E-commerce Adoption in the South Pacific: An Exploratory Study of Threats, Barriers and Opportunities for E-commerce in SMEs in Samoa

Abstract

Rapid development of the Internet has facilitated easier access to information and better communication between families and firms locally and internationally. These facilities are not distributed equally throughout the world. Due to various reasons, the majority of individuals and organisations in Samoa do not have access to the Internet increasing the digital divide. There is a dearth of research identifying Internet and e-commerce adoption issues faced by SMEs in the developing countries of the South Pacific. This lack of research literature is evidence that e-commerce is not yet global and that there is a digital divide even between and within the developing countries, especially the small island developing states. There is already evidence that opportunities for e-commerce and global marketing could benefit the SMEs and that the Internet could be a very important tool for SMEs. However, despite numerous studies about Internet use by SMEs, there is a deficiency of research identifying the issues behind Internet adoption faced by SMEs in developing countries. Thus, this thesis aims to improve our understanding of Internet adoption by SMEs in Samoa, a small island developing state in the South Pacific. The purpose of the research was to explore and identify issues of Internet adoption faced by SMEs in Samoa, and the factors that impact on their adoption by SMEs. This thesis also proposes a model to represent the diffusion of Internet technology in Samoa, the sequential process of diffusion, the main players in the diffusion process and the factors affecting the diffusion process, all at a national 1evel.Using the Case Study approach, this study used evidence from 12 SMEs to determine the key issues and significant factors that influenced their Internet adoption. These 12 SMEs were selected from 4 sectors of the industry to avoid industry bias. Additional interviews were conducted with senior officials from various government departments including the Prime Minister and private the private sector to confirm the findings from this study. Analysis of the threats for e-commerce adoption resulted in the three categories: Culture Decline in productivity and Exposure to undesirable information. Analysis of the barriers against adoption resulted in five categories: Poor telecommunication infrastructure Cost E-commerce skills, knowledge and support Low awareness level of threats, barriers and opportunities for e-commerce Instability of Electricity. Analysis of the opportunities for e-commerce resulted in 5 categories: Cheap Advertising Effective and cheaper communication Exposure to a much wider market Easy access to information and The possibility of attracting multinational organisations. The findings of this study have important implications for managers, government, and service providers. The paper concludes by highlighting opportunities for future research in e-commerce adoption and recommendations specific for Samoa.