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E-Business Adoption in Yemeni SMEs

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 E-Business Adoption in Yemeni SMEs

Ahmed Abdullah

A submission presented in partial fulfilment of the

requirements of the University of South Wales / Prifysgol De Cymru
for the degree of Doctor of Philosophy

March 2019
E-Business Adoption in Yemeni SMEs
Ahmed Abdullah

Abstract
In the current global economy, e-business has increased and it has become an important

component of business strategies and economic development. However, SMEs, particularly

those in developing nations, are still facing many challenges and barriers toward adopting e-

business, such as the lack of skilled labour, costs, and size. Therefore, there is need for further

research to find out more about these barriers.

Stage models are intended to be a useful way for SMEs to review their relative level of e-

business adoption; however, they have faced criticism because of being perceived as too

simplistic, and the linear progression not capturing the complex nature of small firm activities.

Moreover, these stage models have failed to fully recognise the recent developments in

information technology that businesses have harnessed, such as social media.

The aim of this research is to critically evaluate the adoption of e-business activities in Yemeni

SMEs. Employing a multi-phase mixed methods approach based on pragmatist philosophy

and an abductive approach. A questionnaire survey and semi-structured interviews have been

used to collect data from Yemeni SME managers and owners. Structural Equation Modelling

(SEM), using Wrap PLS 5.0 and SPSS software, has been used to analyse the data collected.

The findings show that despite the adoption of many levels of e-business activities in Yemeni

SMEs, most SMEs are still not aware of, or have not adopted, the full functionality of e-

business technology. Although many SMEs claim to have introduced a website and use social

media, usage is still quite limited. The findings from the current research reveal that there are

different barriers and drivers that have an influence on the adoption of e-business at different

i
levels. The findings show that these barriers include organisational readiness, which has a

positive effect on almost all e-business adoption levels; in addition, government readiness

and the relationship between banks and SMEs have a positive effect and lead to higher

adoption levels. In addition, the findings indicate that drivers such as awareness and

competitive pressure have a positive impact on almost all adoption levels. War and firm size

have a significant moderating effect on the relationship between the barriers, drivers and

level of e-business adoption.

This study proffers an extended stage model that incorporates the latest technologies,

namely, ‘Social Media’, ‘Mobile Apps’ and ‘Cloud Services’. Moreover, current adoption

models imply that organisations adopt technologies in a linear fashion, gradually increasing

complexity and capability. This study makes an important contribution by recognising that

there are multiple points at which SMEs may ‘enter’ the technology adoption ladder.

It also provides valuable insights into the macro-level socio-political determinants of e-

business adoption that have not previously been appreciated; in particular, because the study

was undertaken during the Yemen Civil War in 2016.

Key words: Stage models, extended stage model, e-business adoption, e-commerce, barriers,

drivers, SMEs and Yemen

ii
 DEDICATION

To my great father and mother,

To my greate wife and son

To my brothers, sisters and friends

To Dr. Abduljalil Al-Soufi

A special dedication to my Director of Studies and my supervisors

iii
 Table of Contents
Abstract .................................................................................................................................................... i
Table of Contents ................................................................................................................................... iv
List of Tables ........................................................................................................................................ viii
List of Figures ......................................................................................................................................... ix
Acknowledgements................................................................................................................................. x
Declaration ............................................................................................................................................. xi
Publications ......................................................................................................................................... xii
1.0 Chapter One: Introduction .......................................................................................................... 1
1.1 Introduction .................................................................................................................................. 1
1.2 Research Background.................................................................................................................... 1
1.2.1 Country Background .............................................................................................................. 1
1.2.2 An overview of small and Medium Enterprises (SMEs) in Yemen ......................................... 3
1.2.3 Information and Communication Technology (ICT) and ICT Policy in Yemen ....................... 4
1.2.4 E-business and SMEs in Yemen .............................................................................................. 7
1.2.5 The impact of the war in Yemen on SMEs ............................................................................. 8
1.3 Research Motivation, Aim and Objectives .................................................................................... 9
1.3.1 Research Motivation .............................................................................................................. 9
1.3.2 Research Aim and Objectives............................................................................................... 11
1.4 Research approach...................................................................................................................... 11
1.5 Structure of the thesis ................................................................................................................ 12
2.0 Chapter Two: Literature review and the Development of the Research’s Conceptual Framework
15
2.1 Introduction ................................................................................................................................ 15
2.2 Information and Communication Technology (ICT) in the context of e-business ...................... 16
2.3 E-business and SMEs Background ............................................................................................... 17
2.3.1 Key definitions...................................................................................................................... 17
2.3.2 E-business and SMEs ............................................................................................................ 18
2.4 E-business and SMEs in developing countries and the Middle East ........................................... 19
2.5 Barriers and Drivers .................................................................................................................... 20
2.6 Theoretical frameworks .............................................................................................................. 23
2.6.1 Unified Theory of Acceptance and Use of Technology (UTAUT) ......................................... 23
2.6.2 Technology-organisation-environment (TOE) framework ................................................... 24
2.7 Stage models ............................................................................................................................... 26

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 2.7.1 E-business Evolution Stage Model (Extended Stage Model) ............................................... 31
2.8 Research Hypotheses and conceptual framework ..................................................................... 38
2.8.1 Research hypotheses ........................................................................................................... 38
2.8.2 Research conceptual framework ......................................................................................... 50
2.9 Summary ..................................................................................................................................... 51
3.0 Chapter Three: Research Methodology .................................................................................... 53
3.1 Introduction ................................................................................................................................ 53
3.2 Research philosophy ................................................................................................................... 54
3.2.1 Research approach............................................................................................................... 59
3.2.2 Research strategy and design .............................................................................................. 60
3.2.3 Justification for the choice of methods ............................................................................... 65
3.3 An overview of the study’s phases ............................................................................................. 67
3.3.1 Phase 1: Literature review and development of the research’s conceptual framework .... 67
3.3.2 Phase 2: Initial study and modified conceptual framework ................................................ 67
3.3.3 Phase 3: Deductive (quantitative) Study.............................................................................. 68
3.3.4 Phase 4: Inductive (qualitative) Study ................................................................................. 68
3.4 Data collection methods and techniques ................................................................................... 68
3.4.1 Research population ............................................................................................................ 69
3.4.2 Questionnaire surveys ......................................................................................................... 76
3.4.3 Interviews............................................................................................................................. 91
3.5 Data Analysis Techniques............................................................................................................ 93
3.5.1 Quantitative data analysis techniques ................................................................................. 93
3.5.2 Data analysis by two SME definitions (Yemeni and Europe definition)............................... 95
3.5.3 Qualitative analysis .............................................................................................................. 95
3.6 Reliability and validity ................................................................................................................. 96
3.6.1 Reliability.............................................................................................................................. 96
3.6.2 Validity ................................................................................................................................. 97
3.7 Ethical considerations ................................................................................................................. 97
3.8 Challenges and Limitation ........................................................................................................... 99
3.9 Summary ................................................................................................................................... 100
4.0 Chapter Four: Findings .................................................................................................................. 101
4.1 Introduction .............................................................................................................................. 101
4.2 Phase 2 Findings ........................................................................................................................ 101
4.3 Phase 3 Findings ........................................................................................................................ 111

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 4.3.1 Main survey and response rate ......................................................................................... 111
4.3.2 Descriptive Statistics .......................................................................................................... 111
4.3.3 Non-response bias ............................................................................................................. 125
4.3.4 Structural equation model (SEM) Findings ........................................................................ 127
4.3.5 SMEs definitions differences t-test .................................................................................... 186
4.4 Summary ................................................................................................................................... 193
5.0 Chapter Five: Discussion .............................................................................................................. 198
5.1 Introduction .............................................................................................................................. 198
5.2 Objective 1: To discover to what extent Yemeni SMEs are engaging in e-business activities. 198
5.3 Objective 2: To find out what is detering Yemeni SMEs from adopting e-business ................. 200
5.3.1 Cost .................................................................................................................................... 201
5.3.2 Organisational Readiness ................................................................................................... 202
5.3.3 Government Readiness ...................................................................................................... 204
5.3.4 The relationship between government and SMEs ............................................................. 205
5.3.5 The relationship between banks and SMEs ....................................................................... 206
5.3.6 Regulations......................................................................................................................... 207
5.3.7 Security .............................................................................................................................. 208
5.4 Objective 3: To explore what drives Yemeni SMEs to be engaged in e-business activities...... 209
5.4.1 Relative Advantage ............................................................................................................ 209
5.4.2 Awareness .......................................................................................................................... 210
5.4.3 Compatibility ...................................................................................................................... 211
5.4.4 Competitive pressure ......................................................................................................... 212
5.5 War and firm size as moderating variables............................................................................... 213
5.6 Final Conceptual Framework .................................................................................................... 216
5.7 Summary ................................................................................................................................... 217
6.0 Chapter Six: Conclusion................................................................................................................. 219
6.1 Introduction .............................................................................................................................. 219
6.2 Overview of the study ............................................................................................................... 219
6.3 Key Findings .............................................................................................................................. 220
6.3.1 Objective 1: To discover to what extent Yemeni SMEs are engaging in e-business activities
.................................................................................................................................................... 220
6.3.2 Objective 2: To find out what is detering Yemeni SMEs from adopting e-business .......... 222
6.3.3 Objective 3: To explore what drives Yemeni SMEs to be engaged in e-business activities.
.................................................................................................................................................... 223

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 6.4 Contribution to knowledge ....................................................................................................... 225
6.4.1 Empirical contribution........................................................................................................ 225
6.4.2 Theoretical contribution .................................................................................................... 226
6.4.3 Practical contribution and implications ............................................................................. 229
6.5 Post War Implications ............................................................................................................... 232
6.6 Study limitations and Future research ...................................................................................... 233
References .......................................................................................................................................... 235
Appendices.......................................................................................................................................... 251
Appendix 1: Questionnaire form (English) ...................................................................................... 251
Appendix 2: Questionnaire form (Arabic) ....................................................................................... 257
Appendix 3: Interview information sheet ....................................................................................... 262
Appendix 4: Non-response rate t-test ............................................................................................ 264
Appendix 5: SMEs definitions differences t-test ............................................................................. 273

vii
 List of Tables
Table 1-1: Number of SMEs (YMIT, 2014)............................................................................................... 4
Table 2-1: Theories and models ............................................................................................................ 25
Table 2-2: E-Business adoption models source: current study............................................................. 28
Table 3-1: Summary of Research Philosophy Adopted from Saunders et al. (2016)............................ 58
Table 3-2: Sample size for different sizes of target population ............................................................ 73
Table 3-3: previous studies’ response rates ......................................................................................... 74
Table 3-4: stratified random sampling source (current study) ............................................................. 76
Table 3-5: Measurement scale for level of e-business activities, barriers and drivers ........................ 80
Table 3-6: Reliability and validity analysis for items and constructs .................................................... 88
Table 3-7: Companies’ Profiles ............................................................................................................. 95
Table 2-2: Descriptive statistics of adoption level 2(Social Media) .................................................... 113
Table 4-12: Descriptive statistics of organisational readiness factor result ....................................... 117
Table 4-13: Descriptive statistics of governmental readiness factor result ....................................... 118
Table 4-15: Descriptive statistics of bank open data factor result ..................................................... 119
Table 4-16: Descriptive statistics of regulation factor result .............................................................. 120
Table 4-17: Descriptive statistics of security factor ............................................................................ 120
Table 4-18: Descriptive statistics of relative advantage factor........................................................... 121
Table 4-19: Descriptive statistics of Awareness factor ....................................................................... 121
Table 4-22: Descriptive statistics of War factor .................................................................................. 123
Table 4-23: Descriptive statistics of Firm size factor .......................................................................... 124
Table 4-24: illustrate the Company Operation ................................................................................... 124
Table 4-25: illustrate the Company Age ............................................................................................. 124
Table 4-26: Non-response bias ........................................................................................................... 125
Table 4-27: Cronbach’s alpha and composite reliability ..................................................................... 128
Table 4-28: Combined loadings and cross-loadings of indicators ...................................................... 129
Table 4-32: Square roots of average variances extracted (AVEs) ....................................................... 132
Table 4-33: The influence of Exogenous LVs on the Endogenous LVs (Email) .................................... 133
Table 4-34: The influence of Exogenous LVs on the Endogenous LVs (Social Media) ........................ 136
Table 4-35: The influence of Exogenous LVs on the Endogenous LVs (Website) ............................... 142
Table 4-36: The influence of Exogenous LVs on the Endogenous LVs (E-commerce) ........................ 150
Table 4-37: Summary of the interpretation of anomalous quantitative results ................................ 155
Table 4-38: The influence of Exogenous LVs on the Endogenous LVs (Mobile APPs) ........................ 156
Table 4-39: The influence of Exogenous LVs on the Endogenous LVs (Cloud Services) ..................... 160
Table 4-42: Significant and non-significant Barriers ........................................................................... 168
Table 4-43: Significant and non-Significant Drivers ............................................................................ 169
Table 4-44: SMEs’ Definition T-Test .................................................................................................... 186

viii
 List of Figures
Figure 2-1: E-adoption ladder. Source: Adapted from Cisco-led Information Age partnership study on
e-commerce in small business (Martin and Matlay, 2001, Zappalà and Gray, 2006) .......................... 28
Figure 2-2: Extended Stage Model. Source: current study ................................................................ 37
Figure 2-3: E-Business Evolution Model Source: current study .......................................................... 50
Figure 3-1: Research Design (Current Study) ........................................................................................ 64
Figure 3-2Types of questionnaires adapted from Saunders et al. (2012) ............................................ 77
Figure 4-12: Level 2 Social media with moderating variables ............................................................ 173
Figure 4-13: Level 3 Website with moderating variables ................................................................... 175
Figure 4-14: Level 4 E-Commerce with moderating variables ............................................................ 177
Figure 4-15: Level 5 Mobile App with moderating variables .............................................................. 179
Figure 4-16: Level 6 Cloud Services with moderating variables ......................................................... 181
Figure 4-17: Level 7 E-business with moderating variables ................................................................ 183
Figure 4-18: Level 8 Transformed Organisational with moderating variables ................................... 185
Figure 3-1: Final Research Conceptual Framework ............................................................................ 216

ix
 Acknowledgements
First of all, I would like to thank God for keeping me in good health during the research

process.

This thesis would not have been possible without the help and support of a number of people.

Therefore, I would like to thank my Director of Studies, Dr. Gareth White, and my supervisor,

Professor Brychan Thomas, who have given me encouragement, supervision, invaluable

insights, and guidance from the start to the end of this project’s journey, and have enabled

me to develop a deeper understanding of the subject.

I would like to give thanks and to display my appreciation for the time and patience shown

through all the stages of this thesis to my father Abdorahman who has always been there to

support and encourage me, along with my mother Fakhriah, my son Omar, my wife, all of my

brothers and sisters and Dr. Abduljalil Al-Soufi.

Last but not least, I would like to thank my friends, Khushnood Anwar and Abdul Fatahi, who

helped me immensely in gathering information, collecting data and guiding me from time to

time during this project, despite their busy schedules; they gave me different ideas to make

this project unique. I also would like to make a special reference to my brothers and my

friends: Mr Mofied Mohammed, Mr Hashem Hassan, Abdo Kaher and Mr Khalid Sameer who

also helped during the data collection.

Lastly, I offer my regards and blessings to all my friends who supported me in any respect

during the completion of this thesis.

Ahmed Abdullah

x
 Declaration

This is to certify that, except where specific reference is made, the work described in this thesis is the

result of the candidate’s research. Neither this thesis, nor any part of it, has been presented, or is

currently submitted, in candidature for any degree at any other University.

Signed: Ahmed Abdullah

Date: 09/05/19

xi
 Publications

Peer-reviewed Journal Publications

➢ Abdullah, A., Thomas, B., Murphy, L. and Plant, E., 2018. An investigation of the benefits and
barriers of e‐business adoption activities in Yemeni SMEs. Strategic Change, 27(3), pp.195-208.
➢ Ahmed Abdullah, Brychan Thomas, Stuart Metcalfe, “Measuring the e-business activities of
SMEs in Yemen”, Pacific Journal of Advanced Business and Social Studies, 2016.
ISSN: 2205-6033. Volume: 2, Issue: 1.

Book Chapters

➢ Ahmed Abdullah, Gareth White and Brychan Thomas (2019). “An Extended Stage Model for
Assessing Yemeni SMEs’ E-Business Adoption”. In David Higgins, Paul Jones and Pauric and
McGowan (Eds), Creating Entrepreneurial Space: Talking Through Multi-Voices, Reflections on
Emerging Debates Vol: 9, Part B. Emerald Publishing Limited. (published date 17 June 2019).
➢ Murphy, L., Abdulai, A., Anwar, K., Abdullah, A., & Thomas, B. C. (2018). “Financial
Entrepreneurship in Three Emerging Economies: A Comparative Study of Ghana, Pakistan, and
Yemen”. In A. Woldie, & B. Thomas (Eds.), Financial Entrepreneurship for Economic Growth in
Emerging Nations (pp. 1-21). Hershey, PA: IGI Global. doi:10.4018/978-1-5225-2700-8.ch00.
Conference Publications and Achievements

➢ Ahmed Abdullah, Gareth White and Brychan Thomas, “Social Media adoption in Yemeni SMEs”,
Proceedings for the 2nd Advances in Management and Informatics Conference, Cardiff Met, May
2018.
➢ Atsede Woldie, Brychan Thomas, Lyndon Murphy, Abdul-Fatahi Abdulai, Khushnood Anwar and
Ahmed Abdullah, “A Preliminary Study into Financing Agriculture and Small Farming
Enterprises in Emerging Economies”, Proceedings for the 2nd Advances in Management and
Informatics Conference, Cardiff Met, May 2018.
➢ Abdul-Fatahi Abdulai, Khushnood Anwar, Ahmed Abdullah, Lyndon Murphy, Atsede Woldie,
Brychan Thomas and Cath Tarling “A Comparative Study of Financial Entrepreneurship in Ghana,
Pakistan and Yemen”, Proceedings for the Advances in Management and Informatics Conference,
Cardiff Met, May 2017. Won best paper.
➢ A.Abdullah, G.White, and B.Thomas Conceptualising a New Stage Model of Electronic Business
Adoption in Yemeni SMEs, the 39th Annual Conference of the Institute for Small Business and
Entrepreneurship, ISBE, Paris, France, 26-27 October 2016. Nominated as the best paper.

xii
➢ A.Abdullah, B.Thomas, and S.Metcalfe, “Measuring the e-business activities of SMEs in Yemen”,
Asia Pacific Conference on Contemporary Research, Kuala Lumper, Malaysia, 3-4 October 2015.
ISBN: 978 0 994365699.
➢ A.Abdullah, L. Murphy, and B.Thomas, “Measuring the e-business activities of SMEs in Yemen”,
60th ICSB Annual world conference in entrepreneurship, Dubai, 6-9 June 2015.
➢ A. Abdullah, L.Murphy, and B.Thomas, Analysing E-Business Adoption for Economic
Development in Developing Countries: the case of Yemen, Emerging Themes in Business 2014
Research Conference Proceedings, 2nd May 2014, Newport Business School, Newport, pp. 19-23,
ISSN 2049-2937.

xiii
 1.0 Chapter One: Introduction
1.1 Introduction

This chapter discusses the background to business activity and related sectors in Yemen, and

it provides a profile of Yemen. In addition, this chapter sets out the research aim, and explains

the rationale behind choosing the study topic. Furthermore, this chapter presents an

overview of the chapters in the thesis, including the research approach, the research’s

contribution to knowledge, and the structure of the thesis.

1.2 Research Background

1.2.1 Country Background

1.2.1.1 Location

Yemen is a republic which is located along the Arabian Peninsula, with its northern end

bordering Saudi Arabia and Oman. There are as many as 200 islands in its territory and it is

located in a place that used to link several ancient civilizations. In addition, the Red Sea is to

the east of the country, which makes its location more important (CIA, 2017). The city of Aden

was traditionally used as a crossroads for some of the busiest sea lanes, built up as a coal

station for the ships travelling from Britain to India (CNN, 2011).

1.2.1.2 Population and Demography

The population of Yemen is made up of many young people, as nearly half of its population is

as young as 15 years old. The total population of the country is 28 million according to the

World Bank (2016). The state language is Arabic; however, there are many local dialects of

Arabic in different regions. The currency of Yemen is the Yamani Rial (CIA, 2017).

1.2.1.3 History of Yemen

Yemen was ruled by the Ottoman Empire, the British, and then its modern history began in

1
1918 when the country won independence from the Ottomans. It was a monarchy in the

beginning, but North Yemen became a republic in 1962. After the British left Aden, it became

South Yemen and, afterwards, North and South united to become the Republic of Yemen in

1990 (CIA, 2017).

The Arab spring started in 2011, and it affected Yemen, with protests erupting in Yemen that

were initially against unemployment, corruption and the failing economy. After an election,

power was transferred to the vice president, AbdRabbuh Mansur Al-Hadi, for a two-year term

starting in February 2012. Al-Hadi oversaw the drafting of a new constitution, followed by

parliamentary and presidential elections in 2014. In 2014, however, Houthis took over Sanaa,

the capital of the country, and as a result, in 2015, the Saudi led coalition forces started air

strikes, and the war in Yemen continues till now (CIA, 2017).

