The effect of technology, organization factors on e-commerce adoption among Palestinian SMEs

Abstract

Background/Objectives: The goal of this research is to examine the elements which influence Small and Medium Enterprises (SME�s) in developing countries in terms of E-Commerce (EC). The justification of this research is the lack of sound research on EC adoption by SME�s in developing countries, as they lag behind developed countries although they have the capabilities. Additionally, few studies exist on this matter in Palestine, thus the study�s results can be applied to similar countries. Methods/Analysis: The research incepted a model based on TOE framework, which has six proposed variables that affect EC adoption by SME�s. The variables were divided into technological and organizational factors. 250 decisions makers in Palestine were surveyed; a Structured Equation Modeling (SEM) using Analysis of Moments Structures (AMOS) was utilized for validating the proposed model. Findings: It was found that technology factors and organization factors are the determinant elements that impact Palestinian SMEs in their adoption of EC. Applications: The findings in this research can increase the adoption level of EC among SMEs sector of Palestine.