Drivers and Inhibitors to E-Commerce Adoption Among SMEs in Nigeria

Journal of Emerging Trends in Computing and Information Sciences, Vol. 5, No. 3, March 2014

16 Pages Posted: 7 Feb 2018 Last revised: 13 May 2018

See all articles by Professor Edwin Agwu

Professor Edwin Agwu

Regent University College of Science and Technology

Peter J. Murray

Greenwich School of Management

Date Written: January 30, 2018

Abstract

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for communication purposes and a simple website for basic product information – information contained are usually outdated as most of these websites are hardly updated.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: E-Commerce, benefits, barriers, adoption,SMEs, Nigeria

Suggested Citation

Agwu, Professor Edwin and Murray, Peter J., Drivers and Inhibitors to E-Commerce Adoption Among SMEs in Nigeria (January 30, 2018). Journal of Emerging Trends in Computing and Information Sciences, Vol. 5, No. 3, March 2014, Available at SSRN: https://ssrn.com/abstract=3113119

Professor Edwin Agwu (Contact Author)

Regent University College of Science and Technology ( email )

No. 1 Regent University Avenue, McCarthy Hill
Accra
Ghana, 7500
Ghana

Peter J. Murray

Greenwich School of Management

Meridian House
Royal Hill London
Greater London, SE10 8RD
United Kingdom

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