1.2.1.4 Yemen’s economy and current conflict

Yemen relies on petroleum resources to support its economy; therefore, declining oil

resources have affected Yemen’s economy and revenue. To mitigate the impact of this decline

in oil resources, in 2006, the government started investing in a variety of fields and

encouraged non-petroleum sectors and foreign investors to invest in the country. This change

enabled the government of Yemen to export liquefied natural gas, and the international

community came forward by establishing the Yemen friends group to support the Yemeni

government. Two years later, the Yemen friends’ groups promised to support Yemen with

seven million dollars. In 2011, a revaluation started, which caused GDP to drop by more than

15%. Although the transition had a positive influence on the improvement of basic services,

the improvement in the stabilisation of the economy was slow and uneven. Additionally,

Yemen was not able to pick up its economy afterwards due to the challenges that Yemen

2
continued to face. The major reasons behind this included the deteriorating situation of water

resources and high rates of unemployment (CIA, 2017).

The economic conditions of Yemen have continued to decline dramatically since the conflict

broke out. The United Nations intergovernmental body for food and agriculture (FAO)

estimates that in 2017, seven million people were at risk of famine. Yemen’s economy has

declined sharply since March 2015 when the conflict broke out, and although there have been

no official statistics available since then, evidence suggests that Yemen’s GDP contracted by

37.5 percent, and employment in the private sector diminished. In Yemen, oil and gas are the

two most important components of GDP, but the country is facing a reduction in their

production, resulting in a dramatic decrease in government revenue (World Bank, 2017).

According to the Gallup World Poll (2016), due to increases in inflation and pressure on

exchange rates, approximately 40 percent of households have reportedly lost their primary

income source. The reserves of the Central Bank of Yemen (CBY) contracted greatly, resulting

in a decline in imports like food and energy (World Bank, 2017).

Yemen imports almost 90 percent of its food requirements and medical equipment, and all of

these imports used to pass through its sea ports, but these have been undermined by the

war. The main ports of Yemen have been caught up in the conflict, which has adversely

affected the ability of the country to import essential commodities like food, fuel and medical

equipment and send supplies to various parts of the country (World Bank, 2017).

1.2.2 An overview of small and Medium Enterprises (SMEs) in Yemen

1.2.2.1 Number of SMEs operating in Yemen

The Yemeni Ministry of Industry and Trade (YMIT, 2014) states that the number of Yemeni

3
SMEs in the manufacturing sector is 27,796 (see Table 1-1). The total number of MSMEs

operating in Yemen is 290,000, which accounts for over 97% of firms (Nabila, 2013).

Table 1-1: Number of SMEs (YMIT, 2014)

Percentages

Large 0.51
Medium 1.91
Enterprise
Small 19.15
Micro 78.43
Sana’a 18.06
Location Taiz 13.93
Rest of the cities 68.01
Food products and beverage 43.75
Fabricated metal products 14.78
Type of Enterprise Non-metallic mineral products 11.02
Apparel Products 10.80
Other (services, retail) 19.65

Table 1-1 illustrates the number of enterprises in terms of size, location and type, which

includes 0.51% of enterprises as large companies, 1.91% as medium-sized, 19.15% as small,

and 78.43% as micro companies. In addition, a report by YMIT (2014) mentions that most

SMEs are located in Sana’a at 18.06%; Taiz at 13.93%, and 68.01% are distributed amongst

the rest of the cities in the country. Most SMEs are in the field of food products and beverages

at 43.75%; fabricated metal products make up 14.78%; non-metallic mineral products

11.02%; apparel products 10.80%, and other activities, services and retail, 19.65%.

1.2.3 Information and Communication Technology (ICT) and ICT Policy in Yemen

The Telecommunications sector is a growing sector and contributes well to Yemen’s economy

as fixed line subscriptions are on the rise. The rural population is higher compared to the

urban population, so there has been a significant increase in investments in fixed lines. The

telecoms sector has invested in improving the network infrastructure and spending on

developing new product and services. Furthermore, the mobile telecommunications sector is

a big story in Yemen, and the growing competition between different mobile operators is

4
important. There are foreign operators who have invested in the country in the telecoms

sector, including Batelco of Bahrain, and MTN of South Africa (BuddeComm, 2012). However,

it is difficult to attract foreign investment to the telecoms sector due to its low usage in the

country and because internet and mobile data are in the developing stages. The latter has the

potential to develop into a significant market given the lack of competition in the fixed

broadband market and low PC penetration (BuddeComm, 2012). The use of internet and

mobile data is on the rise all over the World, and keeping that in mind, it is expected that it

will also increase in Yemen, bringing further investment and job opportunities to the country.

However, Yemen needs to overcome the barriers of low usage of internet and mobile data,

as well as the political unrest and conflict which are ongoing at the moment, and the state of

education needs particular attention. Thus, it will take some time before online activity, and

subsequently e-business, will really experience a breakthrough in Yemen.

Al-Madhagy (2013) argues that every country has its own ICT policy, including Yemen,

although Yemen does not have particularly clear ICT policies. There have been comparatively

large investments by the Yemeni government towards ICT in the desire to achieve greater

productivity. Most government organisations use computers on a daily basis to expedite

work. In addition, to improve information systems and implement a good infrastructure, the

Yemeni government has established IT departments in most of its ministries and

governorates. The private sector in Yemen has an influence over ICT policy through

investments in an attempt to improve ICT resources. For example, to reduce computer

illiteracy, a number of computer institutes have established courses for learners to learn how

to use computers. Furthermore, the telecoms sector has expanded since 2000 to four telecom

operators, with both the technology of GSM and CDM. However, the Yemeni government is

5
still the only internet provider in the country.

According to the Social Research and Development Centre (SRDC) (2013) survey, the number

of mobile subscribers in the country has increased to almost half the Yemeni population, with

an increase in WiMAX and mobile internet use. Al-Wazir and Zheng (2012) state that the

Telecommunication Corporation (yemen.net.ye) and Teleyemen (y.net.ye) are the only two

internet service providers (ISP’s) in the country, and these belong to the Yemeni government.

Al-Wazir and Zheng (2012) argue that Yemen is one of the countries in the region which has

a low ranking for telecommunication infrastructure.

According to the ITU (2012) report, the Yemen Ministry of Communications and Information

Technology aims to provide, develop and expand the spread of telecommunications and

postal services in the Republic to meet the needs of economic and social development, and

to encourage investment in these areas in accordance with the constitution and state public

policy, laws and regulations in force. However, 3G network coverage is limited to some cities

in Yemen using technology called EV-DO Rev A. Yemeni commercial broadband technology

includes Fixed (wired)-broadband technology (DSL), and three technology wireless-

broadband technologies (CDMA EVDO, WiMAX, and Terrestrial Fixed Wireless Broadband

Technology).

As part of the ICT infrastructure developments, next-generation networks (NGN) are one of

the new developments that have been introduced in two locations, Aden and Mukalla, in

Yemen. In addition, fibre optic paths with a length of 1,187km have been installed and

implemented. At the beginning of 2006, MTIT launched wireless internet services (Wi-Fi). The

number of sites hosted by the internet portal of Yemen (YemenPortal.net) increased from

6
185 sites in 2005 to 915 sites in 2007. Additionally, the number of internet cafés in Yemen

increased from 50 in 2000 to 925 in 2007. Several Yemeni ministries have their own websites,

which contain ministry information and news. Internet cafés are the most common places

available to the Yemeni citizen for internet access due to their cheap cost, which is around 60

Yemeni Riyal per hour (equivalent to 17 pence in the UK) (United Nations, 2009).

There have been some improvements in Yemeni schools, and computer and internet services

have been installed in some universities and schools as part of the ICT infrastructure

improvements. Additionally, computer courses have been introduced to students in

secondary schools. At the beginning of 2008, about 5,800 training courses in the area of ICT

were provided in order to train teachers and staff. Furthermore, many of the government

ministries’ staff have been trained in a variety of ICT fields such as CISCO, Microsoft, and ICDL

(United Nations, 2009).

1.2.4 E-business and SMEs in Yemen

The Yemeni e-business sector is witnessing rapid growth, which has exceeded expectations

and has become a new way of shopping compared with previous years (Almotamar, 2014).

Even though Nations (2007) reports that e-business in Yemen almost did not exist due to the

lack of legal provisions governing this aspect, despite some banks in Yemen having their own

websites with content that includes bank information and news, and using limited electronic

payment systems (United Nations, 2009).

Furthermore, Al-Marti (2008) argues that e-business concepts are still comparatively

unknown and untrusted amongst Yemen SMEs and its population, and the use of the internet

is still for specific purposes. According to the Almotamar (2014) newspaper, there is increasing

reliance on the e-commerce sector, with goods entering Yemen via e-commerce to the tune

7
of millions of dollars annually. Some companies in Yemen started to develop e-commerce

websites and email back in 2013 and offer free online sales to attract tens of thousands of

monthly visitors, who are looking for a unique shopping experience and convenient delivery

service that is direct and free (Almotamar, 2014).

1.2.5 The impact of the war in Yemen on SMEs

The current war in Yemen has increased the weakness that the private sector has already

suffered from regarding many structural and interrelated constraints. Additionally, the war

has increased the impact of political instability and insecurity, electricity shortages, and

corruption in firms. The war in Yemen has also decreased SMEs exports. Moreover, the war

has affected and destroyed a huge number of firm’s infrastructure (World Bank, 2017).

Despite the effect of the war on the ICT infrastructure, ICT companies are still providing their

services to SMEs and consumers. Additionally, the war has increased the number people and

companies who want to use the internet and mobile phones (World Bank, 2017).

The coup government have discussed the possibility of new amendments to tax laws and

working to increase the development of financial resources to finance the war. There has

been an increase in the mobile and international telecommunications sectors from 10% to

22%; fixed line and Internet services from 5% to 10%; sales tax on domestic and imported

cigarettes and tobacco at 120% instead of 90%, and as of October 2017, sales tax on cars rose

from 5% To 15%, leading to an increase in tax revenues on vehicle sales of six billion Riyals a

year ($16 million) (Alaraby, 2017). Additionally, the private sector and businesses are

suffering from being blackmailed by the coup government to fund their war (Alkhaleejonline,

2015).

8
1.3 Research Motivation, Aim and Objectives
1.3.1 Research Motivation

Rapid developments have been witnessed around the World within different spheres of life

in recent decades, especially the technological revolution, and activities such as e-business.

Nowadays, the World’s economy is developing at an increasing rate, and e-business has

grown and become an important component of business strategy and economic

development. The integration of information and communication technology (ICT) can have

a significant impact on such organisations and their employees, with improved productivity,

and subsequent lowering of unit costs (Andam, Programme and Force, 2003). However, SMEs

are still facing many challenges and barriers toward adopting e-business, such as the lack of

skilled labour, costs, and size. Therefore, there is need for further research to find out more

about these barriers.

There are many challenges facing SMEs towards the adoption of technologies, such as lack of

infrastructure, security issues, fraud, corruption, legislation and regulations, and financial

resources. Odedra-Straub (2003) mention that most developing countries face limitations

such as connectivity, the ability to pay, deliveries, willingness to make purchases online,

ownership of credit cards, access to other means of payment for online purchases, and

accessibility in terms of physical deliveries.

Despite the aforementioned problems, the Yemeni e-commerce sector has witnessed rapid

growth and has exceeded expectations, leading to new ways of shopping compared with

previous years (Almotamar, 2014).

This led to the current research into e-business activities in developed and developing

countries and Yemen. The result was that several studies related to e-business adoption have

9
been conducted around the World, but the majority of these studies focus on comparatively

well-developed countries such as Wales (Thomas and Simmons, 2010); South Africa (Cloete,

Courtney and Fintz, 2002); New Zealand (Al-Qirim, 2007), parts of Asia (Sharma and Sheth,

2004), the United Kingdom (Simpson and Docherty, 2004) and Switzerland, Malaysia, Italy,

and the Netherlands. However, few studies have concentrated on the adoption of e-business

in a developing economy (Li et al., 2010). Additionally, according to the best knowledge of the

author, almost no studies have concentrated on the barriers and drivers that have an impact

on e-business adoption among Yemeni SMEs. Therefore, in order to understand the level of

e-business activities and the factors that have an impact on the adoption of e-business, this

study examines a range of SMEs in Yemen across a range of sectors.

Aforementioned problems, there are a need to comprise the importance of understanding e-

business adoption in developing nations, particularly the Middle East, specifically the Yemen.

Stage models are intended to be a useful way for SMEs to review their relative level of e-

business adoption; however, they have faced criticism because of being perceived as too

simplistic, and the linear progression not capturing the complex nature of small firm activities.

Moreover, these stage models have failed to fully recognise the recent developments in

information technology that businesses have harnessed, such as social media. Therefore, this

study has extended the stage model concept by adding the latest technologies, namely,

‘Social Media’, ‘Mobile Apps’ and ‘Cloud services’, as there is a need for these stage models

to be developed further to capture the latest technologies.

Prior research has shown that e-business offers solutions for businesses to meet the

challenges of a changing environment, even though studies related to SMEs in developing

countries have revealed delays, or failures, concerning SMEs adopting e-business.

10
Furthermore, empirical studies into e-business adoption are rare in Middle Eastern and

developing countries. In addition, although the Yemeni e-commerce sector has witnessed

rapid growth and has exceeded expectations, and provides a new way of shopping compared

with previous years, there has been a lack of empirical studies that have examined the impact

of barriers and drivers to the adoption of e-business activities in Yemeni SMEs. Therefore,

there was a need to conduct empirical research on Yemeni SMEs to explore the factors that

specifically affect the adoption of e-business in the context of these SMEs. To do so, this study

has developed a conceptual framework based on previous studies and the extended stage

model.

1.3.2 Research Aim and Objectives

The aim of this research is to critically evaluate the adoption of e-business activities in Yemeni SMEs.

Therefore, the primary objectives are:

- To discover to what extent Yemeni SMEs are engaging in e-business activities.

- To find out what is detering Yemeni SMEs from adopting e-business.

- To explore what drives Yemeni SMEs to be engaged in e-business activities.

1.4 Research approach

A multiphase mixed methods design has been used that includes quantitative, qualitative and

mixed methods phases for collecting primary data, as researchers may conduct multiple

phases, such as mixed methods, convergent or sequential approaches (Creswell, 2014). The

research employs a multiphase approach, along with mixed methods based on the philosophy

of pragmatism and an abductive approach. Phase 1 set out to explore the literature on e-

business adoption and the factors that affect the adoption of e-business, and develops a

11
research conceptual framework and hypotheses. Phase 2 involved conducting an initial study

based on the research conceptual framework and hypotheses developed in phase 1 using

mixed methods to understand the factors specifically affecting e-business adoption in SMEs

in the context of Yemen. The results of phase 2 informed the development of new research

hypotheses. Phase 3 involved using a questionnaire survey to test the hypotheses developed

in phase 2. A pilot study was carried out to test the reliability and validity of the constructs.

Structural Equation Model (SEM) techniques have been used to discover the relationship

between the barriers, drivers and the level e-business activities. Warp PLS 5.0 has been used

to analyse the data, and SPSS has been used for the descriptive analyses. Phase 4 required

the use of interviews to better understand the anomalous results arising from phase 3.

Thematic analysis techniques have been used to analyse the data obtained from the

interviews.

1.5 Structure of the thesis

To achieve the research, aim and objectives mentioned in section 1.5, this study is divided

into seven chapters, and a brief description of each is provided as follows:

Chapter One discusses the background to the research, and the background to business

activities and sectors in Yemen; the country’s profile, and e-business and SMEs in Yemen. It

also explains the rationale behind choosing this topic and the aim of the research, and

provides an overview of the research methodology as well as the research’s contribution to

knowledge.

Chapter Two reviews the literature on e-business, e-commerce and the barriers and drivers

to e-business adoption.

12
Chapter Three discusses the stage models used since 1973, and the acceptance and adoption

theories that are often used by researchers to investigate the acceptance and adoption of

technology at individual and firm levels. In addition, this chapter discusses the extended stage

model developed in this study. It also discusses the relationships between the barriers and

drivers, and the level of e-business activities. Finally, this chapter presents the conceptual

framework proposed and the research hypotheses.

Chapter Four discusses the research philosophy and the research methods. This chapter also

presents the rationale behind choosing a mixed methods approach. It discusses data

collection and sampling techniques used, as well as the analysis of the techniques. In addition,

it presents the ethics and the challenges faced during the research.

Chapter Five sets out the analyses of the data collected, and presents the findings. It presents

the descriptive statistics of the data and the reliability and validity of the constructs, along

with the structural model. This chapter also includes the findings of moderating variables.

Lastly, this chapter presents the findings from the interviews.

Chapter Six discusses the findings and the hypotheses and compares them with previous

studies.

Chapter Seven closes the loop and refers back to the aim and hypotheses of the research. This

chapter also discusses how the study contributes to the knowledge in this field, and presents

the limitations and recommendations for future research.

Figure 1-1 provides a map of the thesis.

13
 Aim The aim of this research is to critically evaluate the adoption of e-business activities
in Yemeni SMEs

The stage models have failed to fully recognise the recent developments in
information technology that businesses have harnessed, such as social media.

Literature SMEs are still facing many challenges and barriers toward adopting e-business,
such as the lack of skilled labour, costs, and size. Therefore, there is need for
further research to find out more about these barriers.

Stage Models, barriers and drivers.

Theoretical
Framework

H1: Cost has a positive effect on e-business adoption levels.

Loop

H2: Organisational Readiness has a positive effect on e-business adoption levels.

Conceptual H3: Governmental Readiness has a positive effect on e-business adoption levels.

Comparing the result with previous studies

Framework H4: Regulation has a positive effect on e-business adoption levels.
and H5: Security has a positive effect on e-business adoption levels.
H6: Relative Advantage has a positive effect on e-business adoption levels.
the

Hypotheses H7: Awareness has a positive effect on e-business adoption levels.

H8: Compatibility has a positive effect on e-business adoption levels.
H9: Competitive Pressure has a positive effect on e-business adoption levels.
Closing

Phase 1 (literature review Developed conceptual framework and

Hypotheses)
Phase 2 (initial study and mixed methods developed new hypotheses)
See chapter 5 section 4.4 for more details.
Methodology
Phase 3 (Pilot study and Deductive study (questionnaire survey) and (SQM PLS)

Phase 4 (inductive (interviews) )

Supported hypotheses: H1 (a,b,c,g), H2(a,b,c,d,e,f,g), H3(b,e,f,g,h), H4(a,b,d),

Findings
H7(a,b,c,d,e,f,g,h), H8(e,g,h), H9(b,d,e,f,g,h), H10(b,g), H11(g), H13(a,b,d),
and H16(a,d,e), H17(h), H20(f,h),21(a,c,), H22 (g) and H28 (a,b,c,e,f,g,h).
Discussion
Rejected: H5, H6, H12, H14, H15, H18, H19, H23, H24, H25, H26 and H27.

Conclusion Close the loop, referring and answering the study aim

Figure 1-1: Map of the Thesis

14
 2.0 Chapter Two: Literature review and the
Development of the Research’s Conceptual Framework

2.1 Introduction

This chapter discusses the existing contribution of the adoption of e-business for SMEs. The literature

review will identify e-business and e-commerce definitions, and e-business in developing countries

and the Middle East, and will also investigate the barriers and drivers affecting the adoption of e-

business.

In order to competently achieve a comparative list of articles, electronic databases such as Google

Scholar and Emerald were used to search for studies and articles by using different keywords and

synonyms, such as e-business, e-commerce, adoption, barriers, driver and developed and developing

countries. Next, the articles were filtered based on highest citation and publication year- between the

years 1973 and 2017.

It is important to recognise the theoretical approaches that have been used in IT and e-business

studies, as well as the stage models on which the research conceptual framework and hypotheses are

built. Therefore, in this chapter, objective 1 to discover to what extent Yemeni SMEs are engaging in

e-business activities is discussed in section 2.7 , objective 2 (to find out what is detering Yemeni SMEs

from adopting e-business) is discussed in section 2.7, 2.8.1.1 and objective 3 (to explore what drives

Yemeni SMEs to be engaged in e-business activities) is discussed in section 2.5, 2.6 and 2.8.1.2.

Moreover, this chapter is discussed the development of this research’s conceptual framework, and

the hypotheses that have been used to determine the relationship between the barriers, drivers and

levels of e-business activity adoption.

15
2.2 Information and Communication Technology (ICT) in the context of e-
business
Information and communication technology (ICT) plays a key role in tackling economic problems in

developing countries (Parliamentary Office of Science and Technology, 2006). It can solve many

challenges to achieving the Millennium Development Goals (Parliamentary Office of Science and

Technology, 2006). ICT can be defined as a technology that provides the ability to connect more

effectively and electronically, and it is the transmission of information (Parliamentary Office of Science

and Technology, 2006). One of the key strategies that can effectively assist SMEs to enhance their

business performance is the utilisation of ICT (Tan et al., 2009). Integrating supply chain partners,

organisational functions and critical information at the right time are some of the competitive

advantages that may be achieved by SMEs through adopting ICT (Bhagwat and Sharma, 2007).

However, there are some challenges that SMEs may face, such as structure, resource constraints, and

size generally. Moreover, despite the rapid growth of ICT within SMEs, MacGregor and Vrazalic (2005)

argue that the level of ICT adoption by SMEs remains weak. The lack of financial resources required

for ICT development and maintenance is one of the main reasons preventing SMEs from adopting ICT

(Parida et al., 2010). According to Ghobakloo et al. (2012), SMEs have less tolerance of accepting the

costs and risks associated with adopting new technologies. Furthermore, the lack of ICT literacy

among owners and employees is another barrier that inhibits effective ICT deployment within SMEs

(Mehrtens et al., 2001).

