Mediating role of Perceived Strategic Value between Technological Factors and E-Commerce Adoption intentions in SMEs in United Arab Emirates

Mohammed Obaid Hamad Kaabous  Alzaabi; Rusdi bin  Omar; Abd. Rahim Bin  Romle

doi:10.48165/sajssh.2021.2305

Authors

Mohammed Obaid Hamad Kaabous Alzaabi School of Government, Universiti Utara Malaysia, Malaysia
Rusdi bin Omar School of Government, Universiti Utara Malaysia, Malaysia
Abd. Rahim Bin Romle School of Government, Universiti Utara Malaysia, Malaysia

DOI:

https://doi.org/10.48165/sajssh.2021.2305

Keywords:

Perceived strategic value, technological factors, e-commerce adoption. Small and medium enterprises

Abstract

The purpose of the study was to identify the mediating role of perceived strategic value between technological factors and e-commerce adoption intentions among Small and medium enterprises operating in United Arab Emirates. For the said purpose critical review of the literature was conducted to develop the framework for empirical testing. The data was collected from the middle top and lower-level employees and the owners. A questionnaire was used as an instrument to collect the data, the instrument was adopted based on previous studies. The results of structural equation modeling confirmed the framework of the study and ensured that perceived strategic value significantly and positively mediates the relationship between technological factors and e-commerce adoption intentions. The future researchers are guided to conduct longitudinal studies to find the long-term effect.

References

Adjei, A. A., Adiku, T. K., Ayeh-Kumi, P. F., & Hesse, I. F. A. (2006). Prevalence of human immunodeficiency virus infection among tuberculosis suspect patients in Accra, Ghana. West African Journal of Medicine, 25(1), 38–41. https://doi.org/10.4314/wajm.v25i1.28243

Ajzen, I. (1991). The theory of planned behavior. Organizational behavior and human decision processes.The theory of planned behavior. Organizational Behavior and Human Decision Processes.

Alcaniz, E. B., Manzano, J. A., Simo, L. A., & Mafe, C. R. (2009). Business-to-Business e-commerce adoption and perceived benefits: evidence from small and medium Spanish enterprises. International Journal of Electronic Business, 7(6), 599. https://doi.org/10.1504/ijeb.2009.029049

América Álvarez Domínguez, M. (2012). Company characteristics and human resource disclosure in Spain. Social Responsibility Journal, 8(1), 4–20. https://doi.org/10.1108/17471111211196539

Anandarajan, M., Igbaria, M., & Anakwe, U. P. (2002). IT acceptance in a less-developed country: A motivational factor perspective. International Journal of Information Management, 22(1), 47–65. https://doi.org/10.1016/S0268-4012(01)00040-8

Arshad, Y, Ibrahim, S., Technology, X. C.-T. & A. I., & 2016, undefined. (n.d.). Successful implementation of quotewin software tendering system: a case study of a multinational company.

Arshad, Yusri, Chin, W. P., Yahaya, N., Nizam, Z., Masrom, R., Nurhafiza, S., & Ibrahim, S. (2018). Small and medium enterprises’ adoption for e-commerce in Malaysia Tourism State. International Journal of Academic Research in Business and Social Sciences, 8(10), 1457–1557. https://doi.org/10.6007/IJARBSS/v8-i10/5311

Ates, A., Garengo, P., Cocca, P., & Bititci, U. (2013, February). The development of SME managerial practice for effective performance management. Journal of Small Business and Enterprise Development, Vol. 20, pp. 28–54. https://doi.org/10.1108/14626001311298402

Azam, R. (2007). E-commerce taxation and cyberspace law: The integrative adaptation model. Virginia Journal of Law and Technology, 12(5), 1–34. Retrieved from https://heinonline.org/hol-cgi-bin/get_pdf.cgi?handle=hein.journals/vjolt12&section=9

Barua, A., Kriebel, C. H., & Mukhopadhyay, T. (1995). Information technologies and business value: An analytic and empirical investigation. Information Systems Research, 6(1), 3–23. https://doi.org/10.1287/isre.6.1.3

