Factors Affecting ecommerce adoption in Nigerian Banks

by Aghaunor, Lavin; Fotoh, Xavieria

This study’s focuses on “Factors Affecting the Adoption of Electronic Commerce: Evidence from Nigerian Banks”. There are three reasons for concentrating on this topic: 1) Limited research on ecommerce in developing countries particularly in Africa, 2) Nigeria with a population of 135 million is a potentially lucrative market for ecommerce services, and 3) The banking sector has been most successful with ecommerce in Nigeria. Since ecommerce is still a relatively new concept in Nigeria despite, innovation diffusion theory was used as a foundation for the study. Drawing from technological innovation literature, an integrated model of ecommerce adoption in Nigerian banks was developed. Nine variables affecting the adoption of ecommerce were identified. They are: top management support, organizational competency, IT capability, perceived benefits, perceived compatibility, perceived complexity, supporting industries, market, and government e-readiness. An empirical study of banks that were using ecommerce was conducted in order to answer the research questions. The commercial banks in Nigeria make up the population of this research. Banks that use ecommerce were identified by examining their websites; after which managers and executives were approached and asked to participate in the research. Data was collected by means of survey questionnaires and semi-structured interview. Nine hypotheses were drawn based on the variables identified. All but one of the hypotheses were confirmed. The rank of the factors affecting adoption of ecommerce (in descending order of impacts) is: Perceived complexity, Perceived benefits, Organizational competence, Perceived compatibility, Supporting industries e-readiness, Management support, Market e-readiness, IT capability, and Government e-readiness. i