Over the past five years, Arab countries have witnessed rapidly developing ICT, especially in the area

of mobile cellular technologies. Using a 3G network has an influence on increasing the number of

internet users as well as mobile-broadband subscribers (ITU, 2012), and investments made by the

private sector have led to changes in the development of ICT. These investments have predominantly

16
been in the field of mobile cellular services, with an increase in the number of call centres and internet

cafes, software companies, and so on (United Nations, 2009).

2.3 E-business and SMEs Background

2.3.1 Key definitions

The following key definitions have been used in this research:

2.3.1.1 Definition of SMEs

The definition of an SME varies from country to country. To define whether a company is an

SME, it is necessary to identify the number of employees, annual turnover, and balance sheet

data of the company. In Europe, a Medium-Sized Enterprise is typically defined as a firm

having between 50 and 249 employees, and an annual turnover of less or equal to 50 million

Euros. A small-Sized enterprise is a firm with between 10 and 49 employees, and annual

turnover less or equal to 10 million Euros (EC, 2005); whereas the Yemeni Government

defines an SME as a medium-Sized Enterprise, which is a firm with between 10 and 50

employees, and a small-Sized enterprise as a firm as having between four and nine employees

(YMIT, 2014).

2.3.1.2 E-business and E-commerce definitions

There are two different interpretations of the terms e-commerce and e-business. For

example, Chaffey (2011) argues that e-commerce is a subset of e-business. IBM defined e-

business in 1997 as ‘the transformation of key business processes through the use of internet

technologies’ (Chaffey, 2011, p.12). Parazoglou (2006) and Turban (2010) argue that e-

business is more than buying and selling products and services - it is all about customer

services, collaborating with business suppliers and partners as well as making transactions

electronically inside the organisation. Turban (2010) defines e-commerce as the external

activity of buying and selling products and services online. While Parazoglou (2006), defines

17
e-business as the integration of internal and external organisational processes and the

connection between the organisation and their suppliers and partners, as well as customer

scarification. E-business is defined by Holsapple and Singh (2000p. 161) as:

“E-business is an approach to achieving business goals in which (networked, computer-

based) technology for information exchange enables or facilitates execution of activities in

and across value chains as well as supporting decision making that underlies those activities.”

However, Fillis et al. (2004) identifies e-business as companies that employ ICT in their

business operations, but excludes sending and receiving text-based e-mail messages. Many

researchers, such as Parazoglou (2006), Turban (2010), Fillis et al. (2004) and Chaffey (2011),

state that e-business and e-commerce are similar in terms of buying and selling products on

the internet, whereas others define e-business and e-commerce as distinct. Most studies on

stage model adoption have identified e-commerce as a subset of e-business (Davis and

Benamati 2003).

2.3.2 E-business and SMEs

In both developed and developing countries, small and medium-sized enterprises (SMEs) are

becoming increasingly important to national economies due to their strategic significance in

developing different industrial sectors worldwide (Maad and Liedholm, 2008). Therefore, it may be

argued that SMEs can play a major role in an economy by significantly contributing to the

enhancement of the country’s gross domestic product (GDP), and its labour force, by creating more

job opportunities and developing skilled labour.

Nowadays, the worldwide economy is developing, and e-business has increased and become an

important component of business strategy and economic development. The integration of

18
information and communications technology (ICT) has had an impact on organisations, individuals

and businesses through improving productivity, increasing the number of customers, and reducing

the cost of products (Andam et al., 2003). One of the most important strategies that can effectively

help SMEs to enhance their business performance is the utilisation of information and communication

technology (ICT) (Sin Tan et al., 2009). ICT can provide SMEs with several competitive advantages,

such as integrating supply chain partners, organisational functions, and offering critical information

at the right time (Sharma and Sheth, 2004).

2.4 E-business and SMEs in developing countries and the Middle East
There is no doubt that e-business has spread rapidly around the World and is frequently used for

purchasing services or products. The number of users of the internet at the beginning of the 1990s

was about three million, and there was no form of e-commerce for buying or selling. Nine years later

the number of internet users increased to about 300 million, but only comparatively few internet

users were using it for purchasing products and services from e-business sites, at an estimated 110

billion dollars (WOT, 2013). In 2013, products and services purchased by business-to-consumer were

estimated to be around 1.25 trillion dollars (WOT, 2013). E-business has brought many benefits to

developing countries; it has reduced the cost of sales transactions and increased international trade,

which may have resulted in improved economic development (Noda and Collis, 2001).

The Middle East is characterised as one of the fastest-growing penetrations of the market by e-

business, which means it is in a good position to adopt the new retail environment. The UAE was near

the top of the list of the largest Middle East markets concerning e-commerce revenues, which

currently stands at 2.9 billion U.S. dollars and 32% of the total e-business market in the Middle East;

it was expected to reach 5.1 billion U.S. dollars in 2015. It has also been noted that 2012 saw significant

changes in the field of e-commerce in the Middle East (PayPal, 2013).

19
PayPal (2013) predicted that the e-business market in the Middle East would achieve up to 15 billion

US dollars by 2015, and the growth achieved in this year shows that the market is on track to achieve

predicted growth rate figures. This growth is due to an increase in the number of e-commerce users,

as well as the growth in the number of local retailers who have adopted e-commerce and started

offering customers products not available locally. The report indicates that the main reasons which

drive consumers to use e-commerce and purchase online are convenience at 26%, lower prices at

18%, and the diversity of products and offers (PayPal, 2013).

2.5 Barriers and Drivers

In the current global economy, e-business has increased and become an important component of

business strategy and economic development (Kumar, Kumar, 2014). Indeed, one of the most

important strategies that can effectively assist SMEs to enhance their business performance is the

utilisation of ICT (Sin Tan et al., 2009). ICT can provide SMEs with several competitive advantages,

such as integrating supply chain partners, organisational functions, and offering time-critical

information (Sharma and Sheth, 2010). The adoption of ICT and e-business can offer SMEs a wide

range of benefits for their business processes (OECD, 2004). For example, adopting ICT and its

application offers organisations more efficient resource management, as well as making

communication faster. E-business and the internet can provide SMEs with significant benefits, such

as reducing transaction costs and increasing the speed and reliability of the transaction (OECD, 2004).

However, the characteristics of SMEs, such as structure, resource constraints and size, generate

several challenges and difficulties in relation to the adoption of ICT. According to MacGregor and

Vrazalic (2005), despite the rapid growth of ICT within SMEs, the level of ICT adoption by small and

medium enterprises remains comparatively low. The lack of financial resources required for ICT

development and maintenance is one of the main reasons preventing SMEs from adopting ICT (Parida

et al., 2010). Indeed, as stated by Ghobakhloo et al. (2012), SMEs have less tolerance of accepting the

20
cost and risk associated with adopting new technologies. Furthermore, the lack of ICT literacy among

owners and employees is another barrier that inhibits effective ICT deployment within SMEs

(Mehrtens et al., 2001).

Prior research has shown that e-business offers solutions for businesses to meet the challenges of a

changing environment, even though studies related to SMEs in developing countries reveal a delay or

failure of SMEs in adopting e-business. Numerous studies have reported many barriers to e-business

adoption in SMEs, such as Kaynak et al. (2005), who state that it is difficult to find and retain

employees with the required skills and knowledge. While Bolongkikit et al. (2006) report there is a

need for a high degree of human collaboration in SME markets. Hamed et al. (2008) states it is difficult

for many SMEs to obtain the level of e-business skills needed to benefit from IT investment in e-

business, which is a result of the lack of investment in IT and e-business.

Parazoglou (2006) argues that the main challenge that can affect the adoption of e-business is

company size. Furthermore, the uncertainty around the financial benefits; lack of a clear e-business

strategy; technological concerns; security concerns; privacy and legal issues; suspicion regarding new

partnership loyalties, and the high cost of computing technology are the main barriers that deter firms

from implementing e-business solutions (Parazoglou, 2006). Thus, Pahladsingh (2006) mentions other

e-business issues that influence the adoption of e-business, and these include personal computers

that enable them to go online. Pahladsingh (2006) also reports that ICT infrastructure, internet

connection speed and cost; the cost of hardware and software services; government policies; credit

card interest; regulations and security; the country’s culture and language, and e-business ethics are

the main barriers to the adoption of e-business.

The OECD (2012) reports that even though 94 percent of SMEs in OECD countries have a high-speed

internet connection, only 35 percent are using online purchasing, and 18 percent are selling products

21
and services online. However, Li and Xie (2012) mention some barriers that prevent SMEs from

adopting e-commerce, which include the institutional environment, the legal system, proactive

government policy, ICT infrastructure, tax policy for online transactions, national e-commerce

strategy, government e-commerce use and e-commerce training.

Al-Madhagy (2013) argues that the main barriers that lead a country to not benefiting from

communication and information systems are: a difficult topography, a scattered population group of

low density, and a low level of distribution networks in cities and rural areas. In addition, Middleton

(2011) presents the barriers affecting e-business adoption, which include cost, technology, SMEs’

education and skills sets, lack of skilled labour and access to trusted advisors and consultants, red tape

and bureaucracy, lack of time, and resistance to growth. Moreover, Berthon et al. (2008 p.86) argue

that corruption has a strong effect on e-business adoption and development.

Although there are differences between developing countries regarding the adoption of e-commerce,

they tend to have similar barriers; in particular, a lack of infrastructure and financial problems (Paul

et al., 2003). Therefore, many studies have focused on the adoption of e-business barriers in

developing countries, and they report that most developing countries face many challenges in terms

of adopting an e-business model, for example, lack of awareness, an absence of trust, weak income,

poor economy, purchases made online, online payment services, regulations, costs, technology and

lack of suitable infrastructure (Hamed et al., 2008, Ntoko, 2008, Zolait et al., 2010).

Hamed et al., (2008), report that the main barriers are technology, cost, infrastructure, time,

information and regulations. Overall, the main reasons behind delaying the adoption of e-business

are cost and infrastructure. Additionally, PayPal (2013) reports that in the Middle East, security is a

concern to all e-commerce shoppers, and these concerns are with regard to online payment fraud

and non-delivery of products. Furthermore, the report argues that most online purchases are not paid

22
through electronic payments, which causes high costs for the e-commerce ecosystem (PayPal, 2013).

Al-Marti (2008) reports that there are many challenges around the adoption of e-business in Yemen,

such as the weak spread of internet connections and infrastructure.

2.6 Theoretical frameworks

This section investigates the theoretical frameworks used in e-business by considering the Unified

Theory of Acceptance and Use of Technology (UTAUT), and the Technology-organisation-environment

(TOE) framework.

2.6.1 Unified Theory of Acceptance and Use of Technology (UTAUT)

The Unified Theory of Acceptance and Use of Technology (UTAUT) was developed by Venkatesh et.al.

(2003); it combines factors from eight technology acceptance models based on empirical and

conceptual similarities. The UTAUT is integrated from eight models and includes: the Technology

Acceptance Model (TAM), the Model of PC-Utilization (MPTU), the theory of reasoned action (TRA), a

model combining the technology acceptance model (TAM) and the theory of planned behaviour (TPB),

innovation diffusion theory (IDT), the social cognitive, the Theory of Planned-Behaviour (TPB) and the

Motivational Model. Venkatesh et.al. (2003) state that the UTAUT represents a significant

improvement in models compared to any of the original eight models for IT innovation acceptance

and their extensions. These account for 70 percent of the variance in behavioural intention. The

UTAUT consists of four factors, which are performance expectancy, effort expectancy, and social

influence and facilitating conditions.

Performance expectancy explains the degree to which an individual believes that by using technology

the system will help them to achieve good job performance. Performance expectancy has been

captured from different existing theories, which include: perceived usefulness (TAM/TAM2 and C-

TAM-TPB), extrinsic motivation (MM), job-fit (MPCU), outcome expectations (SCT) and relative

advantage (IDT) (Venkatesh et.al. 2003).

23
Effort expectancy is defined as the degree to which the system would be easy to use by the individual.

The construct of effort expectancy is based on three theories, which are perceived ease of use

(TAM/TAM2), complexity (MPCU) and ease of use (IDT) (Venkatesh et.al. 2003).

Social influence explains the extent to which an individual perceives that important people believe

they should use the new system. Social influence forms the basis of different existing models involving

subjective norms (TRA, TAM2, TPB/DTPB AND C-TAM-TPB), social factors (MPCU) and images (IDT)

(Venkatesh et.al. 2003).

Facilitating conditions are the extent to which an individual believes that the availability of

infrastructure (organisational and technical) can support the use of the system. The facilitating

conditions construct was captured from three different existing theories, which are perceived

behavioural control (TPB/DTPB, C-TAM-TPB), facilitating conditions (MPCU), and compatibility (IDT)

(Venkatesh et.al. 2003). Venkatesh et.al. (2003) have found that age is the most important

intervening variable that moderates the effect of the four factors on the behavioural intention to use

the system; while gender and experience are intervening variables that moderate the impact of the

three factors on the behavioural intention to use the system. In addition, voluntariness of use only

moderates the effect of social influence on the behavioural intention to use the system (Venkatesh

et.al. 2003).

2.6.2 Technology-organisation-environment (TOE) framework

Frameworks and theories have evolved through a number of studies, such as the TOE Framework,

which was developed by Tornatzky and Fleischer (1990). The TOE framework consists of three

contexts that influence the adoption process of the information system (IS) and includes:

Technological context, Organisational context, and Environmental context. The TOE framework has

been used in a number of studies because of the comprehensive nature of the factors included in the

24
 framework. For example, Al-Somali et al. (2013) developed a model called a Stage-Oriented Model

(SOM) for e-business adoption, and this is grounded in the TOE framework. Also, Tan et al. (2003)

developed a model named the Model of Small Business e-Marketplace Adoption, which is also based

on the TOE framework.

Previous studies have considered and assessed many theories and models that have attempted to

explain and understand the new technologies. Table 2-1 explains the most popular technology

acceptance theories used, and the ones relevant to this research have been described in detail in the

sections above.

Table 2-1: Theories and models

Theories Definitions Level of Authors or developer
investigation
The Theory of Reasoned A predictive model for individual level (Fishbein and Ajzen,
Action (TRA) behaviour, attitude, and 1975)
behavioural intention.

The Theory of Planned
Behaviour (TPB)
The Diffusion of
Innovations Theory (DOI)
The Unified Theory of
Acceptance and Use of
Technology (UTAUT)
The Technology
Acceptance Model (TAM)
Technology-organisation-
environment framework
(TOE)

An extension of the theory of individual level (Ajzen 1985, Ajzen
reasoned action by adding the 1991)
construct of "perceived
behavioural control.”
Explains how, why, and at Firm-level (Rogers, 1962)
what rate new ideas or
technologies are being spread
through cultures.
Combines factors from eight individual level (Venkatesh et al., 2003)
technology acceptance models
based on empirical and
conceptual similarities (TAM,
MPTU, TRA, TAM, TPB, IDT,
and TPB).
Used to predict IT acceptance individual level (Davis 1986, Davis 1989,
and usage Davis et al. 1989)
The TOE framework consists of Firm Level (Tornatzky and Fleischer
three contexts that influence 1990)
the adoption process of the
information system (IS) and
includes: Technological
context, Organisational
context, and Environmental
context.

25
The theories and models explained above in Table 2-1 can be used to understand individual IT

acceptance and usage. These theories focus on obtaining a rich understanding of technology’s

acceptance by consumers or users, rather than investigating the adoption of the technology itself.

Hernandez et al. (2009) argue that there is a difference between acceptance and adoption theories.

However, many researchers have not differentiated between the adoption and acceptance of

particular types of technology. For example, many studies have used the Technology Acceptance

Model (TAM) and Unified Theory of Acceptance and Use of Technology (UTAUT) to study technology

adoption, although these models have been developed to be used for technology acceptance

(Hernandez et al. 2009). Moreover, TAM, TRA, TPB and UTAUT theories focus on the individual level.

Therefore, these theories are not suitable for this study as the focus is at the firm level.

Despite the TOE and DOI models focusing on the firm level and being suitable for technology adoption,

DOI and TOE do not include all the factors that have an impact on e-business adoption in the context

of Yemen. Therefore, this study has involved developing a conceptual framework that includes some

factors from both DOI and TOE.

2.7 Stage models

The first information technology adoption stage model was developed by Richard L. Nolan in 1973,

and initially comprised four stages: Initiation, Contagion, Control and Integration (Nolan, 1973). Later,

as information technology availability and usage increased, this adoption model was extended to

incorporate further adoption levels: Initiation, Contagion, Control, Integration, Data administration

and Maturity (Nolan, 1973). Since then, a multitude of studies have described the stages of e-business

adoption (Poon and Swatman, 1999; Martin and Matlay, 2001; Daniel et al., 2002; Rao et al., 2003;

Taylor and Murphy, 2004), most of which have consisted of four to six stages (see Table 2-2).

26
The e-adoption model used by a number of researchers is typically a ‘step-by-step’ indicator which

starts with email communication followed by a basic website, e-commerce, e-business, until the point

of the transformed organisation (Hoque, 2000; Paul et al. 2003; 2000; Teo and Pian, 2004, Vosloo,

2003; Willcocks and Sauer, 2000). Figure 2-1 depicts the Department of Trade and Industry (DTI)

adoption ladder (Martin and Matlay, 2001).

The e-adoption model helps SMEs progress in ICT adoption and to understand the level of e-business

in their firm. Stage 0 means the business does not have internet access. Stage 1 (Emails) means the

business does not have a website but accesses information and services on the internet and uses

email for communication. Stage 2 (Websites) means the business has its own website, but it only

includes very basic information about the business, and relies on customers initialising contact for

further information. Stage 3 (E-commerce) means customers can access more detailed information

about products/services, and customers can buy and pay for products/services from the website, but

the website is not linked to internal systems and orders are processed manually. The business will be

able to access applications and services across a range of devices and networks from anywhere. Stage

4 (E-business) means the online “store” is integrated with other business systems, for example order

processing, fulfilment, accounts and/or marketing. Stage 5 (Transformed Organisation) means

internet technology drives the business internally and externally and is used to manage all processes

end-to-end more effectively and efficiently (see Figure 2-1).

The e-adoption model was intended to provide a useful way for SMEs to review their relative level of

e-business adoption, however, it has faced criticism because it is perceived to be too simplistic, and

its linear progression cannot capture the complex nature of small firm activities (Parker and

Castleman, 2009).

27
 5. Transformed
Organisation
Business Benefits

4. E-business -open systems

information for
customers,
3. E-commerce -integrate
supply chain so suppliers and
-order and pay manufacture partners
2. Website
online, and delivery
become -new business
Place in worldwide reducing costs
1. E-mail seamless models based
market.
-maximise
-efficient internal Window on -minimise
and external worldwide suppliers
communication
Extent of organisation change and sophistication
Figure 02-1: E-adoption ladder. Source: Adapted from Cisco-led Information Age partnership study on e-commerce in small
business (Martin and Matlay, 2001, Zappalà and Gray, 2006)

As described above, the first information technology adoption stage model was developed by Nolan

in 1973, and initially comprised four stages: Initiation, Contagion, Control and Integration (Nolan,

1973). Later on, as information technology availability and usage increased, this adoption model was

extended to incorporate further adoption levels: Initiation, Contagion, Control, Integration, Data

administration and Maturity (Nolan, 1973). Since then, a multitude of studies have described the

stages of e-business adoption (Poon and Swatman, 1999; Martin and Matlay, 2001; Daniel et al., 2002;

Rao et al., 2003; Taylor and Murphy, 2004), most of which have consisted of four to six stages (see

Table 2-2).