Beatty, R. C., Shim, J. P., & Jones, M. C. (2001). Factors influencing corporate web site adoption: A time-based assessment. Information and Management, 38(6), 337–354. https://doi.org/10.1016/S0378-7206(00)00064-1

Billal, H., & Shin, H. (2019). Critical success factors (csf) on e-commerce adoption in Bangladesh SMEs. Search.Proquest.Com. Retrieved from http://search.proquest.com/openview/ebf44e31f99513fc4e892d566bef1188/1?pq-origsite=gscholar&cbl=2030191

Bouchard, L. (1993). Association for Information Systems AIS Electronic Library (AISeL) Decision criteria in the adoption of EDI Recommended Citation Decision criteria in the adoption of EDI. Retrieved from http://aisel.aisnet.org/icis1993/56

Bourne, C., Aydemir, Ö., Balanzá-Martínez, V., Bora, E., Brissos, S., Cavanagh, J. T. O., … Goodwin, G. M. (2013). Neuropsychological testing of cognitive impairment in euthymic bipolar disorder: an individual patient data meta-analysis. Acta Psychiatrica Scandinavica, 128(3), 149–162. https://doi.org/10.1111/acps.12133

Boyajian, L. (2017). The 3 biggest challenges facing augmented reality.

Brynjolfsson, E., & Hitt, L. M. (1996). Paradox Lost? Firm-Level Evidence on the Returns to Information Systems Spending. https://doi.org/10.1287/mnsc.42.4.541

Creswell, J. W., & Creswell, J. D. (2017). Research design: Qualitative, quantitative, and mixed methods approaches: Sage publications.

Chandra, S., & Kumar, K. N. (2018). Exploring factors influencing organizational adoption of augmented reality in e-commerce: Empirical analysis using technology-organization-environment model. Journal of Electronic Commerce Research, 19(3), 237–265.

Chen, J., & McQueen, R. J. (2008). Factors affecting e-commerce stages of growth in small Chinese firms in New Zealand: An analysis of adoption motivators and inhibitors. Journal of Global Information Management, 16(1), 26–60. https://doi.org/10.4018/jgim.2008010102

Colgate, M., & Stewart, K. (1998). The challenge of relationships in services - A New Zealand study. International Journal of Service Industry Management, 9(5), 454–468. https://doi.org/10.1108/09564239810238857

Cruz-Jesus, F., Pinheiro, A., & Oliveira, T. (2019). Understanding CRM adoption stages: empirical analysis building on the TOE framework. Computers in Industry, 109, 1–13. https://doi.org/10.1016/j.compind.2019.03.007

Cuddy, A. J. C., Fiske, S. T., Kwan, V. S. Y., Glick, P., Demoulin, S., Leyens, J.-P., … Ziegler, R. (2009). Stereotype content model across cultures: Towards universal similarities and some differences. British Journal of Social Psychology, 48(1), 1–33. https://doi.org/10.1348/014466608X314935

, V., Matthews, L., Fleet, L., Simmons, K., Gustafson, D. L., & Wetsch, L. (2017). A review of digital, social, and mobile technologies in health professional education. Journal of Continuing Education in the Health Professions, 37(3), 195–206. https://doi.org/10.1097/CEH.0000000000000168

Daniel, E., & Wilson, H. (2002). Adoption intentions and benefits realised: A study of e-commerce in UK SMEs. Journal of Small Business and Enterprise Development, 9(4), 331–348. https://doi.org/10.1108/14626000210450522

Davis, F D. (1985). A technology acceptance model for empirically testing new end-user information systems: Theory and results. Management. https://doi.org/oclc/56932490

Donaldson, A., & C Solomon. (2018). Electronic commerce development for the new economy in nigeria: challenges and prospect. International Journal of Research, 5(19), 312–323. Retrieved from https://184.154.194.75/index.php/ijr/article/view/15946

