The adoption and diffusion of e-commerce by township SMEs: a mixed methods methodology

Abstract

The changing business landscape has made e-commerce crucial for small and medium enterprises (SMEs), thus enabling market expansion, increased profitability, enhanced competitiveness and innovation. However, e-commerce adoption in developing countries, particularly in townships such as Soweto, differs from developed countries because of cultural, infrastructural and business environment variations. Previous research has mainly used quantitative methodologies, limiting the understanding of Soweto SMEs' perspectives and experiences in the adoption and diffusion of e-commerce. Moreover, existing innovation theoretical models are difficult to apply in this instance, and there is a paucity of research in post-adoption phases, hindering insights into e-commerce implementation among Soweto-based SMEs. This study aimed to determine the factors that influence the adoption and diffusion of e-commerce among Soweto-based SMEs. For this reason, an integrated theoretical framework was developed on the adoption and diffusion of e-commerce to address the unique peculiarities of Soweto-based SMEs using three theoretical models: Technology Acceptance Model (TAM), Technology-Organisation-Environment (TOE), and Diffusion of Innovation (DOI). This study employed mixed research methods, which was influenced mainly by the research questions and the pragmatist research paradigm of the study. Purposeful sampling was used to select Soweto-based SMEs that were registered on the databases of three enterprise development organisations. It deployed the triangulation convergent mixed method design, where both quantitative and qualitative data are collected in a single phase. The researcher analysed the two datasets separately and independently using quantitative (SPSS) and qualitative (Atlas. ti) analytical procedures. This study employed exploratory factor analysis (EFA) and the Kaizer-Meyer-Olkin (KMO) index to address the validity of the findings. The findings indicated that Soweto-based SMEs’ adoption of e-commerce was significantly influenced by perceived benefits, perceived usefulness and ease of use. Soweto-based SMEs rely on social media to market and run their businesses. They can afford mobile data costs; however, they do not rely on the government for support. The study recommends four strategies to enhance internet access, boost e-commerce adoption, and increase government support for Soweto-based SMEs, thus emphasising the importance of expanding theoretical models and employing integrated frameworks in township business environment. In addition, this study contributes to the body of knowledge through the integration of multiple theories, coupled with a rigorous research design, to enable a more in-depth exploration of the field of e-commerce adoption among Soweto-based SMEs.