Factors of E-Business Adoption in Small and Medium Enterprises: Evidence from Saudi Arabia

Abstract

The research was aimed at identifying and empirically investigating the factors influencing the adoption of e-business in SMEs of Saudi Arabia. The Technology-Organization-Environment (TOE) framework was complemented with the individual context elements to develop the conceptual model for the present study. The framework was developed based on the two-pronged strategy: an extant literature review and a focus group interview with panel of experts. Subsequently, a questionnaire-based survey was conducted, and data from 111 SMEs were collected. The researchers tested the model and related hypotheses, employing multiple regression analysis. The results indicate that the firm size, competitive pressure, entrepreneur’s innovativeness, and IT savviness significantly influence the e-business adoption in SMEs. The findings and conclusions of the study, as well the future research prospects, are discussed.