Strategic value and electronic commerce adoption among small and mediumsized enterprises in a transitional economy

Purpose This paper sets out to examine the relationship between the perceptions of the strategic value of ecommerce and ecommerce adoption among 107 ownersmanagers of small and mediumsized enterprises SMEs in a transitional economy, Ghana. Designmethodologyapproach The membership of the top 100 Ghanaian businesses, called the Ghana Club 100 GC 100, and nontraditional exporters NTEs was surveyed using a structured questionnaire in facetoface interviews. Principal axis factoring with varimax rotation was employed to identify and estimate the constructs in the model, followed by an exploratory factor analysis to test for the inclusion of all items in the model. Finally, canonical analysis was employed to study the interrelationships among the sets of multiple dependent and multiple independent variables. By so doing control for moderator effects existing among various variables was effected. Findings Organizational support was the strongest predictor on the perceived strategic value PSV construct, followed by managerial productivity, and decision aids. Perceived usefulness, compatibility, external pressure and organizational pressure were found to be statistically significant determinants of ecommerce adoption. These findings are consistent with prior studies. Additionally, it was found that ease of use was also influential in the ecommerce adoption decision of Ghanaian SMEs. Originalityvalue The study shows the value that SME ownersmanagers in a transitional economy place on ecommerce, and the role envisaged for it. The study also provides an insight into the ecommerce adoption in a transitional economy context. Ownersmanagers of SMEs in other developing countries may find the study useful in making decisions relating to ecommerce adoption. The impact of the perceptions of ecommerce and ecommerce adoption on firm performance in transitional economies is a worthy area for future research. Replication of the study in other transitional economies is therefore warranted.