Factors affecting e-commerce adoption by agribusiness retail SMEs in Laguna

Date

5-2016

Degree

Bachelor of Science in Agribusiness Management

College

College of Economics and Management (CEM)

Adviser/Committee Chair

Loida E. Mojica

Abstract

Nowadays, small and micro enterprises (SMEs) continuously face numerous challenges brought by globalization and rapid information exchange. These urge then to adopt technological innovations that would strengthen their business models and remain competitive. One of the technological innovations is the entry of Information Communication Technologies (ICT).This research mainly investigated the factors influencing e-commerce adoption among agribusiness retail SMEs in Laguna. This technological innovation has become a key initiative among retailers to enhance the efficiency of the agricultural supply chain. It is also a key strategic factor that provides enhanced competence, better customer satisfaction and increased profitability.A conceptual model was develop through the integration of Roger?s Diffusions of Innovations and the Tornantzky and Fleischer?s Technology- Organization-Environment (TOE) framework. Some elements were adopted from Molla and l=Lickers Perceived E-Readiness Model as part of the constructs of this study. This proposed model provided a more holistic approach in analyzing the determinants of e-commerce adoption among SMEs under three context: technological, organizational and environmental characteristics. Several hypotheses were tested using appropriate statistical analysis tools.The sample of this study consisted 100 agribusiness retail SMEs (e.g. agricultural supplies retail stores, pasalubong stores) in Laguna which are mostly microenterprises. They are mostly in the third level of ICT adoption involving the use of internet and various advanced communications system. The most common ICT combinations used by these enterprises are having a computer with internet connection, telephone and mobile phone. More than half of the samples classified as adopters of e-commerce are mostly engage in retailing baked products, pasalubong products, plants and gardening supplies. In the level of their e-commerce adoption, most are ?partial adopter? ?they use social media accounts and websites only for advertising and no for making transactions. The remaining SMEs are non-adopters which are mostly engaged in retailing agricultural supplies.The findings indicate that the technological factors (i.e. perceived compatibility and perceived complexity), the organizational factors (i.e. firm, size, awareness, commitment and resources) and the external factors (i.e. perceived market forces e-readiness) are the determinants e-commerce adoption among retail agribusiness SMEs.The customers and competitors of the retail agribusiness SMEs, differing across sectors are the two major drivers of their e-commerce adoption greatly affecting other factors considered by the enterprise. Their e-commerce awareness. ICT knowledge, current ICT infrastructure, and attitude towards ICT are also important in their adoption.The identified main barriers to e-commerce adoption among retail agribusiness SMEs are their limited knowledge of e-commerce, lack of time, for learning e-commerce activities and implementation, perceived cost of owning a computer, internet access and website maintenance, perceived cost for the traditional way of doing business, security concerns and perceives readiness of their customers. The barriers differ across these enterprises whether they are non-adopters or adopters of e-commerce. What limits e-commerce growth is the country?s poor connection speeds and quality. This remains a major challenge faced by adopters and non-adopters in their ICT and e-commerce adoption and utilization.The implications of the findings and appropriate recommendation for practitioners, government agencies and future researches on ICT and e-commerce adoption among agribusiness retail SMEs were discussed and presented in this paper. For retail agribusiness practitioners, observing other current users and testing it for themselves for a period of time was recommended for non-adopters. Upgrading their adoption can be carried out later after improvements are made in their firm?s performance. They can use popular social media sites such as Facebook as starting point since it is more effective and cheaper than maintaining their own website. For adopters, they should focus on their social media accounts and make it richer in content by providing more product information and interactive activities that their customers can participate in. For effective ICT and e-commerce adoption, it was recommended that both adopters and non-adopters consider ICT adoption as part of their firm?s formal financial plan.The Department of Trade and Industry (DTI), on the other hand, should strengthen its collaboration with the private sectors, especially SMEs through the provision of financial, technical and informational support. More investors should be encouraged to invest in the sector, especially in the country?s ICT infrastructure, along with the support of Department of Transportation and Communication (DOTC). Lastly, DOTC should coordinate with ICT-related agencies in formulating and implementing policies and programs that would improve the security of the internet and would strengthen their regulation of telecommunication operations.

Language

English

Location

UPLB College of Economics and Management (CEM)

Call Number

LG 993 2016 M17 /A95

Document Type

Thesis

This document is currently not available here.

Share

COinS