Exploring the determinants of organisational e-commerce adoption : an analysis of e-readiness and technological and behavioural control factors using PLS-SEM and multinomial regression

Student thesis: Doctoral Thesis

Abstract

E-Commerce technologies are widely adopted by organisations for increased efficiency and competitive edge in both public and private sectors. Statistical evidence shows that E-Commerce adoption in developing economies is low and firms in these regions face adoption challenges distinct from those in developed countries. However, despite some shared challenges generalisation of results from one developing country to the other requires great caution. The term “Developing Countries” is not distinctive and a significant variance in socio-economic factors exists in this block. Given the sensitivity of E-Commerce adoption to such factors, country-specific research is required for better understanding. E-commerce is a driver of economic growth and e-commerce adoption by developing countries is not only essential for their prosperity but is also pivotal for sustainable global economic development in an interconnected world. Pakistan holds significant potential to boost the global economy, yet its E-Commerce adoption trails behind several regional players. The literature survey reveals a scarcity of high-quality Pakistan-based studies, with many failing to adhere to statistical and general research principles. Most of these studies focus on “usual suspects” and terminate at the initial adoption of organisational E-Commerce. This quantitative study utilised correlational and classification techniques to investigate the influence of more pertinent factors on firm-level ECommerce adoption within the unique context of Pakistan. By empirically testing four models developed using constructs from the Perceived E-Commerce Readiness Model (PERM), Theory of Reasoned Action (TRA), and Technology, Organisation, Environment (TOE), the study addressed four research questions. A distinct feature of this study is the comparison of E-Commerce adoption decisions in public and private sectors, providing insights into potential disparities and unique challenges faced by each sector. A range of univariate and multivariate techniques were used in the study including Partial Least Square Structural Equation Modelling (PLS-SEM) and Multinominal Logistic Regression. Using the stratified sampling technique questionnaires were sent to potential respondents in two phases. The impact of E-readiness factors was examined using 448 valid responses received in phase 1. In the second phase, 347 valid responses were received, which were then used to examine the effects of technological and behavioural factors on an organisation's E-Commerce adoption decision. The study found that the E-Readiness of “Business Resources”, “Technical Resources”, “Government”, “Governance”, and “Support Industry”, along with “Awareness” about E-Commerce and “Commitment” impact E-Commerce adoption. Among Technological and Behavioural Control Factors, Perceived Behavioural Control, “Perceived Compatibility”, “Relative Advantage” and “Perceived Security” were found positively related to E-Commerce adoption in Pakistan. The study also identified the relevance of factors at different stages of organisational E-Commerce adoption. While some factors remained relevant in all stages, their impact varied in magnitude at different levels of E-Commerce adoption in organisations. The study also highlighted some interesting differences between the public and private sectors. Private sector organisations scored higher in terms of perceived E-Readiness, Technological and Behavioural Control Factors. ECommerce adoption cost was found relevant only in the private sector as in the public sector its effect was statistically insignificant. In terms of magnitude, relative advantage and cost acceptability were found more strongly and statistically significantly related to organisational E-Commerce adoption in the private sector compared to the public sector. This study contributed to existing knowledge by explaining the variance in organisational E-commerce adoption decisions, incorporating E-readiness alongside various technological and behavioural factors. A systematic survey was essential to address the research questions effectively, resulting in a comprehensive literature review specifically focused on the context of Pakistan. The findings of this study offer valuable insights for decision-makers at both the national and organisational levels for the promotion of E-Commerce in Pakistan. This study highlighted the importance of E-Readiness, Technological, and Behavioural control factors, paving the way for future research to develop concise scales for auditing these factors and potentially integrating them into a unified model.
Date of Award15 May 2024
Original languageEnglish
Awarding Institution
  • University Of Strathclyde
SupervisorMartin Halvey (Supervisor) & George Weir (Supervisor)

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