerce security, as well as technical skills, and basic infrastructures are
some of the barriers to electronic commerce adoption. The findings however, provide a constructive insight
to financial practitioners, governments as well as other stakeholders on the need to give e-commerce a place
in all aspects of e-commerce activities.
Keywords
H Social Sciences (General), HG Finance