Abstract
Electronic commerce or e-commerce is the trading of goods and services online using the internet. The growing movement towards e-commerce adoption was given significant impetus by the COVID-19 pandemic as lockdowns necessitated that businesses that could do so, moved online for their business activities. Those that failed to do so found and continue to find themselves at a distinct competitive disadvantage. This applies to businesses of all sizes including small, medium and micro enterprises (SMMEs) and irrespective of their location. This study focused on SMMEs operating in townships, specifically the township of Soweto, South Africa. The purpose of the study was to investigate the factors that affect e-commerce adoption and non-adoption by SMMEs. To effectively promote job creation, poverty reduction, and fair competitive advantage among businesses, it is necessary to get a comprehensive understanding of the factors that influence township-based SMMEs' decisions to make use of e-commerce technologies. Without this understanding, these SMMEs face the risk of not participating in the ever-increasing digital economy. Nine purposively selected SMMEs operating in Soweto participated in the study. An interview research approach was used to identify the key factors influencing the SMMEs' e-commerce adoption and non-adoption. A semi-structured questionnaire comprising open-ended questions was used to collect qualitative data and a tape recorder was utilized to record the interviews. Interviewees were either the owners or the managers of the SMMEs. The data obtained were analyzed using Atlas.ti 22 software and the technique of thematic analysis was followed.
Based on the literature and the data collected, it was found that the following factors either promote or inhibit the adoption of e-commerce by township-based SMMEs: awareness and knowledge, legal issues and policies, ICT skills, financial resources, organizational readiness, load-shedding, technical costs, ICT infrastructure, security and maintenance, government e-readiness, economic concerns, international trade, government support, resistance to change, customer trust, and supplier pressure. Using the study findings and by integrating the Technology Organization Environment (TOE) Framework and the Perceived e-Readiness Model (PERM) an e-commerce adoption framework for SMMEs operating in townships is proposed.
It is anticipated that this study will contribute positively to the growth and sustainability of SMMEs operating in townships. The study's findings may inform policy makers, business owners, and other stakeholders about the factors that influence SMMEs' adoption of e-commerce in township settings. The study can provide guidance to SMMEs on how to improve their e-commerce adoption strategies and increase their competitiveness in the digital marketplace. The study can also assist in identifying gaps and opportunities in e-commerce
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adoption in township settings, which can inform the development of training programs and interventions for SMMEs in these areas. The study can contribute to the existing body of knowledge on e-commerce adoption and implementation by providing insights into the unique challenges faced by SMMEs operating in township settings. The study can provide a basis for future studies that explore the relationship between e-commerce adoption and SMMEs' performance and competitiveness. In addition to SMMEs themselves, policymakers, governments, external stakeholders, and potential researchers may all benefit from the qualitative findings.
Keywords: SMMEs, Townships, E-commerce, Soweto.