An investigation of the benefits and barriers of e‐business adoption activities in Yemeni SMEs
Author | Eoin Plant,Brychan Thomas,Ahmed Abdullah,Lyndon Murphy |
DOI | http://doi.org/10.1002/jsc.2195 |
Published date | 01 May 2018 |
Date | 01 May 2018 |
RESEARCH ARTICLE
DOI: 10.1002/jsc.2195
Strategic Change. 2018;27(3):195–208. wileyonlinelibrary.com/journal/jsc © 2018 John Wiley & Sons, Ltd. 195
Abstract
Yemeni small‐ and medium‐sized enterprises (SMEs) are at the early stages of e‐business adop‐
on and their owners and managers need to be supported to gain an understanding of the ben‐
ets that their business can achieve from adopng e‐business. Yemeni SMEs are at the early
stages of e‐business adopon. The delay in adopng more advanced e‐business soluons are
due to factors including the comparavely low level of technology usage within the organizaon,
lack of qualied sta available to develop, implement and support rms’ websites, and limited
nancial resources. A lack of computer soware and hardware resources appears to have a det‐
rimental eect on e‐business adopon amongst Yemeni SMEs.
|
Increasingly, in both developed and developing countries, small‐ and
medium‐sized enterprises (SMEs) are becoming even more important
to naonal economies due to their strategic signicance in develop‐
ing dierent industrial sectors worldwide (Maad & Liedholm, 2008).
Therefore, it may be argued that SMEs play a major role in an econ‐
omy by signicantly contribung to the enhancement of the countries’
gross domesc product and its labor force by creang more job oppor‐
tunies and developing skilled labor. The integraon of informaon
and communicaon technology (ICT) can have a signicant impact
within such organizaons and their employees with improved produc‐
vity, and subsequent lowering of unit costs (Andam, Programme, &
Force, 2003). Further, it is considered that one of the most impor‐
tant strategies that can eecvely help SMEs to enhance their busi‐
ness performance is the ulizaon of ICT (Pickernell et al., 2013; Tan,
Chong, Lin, & Eze, 2009). ICT can provide SMEs with several com‐
peve advantages such as integrang supply chain partners, orga‐
nizaonal funcons, and oering crical informaon at the right me
(Sharma & Sheth, 2010). The adopon of ICT and e‐business may oer
organizaons more ecient resource management as well as making
rms’ communicaon faster (OECD, 2004). However, there are barri‐
ers for SMEs adopng e‐business such as cost, size, and skilled labor
(Middleton, 2011). The development of the worldwide economy and
increase of e‐business acvity has led it to become an important com‐
ponent of business strategy and economic development (Al‐Mar,
2008). Indeed, rapid development has been witnessed in the world
within dierent aspects of life, especially the technological revoluon
such as e‐business. For instance, there is widespread use of the Inter‐
net in every aspect and phase of business (Al‐Mar, 2008).
The Yemen e‐commerce sector has witnessed rapid growth and
has exceeded expectaons, and become a new way of shopping com‐
pared with previous years (Almotamar, 2014). In the last year, the rst
electronic store website was established called the Warzan company
and became arguably the best e‐commerce site in Yemen (Almotamar,
2014). Although there are many individuals using Facebook pages to
promote their products, those pages do not have sucient condence
for transacons to take place due to not being considered an enty
and not ocially registered compared to the Warzan Company which
is a registered company and has earned the condence of consumers
(Almotamar, 2014). This study develops an evoluon measurement
model based on the e‐adopon ladder model. The e‐adopon model
has been used by a number of researchers and this approach is a “step‐
by‐step” process which starts with email communicaon then with
basic website, ecommerce, e‐business unl the point of the trans‐
formed organizaon (Hoque, 2000; Jones, Hecker, & Holland, 2003;
Parish et al., 2002; Teo & Pian, 2004; Vosloo, 2003; Willcocks & Sauer,
2000). The model developed here is an extension to the e‐adopon
ladder model which included new factors (social media, cloud services,
and mobile applicaon). Those added factors were gathered from the
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1Faculty of Business and Society, University
of South Wales, Newport, United Kingdom
2Cardi School of Management, Cardi
Metropolitan University, Cardi, United
Kingdom
3School of Transport Engineering,
Environment and Planning, Dublin Instute
of Technology, Dublin, Ireland
Ahmed Abdullah, University of South Wales,
Newport City Campus, South Wales NP20
2BP, UK.
Email: ahmed.abdullah@southwales.ac.uk
* JEL classicaon codes: M15.
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