e-Commerce Technology Adoption by SMEs in Botswana

Olatokun, Wole ; Kebonye, Mogotetsi;

Attracted by the prospective opportunities offered by the Internet for market and communication diversification, small and medium enterprises (SMEs) adopt information and communication technologies (ICT), hoping to better their performances. This study assessed
the adoption of e-commerce by SMEs in Botswana. It aimed at finding out the factors that led to e-commerce adoption, the kinds of e-commerce technologies that were adopted and used,
as well as the services provided with these technologies. It also identified the challenges faced by SMEs with regard to e-commerce use. A survey design was adopted in the form of a structured questionnaire, which was used to collect data from a sample of 145 SMEs. Analysis took the form of computation of means and frequency distributions. Findings revealed that the point of sale system was the most widely used e-commerce technology and the major reason for e-commerce technology adoption was competitive advantage. The main challenge faced by the firms in their use of e-commerce technologies was threat to security. The results clearly indicate the necessity to provide support to SMEs if they are to successfully adopt and use e-commerce. The results have implications not only for
managers of SMEs but also for government bodies in developing countries such as Botswana.