Research Proposal The Relationship between Technology Adoption and Strategy in E-commerce A Focus on UAE Companies
ResearchProposal: The Relationship between Technology Adoption and Strategyin E-commerce: A Focus on UAE Companies
Thisstudy presents a proposal that seeks to understand the relationshipbetween technology adoption and strategy in e-commerce with a focuson UAE companies where there has been a registered rise in onlinebusinesses. The population of interest proposed by the study is thelarge companies within UAE particularly in Abu Dhabi and Dubai. Thestudy proposes to use descriptive quantitative methods to analyzedata while data collection will be via questionnaires structuredaccording to the Likert scale based on five levels of agreement.Further analysis of statistical data will be through SSPS wherestandard v=deviation and mean will be determined. Measurements ofsuggested hypotheses will be done through application of the T-testwhere the hypothesis, which will be in line with the set scales ofagreement will be accepted. The conclusions from the study will beused to come up with recommendations relevant for application withinUAE.
TheRelationship between Technology Adoption and Strategy in E-commerce:A Focus on UAE Companies
Today,across the world, purchasing things has been made so easy that it isavailable just by clicking on the internet. The increase in thenumber of people who have digitalized gadgets such as phones andcomputers and connection to the internet has led to an upward growthin what is now known as E-Commerce. Businesses and industries thathave taken their business from the traditional approach to the use ofthis new strategy have continuously registered increase in theirrevenues due to the rise of customer numbers on the platform. Studieson the trend of E-commerce in the United States have been reported tohave been on the rise over the years along the correlated rise inmobile phone dependence.
Reportsfrom E-commerce research companies on the growth of the industryacross the globe have reported that globally, the potential ofbusiness growth lies in this sector. Elbeltagi,Al Sharji, Hardaker, and Elsetouhi (2013)are part of the researchers who analyzed the e-commerce marketthrough population numbers, adoption of internet and broadbandlevels, customer feedback, and data from historical records of onlinesales in the US. The results from the analysis were used to reflectglobal trends on e-commerce where they found that sales based ononline businesses were on the rise across the globe. Additionally,the research forecasted that the Asia-Pacific and Middle-East region,where there is rapid growth of e-commerce, would overshadow the US asthe largest industry for online businesses (Elbeltagiet al., 2013). With the evident relationship between the rise oftechnology adoption and e-commerce and the expected global growthcompanies and organizations are expected to take up the opportunityand create strategies that will ensure maximum revenues from thee-commerce industry.
TheUnited Arabs Emirates (UAE) particularly Abu Dhabi and Dubai, areknown globally for their large malls and shopping centers, which havegained customers from across the globe. However, despite the wideumber of shopping activities that take place across the region,response to the use of internet over the years has been slow, withmost customers preferring to shop physically in the malls (Lowe,2012). In a report, Ghandour (2015) notes that the trend of onlineshopping in the UAE was noted to be on the rise indicating a futurewhere e-commerce may replace shopping at the malls. Globally,internet penetration in the UAE and the greater Middle East region isvery high, which means that the number of users is high, whichcreates a good foundation for e-commerce. Studies done by paymentcompanies looking to increase their profits through onlinetransactions such as MasterCard have done their studies on the regionwhere they have noted the continuous rise in online users opting toshop online (Lowe, 2012) The rise of e-commerce is attributed to theincrease in use of Information Technology in commerce, which dependson market reliance on the various technological tools that serve asadvantageous business strategies both externally and internally(Lowe, 2012).
However,firms in the UAE seeking to create a profitable niche in e-commerce,should not rush to convert their business since they need to have aclear understanding of what e-commerce involves particularly on theuse of technology and approaches to make it favorable for consumers.It should be noted that e-commerce is not just a mode of carrying outbusiness activities but rather an aspect of business that impactshugely on the competitive advantage of a company (Elbeltagiet al., 2013).The impact of e-commerce on the internal and external environment ofa business leads to the need for a change of business strategy to astrategy that favors the competitive position for the company. Sincethe adoption of e-commerce in most countries has only startedrecently, there is limited literature on the relationship betweentechnological adoption and e-commerce strategies. With regard to thislimitation, the proposed study seeks to answer the question what isthe relationship between technology adoption and strategy ine-commerce in various UAE companies?
Theobjectives of the proposed study will, therefore, be understandingthe level of e-commerce adoption in the UAE, and understanding therelationship between technology adoption and e-commerce strategy.Fulfillment of the objectives will lead to further conclusions thatwill contribute to the literary wealth on the topic and additionallycome up with recommendations that UAE companies can implementdepending on the findings of the proposed strategy.
Accordingto Al-Fawaeer (2014), the adoption of e-commerce strategies likeother business strategies can be measured through analysis ofinternal factors, market, and competitive factors, which are allconstituted into the business structure. Internal factors are mainlyrelated to cost factors while market factors are aspects of thebusiness related to location, suppliers and buyers and finallycompetitive factors are those that make companied gain more favorfrom their customers against their competition. The study notes thatthe adoption of technology in e-commerce particularly through ICThelps businesses expand on the international platform of commercewhere more strategic advantages are available for companies.
McElheran(2015)investigated the relationship that exists between the adoption oftechnology and strategy in business with a focus on e-commerce wherethey seek to explain why business strategies must be alignedinterdependently with e-commerce strategies. Illustration of theinterrelationships between e-commerce and strategy are explainedthrough a study of e-business strategy adoption channels, such asdistribution, segmentation of the market, and business networks underdistribution. In that case, technology adoption aims to help fosterbetter customer relations, which creates a competitive edge wherelong term relationships with mediators. Market segmentation, as abusiness strategy adopted in e-commerce, where McElheran(2015) notesthat use of commerce has resulted in segmentation, which theyrecommend it be based on geographic location, demographics status andrate of consumption. They note that subjecting diverse customerpopulations to similar strategies simply because they access servicesusing similar online platforms may thwart business growth (McElheran,2015).The study also notes that while dealing with business systems,e-commerce based companies have better leverage if they adoptecommerce based on an interdependent approach with the correspondingmarket factors.