Table 2-2: E-Business adoption models source: current study

Model Description Authors

Stages of computer budget Stage 1: Initiation (computer acquisition) (Nolan, 1973)
growth. Stage 2: Contagion (intense system
development)
Stage 3: Control (proliferation of controls)
Stage 4: Integration (user/service orientation)
Six Stages of Growth Stage 1: Initiation (computer acquisition) (Nolan,1979)
Stage 2: Contagion (intense system
development)
Stage 3: Control (proliferation of controls)
Stage 4: Integration (user/service orientation)
Stage 5: Data administration
Stage 6: Maturity

28
A five-stage model Stage 1: Image and product information (Quelch and Klein,
referring to the Stage 2: Information collection 1996)
development of sell-side Stage 3: Customer support and service.
e-commerce. Stage 4: Internal support and service.
Stage 5: Transactions
Web technology adoption Level 1: Information Access (Nambisan and
levels Level 2: Work Collaboration Wang, 1999)
Level 3: Core Business Transactions
ANAO-OGO model of Stage 1: Website presence (Australian National
service delivery by the Stage 2: Database queries online. Audit Office et
Internet Stage 3: Agency interaction al.,1999)
Stage 4: Agencies receiving authenticated
information share data with other agencies
with prior approval of individual clients
Intranet technology use Stage 1: Publishing (Damsgaard and
modes Stage 2: Transacting Scheepers, 1999)
Stage 3: Interacting
Stage 4: Searching
Stage 5: Recording
Moving to E-business Stage 1: Web presence (Willcocks et al.
Stage 2: Access information and Transact 2000)
business
Stage 3: Further integration of skills,
processes, and technologies
Stage 4: Capability, leveraging experience,
and know-how to maximise value
Four stages of Stage 1: Website containing ‘packaged’ (Statskontoret, 2000)
development (Technology information about the agency and its services
Levels) Stage 2: Website containing ‘interactive’
information about the agency and its services
Stage 3: Website and communicative
functions that allow the visitor to submit and
retrieve personal information.
Stage 4: Website and network functions for
joined-up services involving several agencies
and institutions.
Three levels of e-business Phase 1: Experimentation (Hackbarth and
Phase 2; Integration Kehinger, 2000)
Phase 3: Transformation
e-Adoption ladder Stage 0: no internet connection (DTI, 2000)
Stage 1: email (Martin and Matlay,
Stage 2: Website 2001)
Stage 3: e-commerce
Stage 4: e-business
Stage 5: transformed organisation
Dimensions and stages of Stage 1: cataloguing (Layne and Lee,
e-government Stage 2: transaction 2001)
development Stage 3: vertical integration
Stage 4: horizontal integration
Stages of e-government Stage 1: Information (Hiller and Bélanger
Stage 2: Two-way communication 2001)
Stage 3: Transaction
Stage 4: Integration
Stage 5: Political participation

29
Level of Internet adoption Level 0: e-mail adoption (Teo and Pian, 2003)
Level 1: Internet presence
Level 2: Prospecting
Level 3: Business integration
Level 4: Business Transformation
A stage model for e- Stage 1: Presence (Rao et al , 2003)
commerce development Stage 2: Portals
Stage 3: Transactions Integration
Stage 4: Enterprises Integration
Buy-side e-commerce Level 1: No use of the web (Chaffey et al., 2003)
stages Level 2: Review and selection from
competing suppliers using intermediary
Websites, B2B exchanges and supplier
websites. Orders placed by conventional
means.
Level 3: Orders placed electronically through
EDI, via intermediary sites
Level 4: Orders placed electronically with
the integration of company’s procurement
Systems.
Level 5: Orders placed electronically
Sell-side e-commerce Level 0: No Website or presence on the web. (Chaffey et al., 2003)
stage model Level 1: Basic web presence.
Level 2: Simple static informational Website.
Level 3: Simple interactive site
Level 4: Interactive site supporting
transactions with users
Level 5: Fully interactive site supporting the
whole buying process
Ladder of connectivity Six stages (Murphy and
stage 0 (not started) Symonds, 2004 )
stage 6 (advanced e-commerce)
Six-stages of e-business Stage 0: Not connected to the Internet, (Molla and Licker
adoption Stage 1: Connected to the Internet with e- 2005 a, 2005b)
mail
Stage 2: Static Web,
Stage 3: Interactive Web presence
Stage 4: Transactive Web
Stage 5: Integrated Web
The E-Commerce Six Stages (Thomas et al., 2009)
Stairway step 0 (not started)
step 6 (advanced e-Commerce)
E-commerce adoption Five steps (Thomas et al., 2013)
ladder step 0 (not started)
step 5 (transformed organisation)
Organisation level of e- Five Stages (Al-Somali and
commerce adoption stage 0 (no online capability) Clegg, 2013)
stage 5 (integrated the web)
Stages of the e-commerce Six stages (Beynon‐Davies,
adoption ladder stage 0 (have not started yet) 2010)
stage 6 (use advanced e-commerce)

30
 New Stage Model of Eight stages (Abdullah, White,
Electronic Business Stage 0 No internet access. and Thomas, 2016)
Adoption Stage 1 Email (Abdullah, Thomas,
Stage 2 Social media Murphy, and Plant,
Stage 3 Website 2018)
Stage 4 e-Commerce
Stage 5 Mobile Apps
Stage 6 Cloud service
Stage 7 e-Business
Stage 8 Transformed organisation

2.7.1 E-business Evolution Stage Model (Extended Stage Model)

This study has involved developing a new stage model for electronic business adoption. Building upon

previous adoption stage models, it recognises the recent developments in information technology

that businesses have harnessed; social media, for example, now has a significant influence over the

way businesses and consumers interact (Chaffey and White, 2010). The following sections discuss the

developments and the extension of the existing models to achieve the new extended stage model.

2.7.1.1 Social Media

The term ‘social media’ is troublesome to define, being a general term for virtual communications

and a term that encompasses a range of technologies. Consequently, numerous typologies of social

media platforms have been proposed (Nations, 2015; Grahl, 2015; Hyatt, 2013; Myers, 2015; Lake

2009). Initially seen as a marketing vehicle for increasing the virtual presence of a business, it has

become a dyadic enabling mechanism between businesses and their customers (Clapperton, 2012).

However, it has also been considered a catalyst for non-productive employee effort (Carter, 2012).

Access to social media is relatively easy for both businesses and consumers, and this has underpinned

its rapid uptake.

Social media is considered vital for business, as mentioned by a number of previous researchers

(Andzulis et al., 2012, Aral et al., 2013 and Kim et al., 2013). There are various advantages of using

social media, and with the passage of time, more and more consumers are using social media (Fischer

and Reuber, 2011). Accordingly, companies should adopt social media to strengthen their relationship

31
with customers. However, it has been found that companies are slower than consumers in adopting

social media (Andzulis et al., 2012 and Ashworth, 2011).

According to the final report of Social Media Strategy in Small Business (2014), there are many

advantages to SMEs using social media for business purposes, and not only for buying and selling

purposes. The report found that SMEs in the North West of England have used Twitter to

communicate with businesses, partners and consumers, along with using LinkedIn for recruiting staff,

and they have gained many benefits from this. In addition, the report adds that SMEs in the North

West of England described the use of Google + as a useful platform because of its reviews option and

search engine optimisation. Also, the report reveals that photo sharing websites such as Pinterest and

Tumblr have been a successful way of promoting SMEs in the North West of England. Additionally,

companies such as Tesco, have been using social media, including Facebook and Twitter, to attract

and communicate with consumers in order to enable their organisation to create online communities.

This step is important in improving consumers’ centric perspective (Loonam et al., 2018).

Previous authors have discussed and grouped social media in various ways. For example, Kaplan and

Haenlein (2010) have grouped social media into six groups, namely, collaborative projects such as

Wikipedia; blogs; content communities such as YouTube; social networking sites such as Facebook;

virtual game worlds such as World of Warcraft, and virtual social worlds such as Second Life. On the

other hand, Fischer and Reuber (2011) have grouped social media into Facebook for social networking

purposes; YouTube for sharing videos; Flickr for sharing pictures; LinkedIn for professional

networking; Digg for social bookmarking; user forums; and weblogs and Twitter for microblogging.

Many business owners and decision makers consider the concept of social media to be an important

technology that needs to be adopted to gain benefits, even though a full understanding of the

meaning of social media is still rare among business owners and decision makers (Kaplan and Haenlein

32
2010). Many entrepreneurs have adopted social media technology such as Facebook, Twitter, and so

on for the benefit of their business (Fischer and Reuber 2011). Therefore, the extended stage model

incorporates social media platforms and techniques at stage 2 (see Figure 2-2).

2.7.1.2 Mobile commerce apps

Chaffey (2007, p.132) defines mobile commerce as “electronic transactions and communications

conducted using mobile devices such as laptops, PDAs and mobile phones, and typically with a wireless

connection”. Mobile applications have become an additional platform for retailers to expand the

market for distance selling, enabling consumers to make online transactions anytime and anywhere

(Saidi, 2009). Purcell et al., (2010, P.2) defines mobile apps as:

“End-user software applications that are designed for a cell phone operating
system and which extend the phone’s capabilities by enabling users to perform
particular tasks”.

According to Shankar et al., (2010), mobile applications are able to offer SMEs more than just a new

platform for organisations to attract consumers: they are bidirectional and also offer consumers the

opportunity to interact with the organisation and explore information on products and services while

shopping in- and out of- store. They are, therefore, vehicles for creating relationships between SMEs

and customers, and used to improve retailers’ engagement with the rising trend of online shopping

(OCED, 2013). Mobile commerce is a new online platform for businesses to communicate with

consumers, and it allows consumers to purchase products and carry out transactions online more

easily through mobile devices, tablet devices or personal digital assistants (PDA) (OECD, 2006, Laudon

et. al., 2016).

Mobile technology is available and in the hands of millions of people around the world, which means

it can provide many benefits to businesses, such as increasing the firm's revenue (Khaskhel et al.,

2017). Mobile commerce apps, such as those for purchasing food and clothing, or booking a taxi ride

or hotel, are growing in popularity and increasingly available on the market at lower prices, which has

33
changed the way we live. Businesses therefore need to adopt mobile commerce to be able to compete

in the market and reach more people (Khaskhel et al., 2017).

Mobile apps have made online shopping more convenient and reduced the time spent on shopping

due to ease of use (Holzinger et al., 2012). Expanding the market, growing revenue, improving

customer services, and improving communication with partners and suppliers, are some of the

advantages that companies can gain by adopting mobile commerce apps (Rahayu et al., 2016).

In 2020, mobile devices will be available to almost everyone in the world, as predicted by technology

experts (Pew Internet and American Life Project, 2006b). In Yemen, the number of mobile subscribers

in the country has increased to almost half of the Yemeni population (around thirteen million) (SRDC,

2013). Therefore, the extended stage model incorporates mobile applications at stage 5 (Figure 2-2).

2.7.1.3 Cloud Computing

The term ‘cloud computing’ covers a multitude of uses of information technologies that are

developing rapidly and therefore preclude a simple definition (MacVittie, 2008). In basic terms, cloud

computing involves accessing rented web-based capacity or services. Data storage capacity can be

quickly and cheaply sourced, allowing for rapid expansion without the hindrance of the associated

need to expand a company’s own server room. Furthermore, during times of organisational

restructuring or contraction, cloud-based storage can easily be cancelled, thus saving money.

Similarly, data processing or software needs, termed Software as a Service (SaaS) can also be sourced

via the cloud. Companies may operate a ‘pay per use’ system where they are charged only for the

time that they use applications. The benefits of cloud technologies have been widely reported

(Gaskell, 2013) and have underpinned their rapid adoption (Armbrust et al, 2010). However, these

technologies have introduced many challenges that need to be addressed (ISACA, 2012). Cloud

computing is defined by Marston et al. (2011, p177) as:

34
 “An information technology service model where computing services (both
hardware and software) are delivered on-demand to customers over a network
in a self-service fashion, independent of device and location. The resources
required to provide the requisite quality-of-service levels are shared, dynamically
scalable, rapidly provisioned, virtualized and released with minimal service
provider interaction. Users pay for the service as an operating expense without
incurring any significant initial capital expenditure, with the cloud services
employing a metering system that divides the computing resource into
appropriate blocks”.

Cloud computing reduces the cost of using computer-intensive business analytics for start-up SMEs.

It provides instant access to hardware resources as it reduces the time and the cost of developing

maintenance for the ICT Infrastructure. It can also reduce the barriers to IT and innovation adoption

Marston et al. (2011).

Cloud computing is able to provide various opportunities and support for SMEs to improve the use of

technology more efficiently (Assante et al., 2016). Cloud computing can offer businesses many

benefits, such as scalability, flexibility and reducing cost. In addition, cloud computing can provide

agility, as SMEs can move their data more smoothly without limitations (Assante et al., 2016).

Small businesses can compete in the market more efficiently and benefit from adopting cloud

computing, and in this way, they can reduce a large amount of ICT infrastructure costs. Despite the

fact that cloud computing can overcome the barriers of adopting technologies, many European SMEs

are still not able to benefit from the cost-effective and integrated cloud computing services that cloud

computing offers (Assante et al., 2016). Moreover, there are many barriers that have an impact on

the company’s decision on cloud computing adoption, such as lack of cost, not understandin the

infrastructure, lack of ICT skills, and lack of readiness from a business perspective (Assante et al.,

2016). Thus, despite the advantages cloud computing can offer business, there are still many

challenges that deter firms adopting it (Zhang et al., 2010).

35
The adoption of cloud computing is influenced by a number of different factors. A study undertaken

by Yeboah-Boateng and Essandoh (2014) in developing countries in the context of small and medium-

sized enterprises found a lack of internal expertise and knowledge, poor internet access and

connectivity, and concerns over the security of cloud services and data privacy, as well as lack of trust;

difficulties regarding integration with in-house and existing systems; loss of control; differences in

international statutory laws and regulations; delays in the transfer and migration of data, and lack of

confidence in the ability and promise of the cloud and lack of standards, which are all barriers to the

adoption of cloud computing.

On the other hand, the drivers behind the adoption of cloud computing include a reduction in CAPEX

and OPEX for IT infrastructure, improved collaboration and interaction between employees,

customers and suppliers, and the potential reduction in time and resources spent on IT maintenance.

In addition, business continuity, backups and disaster recovery, access to technical expertise and

knowledge, scalability of processing load and capacity, faster deployment and accelerated time to

market, and access and connectivity to different devices for environmental and ecological

friendliness, are all drivers towards the adoption of cloud computing (Yeboah-Boateng and Essandoh,

2014).

It has been reported that slow internet speed and power outage are barriers to adopting cloud

computing in developing countries (Veigas, 2012). In addition, changing between cloud computing

providers is a challenge for firms (Armbrust et al., 2010). Thus, SMEs in developing countries are facing

challenges that are deterring them from adopting cloud computing, such as the lack of IT experts,

security issues, lack of trust between consumers and providers, unclear regulations, high switching

provider costs, and lack of interoperability (Yeboah-Boateng and Essandoh, 2014). Therefore, the

extended stage model incorporates cloud services platforms and techniques at stage 6 (Figure 2-2).

36
 Among these models, the e-business Evolution Stage model (extended stage model) that has been

developed in this study has incorporated the latest technology, namely social media, mobile apps and

cloud services. Most studies have used stage models with the definition of e-commerce that states

that e-commerce is regarded as a subset of an e-business (Davis and Benamati, 2003). Therefore, the

current study has adopted the definition of e-business that considers e-business as supporting (see

section 2.2) a range of business processes using electronically mediated information exchanges, both

inside and outside an organisation, as well as including all e-commerce activity (Chaffey, 2011). As the

focus of this study is on e-business, as indicated earlier, it should be borne in mind that

technology moves so rapidly that it is difficult for the tools and techniques that have been

explored to be kept up to date. Also, the existing stage models developed and adopted in

previous studies are not suitable due to the lack of social media, mobile apps and cloud

services being addressed by these stage models. Therefore, by addressing this gap, the

research has involved developing a new stage model which addresses the gap in the literature

(see Figure 2-2 below).

Transformed Organisational S8

E-business S7

Cloud Services S6

Mobile APP S5

E-commerce
S4

Website S3

Social
Media S2

Email
S1
Figure 0-2: Extended Stage Model. Source: current study
37
2.8 Research Hypotheses and conceptual framework
This section discusses the development of the conceptual framework and hypotheses used to

determine the relationship between the barriers and drivers, and levels of e-business activity

adoption. The hypotheses and conceptual framework have been developed based on the

literature review and the extended stage model developed in this study.

2.8.1 Research hypotheses

The literature highlights the barriers and drivers that SMEs face when making changes in their

strategy toward adopting e-business, such as cost, technology, and skills. These challenges

may or may not apply to Yemeni SMEs. In addition, Yemeni SMEs could face other problems.

Therefore, in view of the literature and on the basis of the E-business extended Stage Model

developed in this study, the hypotheses described in the following sections have been

formulated:

2.8.1.1 The relationship between Barriers and the levels of e-business activities adoption
Numerous studies have reported a range of barriers that have an impact on technology and

e-business adoption in SMEs, which are as follows: company size, technological concerns,

security concerns, privacy and legal issues, regulations, costs, relative advantage, top

management support, firm size, government support, lack of infrastructure, financial

problems, an absence of trust, weak income, poor economy, purchases made online, and

online payment services (Al-Somali et al., 2015, Downs and Mohr, 1976; Rogers, 1995;

Schneider, 2007; Tornatzky and Klein, 1982, Parazoglou 2006, Hamad et al,2015, Hamed et

al., 2008).

Furthermore, PayPal (2013) reports that in the Middle East, security is a major concern of all

e-commerce shoppers; these concerns are around online payment fraud and non-delivery of

products. Moreover, the report points out that most online purchases are not paid through

38
electronic payment systems, which creates high costs for the e-commerce ecosystem (PayPal,

2013).

Al-Marti (2008) reports that there are many challenges in the adoption of e-business in

Yemen, such as the weak spread of internet connections and infrastructure. Consequently,

the barriers that have a positive effect have been considered, based on the factors used by

most researchers that have an effect on e-business adoption, which are as follows: cost,

organisational readiness, governmental readiness, regulations, and security.

2.8.1.1.1 Cost
Costs include e-business application, internet, website, and training. High costs arise from

development and maintenance, and therefore the cost of information communication

technology (ICT) has prevented SMEs from adopting it (Parida et al., 2010, OECD, 2004).

Ghobakhloo et al. (2012) argue that SMEs have less tolerance concerning accepting the costs

and risks associated with adopting new technologies. Studies have found that cost has an

effect on the decision to adopt a new technology, which may delay the use and

implementation of that new technology (Downs and Mohr, 1976; Rogers, 1995; Schneider,

2007; Tornatzky and Klein, 1982, Abdullah et al, 2016, 2018). The findings in the study by Al-

Somali et al. (2015) reveal that cost (high telecommunication costs, cost of software

development tools for integrated computer systems, cost of new computer equipment and

the high investments necessary) has a significant impact on stabilisation in the e-commerce

adoption stage (interactive, transactive or integrated e-commerce in which most of the

business transactions are conducted electronically).

The cost factor appears to be the primary barrier to e-commerce adoption (Al-Somali et al.

2015). The OECD (2004) reports that most SMEs will not adopt e-commerce if the benefit or

the return of the implementation of new technology will not outweigh the cost. Zolait et al.

39
(2010) found that the high cost of internet facilities is the main barrier which delays Yemeni

companies from adopting e-commerce. Parazoglou (2006) argues that the main challenge

that may impact on the adoption of e-business is the high cost of computing technology. The

high cost of ICT, especially the initial set-up, prevents SMEs from adopting it (Dixon et al.,

2002). However, Syed (2009) claims that the cost has a positive effect on internet adoption;

while it was found by Tan et al. (2009) that cost has no impact or effect on ICT adoption. Ainin

et al. (2015) investigated the factors influencing the use of social media by SMEs, and found

that cost-effectiveness has a positive influence on Facebook usage. Therefore, the hypothesis

on the effect of cost on the e-business extended stage model is:

H1. Cost has a positive effect on e-business adoption levels

2.8.1.1.2 Organisational Readiness

One of the key strategies that can effectively assist SMEs to enhance their business

performance is the utilisation of ICT (Tan et al., 2009). ICT can provide SMEs with several

competitive advantages, such as integrating supply chain partners, organisational functions

and offering critical information at the right time (Bhagwat and Sharma, 2007).

Kaynak et al. (2005) state that it is difficult to find and retain employees with the required

skills and knowledge. While Bolongkikit et al. (2006) report there is a need for a high degree

of human collaboration in SME markets. Hamed et al. (2008) state that it is difficult for many

SMEs to reach the levels of e-business skills needed to benefit from IT investment in e-

business, which is a result of a lack of investment in IT and e-business. Pahladsingh (2006) also

reports that ICT infrastructure, and internet connection speed, have an impact on e-business

adoption.

40
The lack of ICT literacy among owners and employees is another barrier that inhibits effective

ICT deployment within SMEs (Mehrtens et al., 2001). Pahladsingh (2006) states the factors

that influence the adoption of e-business include personal computers, which can provide the

opportunity for employees to be online; specifically, ICT infrastructure and internet

connection speed.

Paul et al. (2003) found that lack of IT skills and limited financial resources within the

organisation are some of the main barriers to e-business development. White et al. (2014)

and Afolayan et al. (2015), report that lack of resources and the level of training of employees

are internal barriers that lie inside the organisation. According to Golding et al. (2008),

employees face difficulties in adopting new technology, even though they may be a highly

skilled employee. Lack of skills and knowledge within the organisation are barriers towards

adopting a new technology (Al-Mamaryet al., 2014 5).

With regards to the Yemeni context, Yemeni firms are facing difficulties in accepting new

technology due to the lack of skilled and experienced employees (Al-Mamaryet al., 2014).

According to Zolait et al. (2010) Yemeni firms face challenges in adopting e-commerce

activities due to employees belonging to the ‘before internet generation’, as well as there

being a lack of experts. Thus, lack of qualified staff and limited financial resources have an

impact on the adoption of e-commerce (Taylor and Owusu, 2012).

Therefore, the hypothesis on the effect of organisational readiness in the e-business extended

stage model is:

H2. Organisational Readiness has a positive effect on e-business adoption levels.

41
2.8.1.1.3 Governmental Readiness
A country‘s electronic readiness is one of several critical factors which must be measured to
enable SMEs to use or develop an e-commerce application, as defined by Bui et al. (2003:
p.5):

“E-readiness as the aptitude of an economy to use information and

communications technologies to migrate traditional businesses into the new
economy”.

A government needs to take into account the development of electronic readiness, as this will

enable companies to engage in e-commerce activities (Bui et al., 2003).

The country’s lack of infrastructure, including an e-commerce infrastructure, is preventing

Yemeni firms from adopting e-commerce activities (Zolait et al., 2010 6), as weak

infrastructure and e-commerce infrastructure prevents SMEs from adopting e-commerce

activities (White et al., 2014 and Afolayan et al., 2015).

The higher the level of internet connection and communications service providers available

at competitive prices, the more businesses will benefit from adopting internet technologies,

depending on their requirements (OECD, 2004). Accordingly, most Yemeni companies using

the Internet for business purposes are limited because there are only two Internet providers

in Yemen, and they are owned by the Yemeni government (Zolait et al., 2010). In addition,

firm owners’ decisions concerning adopting e-business activities may affect the speed and

availability of broadband. A high-speed internet connection enables SMEs to explore and

adopt more applications and spend more time online (OECD, 2004).

