Factors influencing adoption of e-commerce by traders in Kampala city, Uganda

Abstract

This study investigated the factors influencing the adoption of e-commerce among traders in Kampala city Uganda. Specifically, the study observed the influence of awareness, cost and innovativeness on adoption of e-commerce among traders in Uganda. A cross sectional survey utilizing mixed methods approach was used. A sample of 169 respondents participated in the study. Data was collected using questionnaires from traders in the CBD of Kampala city. Pearson correlation, multiple regression analysis and t-test statistics were also being used to establish relationships between independent and dependent variables Results show that awareness had a significant influence on adoption of e-commerce among traders (p =.004<.05) and so was cost at (p =.001<.05). The most significant was innovativeness (p =.000<.05). Findings revealed that a review and enhancement of innovativeness could support adoption of e-commerce among traders. However, the poorly handled innovativeness consequently lowered the adoption of e-commerce among traders. Generally, factors were found to have a significant influence on adoption of e-commerce among traders of 33.6 percent. Therefore, the study recommends that the government bodies should reach out and educate the business community about the benefits of adopting e-commerce and how it helps in expansion of their businesses. The researcher established that one of the challenges associated with adoption of technology was awareness owed to the fact that SMEs do not understand how e-commerce can influence their businesses positively.