El-Gohary, H. (2012). Factors affecting E-Marketing adoption and implementation in tourism firms: An empirical investigation of Egyptian small tourism organisations. Tourism Management, 33(5), 1256–1269. https://doi.org/10.1016/j.tourman.2011.10.013

Enginkaya, E., & Yılmaz, H. (2014). ScienceDirect What drives consumers to interact with brands through social media? A motivation scale development study Selection and/or peer-review under responsibility of The 2nd International Conference on Strategic Innovative Marketing. Procedia-Social and Behavioral Sciences, 148, 219–226. https://doi.org/10.1016/j.sbspro.2014.07.037

Garrett, B. M., Jackson, C., & Wilson, B. (2015). Augmented reality m-learning to enhance nursing skills acquisition in the clinical skills laboratory. Interactive Technology and Smart Education, 12(4), 298–314. https://doi.org/10.1108/ITSE-05-2015-0013

Ghazal Aswad, N., & Al-Saleh, Y. (2013). IJIKMMENA 2,2 Clean energy awareness Campaigns in the Uae: an awareness promoters perspeCtive. In International Journal of Innovation and Knowledge Management in Middle East & North Africa (Vol. 2). Retrieved from http://www.worldsustainable.org

Govinnage, D. Y., & Sachitra, K. M. V. (2019). Article no.AJARR.51511 Reviewers: (1) Atilla Akbaba. In Asian Journal of Advanced Research and Reports (Vol. 6).

Grandon, E. E., & Pearson, J. M. (2004). Electronic commerce adoption: An empirical study of small and medium US businesses. Information and Management, 42(1), 197–216. https://doi.org/10.1016/j.im.2003.12.010

Gregory, B. T., Albritton, M. D., & Osmonbekov, T. (2010). The mediating role of psychological empowerment on the relationships between p-o fit, job satisfaction, and in-role performance. Article in Journal of Business and Psychology. https://doi.org/10.1007/s10869-010-9156-7

Grover, A., & Kumar Kohli, A. (2012). Full-diversity high-rate space-time block-coded systems using estimated channel state information for symbol detection. International Journal of the Physical Sciences, 7(17), 2539–2548. https://doi.org/10.5897/IJPS12.243

Hashim, N. A. (2009). E-commerce and SMEs-the need for caution. Prometheus (United Kingdom), 27(2), 125–140. https://doi.org/10.1080/08109020902895268

Hair, J. F., Sarstedt, M., Ringle, C. M., & Gudergan, S. P. (2017). Advanced issues in partial least squares structural equation modeling: saGe publications.

Hristov, L., & Reynolds, J. (2015). Perceptions and practices of innovation in retailing: Challenges of definition and measurement. International Journal of Retail and Distribution Management, 43(2), 126–147. https://doi.org/10.1108/IJRDM-09-2012-0079

Hussein, L. A., Baharudin, A. S., Jayaraman, K., & Kiumarsi, S. (2019). B2b e-commerce technology factors with mediating effect perceived usefulness in jordanian manufacturing smes. Journal of Engineering Science and Technology, 14(1), 411–429.

Iacovou, C. L., Benbasat, I., & Dexter, A. S. (1995a). Electronic data interchange and small organizations: Adoption and impact of technology. MIS Quarterly: Management Information Systems, 19(4), 465–485. https://doi.org/10.2307/249629

Jeansson, J., Nikou, S., Lundqvist, S., Marcusson, L., Sell, A., & Walden, P. (2017). SMEs’ online channel expansion: Value creating activities. Electronic Markets, 27(1), 49–66. https://doi.org/10.1007/s12525-016-0234-1

Jeon, B. N., Han, K. S., & Lee, M. J. (2006). Determining factors for the adoption of e-business: The case of SMEs in Korea. Applied Economics, 38(16), 1905–1916. https://doi.org/10.1080/00036840500427262

Jiang, Y., & Zhao, J. (2014). Co-creating business value of information technology. Industrial Management and Data Systems, 114(1), 53–69. https://doi.org/10.1108/IMDS-04-2013-0171