The results of the Yemeni Internet Society study reveals that weak e-commerce

infrastructure, such as appropriate Internet speeds, postal services, and electronic payment,

are obstacles to the growth of e-commerce in Yemen, compared to the other countries in the

region and around the world (ISO, 2015 report). Al-Marti (2008) reports that there are many

challenges in the adoption of e-business in Yemen, such as the weak spread of internet

42
connections and infrastructure. In addition, the lack of an electronic payment system and the

lack of online banking are affecting the adoption of e-business (Taylor and Owusu, 2012).

Therefore, the hypothesis for the effect of government readiness on the e-business extended

stage model is:

H3. Governmental Readiness has a positive effect on e-business adoption levels.

2.8.1.1.4 Regulation
Regulation refers to the degree to which e-business laws and regulations provide online

purchasing and selling of legal and data protection, and information about e-business privacy.

The findings of Al-Somali et al. (2015) suggest that legislation and regulations have a

significant impact on the non-interactive, interactive and stabilisation of e-commerce

adoption.

Agwu and Murray (2015) investigated the barriers to e-commerce adoption in SMEs in

Nigeria, and found that the absence of a regulatory framework for e-commerce is preventing

SMEs from adopting e-commerce. Lack of regulations is one of the challenges facing the

improvement of SMEs’ websites (Shemi and Proctor, 2013). E-business laws and regulations

are not sufficient and unknown - there is no adequate legal protection available for internet

buying and selling; no information about e-business privacy, and shortcomings in data

protection (BuddeComm, 2012). Therefore, the hypothesis for the effect of regulation on the

e-business extended stage model is:

H4. Regulation has a positive effect on e-business adoption levels.

2.8.1.1.5 Security
Syed et al. (2008) found that security has a major effect on e-commerce adoption in Malaysia.

In addition, other previous researchers have found that security has a major impact on the

adoption of cloud computing (Lyer and Henderson, 2010 and Armbrust et al., 2010). The

43
findings of Doherty et al. (2015) reveal that Irish SMEs would move to a cloud environment if

they had more confidence in the security of their data. Security issues have been considered

by many researchers as the main challenge that may impact on the adoption of e-business

(Parazoglou, 2006, Pahladsingh, 2006, Abdullah et al., 2016, 2017 and PayPal, 2013).

The results of the Yemeni Internet Society study reveals that digital security is an obstacle to

the growth of e-commerce in Yemen compared to other countries in the region and around

the world (ISO, 2015 report). Zaied (2012) found that internet security has a significant effect

on the implementation of e-businesses in SMEs in Egypt. In addition, Zhu et al. (2006) found

that security has significantly inhibited e-business usage. However, PayPal (2013) reports that

in the Middle East, security is a concern to all e-commerce shoppers, and these concerns are

online payment fraud and non-delivery of products. Furthermore, the report argues that most

online purchases are not being paid through electronic payment systems, which creates high

costs for the e-commerce ecosystem (PayPal, 2013). Therefore, the hypothesis for the effect

of security on the e-business extended stage model is:

H5. Security has a positive effect on e-business adoption levels.

2.8.1.2 The relationship between Drivers and the levels of e-business activities adoption
2.8.1.2.1 Relative advantage
Relative advantage refers to the degree “to which the innovation is perceived as being better than

the idea it supersedes” (Rogers, 2003). Prior studies have identified that relative advantage is

the most significant driver that has an impact on ICT and e-commerce adoption (Hamad et al.,

2015, Sharma and Sheth, 2010, Tan et al., 2009, Al-Qirim, 2007). Mndzebele (2013)

investigated the effects of relative advantage, compatibility, and complexity on the adoption

of e-commerce in the hotel industry, and they found that relative advantage has a positive

relationship with the adoption of e-commerce.

44
Hamad et al. (2015) found that relative advantage has a positive impact on level 1 adoption

(Electronic information search and content creation), level 2 (Electronic transaction), level 3

(Complex electronic transactions) and level 4 (Electronic collaboration). Zhu et al. (2006)

found that relative advantage drives e-business usage. However, Seyal and Rahman (2003)

found that relative advantage does not drive the adoption of e-business in SMEs. Therefore,

the hypothesis for the effect of relative advantage on the e-business extended stage model

is:

H6. Relative advantage has a positive effect on e-business adoption levels.

2.8.1.2.2 Awareness

“One can easily see that situation awareness has always been needed in order for
people to perform tasks effectively. Prehistoric man undoubtedly needed to be
aware of many cues in his environment in order to successfully hunt and keep
from being hunted. For many years, having good situation awareness was largely
a matter of training and experience — learning the important cues to watch for
and what they meant” (Endsley and Garland, 2000 p:1).

Many researchers have considered awareness to be an important factor that has an impact

on the adoption of technology and our lifestyle decisions. Awareness could drive companies

to be more technology aware and able to compete at a higher level. For example, Lacovou et

al. (1995) found that some of the firms that participated in their research have not adopted

EDI yet due to a lack of awareness; whereas other firms with high awareness have adopted

integrated EDI systems, and others have put a plan in place. The support of the government

for the advantages of EDI adoption could increase firms’ awareness of the advantages of EDI,

but still, firms require awareness as well (Lacovou et al., 1995). For example, lack of

awareness of the benefits of e-commerce among Chinese firms and consumers could delay

their decision towards adoption (UNCTAD, 2001). Therefore, the hypothesis for the effect of

awareness on the e-business extended evolution stage model is:

45
H7. Awareness has a positive effect on e-business adoption levels.

2.8.1.2.3 Compatibility
Rogers (2003) defines compatibility as “the degree to which e-commerce applications are

compatible with firms’ objectives, the existing work practices of companies”. Compatibility is

the technology that gives SMEs the ability to connect more effectively and electronically, and

it is the transmission of information (Parliamentary Office of Science and Technology, 2006).

Compatibility is one of the key strategies that can effectively assist SMEs to enhance their

business performance in the utilisation of ICT (Tan et al., 2009).

Several studies (Mirchandani and Motwani, 2001, MacGregor and Vrazalic, 2005, Hamad et

al., 2015, Al-Qirim, 2005, Chong, 2004 and Premkumar, 2003) have found that compatibility

has a strong impact on driving the SME towards adopting internet technologies. Hamad et al.

(2015) found that compatibility has a positive impact on level 1 adoption (Electronic

information search and content creation) while compatibility has no impact on level 2

(Electronic transaction), level 3 (Complex electronic transactions) and level 4 (Electronic

collaboration). Low et al.’s (2011) findings reveal that compatibility has no impact on cloud

computing adoption. In addition, the findings of the recent study by Ramayah et al. (2016),

which investigated the factors influencing SMEs’ websites in Malaysia, reveals that

compatibility has no effect on the website continuance intention.

Ainin et al. (2015) investigated the factors influencing the use of social media by SMEs, and

found that compatibility has a positive influence on Facebook usage. Rahayu and Day (2015)

investigated the factors of e-commerce adoption by SMEs in developing countries, and they

discovered that compatibility has a positive effect on e-commerce adoption. Mndzebele

(2013) investigated the effects of relative advantage, compatibility, and complexity in the

adoption of EC in the hotel industry, and found that compatibility has a positive relationship

46
with the adoption of e-commerce. Compatibility was found to have no significant effect on

the enterprise's systems (Ramdani et al., 2009).

Therefore, the hypothesis on the effect of compatibility on the e-business extended stage

model is:

H8. Compatibility has a positive effect on e-business adoption levels.

2.8.1.2.4 Competitive Pressure

Competitive pressure refers to “the degree that the company is affected by competitors in the

market" (Zhu et al. 2004, p. 24). Competitive pressure refers to the degree of businesses

pressure from market competitors (Zhu and Kraemer, 2005).

Studies have found that market forces have a high impact on drivers for e-business and the

adoption of e-business (Iacovou et al. 1995, Molla, Licker 2005a, 2005b and Al-Somali et al.,

2015). Hamad et al. (2015) found that competitive pressure has a positive impact on level 2

adoption (Electronic transaction) while it has no impact on level 1 (Electronic information

search and content creation), level 3 (Complex electronic transactions) and level 4 (Electronic

collaboration). Looi (2005) found that competitive pressure motivated SMEs in Brunei to

adopt e-commerce. In addition, Abed et al. (2015) argue that competitive pressure has an

influence on the adoption of social media. In addition, many studies (Wymer and Regan,

2005, Hamad et al., 2015 and Al-Somali et al., 2015) have found that competitive pressure

has a positive effect on e-commerce adoption. Therefore, the hypothesis for the effect of

competitive pressure on the e-business extended stage model is:

H9. Competitive pressure has a positive effect on e-business adoption levels.

47
2.8.1.3 Firm Size has a significant moderating effect on the relationship between barriers
and drivers and the levels of e-business activities adoption
2.8.1.3.1 Firm size
Firm size refers to the number of employees in a firm (Pan, 2005). Parazoglou (2006) argues

that the main challenge that may affect the adoption of e-business is company size. Firm size

has been considered by some researchers not to have an impact on e-commerce adoption

(Jean et al., 2006, Scupola, 2009), while the findings of other studies (Wymer and Regan, 2005,

Hamad et al., 2015) reveal that firm size does have an effect on e-commerce adoption. In this

study, firm size is considered as a moderator variable. Therefore, the following hypotheses

represent the moderating effect of firm size between the barriers, drivers, and e-business

evaluation stage model:

H10. Firm size has a moderating effect on the relationship between cost and e-business

adoption levels.

H11. Firm size has a moderating effect on the relationship between organisational readiness

and e-business adoption levels.

H12. Firm size has a moderating effect on the relationship between governmental readiness

and e-business adoption levels.

H13. Firm size has a moderating effect on the relationship between regulations and e-
business adoption levels.

H14. Firm size has a moderating effect on the relationship between security and e-business
adoption levels.

H15. Firm size has a moderating effect on the relationship between relative advantage and e-
business adoption levels.

H16. Firm size has a moderating effect on the relationship between awareness and e-business
adoption levels.

48
H17. Firm size has a moderating effect on the relationship between compatibility and e-
business adoption levels.

H18. Firm size has a moderating effect on the relationship between competitive pressure and
e-business adoption levels.

49
2.8.2 Research conceptual framework

From the review of all stage models, and the barriers and drivers affecting e-business adoption, this research has included developing a framework involving

barriers and drivers (see Figure 2-3).

Cost Transformed Organisational S8

H1a,b,c,e,f,g,h
,i Drivers
Organisation
H2a,b,c,e,f,g,h Relative
Readiness H6a,b,c,e,f,g,h
,i Advantage
,i
Government
Readiness
H3a,b,c,e,f,g,h Awareness
,i H7a,b,c,e,f,g,h
,i
Regulation
H4a,b,c,e,f,g,h
,i H8a,b,c,e,f,g,h Compatibility

Security H5a,b,c,e,f,g,h ,i
,i Competitive
H9a,b,c,e,f,g,h
Barriers Pressure
,i

Firm Size

Figure 2-3: E-Business Evolution Model Source: current study 50

2.9 Summary

Technology is growing so rapidly that it is difficult to keep up to date with it, even though it

has been adopted worldwide to varying degrees. Technology has increased our knowledge

and the way that we do things. The technology revolution has also changed the way

businesses work. Many businesses have been able to keep up to date and have adopted

technology, such as e-businesses, and have benefited from it. Meanwhile, other businesses

have not been able to do so and have not benefited. There are many barriers that deter

businesses from adopting e-business, especially the cost and lack of infrastructure.

This chapter has reviewed the literature regarding e-business and e-commerce; the ICT

context of e-business; e-business and SMEs, and the situation in developing countries and the

Middle East. It has also considered the literature regarding e-business activities in terms of

the barriers and drivers.

SMEs should first understand and evaluate their level or status concerning technology and

the related activities already available within their organisation and on the market. This

evaluation will help them to demonstrate which level of technological activities they are

positioned at, as well as helping to identify the factors that could drive them to adopt more,

and which barriers may deter them. The many theories and models demonstrated in the

literature have been used as a lens through which to study the factors that have an impact on

the adoption of technology; however, most of them, such as TAM, are more relevant to

studying the acceptance of technology at the individual level, rather than technology

adoption at the firm level. Also, there is a lack of studies on the factors that may drive firms

to adopt e-business activities. In addition, the stage models that exist have not incorporated

the new technology available.

51
This study has investigated the adoption of e-business activities at the firm level in the context

of Yemen to fill this research gap. It was necessary, therefore, for the study to include

developing a comprehensive conceptual framework as a lens through which to study e-

business adoption in Yemeni SMEs based on the literature and stage models. The extended

stage model developed has incorporated several new factors, namely, social media, mobile

apps, and cloud services. In light of what has been mentioned above, the e-business extended

stage model has been adopted in this study for the following reasons: to consider e-business

support (see section 1.2); to examine the range of business processes using electronically

mediated information exchanges both inside and outside an organisation, and to address all

e-commerce activity (Chaffey, 2011).

52
3.0 Chapter Three: Research Methodology
3.1 Introduction

This chapter discusses the research approach used, which is abductive, as the study has

involved both inductive and deductive approaches by using mixed methods. The research

strategy and analysis techniques employed to collect and analyse the data are discussed; in

particular, the use of a multiphase mixed methods design and instruments for measurement.

A multiphase mixed methods design includes quantitative, qualitative and mixed methods

phases of collecting primary data. The researcher can conduct multiple phases, such as mixed

methods, convergent or sequential approaches (Creswell, 2014). This study adopted an

abductive approach to address the research aim and questions. The fieldwork comprised four

phases of investigation: Phase 1: Literature review and development of the research’s

conceptual framework. Phase 2: Initial study and modified conceptual framework. Phase 3:

Deductive (quantitative) study to test the hypotheses developed from the result of the initial

study (Phase 2) with a larger sample. Phase 4: Inductive (qualitative) study to understand the

anomalous result arising from the quantitative study in Phase 3 in Yemen.

In addition, the specific research methods and techniques employed to collect and analyse

the data are set out, including the design of the questionnaire and interviews used in this

research, as well as the population being researched. The quantitative data analysis

techniques used are explained, which are descriptive analysis; structural equation modeling

(SEM) methods, and Warp PLS 5.0.

In addition, the validity and reliability of the current research and the data collected are

discussed. Moreover, the various issues that were faced during the research process are

addressed in this chapter, in particular, carrying out research in a country at war, as well as

53
the ethical issues that needed to be addressed. Finally, a summary of the chapter is presented,

along with the conclusion.

3.2 Research philosophy

Research paradigms are general philosophical assumptions (worldviews, beliefs) that define

the nature of possible research and interventions to guide researchers (Punch, 2013). The

research philosophy is all about the particular way of exploring a view of the world (Saunders

and Lewis, 2012). Moreover, Saunders and Lewis (2012, p.104) define research philosophy as

an “overall term that relates to the development of knowledge and the nature of that knowledge about

research”. The research philosophy influences the way in which the researcher selects and

thinks about the data collection methods and strategy, and the overall research process

(Saunders, et al. 2012). Consequently, there is a need to explore the researcher’s philosophy

towards the nature of reality (ontology) and acceptable knowledge (epistemology) that

supports the researcher in choosing the study’s philosophy against alternative philosophies

(Saunders, et al., 2012).

Ontology is an assumption that is concerned with the nature of reality (Saunders, et al., 2016).

Burrell and Morgan (1980) define ontology as the science of being. It relates to the questions

about the existence of an object. The ontology also reflects the claims that a specific approach

to social inquiry makes about the nature of social reality. Ontology discovers the type of

reality that exists, what it looks like, any entities that exist in that reality, and how those

entities interact. Saunders, et al., (2016) argue that the researcher’s ontological assumptions

outline the approach that helps in studying the research objects. These objects, such as the

organisation, organisational events, management, and individuals, are all related to business

and management research.

54
The epistemology of the researcher concerns assumptions about the perceived world and the

communication of those concerns, and the knowledge he/she acquires through asking

questions about it (Burrell and Morgan, 1985, 2017). “Epistemology is concerned with what

constitutes acceptable knowledge in a field of study” (Saunders, et al., 2012, p.132). Epistemology

is the relationship between the research and the researcher (Collis and Hussey, 2013), and it

sets out how to explore the nature of the physical and social worlds (Easterby-Smith, et al.,

2012). The way the researcher gains knowledge about the world varies according to the social

context; consequently, no epistemology is right or wrong. Different epistemological

approaches can guide the researcher to understand and explore the world and explain the

activities and interactions that form the basis of the research process (Tronvoll, et al., 2011).

In general, the epistemology is how researchers acquire knowledge.

There are three characteristics that epistemological assumptions have, and these are

objectivism, subjectivism, and pragmatism. Objectivism (positivism) relies on the assumption

that social phenomena actions are different from social actors. Objectivism “ represents the

position that social entities exist in reality external to and independent of social actors” (Saunders, et

al., 2012, p.131). Objectivism simply means that knowledge exists and needs to be discovered.

Objectivism “portrays the position that social entities exist in reality external to social actors

concerned with their existence” (Saunders, et al., 2007, p. 110). On the other hand,

subjectivism “holds that social phenomena are created from the perceptions and the consequent

actions of those social actors concerned with their existence” (Saunders, et al., 2007, p.110).

Subjectivism (interpretivism) “asserts that social phenomena are created from the perceptions and

consequent actions of social actors” (Saunders, et al., 2012, p.132). Subjectivism “accounts for

the subjective dimension of human action” (Gill and Johnson, 2002, p.167).

55
According to Saunders and Lewis (2012), the four main strands of research philosophies that

are dominant in business and management research are positivism, realism, interpretivism,

and pragmatism. The first research philosophy is the positivist philosophy, which is generally

used in quantitative research (Hussey and Hussey, 1997). A positivist philosophy means the

researcher is looking to collect data on an observable reality to discover causality

relationships in the data collected in order to create law-like generalisations (Gill and Johnson,

2010). It may, therefore, be necessary to develop hypotheses using existing theory to design

a research strategy for collecting positivist data. There is a possibility that the result of the

hypotheses could be confirmed or rejected, as a whole or part, which could lead to developing

the theory for further research (Saunders, 2012, p.134). On the other hand, research does not

require developing hypotheses based on existing theory when choosing to use positivism

(Saunders, 2012, p.134). Saunders and Lewis (2012, p.104) define positivism as “a research

philosophy similar to those used in the physical and natural sciences. Highly structured

methods are employed to facilitate replication, resulting in law-like generalisations”.

Realism is the second research philosophy mentioned, which is defined by Saunders and Lewis

(2012, p.105) as “a research philosophy which stresses that objects exist independently of our

knowledge of their existence”. Realism is based on the view that there is an external reality at

play, which is independent of the researcher’s own views and understanding of the world.

Klungseth and Olsson (2013 p.296) explain that “Realism is interpreted as problem-oriented, and

aims to be value-neutral and real-world oriented without any underlying consciousness”. Realism,

also referred to as critical realism, accepts that there are multiple realities, and it typically

involves investigating multiple perspectives (Creswell and Plano Clark, 2011). Therefore,

56
realism usually involves mixed methods research that aims to obtain a deep understanding of

the phenomena being explored.

Interpretivism is the third research philosophy, and this involves a qualitative research

approach. An interpretivist philosophy is concerned with understanding people’s behaviour

and attitudes from a participant’s view (Maylor et al., 2016). Saunders and Lewis (2012) define

interpretivism as “a research philosophy which advocates the necessity to understand

differences between humans in their roles as social actors”.

Pragmatism is the fourth research philosophy that is dominant in business and management

research, and it combines a positivist approach (quantitative) with an interpretive approach

(qualitative). In other words, pragmatism uses mixed methods of both a quantitative and

qualitative nature (Saunders and Lewis, 2012). Also, Saunders and Lewis (2012, p.107) define

a pragmatist philosophy as “a research philosophy which argues that the most important

determinant of the research philosophy adopted are the research question(s) and objectives”.

Creswell (2014) argues that pragmatism focuses more on using all available approaches to

understand the problem rather than focusing on the methods.

Cherryholmes (1992), Morgan (2007) and Creswell’s (2014) views of the philosophy of

pragmatism are set out in the following.

• Researchers moderately take together from quantitative and qualitative assumptions

when they are doing their research, as pragmatism is not dedicated to any one

classification of philosophy.

• Researchers can adopt any approaches, techniques, and procedures that best suit

the purpose of their research. They can make their own specific choices.

57
 • Mixed method researchers do not subscribe to any single approach for collecting and

analysing data, as pragmatist researchers believe that the world is not a complete unit.

• The only thing that can be called Truth is the thing that is correct at a specific time.

Mixed method investigators use dual methods of research (quantitative and

qualitative) to solve the problem as best they can.

• There should be a clear purpose in the minds of mixed method researchers

concerning why they want to use a mixed methods approach. In a pragmatist approach,

the intentions behind what a researcher wants to do should be clear.

• To conclude, mixed method researchers can use different methods of data collection

and analysis and take different approaches through a pragmatist approach. Table 3.1

below summarises the various research philosophies.

