Barriers to e-marketing adoption among small and medium enterprises (SMEs) in the Vaal Triangle

Abstract

Purpose: The purpose of the study is to complement existing literature by examining the relevant barriers contributing to the non-adoption of electronic marketing practices by SMEs in the Vaal Triangle. Methodology: Primary data was collected using a quantitative research technique with the use of a structured questionnaire as the survey instrument. A total of 168 businesses were selected randomly and visited within the various municipal areas in the Vaal Triangle. These businesses were visited between August and November 2008. Thirty-two small, medium and medium enterprises SMEs refused to participate resulting in 123 usable questionnaires for the purposes of the analysis. Factor analysis was used to examine the robustness of the factor structure using principal component analysis. Findings: A five-dimensional structure was established comprising a 16 item-scale. The major impediments towards the non-adoption of e-marketing include technology incompatibility with target markets, lack of knowledge, stakeholder unreadiness, technology disorientation and technology perception. The reliability analysis, reflected coefficient values ranging from 0.70 to 0.88 indicating satisfactory internal consistency amongst variables within each dimension. Implications: By analysing the barriers that inhibit the adoption of e-marketing strategies among SMEs, marketers are presented with recommended strategies and implications on how to approach the challenges presented by Internet technological advancements. Internet capacities of SMEs may be strengthened through nurturing e-marketing awareness and providing adequate information tools through diverse Internet Marketing training programmes. Originality/Value: SMEs can prove to be a major source of economic growth for many African countries if sufficient guidance and support on how best to overcome the challenges of adopting advanced marketing practices is available.