Critical factors inhibiting Electronic Commerce (EC) adoption in Nigeria

Abstract

Purpose – This study aims to develop adoption barriers model that captures location factors and non-transparency in government support programs, and attempted to unveil why certain locations offer more adoption opportunities than others. Design/methodology/approach – The opinions of small and medium enterprise (SME) owners/managers in the six geo-political zones of Nigeria were purposefully sampled. Two major cities (the commercial nerve center and a state capital) in each zone were chosen for the study and the data were analyzed using multiple regressions. Findings – Irrespective of the need to enhance operations through real-time knowledge sharing and network externalities; evidence from the study shows that SMEs in Nigeria are yet to exploit the full potentials of e-commerce solutions. This is evidenced by non-transparency in government support programs, location factors, weak finances, firm’s size, confidentiality of information, infrastructural inadequacy and lack openness and business integration. Research limitations/implications – Sampling the opinions of SMEs in Nigeria limits the power of generalization. Therefore, extended data and measures are required to replicate the study to improve external validity and reliability, and possibly build theories. Also, some errors seem unavoidable in the course of converting data just as all the measures used appear subjective and prone to common method bias. Originality/value – Though e-commerce adoption draw-backs enjoy huge literature, location factors and non-transparency in government support programs as critical inhibitors seem least studied. Therefore, this paper complements literature, stimulates future research and advises policymakers on promulgating, and real implementation of, appropriate policy frameworks to create information, communication, technology (ICT)-friendly environment within which e-commerce diffuse amongst SMEs.