The Influence of Technological Factors on Adoption E-Commerce in SME: The Role of Trust

ABSTRACT

Electronic commerce (e-commerce) plays an essential role in developing and growing small and medium-sized enterprises (SMEs). However, prior studies found inconsistent results, particularly in developing countries. Therefore, it is necessary to conduct more research to gain insight into this research field. Thus, this study aims to identify the impact of technological factors in the adoption of e-commerce based on the technology-organization-environment (TOE) framework, Diffusion of Innovation theory (DOI) theory, and the role of Trust (TR) in the relationship between technological factors and e-commerce adoption. A survey of 378 Iraqi SMEs was validated and tested using PLS-SEM. The findings of the study indicate that Relative Advantage (RA), Compatibility (COM), Social Media Networks (SMNs), and E-Payment Systems (EPs) significantly influence e-commerce adoption. Trust also plays a moderation effect with relative advantage, social media networks, and e-payment systems. This study contributes to identifying the technological factors affecting ensuring a correct path for adopting e-commerce in Iraqi SMEs and filling the gap by contributing to the e-commerce literature.

KEYWORDS:

• Adoption e-commerce
• DOI theory
• role of trust
• SME
• technological factors
• TOE

Disclosure Statement

No potential conflict of interest was reported by the author(s).

Supplementary material

Supplemental data for this article can be accessed online at https://doi.org/10.1080/1097198X.2024.2327945

Additional information

Notes on contributors

Ibrahim T. Nather Khsroo

Dr. Ibrahim T. Nather Khsroo, currently working as a lecturer in Business Analytics department at Sunway University. I hold Ph.D. in Information and Communication Technology from Universiti Teknikal Malaysia Melaka and Master in Information Technology from Universiti Utara Malaysia. I have 8 years academics experience and 6 years industry experience. Additionally, my research interests include technology management, Information Technology, Web Development, Prediction models, Data Analysis, and System Development.

MA Burhanuddin

MA Burhanuddin is a Professor in the Faculty of Information and Communication Technology (FTMK), Universiti Teknikal Malaysia Melaka (UTeM). He is a member of Majlis Profesor Negara. He is a former Deputy Director of UTeM-Melaka RICE Management Center; Director of Industrial and Community Centre; Director of UTeM International Centre; Head of Smart Computing and Business Intelligent Cluster in Advanced Manufacturing Centre; Deputy Dean of Research and postgraduate Studies in FTMK; Head of Department of Industrial computing, FTMK UTeM; Biomedical and Engineering Research Group Leader in UTeM. He has a working experience with corporate sectors, including Intel Technology Sdn. Bhd., Esso Production Incorporations and Rubber Industrial Development Authorities. His teaching and research interests focus on multiple criteria decision making models, computational modeling, decision support system, optimization techniques, operational research, artificial intelligence, machine learning, soft computing and healthcare informatics areas.

Maytham A. Ali

Maytham A. Ali received his B.S. degree in Computer Science from Al-Mustansiriya University of Iraq in 2007. Received his M.S. degree in information technology (IT) from University Utara Malaysia. Currently, he is doing his PhD in information technology-school of computing-UUM College of Arts and Sciences-University Utara Malaysia.

Mohammed Shihab Ahmed

Mohammed Shihab Ahmed is a doctor at Qaiwan International University. He received Ph.D. of Information Technology from Universiti Utara Malaysia. His research interest Distributed System Software Engineering Management Information System and Artificial Intelligence. He has published several journal articles and book chapters.