John Greathouse. (2011). What are the best examples of competitive advantage that derives from factors besides product features? - Quora. Retrieved November 7, 2019, from https://www.quora.com/What-are-the-best-examples-of-competitive-advantage-that-derives-from-factors-besides-product-features

Karagozoglu, N., & Lindell, M. (2004). Electronic commerce strategy, operations, and performance in small and medium-sized enterprises. Journal of Small Business and Enterprise Development, 11(3), 290–301. https://doi.org/10.1108/14626000410551555

Kim, Y. A., & Srivastava, J. (2007). Impact of Social Influence in E-Commerce Decision Making.

Kwun, O., Omar, A., & Gentry, D. (2009). Factors that Influence Strategic Value in E-Commerce , Among Small Business. (504), 60–69. Retrieved from https://www.researchgate.net/publication/267384020

Ledwaba, N. F., Pelser, G., & Fatoki, O. O. (2019). The use and benefits of e-technology business applications. In OR Tambo International Airport.

Levy, M., & Powell, P. (2003). Exploring SME internet adoption: Towards a contingent model. Electronic Markets, 13(2), 173–181. https://doi.org/10.1080/1019678032000067163

Lim, S. C., Pan, X. Y., Lim, S. P., Lee, C. K., & Tan, J. S. (2019). Understanding of e-commerce adoption in malaysia and the mediation effects of perceived strategic value. Journal of Advanced Research in Dynamic and Control Systems, Volume 11(05-Special Issue), 813–819. Retrieved from http://www.jardcs.org/abstract.php?id=1336

Lin, H. F., & Lee, G. G. (2005). Impact of organizational learning and knowledge management factors on e-business adoption. Management Decision, 43(2), 171–188. https://doi.org/10.1108/00251740510581902

Lippert, S. K., & Govindarajulu, C. (2006). Technological, organizational, and environmental antecedents to web services adoption. Communications of the IIMA (Vol. 6). Retrieved from https://scholarworks.lib.csusb.edu/ciimaAvailableat:https://scholarworks.lib.csusb.edu/ciima/vol6/iss1/14

Loveman, G. W. (1994). An assessment of the productivity impact of information technologies. Information Technology and the Corporation of the 1990s, 84–110. Retrieved from http://search.ebscohost.com/login.aspx?direct=true&db=eoh&AN=0415317

MacGregor, R. C. (2011). The role of strategic alliances in the ongoing use of electronic commerce technology in regional small business. Journal of Electronic Commerce in Organizations, 2(1), 1–14. https://doi.org/10.4018/jeco.2004010101

Macgregor, R., & Vrazalic, L. (2004). Electronic commerce adoption in small to medium enterprises ( SMEs ): A comparative study of SMEs in Australia and Sweden. School of Economics and Information Systems. University of Wollongong, (May).

Martins, R., Oliveira, T., & Thomas, M. A. (2016). An empirical analysis to assess the determinants of SaaS diffusion in firms. Computers in Human Behavior, 62, 19–33. https://doi.org/10.1016/j.chb.2016.03.049

Mohtaramzadeh, M., Ramayah, T., & Jun-Hwa, C. (2018). B2B E-commerce adoption in Iranian manufacturing companies: Analyzing the moderating role of organizational culture. International Journal of Human-Computer Interaction, 34(7), 621–639. https://doi.org/10.1080/10447318.2017.1385212

McGill, T. J., Klobas, J. E., & Renzi, S. (2014). Critical success factors for the continuation of e-learning initiatives. The Internet and Higher Education, 22, 24-36.