Table 3-1: Summary of Research Philosophy Adopted from Saunders et al. (2016)

.
Pragmatism Positivism Realism Interpretivism
Ontology: the External, multiple, External, objective Is objective. Exists Socially constructed,
researcher’s view chosen to be the and independent of independently of human subjective, may
view of the best to enable the social actors thoughts and beliefs or change, multiple.
nature of answering of research knowledge of their
reality or questions existence (realist), but is
being interpreted through
social conditioning
(critical realism)
Epistemology: Either or both Only observable Observable phenomena Subjective meanings
the observable phenomena can provide credible data and social phenomena.
researcher’s phenomena and provide credible and facts. Focuses on the details
view regarding subjective meanings data and facts. Insufficient data means of the situation, the
what can provide Focuses on causality inaccuracies in reality behind these
constitutes acceptable knowledge and law-like sensations (direct details, subjective
acceptable dependent upon the generalisations, realism =). Alternatively, meanings and
knowledge research question. reducing phenomena create motivating actions
Focus on practical phenomena to its sensations which are
applied research, simplest elements open to
integrating different misinterpretation
perspectives to help (critical realism). Focus
interpret the data on explaining within a
context
Axiology Value plays a large Research is Research is value-laden; Research is value
role in interpreting undertaken in a the researcher is biased bound; the researcher

58
 results; the researcher value-free way; the in their worldview due to is part of what is being
adopts both objective researcher is cultural experience and researched and cannot
and subjective points independent of the upbringing. These will be separated so will be
of view data and maintains impact on the research subjective
an objective stance
Data Mixed or multiple Highly structured Methods chosen must fit Small samples, in-
collection methods design- large samples, the subject matter; depth investigations,
techniques quantitative and measurement is quantitative or qualitative
most often qualitative quantitative, but qualitative
used can use qualitative
data

3.2.1 Research approach

According to Saunders, et al. (2016), three research approaches are usually used in business

management research, which are deduction, induction and a combination of both deductive

and inductive approaches.

The deductive approach is all about testing theoretical frameworks through developing

research questions from the literature and existing theories, and it seeks to answer those

questions. It then analyses the data collected from the questions and answers to confirm or

modify the theoretical framework and to explain the relationships between the variables

(Saunders and Lewis, 2012). The deductive approach is defined by Saunders and Lewis (2012)

as “a research approach which involves the testing of a theoretical proposition by using a

research strategy specifically designed for the purpose of its testing”. Researchers argue that

if there is a wealth of rich information and literature on the researcher’s study topic, the

research is more likely to be deductive and involve developing a framework and hypotheses

and testing them (Creswell 2014, Saunders, et. al., 2012). Creswell (2014), and Saunders, et.

al. (2016) argue that if there is a wealth of rich information and literature available around

the research topic, the research is more likely to be deductive and require developing a

framework and hypotheses and testing them.

59
Induction, on the other hand, is defined by Saunders and Lewis (2012) as a “research approach

which involves the development of theory as a result of analysing data already collected”. An

inductive research approach is carried out in the opposite way to how a deductive approach

works. Induction starts from the bottom up, which means developing a theory based on the

results of the data collected (Saunders and Lewis, 2012). Also, Saunders, et. al. (2012) argue

that if a lack of literature exists on the research topic, this could help the researcher to

develop a theoretical framework. The researcher would need to use the research questions

to collect the data, and then based on the results, the researcher will develop a theoretical

framework.

Combining research approaches means using both approaches of deduction and induction.

It means using the induction approach for exploring the problem through using, for example,

focus groups to enable the researcher to develop an initial theoretical framework to be tested

using a deductive approach (Saunders and Lewis, 2012). Saunders, et. al. (2012) use the term

abduction for the combining of these two approaches. Saunders, et. al. (2012) state, however,

that in the case of wealthy and rich information and literature being available on the research

topic, but little on the context where the researcher’s study is taking place, the research

approach is more likely to use an abductive approach. This is because it will help the

researcher to modify the existing theoretical framework or theory. It enables the research to

start with an inductive approach, followed by being deductive, before moving again to

inductive.

3.2.2 Research strategy and design

The research strategy is a plan of action that is set out to meet the research aim, and it is a

plan of how a researcher will be able to answer her or his research questions. It is the

60
methodological bridge between the researcher’s philosophy and the subsequent choice of

methods to collect and analyse data (Denzin and Lincoln, 2005). Research methods in social

science include quantitative, qualitative, mixed methods, and more (Creswell, 2013). The

qualitative approach relies on “why questions” to collect deep and detailed information. It is

also able to provide a better understanding and good, rich and valid data. On the other hand,

the qualitative approach has some disadvantages, such as lack of sample size, which means

the outcomes cannot be generalised beyond the range of the sample (Creswell, 2013).

On the other hand, a quantitative approach uses numbers and statistical techniques

(Creswell, 2013). The quantitative approach is dependent on who, what, when, how much,

how many, and where questions. It has some advantages, such as providing statistical and

highly reliable data. Moreover, quantitative research is very valuable due to the large sample

sizes involved, meaning the results can be generalised beyond the sample. Kumar (2008),

states that quantitative research is based on the measurement of quantity or amount. It

applies to phenomena that can be expressed in terms of quantity. However, while a study

that makes use of a survey will certainly be quantitative, it may also have qualitative features

(Bell and Waters, 2014).

Mixed methods are defined as the combination of both quantitative and qualitative methods

(Creswell, 2014; Kumer, 2014; Bryman and Bell, 2015). They offer a strong understanding of

the research problem, as both qualitative and quantitative approaches have their limitations

and strengths. Mixed methods can overcome the limitations of each method to form a strong

understanding of the problems or questions of the research (Creswell, 2014). Mixed methods

research can be explained simply as conducting a research study that involves more than one

research method. Johnson and Onwuegbuzie (2004) argue that a mixed methods approach is

61
a good method for supporting an in-depth investigation into the research problem. However,

some researchers have argued against the idea of combining the two research approaches

(Greene, 2008; Bryman and Bell 2011). Bryman and Bell (2011) claim that mixed methods

cannot be related to particular philosophical assumptions, enabling the research to carry

multiple worldviews. While Creswell (2014) argues that mixed methods should have a

philosophical worldview that fits into it.

A multiphase mixed methods design includes quantitative, qualitative and mixed methods

phases of collecting primary data. The researcher can conduct multiple phases, such as mixed

methods, convergent or sequential approaches (Creswell, 2014). An explanatory sequential

mixed methods design includes two phases of collecting primary data, starting with a survey

questionnaire or quantitative data collection, then moving on to designing qualitative data

collection based on the results of the quantitative findings. Creswell (2014) explains that an

explanatory sequential mixed methods design involves the quantitative result typically

informing the types of participants to be purposefully selected for the qualitative phase and

the types of questions that will be asked of those participants. The purpose of this design is

to enable the mixed method convergent approach to data collection to assist the

development of the research’s conceptual framework, and also to assist the design of a survey

questionnaire (Creswell, 2014).

The multiphase mixed methods design chosen in this study combines more than one research

design to provide a better understanding of the research problem by explaining the

quantitative results with qualitative data, and the expected outcomes can offer a more in-

depth understanding of the quantitative results (Creswell, 2014). This study, therefore, has

utilised mixed methods, involving a questionnaire survey to collect quantitative data, and

62
interviews to collect qualitative data. The study integrates different methods to facilitate a

deep understanding of the adoption level of e-business in SMEs in Yemen. Following a

multiphase mixed methods design (Creswell, 2014), this study comprises four stages and has

employed two separate data collection methods, which are survey questionnaires and semi-

structured-interviews (See Figure 3-1 below).

63
 Figure 3-1: Research Design (Current Study)
Phase 3
Phase 2
Quantitative study
Initial study (Mixed methods) Purpose: To test the hypotheses
developed from the result of the initial Phase 4
Purpose: To understand the factors study (Phase 2) with a larger sample
involved in e-business adoption by
SMEs in Yemen. Qualitative study

Questionnaire design Purpose: To understand

the anomalous result
Questionnaires and interviews arising from quantitative
Phase 1 design study in Phase 3 in Yemen.
Data collection
Initial data collection Pilot study
- Questionnaires distributed to a -Questionnaires distributed to a
Literature Interview design
sample of 300 SMEs’ sample of 80 SMEs owner/manager
Review with 40 returned.
owner/managers with 102
returned. Full study
-Updated Questionnaires distributed Data collection
- Four interviews undertaken
to a sample of 768 SMEs’ -Five interviews
owner/managers (238 responses) undertaken with SME
Analysis of the data obtained from owner/managers
Developed initial data collection and findings
initial Research informed the development of the
Conceptual new research hypotheses. Statistical data analysis and findings Thematic analysis of the
Framework -SPSS used for descriptive analysis interviews

Modified the research conceptual -Warp PLS 5.0 used for reliability,
framework. validity and structured equation Findings and discussion
model

64
3.2.3 Justification for the choice of methods

The reasons for the choice of research philosophy and methodology are discussed below.

The aim of the study is to evaluate the e-business activities and factors affecting e-business

adoption in Yemeni SMEs. As explained above, a discussion of the philosophical assumptions

is required to guide the researcher to choose a suitable philosophy for the research. This

research, has, therefore, adopted a pragmatist philosophy, which uses an abductive approach

(inductive and deductive) with mixed methods due to the lack of research available on e-

business adoption and the factors impacting on its adoption in the Yemeni SME context, as

there are no empirical studies to date which have studied e-business adoption in Yemeni

SMEs.

This research has employed a pragmatist philosophy with a mixed method approach in order

to facilitate a deep understanding of the extent of the adoption of e-business in SMEs in

Yemen, and to critically evaluate the adoption of e-business activities in Yemeni SMEs, as well

as to identify the factors that affect the level of e-business adoption. Creswell and Clark

(2011) and Saunders, et al. (2012) argue that the research questions inform the research, and

the most suitable position needs to be adopted. Ihuah and Eaton (2013) argue that the

researcher is more likely to adopt a pragmatist position with a mixed methods approach

(quantitative and qualitative) if the research questions are not clear and it is not possible to

identify whether the research has either a positivist or interpretivist philosophy.

The reasons behind why the research has adopted a pragmatist position is because neither

positivism nor interpretivism alone can answer the research question or completely address

the research problem (Creswell and Clark, 2011). Pragmatism focuses more on using all

available approaches to understand the problem, rather than focusing on the methods to be

employed (Creswell, 2014).

65
Since the research has utilised a pragmatist philosophy, this has led to the use of mixed

methods to collect the actual data, giving the researcher the freedom to be both subjective

and objective when analysing the views of the participants (Saunders, et al., 2016).

Therefore, the mixed methods approach chosen for this study is due to the following reasons:

• There are several limitations associated with both qualitative and quantitative

research methods, and a mixed method approach is useful for mitigating those

limitations.

• Mixed methods can provide a new research appeal with a unique and composite

approach, as well as providing a full understanding of a research problem

(Creswell, 2014).

• The viewpoints drawn from quantitative and qualitative research can be compared

by using the mixed methods approach. A quantitative approach can be used first,

and then a qualitative approach to better describe the results of the first one

(Creswell, 2014).

• Qualitative methods, when the research employs mixed methods, can explain the

relationships between the variables found in the quantitative methods (Saunders

and Lewis, 2012).

• The research drove the choice of mixed methods as there was a need to better

understand the data obtained in the quantitative study.

66
3.3 An overview of the study’s phases
3.3.1 Phase 1: Literature review and development of the research’s conceptual

framework

The purpose of conducting Phase 1 was to represents the initial conceptual framework that

was developed in this study based on reviewing the literature on the impact of barriers and

drivers regarding e-business adoption, IT theories and stage models. Although there is a lack

of literature of e-business adoption in a Yemeni context, there is literature available on e-

business adoption in developed countries. Therefore, there was a need to conduct an initial

study (Phase 2) as a starting point to explore the specific factors that have an impact on e-

business adoption in the Yemeni SME context, which have been explored using the research’s

initial conceptual framework.

3.3.2 Phase 2: Initial study and modified conceptual framework

The purpose of conducting Phase 2 was to understand and explore the specific factors that

have an impact on e-business adoption in a Yemeni SME context using the conceptual

framework developed in Phase 1 as a lens for collecting data from Yemeni SMEs. To achieve

this, Phase 2 employed a mixed method approach. Phase 2 integrated different methods in

order to facilitate a deep understanding of the adoption level of e‐business in SMEs in Yemen,

and the factors that have an impact on these levels of e-business adoption. Phase 2 comprised

two stages and employed two separate data collection methods that include: semi-structured

interviews and survey questionnaires. The semi-structured interviews were conducted with

SME managers and owners in order to further explore their understanding of e‐business in

their enterprises, and to look for in‐depth views on the factors that have an impact on the

implementation of e‐business by SMEs in Yemen. The survey questionnaire was used to

67
discover the impact of barriers, and the benefits from the different levels of e-business

adoption.

Although there were some practical difficulties with the primary research, these were

mitigated in the research design through the research being undertaken before the current

political situation in Yemen fully developed.

3.3.3 Phase 3: Deductive (quantitative) Study

The purpose of conducting Phase 3 was to test the hypotheses developed from the results of

the initial study (Phase 2) with a larger sample. As mentioned above in the results from Phase

2, the research’s conceptual framework has been modified, with new factors added that have

an impact on e-business adoption in the context of Yemeni SMEs. Therefore, Phase 3 has used

the modified conceptual framework; the hypotheses that were developed in the initial study

(Phase 1), and the hypotheses developed based on the results of the initial study (Phase 2) to

collect data from a larger sample size from among Yemeni SMEs.

3.3.4 Phase 4: Inductive (qualitative) Study

The purpose of conducting Phase 4 was to to understand the anomalous results arising from

the quantitative study in Phase 3 in Yemen.The results of the quantitative study (phase 3)

suggest that there are some unusual findings which require being explored more deeply to

understand them. In order to understand these results better, it was decided to conduct

interviews. Therefore, semi-structured interviews were conducted with SME managers and

owners to better understand the results arising in Phase 3.

3.4 Data collection methods and techniques

There are many ways or techniques that can be used to collect data, such as questionnaire

surveys to collect quantitative data, and semi-structured or open-ended-interviews to collect

68
qualitative data. The questionnaire survey is, however, the most common technique used by

most researchers to collect quantitative data, and it enables each participant to answer the

same set of questions. It is very useful with large sample sizes, and the results can be

generalised beyond the sample (Saunders, et al., 2012).

3.4.1 Research population

Saunders and Lewis (2012, p.132) define the research population as “the complete set of

group members. The population need not necessarily be people or employees: it can, for

example, be organisations, place or the complete track listening for a music CD”. Saunders

and Lewis (2012) argue that it is difficult or impossible to collect primary research data from

the whole population, as the researcher may not know, or will not be able to access, the whole

population due to the time and cost involved. Furthermore, it is not necessarily the case that

collecting data from the whole population will provide richer and better data than collecting

data from a sample. The selection of a sample from the whole population will give the

researcher time to carry out other parts of his/her project or study, as well as time to test if

the methods used have answered the aim and objectives of the research.

Here, the sample mean is a “subgroup of the whole population” (Saunders and Lewis, 2012,

p.132). There are two different ways of choosing the research sample, and it depends on

whether the researcher knows the whole population or not. In the case of knowing and having

a list of the whole population, the research will likely involve probability sampling. On the

other hand, if the researcher does not know the total population, the researcher will use non-

probability sampling.

Probability sampling is defined by Saunders and Lewis (2012, p.133) as a “variety of sampling

techniques for selecting a sample at random from a complete list of the population”. Saunders,

69
et al. (2012) argue that probability sampling is much more suitable for use in survey research

as it supports the research to create inferences to answer the research questions; whereas

non-probability sampling is often used in qualitative research. Therefore, both probability and

non-probability sampling have been selected in this research, as mentioned above, since

probability sampling is more appropriate for quantitative research and non-probability is

typically used for qualitative research.

The population of the study is not all companies located in Yemen, but small and medium-

sized enterprises located in the city of Sana’a (the capital of Yemen). The selection of the

population was based on SME size: 1-49 and 1-249 employees; location: Sana’a (the capital

of Yemen) and business activities: retail, wholesale, manufacturing, and other services SMEs.

The city of Sana’a was selected as the study location for several reasons. Firstly, Sana’a is the

capital of Yemen and most SMEs are located in Sana’a. Secondly, the pilot study informed the

research regarding the response rate, which was highest from the city of Sana’a. Thirdly, the

researcher has access to companies in the city of Sana’a as he has worked in the capital and

was able to use personal connections and a network of contacts to access firms.

3.4.1.1 Sampling frame

The sample frame refers to the set of source materials from which the sample is selected

(Särndal, et al., 2003). The two types of sampling technique are probability and non-

probability, and the researcher’s choice depends on whether the completed list of the

population is available or not. It is also based on the research question and objectives

(Saunders, et al., 2016). Probability is defined by Saunders and Lewis (2012, p.133) as “a

variety of sampling techniques for selecting a sample at random from a complete list of the

70
population. Because you have a complete list and select at random, you know the chance or

probability of each member of your population being selected”.

Non-probability sampling is defined by Saunders and Lewis (2012, p.134) as “a variety of

sampling techniques for selecting a sample when you do not have a complete list of the

population. Because you do not have a complete list of the population, you cannot select your

sample from this population at random. This also means you do not know the chance or

probability of each member of your population being selected”.

This research is concerned with business activities in retail, wholesale, manufacturing, and

other service companies. These categories were chosen as the sample to provide a broad

view, and due to little literature being available concerning e-business activities in Yemen. In

addition, the results of the exploratory study have informed the research to broaden the

sample size categories. The war has had an impact on access to companies, and some SMEs

in Yemen refused to take part because they thought the research was linked to the Houthis

group who are responsible for the coup d’état.

This study has combined both sampling techniques: probability for collecting quantitative

data and non-probability to collect the qualitative data. The sampling frame for the current

study was obtained from the Ministry of Trade in Yemen based on the 2010 survey report

(YMIT, 2014), from UNDP SMEPS Rapid Business Survey (UNDP, 2015), and the World Bank

Group survey (Andrew et al., 2013) directory. The directory list contains 290,000 SMEs from

various sectors (retail, wholesale, manufacturing, and other services SMEs) in Yemen and, in

particular, Sana’a. The Ministry of Trade in Yemen directory contains valuable information

such as the company name, location, contact details, email address if available, and business

activity.

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3.4.1.2 Sample size
According to Jankowicz (2005, p.202), sampling is “the deliberate choice of a number of units

(companies, departments, people) - the sample - who are to provide you with data from which

you will draw conclusions about some large group - the population - whom these units

represent”.

Choosing the research sample size is based on numerous elements and includes the level of

certainty of the data collected, the margin of error to tolerate, the type of analysis technique

used, and the size of the total population (Saunders, et al., 2016).

Deciding on a suitable sample size became difficult as numerous researchers argue for

different theories to identify the sample. Thus, the study sample size was defined based on

the following:

Firstly, Saunders, et al. (2016) argue that business and management researchers mostly work

to a 95 percent level of certainty, which means if the sample for the research was selected

100 times, it must be 95 percent as a minimum, which will represent the whole study

population. In addition, business and management research uses a margin of plus or minus

three to five percent of the true values. It was therefore decided to work to a 95% certainty

margin of plus or minus three to five percent of the true values. Saunders, et al. (2016) argue

that it is important for a probability sample for the researcher to consider a large enough

sample size to be able to have a good level of confidence in the data collected, and it requires

an estimate of the response rate. Hence, there is a need to increase the sample size as

required. Neuman (2014) states that the estimated response rate for postal surveys would be

between 10 and 50% of an online survey.

72
By having an estimated response rate and minimum sample size, the actual sample size can

be calculated by using the following formula/equation suggested by Saunders, et al. (2016):

Where is the actual sample size required, is the minimum sample size and is the

estimated response rate expressed as a percentage.

Table 3-2, put forward by Saunders, et al. (2016), illustrates the sample size required for

different target population sizes at a 95% level of confidence.

Table 3-2: Sample size for different sizes of target population

Margin of error

Total population 5% 3% 2% 1%

50 44 48 49 50

100 79 91 96 99

150 108 132 141 148

200 132 168 185 196

250 151 203 226 244

300 168 234 267 291

400 196 291 343 384

500 217 340 414 475

750 254 440 571 696

1 000 278 516 706 906

2 000 322 696 1091 1655

5 000 357 879 1622 3288

10 000 370 964 1936 4899

73
 100 000 383 1056 2345 8762

1 000 000 384 1066 2395 9513

10 000 000 384 1067 2400 9595

Adopted from Saunders, et al., 2016.

The total population for this study is 290,000 SMEs. The minimum sample size would,

therefore, be between 383 and 384 at a 5% margin of error; as explained in Table 3.7 above,

if the total population is between 100,000 and 1,000,000 and there is a margin of error of 5%,

the minimum sample would be 383-384 of the sample size. Regarding the estimated response

rate, this study has considered Neuman’s (2014) suggestion mentioned above, and supposed

the estimated response rate to be 50%, because this study will use an online survey and postal

survey to collect the data. After identifying the minimum sample size required and the

estimated response rate, the actual sample size was calculated as follows:

Secondly, the research has involved reviewing the previous studies in the field of e-business,

ICT and e-commerce adoption, and it has been found that a sample size around 200 is suitable

(See Table 3-3).

Table 3-3: previous studies’ response rates

Study Field Questionnaires distributed Response Response rate Authors

%
E-business adoption 820 202 24.6 Lin and Lee, 2005
e-commerce 832 100 12 Grandon and
adoption Pearson, 2004
e-commerce 300 161 54 White et al, 2014
adoption
e-commerce 190 47 77.73 Zaied, 2012
adoption
e-business adoption 600 161 26.8 Chatzoudes, 2016
e-commerce 200 180 90 Ndayizigamiye,2013
adoption

74
 e-commerce 1237 235 18.99 Ghobakhloo et al,
adoption 2011

Thirdly, PLS-SEM works with small sample sizes, and it is helpful for complex models that

involve a large number of indicators. Partial Least Squares (PLS) does not require large sample

sizes; it works well with small sample sizes and also when there is less theory available (Hair,

et al., 2016; Bacon, 1999; Wang, et al., 2010; Wong, 2010).

