THE DETERMINANTS OF E-BUSINESS ADOPTION BY SMEs IN KAMPALA DISTRICT (A CASE STUDY OF NAKAWA DIVISION)
Pascal, Daiman Dominic
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This study aims at analysing the determinants of e-Business adoption by SMEs. This study makes use of Ugandan e-Business users as research samples while using Likert scale questionnaire for data collection. Furthermore, the questionnaires are sent to as many as 135 respondents through the research assistants. The dissertation is comprised of five Chapters which are organized as follows; Chapter one contains the background to the study, problem statement, objectives of the study, hypotheses tested, significance of the study, conceptual framework and layout of the dissertation. Chapter two provides a review of the existing literature on the determinants of e-business adoption in national, regional and global business field. Chapter three provides the methodology that was used in the study presenting the research design, variables under analysis, data collection methods, data analysis plan, ethical consideration and limitations of the study. Chapter four presents the findings and a discussion of the findings of the study while Chapter five is the summary of the research findings, conclusion and provides recommendations based on the study. The objectives of this study were to analyse the e-business environment within Uganda’s SMEs sector; analyse the determinants of e-business adoption against organisational, environmental, and technological factors among Uganda’s SMEs; and explain the interactive effect of the various determinants on the likelihood of e-business adoption. The study employed simple random sampling procedures were used to select a sample of 135 firms from a population of 1830 firms in Kampala. Primary data were collected using a predesigned and tested questionnaire. Data were analysed using descriptive statistical techniques and nonparametric methods (chi-square) in Statistical Package for Social Scientists (SPSS). The study established that the SMEs e-commerce environment was characterised by small, non-manufacturing firms and the ICT capacity of the firms increased with firm size. The firms had relatively younger firm owners/managers with high levels of education and whose perception of innovation characteristics had a significant bearing on e-business investment decisions. The study also found that level of education, gender, and age; firm size, significantly influenced the adoption of e-business. The study recommends that decisions regarding the adoption of e-business should take into account all critical technological, organization, and environmental factors with the key objective of addressing the barriers inhibiting enhancement of the likelihood of adoption.