Napier, H., Rivers, O., & Wagner, S. (2005). Creating a winning e-business. Retrieved from https://books.google.com/books?hl=en&lr=&id=IZQFAAAAQBAJ&oi=fnd&pg=PP9&dq=Napier,+H.+A.,+Rivers,+O.+N.,+%26+Wagner,+S.+(2005).+Creating+a+winning+e-business:+Cengage+Learning.&ots=L4no8COcH4&sig=9IoNvr_JvBFP_1joG2MP7NOJqbQ

Oh, K. Y., Cruickshank, D., & Anderson, A. R. (2009). The adoption of e-trade innovations by Korean small and medium sized firms. Technovation, 29(2), 110–121. https://doi.org/10.1016/j.technovation.2008.08.001

Olatokun, W., Emerging, M. K.-I. J. of, & 2010, undefined. (n.d.). e-Commerce technology adoption by SMEs in Botswana. Academia.Edu. Retrieved from https://www.academia.edu/download/3462930/Kebonye.pdf

Qin, Z., Wang, Y., Xia, Y., Cheng, H., Zhou, Y., Sheng, Z., & Leung, V. C. M. (2014). Demographic information prediction based on smartphone application usage. Proceedings of 2014 International Conference on Smart Computing, SMARTCOMP 2014, 183–190. https://doi.org/10.1109/SMARTCOMP.2014.7043857

Ramayah, T., Ling, N. S., Taghizadeh, S. K., & Rahman, S. A. (2016). Factors influencing SMEs website continuance intention in Malaysia. Telematics and Informatics, 33(1), 150–164. https://doi.org/10.1016/j.tele.2015.06.007

Ramdani, B., Kawalek, P., & Lorenzo, O. (2009). Predicting SMEs’ adoption of enterprise systems. Journal of Enterprise Information Management, 22, 10–24. https://doi.org/10.1108/17410390910922796

Rathore, A. K., Ilavarasan, P., & Dwivedi, Y. K. (2016). Social media content and product co-creation: an emerging paradigm. Journal of Enterprise Information Management, 29(1), 7–18. https://doi.org/10.1108/JEIM-06-2015-0047

Ritter, T., & Gemünden, H. G. (2004). The impact of a company’s business strategy on its technological competence, network competence and innovation success. Journal of Business Research, 57(5), 548–556. https://doi.org/10.1016/S0148-2963(02)00320-X

Rogers, E. M. (1995). Diffusion of innovations: Modifications of a model for telecommunications. In Die Diffusion von Innovationen in der Telekommunikation (pp. 25–38). https://doi.org/10.1007/978-3-642-79868-9_2

Rosario Oliveira Martins, M., Oliveira, T., & Fraga Martins, M. (2011). Literature review of information technology adoption models at firm level. The Electronic Journal Information Systems Evaluation, 14, 110.

Schleicher, D. J., Baumann, H. M., Sullivan, D. W., & Yim, J. (2019, July 1). Evaluating the effectiveness of performance management: A 30-Year integrative conceptual review. Journal of Applied Psychology. https://doi.org/10.1037/apl0000368

Shemi, A. P., & Procter, C. (2018). E-commerce and entrepreneurship in SMEs: case of myBot. Journal of Small Business and Enterprise Development, 25(3), 501–520. https://doi.org/10.1108/JSBED-03-2017-0088

Sila, I. (2013). Factors affecting the adoption of B2B e-commerce technologies. Electronic Commerce Research, 13(2), 199–236. https://doi.org/10.1007/s10660-013-9110-7

Sparling, L. L., Cater-Steel, A., & Toleman, M. (2010). Adoption of e-commerce by Canadian SMEs: Defining organizational, environmental and innovation characteristics. In Encyclopedia of E-Business Development and Management in the Global Economy (Vol. 1, pp. 305–315). https://doi.org/10.4018/978-1-61520-611-7.ch030

Stabell, C. B., & Fjeldstad, Ø. D. (1998). Configuring value for competitive advantage: on chains, shops, and networks. Strategic Management Journal, 19(5), 413–437. https://doi.org/10.1002/(SICI)1097-0266(199805)19:5<413::AID-SMJ946>3.0.CO;2-C

Stansfield, M., & Grant, K. (2003). An Investigation into Issues Influencing the Use of the Internet and Electronic Commerce among Small-Medium Sized Enterprises. In Journal of Electronic Commerce Research (Vol. 4).

