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.