Lastly, Wolf, et al., (2015), found that the sample size 40–240 would be useful for performing

SEM analysis. Moreover, they found that with an increase in the indicators per factor, a

smaller sample size is required to perform SEM analysis (Wolf, et al., 2015).

3.4.1.3 Sampling technique

As mentioned above in section 3.4.1, there are two types of sampling techniques used in

business and management research, which are probability and non-probability sampling.

Probability sampling has five sampling techniques: simple random, systematic random,

stratified random, cluster random and multi-stage technique.

The questionnaires were distributed by hand and online using Qualtrics survey software and

based on stratified random sampling. Stratified random sampling is “a modification of random

sampling in which you divide the target population into two or more relevant and significant

strata based on one or a number of attributes” (Saunders, et al., 2016). The sample can be

representative when splitting the population into relevant groups (Saunders, et al., 2016). To

perform stratified sampling, the target sample was split into four groups. Group A (represents

Manufacturing), group B (represents Retail and Wholesale), group C (represents Services) and

group D (represents Other sectors). Each group had a target of 192 questionnaires. The

sample excludes companies from the sectors of agriculture and fishing. Table 3.4 shows the

number of questionnaires distributed to each of the sectors and firms.

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Table 3-4: stratified random sampling source (current study)

Sectors
Size (Yemeni definition) Manufactory Retails and Wholesale Services Others
Micro (1-3 employees) 64 64 64 64
Small (4-9 employees 64 64 64 64
Medium (10-49 employees) 64 64 64 64
Total 192 192 192 192
Size (European definition)
Micro (1-9 employees) 93 93 93 93
Small (10-49 employees) 93 93 93 93
Medium (50-249 6 6 6 6
employees)
Total 192 192 192 192

3.4.2 Questionnaire surveys

A survey or questionnaire is a set of questions developed to gather the necessary data to

achieve the research aim and objectives (Parasuraman, 1986). Such a questionnaire should

be well laid out and neatly presented (Finn, et al. 2000). A questionnaire survey is usually used

to obtain information not already available. The data collected from a questionnaire survey is

used to test the hypotheses (Remeni, et al., 1998).

3.4.2.1 Questionnaire design and layout

There are different types of questionnaire design, and this all depends on the way the data

will be collected, and the connections and the access to participants that researchers have.

These two types include self-completed and interviewer-completed questionnaires

(Saunders, et al., 2016). A self-completed questionnaire means the participant completes the

survey that was given to them by hand, sent by post or email, or fills in an online based survey,

and then it is returned to the researcher in the same way they originally received it. An

interviewer-completed questionnaire means the researcher asks and records each

participant’s questionnaire answers (Saunders, et al., 2016). This can be done via a telephone

questionnaire where the researcher asks each respondent the questions by telephone and

records their answer, or through structured-interviews, which means the researcher

76
interviews each participant face-to-face and asks them questions based on the scheduled

questionnaire (Saunders, et al., 2012; Saunders and Lewis, 2012) (see Figure 3-2).

Questionaires

Self-completed interview-completed

internet(web-based) delivery and telephone structured

postal(mail) questionaire interview
and intranet-mediated collection
questionaire
questioanires questionnaire

Figure 3-2Types of questionnaires adapted from Saunders et al. (2012)

The questionnaire (self-completed) selected in this study utilised two platforms - Online

Survey Software Tools and Solutions (Qualtrics software and Survs) - to collect the data, along

with questionnaires delivered by hand and email.

This research has included conducting a study into e-business activities among firms in Yemen

by contacting CEOs/Managers/Owners of SMEs. The CEOs/Managers/Owners were asked to

complete a four-page questionnaire, which takes around 15 minutes to complete. Identities

have been kept anonymous and responses confidential, with respondents free to withdraw

at any time with no prior notice. They were informed that the results of the study will be

shared with academics, policy makers, enterprise professionals and those responding to the

questionnaire.

For the study, the following definitions have been used in the survey to make the

participants aware of the meaning of the terms to use to best answer the questions

correctly.

E-Commerce see chapter (2) section (2.4.1.2).

77
E-business: see chapter (2) section (2.4.1.2).

Social Media: see chapter (2) section (2.8.1.1).

Mobile App: see chapter (2) section (2.8.1.2).

Cloud Computing: see chapter (2) section (2.8.1.3).

The main sections of the questionnaire have considered the following aspects of e-business

adoption:

1. Use of internet technology

To what extent they are engaging in e-business activities.

2. E-business barriers

These include: i) Cost, ii) Organisational Readiness, iii) Government Readiness, iv)

Relationships between Government and SMEs, v) Relationships between Banks and

SMEs, vi) Regulations, and vii) Security.

3. E-business drivers

These include: i) Relative Advantage, ii) Awareness, iii) Compatibility, and iv)

Competitive Pressure.

4. Organisation profile

This includes company operations, the number of employees, how long the organisation has

been in existence, and the position of the respondent.

The first section included in the questionnaire explains the purpose of conducting the

research and by whom. The research included a QR code, which is connected to online survey

software; it can be scanned by a smartphone app in case the participant prefers to do an

online survey. Moreover, the first page explained to the participant that they are free to

78
withdraw at any time, and all information would be used only for research purposes; in

addition, that it will be stored in a safe place and will be destroyed once the research is

completed.

The questionnaire is split into three parts. Part 1 was used to define what the research is all

about and the content, including definitions of the concepts of e-business, e-commerce, cloud

services, social media and mobile apps, to enable the respondents to understand these

concepts before answering the questions.

Part 2 contains five sections. The first section asked about the e-business activities the

company has adopted using the e-business evolution stage model developed in this study

(Abdullah, et al., 2018). The first section also includes twenty-two closed questions, and for

each question, the participant was asked to answer to what extent they use these activities,

which ranged from never (1) to always (5).

The second section includes questions about the barriers that deter them from adopting a

high level of e-business activities. It includes thirty-nine questions and asks the participant to

what extent they agree or disagree with these questions using a five point Likert-scale ranging

from strongly disagree (1) to strongly agree (5).

The third section asks questions about the drivers that drive them to adopt a high level of e-

business activities. It includes twenty questions and asks the participant to what extent they

agree or disagree with these questions using a five point Likert-scale ranging from strongly

disagree (1) to strongly agree (5).

The fourth section asks questions about war and how it affects the company’s adoption of e-

business activities. It includes five questions and asks the participant to what extent they

79
agree or disagree with these questions using a five point Likert-scale ranging from strongly

disagree (1) to strongly agree (5).

The last section is an open question, which asks the participant to add any other comments.

Part 3 was used to generate information about the company’s background, such as the

number of employees, the age of the company, type of company and the position of the

participant. Also, the participant was asked if he/she was happy to take part in an interview.

3.4.2.2 Survey measurement instrument

The latent variables of the study are barriers (Cost, Organisation Readiness, Government

Readiness, Government and SMEs’ relationships, Banks and SMEs’ relationships, Regulation

and Security); drivers (Relative advantage, Awareness, Compatibility, and Competition

pressure); and moderator variables (War and Firm Size) (see the conceptual framework in

Chapter 3 Figure 3-2). These latent variable measurements have been drawn from existing

studies. The relationships between the government and SMEs, the relationships between

banks and SMEs, and war factor measurements, have been drawn from the exploratory study

(See Table 3-5).

Table 3-5: Measurement scale for level of e-business activities, barriers and drivers

e-Business Evolution Stage model References

Level1A We use email to communicate with customers, - Abdullah et al.,(2016, 2018)

Email Level

suppliers and partners - Martin and Matlay, (2001) cited in

Level1B We use email to share documents across Zappalà and Gray, (2006).
company department - Oced, (2015)
Level1C We use email to receive orders from customers - Bell and Loane, (2010).
1

Level2A We use social media to attract customer - Exploratory study

Media Level

Level2B We use social media to advertise our products - Abdullah et al., (2018)
/services - Nations, (2015)
Social

Level2C We use social media to receive orders from - Grahl, (2015)

2

customers

80
 Level2D We use social media to communicate with - Hyatt, (2013)
suppliers, partners, and customers - Myers, (2015)
- Lake (2009)
- Clapperton, (2012)
- Carter, (2012)
- Andzulis et al., (2012)
- Aral et al., (2013)
- and Kim et al., (2013)
- Fischer and Reuber, (2011)
- Andzulis et al., (2012)
- Ashworth, (2011)

Level3A We have a website to advertise our products/ - Abdullah et al.,(2016, 2018)

Website Level

services - Martin and Matlay, (2001) cited in

Level3B We have a website to publish basic Zappalà and Gray, (2006).
organisation information - Oced, (2015)
Level3C We have website to communicate with - Bell and Loane, (2010).
3

suppliers, partners, and customers

Level4A We have a website to sell products/ services - Abdullah et al.,(2018)
e-commerce

Level4B We have a website to receive and manage - Martin and Matlay, (2001) cited in
customers’ orders Zappalà and Gray, (2006).
level 4

Level4C We have a website to receive electronic - Oced, (2015)

payment -Bell and Loane, (2010).

Level5A We have mobile apps to sell products/services - Exploratory study

Level5B We have mobile apps to receive and manage - Abdullah et al., (2016, 2018)
customers’ orders - Nations, (2015)
Level5C We have mobile apps to receive payments - Grahl, (2015)
electronically - Hyatt, (2013)
- Myers, (2015)
- Lake, (2009)
- Clapperton, (2012)
- Carter, (2012)
- Andzulis et al., (2012)
- Aral et al., (2013 )
- and Kim et al., (2013)
- Fischer and Reuber, (2011)
- Andzulis et al., (2012)
- Ashworth, (2011)
- Chaffey (2007)
- Saidi, (2009)
- Purcell at al., (2010)
- Shankar et al. (2010)
- OCED, (2013)
- Laudon et. al., (2016)
- Khaskhel et al., (2017)
- Khaskhel et al., (2017)
Mobile Apps Level 5

- Holzinge et al., (2012)

- Rahays et al., (2016)
- Pew Internet and American Life
Project, (2006b)
- Social Research and
Development Centre SRDC,
(2013)

81
 Level6A We use online cloud services to store emails, - Exploratory study
documents, and orders - Abdullah et al., (2016, 2018)
Level6B We use online cloud services to own - MacVittie, (2008)
information technology infrastructure, storage - Gaskell, (2013)
capacity from networks and communication - Armbrust et al, (2010)
systems, to a great extent - ISACA,( 2012)
- Marston et al (2011).
Cloud services

- Assante et al., (2016)

- Zhang et al., (2010)
- Boateng and Essandoh, (2014)
- Naik and Chandrasekaran,
(2012)
Level7A We liaise and collaborate with customers, - Abdullah et al.,(2016, 2018)
business Level

suppliers, and partners electronically - Martin and Matlay, (2001) cited in

Level7B We have integrated systems to do the firm’s Zappalà and Gray, (2006).
work and communicate with suppliers and the - Oced, (2015)
process of production and control -Bell and Loane, (2010).
7

electronically
Level8A We have an automated and open system to
Transformation level

network with other organisations/ individuals

Level8B We have an automated and open system to
enable the organisation’s partners to use our
Organisation

internal system and perform updates

8

Barriers Factors References

Cost1 The cost of e-business applications, systems - Al-Somali et al, 2013
and hardware are high - Syed, (2009)
Cost2 The cost of accessing the Internet is high - MacGregor and Vrazalic, (2006a)
Cost3 The cost of hosting websites and engaging in - MacGregor,and Vrazalic, (2006b)
e-business activities is high - Stockdale and Standing (2006)
Cost

Cost4 The cost of e-business training for employees - Vatanasakdakul et al., (2004)
is high - Al-Qirim (2005)
Cost5 The cost of ICT infrastructure is high - Andam, (2003)
Cost6 The cost of developing and maintaining the e-
business is high
OR1 Employees have sufficient access to - Pahladsingh, (2006)
computers - OECD, (2012)
OR2 Most of our employees are computer/the - Zolait et al., (2010)
internet literate - Hamed et al., (2008)
OR3 We have highly computerised with Local Area - Ntoko, (2008)
Organisation Readiness

Network (LAN) - Davis et al. (2009)

OR4 We have internal system connected to all - Tan et al. (2007)
department and branches - Aghaunor and Fotoh (2006)
OR5 We have connectivity to the Internet. - Al-Qirim (2005)
OR6 We have IT experts - Molla and Licker (2005a)
OR7 We have financial resources to implement e- - Molla and Licker, (2005b)
business - Doolin et al. (2003)
- Zhu et al. (2003)
- Chwelos et al. (2001)
- Kuan and Chau (2001)
- Mehrtens et al. (2001)
- Iacovou et al. (1995)

82
 - Premkumar and Ramamurthy
(1995)
-Harrison et al. (1997)
GR1 In Yemen, the telecommunication - Pahladsingh, (2006)
infrastructure is reliable and efficient for e- - PayPal, (2013)
business - OECD, (2012)
GR2 In Yemen, the available commercial and - Zolait et al., (2010)
financial institutions have good ICT for e- - Hamed et al., (2008)
Governments Readiness

business - Ntoko, (2008)

GR3 In Yemen, the postal service is reliable in - Alsomali et al. (2009)
supporting e-business - Molla and Licker (2005a)
GR4 In Yemen, there is a secure electronic - Molla and Licker (2005b)
payment system available - Soliman and Janz (2004)
GR5 In Yemen, there are e-business applications -Palmer (2000)
and services available in the market
GR6 In Yemen, the current Internet connection
speed is good for e-business transactions
GR7 In Yemen, there are IT and e-business experts
available in the labour market
GR8 In Yemen the electricity power is
uninterrupted
GvOD1 We liaise with the Government with regards - Exploratory study
The Relationships between Government

to providing us information about ICT - Abdullah et al., (2016, 2018)

infrastructure development
GvOD2 We liaise with the Government with regards
to updating us about the latest statistics on
the number of internet users
GvOD3 We liaise with the Government with regards
to updating us about the good points of e-
business
GvOD4 We liaise with the Government with regards
to the promotion of e-business in SMEs
and SMEs
- Grandon and Person, (2004)
- Zhu and Thatcher, (2007)
- Hamad et al., (2015)
- Thomas et al., (2015
- Doherty et al., (2015)
- Jeon et al., (2006).
- Papazafeiropoulou and
Pouloudi, (2001)
- Parker and Castleman, (2009)
- Chatzoglou and Chatzoudes,

GvOD5 We liaise with the Government with regards

to the response to the requirement of ICT
infrastructure that supports our strategy
BOD1 We engage in cooperation with the Banking
industry to provide us with information about
The Relationships between Bank and SMEs
(2016)
- Agwu and Murray, (2015)
- Lacovou et al., (1995)
- Exploratory
- Abdullah et al., (2016, 2018)

any new technology they have implemented - Jeon et al., (2006)

that could support our strategy - Agwu and Murray, (2015)
BOD2 We engage in cooperation with the Banking
industry to update us about the latest
statistical numbers of e-banking users and visa
card holders
BOD3 We engage in cooperation with the Banking
industry to update us about the good points
of e-business
BOD4 We engage in cooperation with the Banking
industry in terms of promoting e-business in
SMEs
BOD5 We engage in cooperation with the Banking
industry to respond to the requirement of
implementing new technology that supports
our strategy
Regul1 In Yemen, there exists a telecommunications - Paralogous, (2006)
gul
ati
on
Re

regulatory authority - OECD, (2012)

83
 Regul2 In Yemen, there exists e-business policy and - Zolait et al., (2010)
regulations - Hamed et al., (2008)
Regul3 In Yemen, there exists policies to protect all - Ntoko, (2008)
entities against fraud - Ramsey and McCole (2005)
Regul4 In Yemen, there exists regulations to protect
users and businesses from cybercrime
Regul5 In Yemen, the Government business law
supports e-business
Seur1 In Yemen, E-business is associated with - Khatibi et al., (2007)
sufficient security safeguards - Lyer and Henderson, (2010)
Seur2 In Yemen, Internet protocols are adequate to - Armbrust et al., (2010)
Security

support secure electronic ordering and - Doherty et al., (2015)

payments. - Parazoglou, (2006)
Seur3 In Yemen, the E-business environment is - Pahladsingh, (2006)
secure enough - PayPal, (2013)
- ISO, (2015)
- Zaied, (2012)
Drivers Factors References
Relat1 E-business adoption is useful to increase - Al-Somali et al, 2013
business profitability - Hamed et al, 2015
Relat2 E-business adoption is useful to improve - Sharma and Sheth, 2010
internal communications and process - OECD, 2004
Relat3 E-business adoption is useful to expand the - Tan et al., (2009)
local and international market - Zhu and Kraemer, (2002)
Relat4 E-business adoption is useful to improve - Zhu and Kraemer (2005)
communication with suppliers and trading - Zhu et al.(2003)
partners - Zhu et al., (2004)
Relat5 E-business adoption is useful to improve - Poon and Swatman, (1997)
customer services - Teo et al., (1998)
Relat6 E-business adoption is useful to reduce the - Poon and Swatman, (1998)
cost of communication - Poon and Swatman, (1999)
Relat7 E-business adoption is useful to reduce the - Premkumar and Roberts, (1999)
cost of business operation - Kuan and Chau, (2001)
Relat8 E-business adoption is useful to reduce the - Beatty et al., (2001)
Relative Advantage

costs of advertisement and sales -Mirchandani and Motwani, (2001)

- Mehrtens et al., (2001)
- Chwelos et al., (2001)
- Ching and Ellis, (2004)
- Wymer and Regan, (2005)
- Powell et al., (2006)
- Khemthong and Robert, (2006)
- Ghobakhloo et al., (2011)
- Abou-Shouk, (2012)
- Parazoglou,( 2006)
- Soto-Acosta and Meroño-Gerdan
(2009)
- Lee and Kim (2007)
- Aghaunor and Fotoh (2006)
- -Al-Qirim (2005)
- Ramsey and McCole (2005)
- Wu et al. (2003)
- Kuan and Chau (2001)
- Iacovou et al. (1995)
- Venkatraman and Ramanujam
(1986)
- Riemenschneider et al., (2003)

84
 - Doolin et al., (2003)
- Grandon and Pearson, (2004)

Awar1 We are aware of e-business implementation - Molla and Licker (2005a)

among our partner organisations - Molla and Licker, (2005b)
Awar2 We are aware of our competitors’ e-business - Abdullah et al., (2016,2018)
activities
Awar3 We recognise the opportunities and threats
Awareness

associated with e-business

Awar4 We understand the potential benefits of e-
business to our business
Awar5 We know about the impact of e-business in
our industry
Awar6 We are aware of e-business implementation
among our partner organisations
Comp1 The implementation of e-business is - Zolait et al., (2010)
compatible with our ICT infrastructure - Hamed et al., (2008)
Comp2 The implementation of e-business is - Ntoko, (2008)
compatible with our business strategy - Teo et al., (1998)
Comp3 The implementation of e-business is - Poon and Swatman, (1998)
compatible with all aspects of our work - Poon and Swatman, (1999)
- Thong and Yap, (1999)
- Premkumar and Roberts,(1999)
- Beatty et al., (2001)
Compatibility

- Mirchandani and Motwani, (2001)

- Seyal and Rahman, (2003)
- Ching and Ellis, (2004)
- MacGregor and Vrazalic, (2004)
- Jean et al., (2006)
- Al-Qirim (2005)
- Al-Qirim, (2007)
- -Teo and Ranganathan (2004).
- JIA, (2009)
- Sarkar, (2008)
- Ghobakhloo et al., (2011)
- El-Gohary, (2012)
-Elbeltagi et al., (2013)
CP1 Firms that readily implement new - Iacovou et al., (1995)
technologies will be competitive - Poon and Swatman, (1997)
CP2 We will lose our customers to our competitors - Teo et al., (1998)
if we do not adopt e-business - Poon and Swatman, (1998)
CP3 It is a strategic necessity to use e-business to - Poon and Swatman, (1999)
compete in the marketplace - Premkumar and Roberts, (1999)
Competitive Pressure

CP4 Our competitors can drive our company to - Thong, (1999)

adopt e-business - Van Akkeren and Cavaye, (1999)
- Kuan and Chau, (2001)
- Beatty et al., (2001)
- Mirchandani and Motwani,(2001)
- Mehrtens et al., (2001)
- Chwelos et al., (2001)
- Scupola, (2003)
- Seyal and Rahman, (2003)
- Riemenschneider et al., (2003)
- Doolin et al., (2003)
- Grandon and Pearson, (2004)
- Ching and Ellis, (2004)

85
 - Teo and Ranganathan, (2004)
- Tsao et al., (2004)
- Wymer and Regan, (2005)
- Kaynak et al., (2005)
- Jean et al., (2006)
- Khemthong and Robert, (2006)
- Powell et al.,(2006)
- Al-Qirim, (2007)
- JIA, (2008)
- Sarkar, (2008)
- Oh et al., (2009)
- Wen and Chen, (2010)
- Ghobakhloo et al., (2011)
- Kian Chong et al., (2011)
- Al-Qirim (2005)
- Salavou et al. (2004)
- Soliman and Janz (2004)
- Wu et al. (2003)
- Iacovou et al. (1995)
- Sila and Dobni, (2012)
- Abou-Shouk, (2012)
- El-Gohary, (2012)
-Elbeltagi et al., (2013)
Moderators Variables References
War1 The war has affected the ICT and e-business - Phase 2 study
applications’ budget - Abdullah et al., (2018)
War2 The war has affected our business strategy to - Kapurubandara and Lawson,
develop ICT (2007)
War3 The war has affected our business ICT - The 2012 rapid assessment
War

infrastructure survey, (2012)

War4 The war has driven us to use the internet and - Andrew et al, (2012)
social media
War5 The war has driven us to install solar panels to
cover the power outages
Number of employees - Premkumar and Roberts, (1999)
Firm Size

- Thong, (1999)
- Zhu et al., (2006)
- Buonanno et al., (2005),
- Teo et al., (2009)

3.4.2.3 Pilot study

According to Bell (2010, p.151), “the purpose of a pilot exercise is to get the bugs out of the

instruments so that subjects in your main study will experience no difficulties in completing

it”. Saunders, et al. (2016) argue that the questionnaire should be pilot tested before the

actual data collection, with the same participants in the actual data collection, to ensure the

participants would not have any problems when completing the questionnaire. Also, a pilot

of the questionnaire offers the researcher the opportunity to check if the questions are

86
reliable and valid, as well as checking the time needed to complete the questionnaire.