Subramanian, G. H., & Nosek, J. T. (2016). An empirical study of the measurement and instrument validation of perceived strategy value of information systems an empirical study of the measurement and instrument validation of perceived strategy value of information systems. Journal of Computer Information Systems, https://doi.org/10.1080/08874417.2001.11647010

Tallon, P. P., & Kraemer, K. L. (2011). Investigating the Relationship between Strategic Alignment and Information Technology Business Value. In Creating Business Value with Information Technology (pp. 1–22). https://doi.org/10.4018/978-1-59140-038-7.ch001

Teo, T. S. H., Lin, S., & Lai, K. hung. (2009). Adopters and non-adopters of e-procurement in Singapore: An empirical study. Omega, 37(5), 972–987. https://doi.org/10.1016/j.omega.2008.11.001

Teo, T. S. H., Ranganathan, C., & Dhaliwal, J. (2006). Key dimensions of inhibitors for the deployment of web-based business-to-business electronic commerce. IEEE Transactions on Engineering Management, 53(3), 395. https://doi.org/10.1109/TEM.2006.878106

Thong, J. Y. (1999). An integrated model of information systems adoption in small businesses. Journal of Management Information Systems, 15(4), 187–214. https://doi.org/10.1080/07421222.1999.11518227

Tornatzky, L., Fleischer, M., & Chakrabarti, A. (1990). Processes of technological innovation. Retrieved from http://agris.fao.org/agris-search/search.do?recordID=US201300694725

Venkatesh, V., & Davis, F. D. (2000). Theoretical extension of the technology acceptance model: Four longitudinal field studies. Management Science, 46(2), 186–204. https://doi.org/10.1287/mnsc.46.2.186.11926

Venkatesh, V., Morris, M. G., Davis, G. B., & Davis, F. D. (2003). Venkatesh et al (2003) User acceptance of information technology (1). MIS Quarterly.

Wade, M, quarterly, J. H.-M., & 2004, undefined. (n.d.). The resource-based view and information systems research: Review, extension, and suggestions for future research. Dl.Acm.Org. Retrieved from https://dl.acm.org/citation.cfm?id=2017218

Wang, L., Christine, S., & Lind, H. (2019). Factors Influencing E-commerce Usage within Internationalisation.

Wang, Y. M., Wang, Y. S., & Yang, Y. F. (2010). Understanding the determinants of RFID adoption in the manufacturing industry. Technological Forecasting and Social Change, 77(5), 803–815. https://doi.org/10.1016/j.techfore.2010.03.006

Wanyoike, D., Mukulu, E., of, A. W.-I. J., & 2012, undefined. (n.d.). ICT attributes as determinants of e-commerce adoption by formal small enterprises in urban Kenya. Academia.Edu. Retrieved from http://www.academia.edu/download/33827965/ICT_Adoption-_Ecommerce_IJBSS.pdf

Willcock, H. (2000). Traditional learning, western thought, and the sapporo agricultural college: A case study of acculturation in early Meiji Japan. Modern Asian Studies, 34(4), 977–1017. https://doi.org/10.1017/s0026749x00003905

Yilmaz, K., & Gungordu, A. (2016). E-commerce adoption as a predictor of the perceived strategic value of e-commerce among e-commerce adopter SMEs in Turkey. International Journal of Managerial Studies and Research, 4(3). https://doi.org/10.20431/2349-0349.0403006

Yoshikawa, T. (1978). Oliver E. Williamson, Markets and Hierarchies: Analysis and antitrust implication. A study in the economics of internal organization. Economic Review, 29(4), 382–384.

Zhu, K., Kraemer, K., & Xu, S. (2003). Electronic business adoption by European firms: A cross-country assessment of the facilitators and inhibitors. European Journal of Information Systems, 12(4), 251–268. https://doi.org/10.1057/palgrave.ejis.3000475