Sinet al. (2016)centered their research on factors influencing adoption of e-commercein Malaysian-based SMEs using the technological organizationalexternal framework (TOE). The results of their study led them toconclude that technological factors such as the internet, cost,security of information technology systems, organization’sreadiness and IT strategy were insignificant when it came toinfluencing the e-commerce adoption in SMEs. However, technologicalreadiness and strategies of specific SMEs were found to have hadrelevant influence on adoption of e-commerce, particularly in lowlevels in SMEs (Sinet al., 2016).The study however had limitations related to technological aspects,which could have influenced the negative conclusion on how technologyinteracts with ecommerce adoption. The study suggests that othervariables of technology such as complexity and compatibility withbusiness strategies be examined to better understand the adoptionlevels of ecommerce in SMEs.
Basedon the above review the proposal formulates the following twohypotheses
There is no relevant relationship between technology adoption and e-commerce business strategies in the UAE companies
There is a significance relationship between technological adoption and e-commerce business strategies in the UAE companies.
Dependentvariable will be the e-commerce strategy will serve as the dependentvariable since it is hugely influenced by technological aspects,which will be measured based on internal, market and competitivefactors. The independent variable on the other hand will be adoptionof technology will serve as the independent variables and will beinvestigated using the various roles played by web based functionssuch as web- contacts, customer care and online product and servicedelivery abilities.
Theproposed study will use descriptive quantitative research to helpachieve the set study goals the data will consequently be convertedinto statistical form to make it more relevant to this study. Thestudy suggests using a population derived from large companies asopposed to SMEs since the results may be more relevant to a widerfield of people. The selected participating companies will berandomly selected though their participation will depend on theirwillingness to participate in the study.
Datawill be collected using questionnaires, which will make it easier totransfer data collected into numerical form. Statistical reliabilityof data will be through the Chronbach’s alpha of <0.1. TheLikert coded scale will be used based on five ratings based onrespondent’s level of agreement with a situation as presented inthe questionnaire. The results will be analyzed using the StatisticalPackage for Social Sciences (SSPS), where mean and standard deviationwill be calculated. The T-test will be used to test the givenhypothesis and find out which will be accepted as true.
Adoptionof technology according to previous studies appears to be relevant tothe creation of e-commerce business strategy. Additionally, it hasbeen observed that increased dependence on information technology(IT) has led to an increase in e-commerce users, which hasconsequently led to more businesses shifting their business to onlineplatforms. The results of this study seek to understand the relevanceof the relationship between adoption of technology and e-commercestrategy focusing on UAE based companies. With a clear understandingof this relationship, the proposed study will come up withrecommendations that can be applied by UAE e-commerce businesses.
Al-Fawaeer,M. (2014). Exploring the relationship between e-commerce adoption andbusiness strategy: an applied study on the Jordaniantelecommunication companies. Journalof Management Research, 6(1),141. Retrieved fromhttp://macrothink.org/journal/index.php/jmr/article/download/4558/3948
Elbeltagi,I., Al Sharji, Y., Hardaker, G., & Elsetouhi, A. (2013). The roleof the owner-manager in SMEs’ adoption of information andcommunication techfwhichnology in the United Arab Emirates. Journalof Global Information Management (JGIM), 21(2),23-50. Retrieved fromhttps://www.researchgate.net/profile/Ibrahim_Elbeltagi/publication/236236885_The_Role_of_the_Owner-Manager_in_SMEs`_Adoption_of_Information_and_Communication_Technology_in_the_United_Arab_Emirates/links/02e7e51f6806f07cf8000000.pdf
Ghandour,A. (2015). An analysis of factors affecting growth and barriers ofe-commerce in UAE. In theproceedings of the International conference on Intelligent Systems,Control and Manufacturing Technology (ICICMT’2015), Abu Dhabi,UAE (pp.16-17).Retrieved fromhttps://www.researchgate.net/profile/Ahmad_Ghandour2/publication/277018828_An_analysis_of_Factors_Affecting_Growth_and_Barriers_of_E-Commerce_in_UAE/links/5560c75808ae9963a119f970.pdf
Lowe,A. (2012). UAE holds largest shares of e-commerce sales in theregion. GulfNews. Retrievedfromhttp://gulfnews.com/business/sectors/retail/uae-holds-largest-share-of-e-commerce-sales-in-region-1.970176
McElheran,K. (2015). Do market leaders lead in business process innovation? Thecase (s) of e-business adoption. ManagementScience, 61(6),1197-1216.Retrieved fromhttps://www.researchgate.net/profile/Kristina_Mcelheran/publication/228197257_Do_Market_Leaders_Lead_in_Business_Process_Innovation_The_Cases_of_E-Business_Adoption/links/56ad057108ae28588c5fbb29.pdf
Sin,K. Y., Osman, A., Salahuddin, S. N., Abdullah, S., Lim, Y. J., &Sim, C. L. (2016). Relative advantage and competitive pressuretowards implementation of e-commerce: Overview of Small and MediumEnterprises (SMEs). ProcediaEconomics and Finance, 35,434-443. Retrieved fromhttp://www.sciencedirect.com/science/article/pii/S221256711600054X
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