Therefore, the questionnaires were distributed randomly to around 80 owners and managers

in SMEs in Yemen, and the return was 40 questionnaires. The results of the pilot study

questionnaire are as follows:

- Some questions were difficult to understand, which resulted in wrong answers. Therefore,

the questions needed to be re-formatted using a simple and clear wording style to help the

respondents understand the questions more easily.

- The questions did not cover all of the framework requirements. Adding questions to the

questionnaire to cover the requirements of the framework was therefore necessary.

- The time to complete the questionnaires was between 15-20 minutes, and this led to making

sure that the time required for completing the questionnaires was around 15 minutes.

- The response rate was 50%.

The measurement model evaluated the validity and reliability of the measurements used in

the questionnaire. The construct reliability allowed the assessment of the extent to which a

set of indicators (items) is consistent in what it intends to measure (Straub, et al., 2004). The

construct reliability was evaluated through tests of Cronbach Alpha (α) (Hair, et al., 2011). The

cut-off value of Cronbach’s alpha is 0.7; however, 0.6 is acceptable for exploratory research.

Table 5 shows the Cronbach’s Alpha for the research constructs. The Cronbach’s Alpha for

email, social media, website, e-commerce, mobile app, cloud services, e-business,

transformed organisation, cost, organisational readiness, governmental readiness, the

relationship between government and SMEs, the relationship between banks and SMEs,

87
 regulations, security, relative advantage, awareness, compatibility pressure, and war, are all

above the recommended level of 0.7.

Table 4-6 shows the loadings of indicators. All indicators for the latent variables were found

to be significant, and between .341 and .987 in corrected item-total correlations. The results

for construct reliability and validity show that all constructs are reliable and valid. The

researcher was, therefore, able to carry on and collect more data.

Table 3-6: Reliability and validity analysis for items and constructs

e-Business Evolution Stage model Corrected Cronbach’s Cronbach’s

Item-Total Alpha if Item Alpha
correlation Deleted
We use email to communicate with customers, suppliers and partners .875 .765 .889
Level 1
Email

We use email to share documents across company departments .805 .828

We use email to receive orders from customers .693 .936

We use social media to attract customers .781 .801 .861

We use social media to advertise our products /services .781 .801
Level 2
Media

We use social media to receive orders from customers .618 .872

Social

We use social media to communicate with suppliers, partners, and .710 .823
customers
We have a website to advertise our products/ services .924 .811 .920
Website

We have a website to publish basic organisational information .763 .943

Level 3

We have a website to communicate with suppliers, partners, and .839 .885

customers
We have a website to sell products/ services .906 .905 .945
e-commerce

We have a website to receive and manage customers’ orders .946 .847

We have a website to receive electronic payments .811 .976
level 4

We have mobile apps to sell products/services .987 .955 .982

We have mobile apps to receive and manage customers’ orders .987 .955
Level 5
Mobile

We have mobile apps to receive payments electronically .937 1.000

Apps

We use online cloud services to store emails, documents, and orders .902 . .947
Cloud services

We use online cloud services to own information technology .902 .

infrastructure, storage capacity from networks and communication
systems to a great extent
Level 6

We liaise and collaborate with customers, suppliers, and partners .657 . .791
e-Business

electronically
We have integrated systems to do the firm’s work and communicate with
Level 7

.675 .
suppliers and the process of production control electronically

We have an automated and open system to network with other .932 . .965
at

at
m
ni

io

io
O

le

el
sf
T
n

n
g
a

8
r

r
s

organisations/ individuals

88
 We have an automated and open system to enable organisational partners .932 .
to use our internal system and updates

Barriers Factors

The cost of e-business applications, systems and hardware are high. .787 .897 .916

The cost of accessing the Internet is high .512 .931

Cost

The cost of hosting websites and engaging in e-business activities is .927 .876
high
The cost of e-business training for employees is high .802 .895
The cost of ICT infrastructure is high .867 .885
The cost of developing and maintaining the e-business is high .686 .911
Employees have sufficient access to computers .926 .932 .949
Organisation

Most of our employees are computer/internet literate .926 .932

Readiness

We have a highly computerised Local Area Network (LAN) .947 .930

We have an internal system connected to all departments and branches .837 .943
We have connectivity to the Internet .418 .968
We have IT experts .873 .937
We have financial resources to implement e-business .875 .938
In Yemen, the telecommunications infrastructure is reliable and .823 .796 .843
efficient for e-business
In Yemen, the available commercial and financial institutions have .107 .875
Governments Readiness

good ICT for e-business

In Yemen, the postal service is reliable in supporting e-business .749 .808
In Yemen, there is a secure electronic payment system available .783 .804
In Yemen, there are e-business applications and services available in the .732 .806
market
In Yemen, there are effective wireless communication services .423 .841
In Yemen, the current Internet connection speed is good for e-business .470 .837
transactions
In Yemen, there are IT and e-business experts available in the labour .559 .827
market
In Yemen the electricity power is uninterrupted .499 .833
We liaise with the Government with regards to providing us with .903 .854 .904
information about ICT infrastructure development.
between Government

We liaise with the Government with regards to updating us about the .743 .887
The relationship

latest statistical number of internet users

We liaise with the Government with regards to update us about the good .903 .854
point about e-business.
and SMEs

We liaise with the Government with regards to the promotion of e- .905 .851
business in SMEs
We liaise with the Government with regards to the response to the .439 .957
requirement of ICT infrastructure that supports our strategy
We engage in cooperation with the Banking industry to provide us with .778 .875 .900
information about any new technology they have implemented that
The relationship between

could support our strategy

Bank and SMEs

We engage in cooperation with the Banking industry to update us about .847 .862
the latest statistical number of e-banking users and visa card holders
We engage in cooperation with the Banking industry to update us about .650 .898
the good point about e-business
We have a cooperation with Banking industry in terms of promoting e- .712 .899
business in SMEs
We engage in cooperation with the Banking industry to respond to the .854 .854
requirement of implementing new technology that supports our strategy

In Yemen there exists a telecommunication regulatory authority .784 .902 .916

In Yemen there exists e-business policy and regulations .954 .874

S Regulation

In Yemen, there exists policy to protect all entities against fraud .969 .864
In Yemen there exists regulation protect users and business from .693 .916
cybercrime
In Yemen the Government business law support e-business .636 .928
u

y
e
c

t
i

In Yemen, E-business is associated with sufficient security safeguards .856 .891 .923

89
 In Yemen, Internet protocols are adequate to support secure electronic .853 .883
ordering and payments
In Yemen, E-business environment is secure enough .896 .890
Drivers
E-business adoption is useful to increase business profitability .468 .697 .719
E-business adoption is useful to improve internal communications and .548 .689
processes
Relative Advantage

E-business adoption is useful to expand the local and international .444 .685
markets
E-business adoption is useful to improve communication with suppliers .628 .634
and trading partners
E-business adoption is useful to improve customer services .447 .694
E-business adoption is useful to reduce the cost of communication .582 .659
E-business adoption is useful to reduce the cost of business operations .341 .705
E-business adoption is useful to reduce the costs of advertisement and .066 .770
sales
We are aware of e-business implementation among our partner .835 .729 .826
Awareness

organisations
We are aware of our competitors’ e-business implementation .780 .751
We recognise the opportunities and threats associated with e-business .513 .826
We understand the potential benefit of e-business to our business .779 .792
We know about the impact of e-business in our industry .556 .815
The implementation of e-business is compatible with our ICT .385 .713 .652
Compatibilit

infrastructure
The implementation of e-business is compatible with our business .573 .537
y

strategy
The implementation of e-business is compatible with all aspects of our .554 .417
work
Firms that readily implement new technologies will be competitive .479 .640
We will lose our customers to our competitors if we do not adopt e- .271 .576
Competitive

business
Pressure

It is a strategic necessity to use e-business to compete in the .542 .658

marketplace
Our competitors can drive our company to adopt e-business .506 .479

Moderators
The war has affected the ICT and e-business applications’ budget -.143 .435 .327
The war has affected our business strategy to develop ICT .082 .330
War

The war has affected our business’ ICT infrastructure .144 .302
The war has driven us to use the internet and social media .240 .189
The war has driven us to install solar panels to cover the power outages .455 -.179

3.4.2.4 Translation of the questionnaires

Direct translation and back-translation are methods used to translate questionnaires in

research into different languages when the research participant speaks a different language

to the study language (Saunders, et al., 2014 and Usunier, 1998). In this study, the researcher

chose to use back-translation to ensure that the questionnaire in Arabic had exactly the same

meaning in the English version. The following points explain the process of the questionnaire’s

translation.

Firstly, the questionnaire was designed as a draft in the English language and reviewed by

the author’s supervisor and other academic colleagues for correction and feedback. The

90
supervisor and other academic colleagues gave their feedback and any mistakes were

corrected.

Secondly, the questionnaire was translated into the Arabic language by a certified English-

Arabic translator as the Arabic language is used in Yemen. The Arabic version of the

questionnaire was checked by a native Arabic language speaker and other professional

translators to check the translation, and they corrected some grammatical mistakes.

Thirdly, the Arabic version of the questionnaire was translated back into the English language

by a certified Arabic-English translator, to ensure that the questionnaire still had an

equivalent meaning.

3.4.3 Interviews

The interview is one of the primary sources whereby the author can gather information that

is difficult to obtain by other, less direct methods. Bell (1999) states, “The interview can yield

rich material and can often put flesh on the bones of questionnaire responses”. Saunders and

Lewis (2012) explain that there are two types of interviews, which are semi-structured

interviews and unstructured interviews. Saunders and Lewis (2012, p.151) define semi-

structured interviews as “a method of data collection in which the interviewer asks about a

set of themes using some predetermined questions, but varies the order in which the themes

are covered and questions asked. The interviewer may choose to omit topics and questions

and ask additional questions as appropriate”. The semi-structured interview is suitable for

research that requires in-depth information from some of the respondents or interviewees

(Seidman, 1998).

An unstructured interview is defined by Saunders and Lewis (2012, p.152) as “a method of

data collection in which the participant talks openly and widely about the topics with as little

direction from the interviewer as possible. Although there is no predetermined list of

91
questions, the interviewer will have a clear idea of the topics to explore”. The interviewer does

not have a set list of questions or specific pre-prepared questions, but asks broad or general

questions about the research and then lets the participant talk openly and widely (Saunders

and Lewis, 2012).

For this study, the semi-structured interview method has been selected because it will help

to meet the research aim, and is useful for the researcher to explore and attain deeper

information. In addition, the main aim of the interviews was to obtain deep information in

order to understand the issues more based on the anonymous results revealed from the

findings of the quantitative data.

3.4.3.1 Semi-structured interviews

Conducting an interview could be face-to-face, via the phone or over the web (chat rooms,

email or internet forums) (Saunders and Lewis, 2012). Interviewing by phone is similar to face-

to-face interviews, but there will be a lack of understanding of the participant’s body

language, which may affect the answer’s interpretation. Interviewing over the web could be

in real time (live, online) or offline, and the participant must have the skills to use a computer

and the internet. There are two advantages of using a web-based interview that the

researcher can benefit from. Firstly, the researcher will be able to interview participants from

geographically dispersed areas and those who are difficult to reach. Secondly, the researcher

will be able to record the questions and answers automatically as they are typed, which saves

time transcribing an interview (Saunders and Lewis, 2012). Semi-structured interviews were

conducted with five SME managers and owners to better understand the anonymous results

arising from Phase 3.

92
3.5 Data Analysis Techniques
3.5.1 Quantitative data analysis techniques

This study used the Statistical Package for the Social Sciences (SPSS) and Partial Least Square

(PLS) software to analyse the quantitative data. The quantitative analysis was carried out

according to three stages, as follows:

3.5.1.1 Descriptive analysis

Descriptive analysis techniques have been used to present the study respondents’

characteristics using frequencies, percentages, and mean techniques.

3.5.1.2 Measurement model

The measurement model has been used to measure the reliability and validity of the

questionnaires used in this study survey. Straub, et al., (2004) point out that measuring the

reliability of the construct would allow the assessment of to what extent a set of items are

consistent in what it intends to measure. The reliability of the constructs can be measured by

using Cronbach Alpha (α) and composite reliability measurements (Hair, et al., 2011). To

ensure whether the construct is reliable or not, the cut-off value of Cronbach’s Alpha and

composite reliability requires it to be 0.7; or 0.6 for exploratory research (Malhotra, 2004).

3.5.1.3 Structural equation modeling (SEM) methods

There are many different SEM methods available, such as covariance-based SEM (CB-SEM),

Partial Least Squares (PLS) and component-based SEM known as Generalised Structured

Component Analysis (GSCA) (Wong, 2013).

There are several software packages that use the Covariance-based SEM (CB-SEM), including

Amos, EQS, LISREL, and MPLUS, which have been extensively applied in the social science field

and are used to test confirmation or rejection of hypotheses and theories. It has been argued

that Covariance-based SEM (CB-SEM) requires a large sample size and normally distributed

93
data, and it is hard to find data sets that comply with this technique’s requirements (Hair, et

al., 2016; Wong, 2013).

Partial Least Squares (PLS) has been used to analyse the variance and is used in some software

packages such as PLS-Graph, VisualPLs, SmartPLS, and WarpPLS (Wong, 2013). Vinzi, et al.

(2010) argue that PLS has the advantage of being a soft modeling method compared to SEM

and the data does not require it to be normally distributed compared to CB-SEM. Also, Partial

Least Squares (PLS) does not require large sample sizes; it works well with small sample sizes

and when there is less theory available (Hair, et al., 2016; Bacon, 1999; Wang, et al., 2010;

Wong, 2010). Hair, et al. (2016) argue that PLS-SEM has many advantages compared to CB-

SEM, such as working well with small sample sizes, and it is good with complex models that

involve a large number of indicators. Many researchers have used Partial Least Squares (PLS)

in information systems research (Bock, et al., 2005; Park, et al., 2007), and it is a variance-

based SEM technique. Based on the advantages of PLS-SEM mentioned above, and because

this research’s framework has many indicators, it has been developed based on little theory

and the results of the exploratory study. Therefore, this research has used PLS-SEM as the

research technique for analysing the data collected.

3.5.1.4 Warp PLS 5.0

Warp PLS 5.0 software was developed by Ned Kock in 2015 (Kock, 2015), and it runs Structural

Equation Modelling (SEM). This software offers a wide range of characteristics, some of which

are not available in other SEM Software. These features include nonlinear functions, pairs of

latent variables and multivariate coefficients. Moreover, Warp PLS 5.0 offers classic PLS

algorithms, along with factor-based PLS algorithms for Structural Equation Modelling (Kock,

2015). The Warp PLS 5.0 software was, therefore, chosen for this study to analyse the

quantitative data through Structural Equation Modelling (SEM).

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3.5.2 Data analysis by two SME definitions (Yemeni and Europe definition)

The definition of an SME varies from country to country. To define whether a company is an

SME, there is a need to identify the number of employees, annual turnover, and balance

sheet data on the company. In Europe, the Medium-Sized Enterprise is typically defined as

a firm having between 50 and 249 employees, and an annual turnover less or equal to 50

million Euros. A Small-Sized enterprise is a firm with between 10 and 49 employees, with

annual turnover less or equal to 10 million Euros (EC, 2005). Whereas, the Yemen

Government defines SMEs as a Medium-Sized Enterprise firm with between 10 and 50

employees, and a Small-Sized enterprise as a firm with between four and nine employees

(YMIT, 2014). The T-test was used to find the differences between the two definitions.

3.5.3 Qualitative analysis

Semi-structured interviews were conducted via telephone and web-based interviews due to

the war in Yemen, which made it difficult for the researcher to travel there.

The survey participants had been asked if they would be happy to take part in the second

stage of the research (to be interviewed). Some of the participants agreed to be in the second

stage. The researcher, therefore, selected companies’ owners/managers, based on the

anomalous issues raised by the quantitative results, to be interviewed. Five company owners

agreed to take part in the interviews, therefore, there was a total of five interviews

conducted. Table 3-10 summarises the profiles of the five companies that agreed to take part

in the interviews.

Table 3-7: Companies’ Profiles

Company Position Business type Size Organisation age Level of

adoption
C1 Manager Manufactory Medium (EC) 15 years Level 1 (email)
C2 Owner Computer and Electronic Small 6 years Level 2 ( Social
Products Media)

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 C3 Owner Wholesale and Retail Small(EC) 5 years Level 2 (Social
Medium (Y) Media
C4 Owner Food and beverage Small (EC) 4 years Level 2 (Social
Medium (Y) media)
C5 Owners Wholesale and Retail Small(EC) 5 years Level 3
Medium (Y) (website)

During the interview stage, the participants were sent an information sheet and consent form

giving full details of the study (see the interview information sheet in the Appendix). The

interview participants were asked to agree to take part in the interview stage before

conducting the interview, and for their permission to keep the “chat” file. The participants

were also informed that they had the right to withdraw at any time with no prior notice.

Moreover, the participants were informed that their identity would be kept anonymous and

their responses would be confidential. The interview questions were prepared in advance and

each interview had slightly different questions based on the survey results of each company.

The time each interview took to complete was between 50–120 minutes, and the interviews

were conducted via social media chat apps, namely, Facebook chat messenger and

WhatsApp. The interviews were conducted in the Arabic language and then translated into

English and verified by a certified Arabic-English translator. The interviews were analysed

using a thematic qualitative data analysis technique to recognise and categorise themes.

3.6 Reliability and validity

For this study, items and constructs were measured using a validity and reliability

measurement model. The following section describe them in detail.

3.6.1 Reliability

The construct reliability allowed the assessment of the extent to which a set of indicators

(items) is consistent in what it intends to measure (Straub, et al., 2004). To find out if the

items were reliable, the researcher piloted the questionnaires with some of the respondents.

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The construct reliability was evaluated using Cronbach Alpha (α) tests (Hair, et al., 2011). The

cut-off value of Cronbach’ Alpha is 0.7; however, 0.6 is acceptable for exploratory research

(Malhotra, 2004).

3.6.2 Validity

Christensen, et al. (2014, p.159) defines validity as “the correctness and truthfulness of an

inference that is made from the results of a research study”. Validity is the measurement of

a survey and whether the instrument measures what is intended to be measured or not

(Bryman and Cramer, 2004). This study’s content validity was measured through the

following:

- Some of the questionnaire questions were adopted from the literature, which means they

are valid and have been measured in previous studies.

- A copy of the questionnaire was reviewed by academics in the area of ICT adoption,

colleagues, and supervisors.

- The questionnaires were sent to 80 SME owners and managers as a pilot study.

The results of the content validity were good enough to modify the questions (see section

3.4.2 for more details).

For construct validity, the corrected item-total correlation was used to define which

indicators are related to the construct and explain the meaning of the construct.

3.7 Ethical considerations

Ethical issues were considered, as these could arise during data collection. There are various

types of ethical issues that might arise during data collection and it depends on the methods

used to collect the data, and includes the researcher’s safety (Saunders, et al., 2016).

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 “Organisations and researchers should ensure that all research carried out
under their auspices, or for which they are responsible, fulfills all
requirements of health and safety legislation and good practice. They
should bear in mind that certain types of research, for example, social
research in a conflict zone, can present particular issues of health and
safety. They should ensure that all research which involves potentially
hazardous or harmful material or which might cause harm to the
environment complies with all legal requirements and other applicable
guidelines” (UK Research Integrity Office, 2009).

As a result, the quantitative stage involved participants completing an online survey or paper-

based survey. The researcher provided the participants with information about the study on

the front sheet of the survey (see the survey front sheet in the Appendix). The front sheet

explains that their identity will be kept anonymous and their responses will be confidential.

The participants have the right to withdraw at any time with no prior notice. During the

interview stage, the participants were sent an information sheet and consent form giving full

details of the study (see the interview information sheet in the Appendix). Each participant

was asked to agree to take part in the interview stage before conducting the interview.

The research has taken into account the ethical rules for research degree students required

by the University of South Wales, and ethical approval was requested and received from the

Research Committee. Also, all recommended checklists stated on the code of practice for

researchers (UK Research Integrity Office, 2009) were followed in this research while

conducting the data collection.

With regards to risks, safety and security, the research approach has taken into account how

the current conflict in Yemen will be dealt with regarding how this affects the researcher,

the research, and the participants. Regarding this important consideration, the researcher

had to address his own safety and security. The following risks and hazards have been taken

into account:

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- Country location where research is to be carried out and welfare of the researcher during

information gathering. Travelling to Yemen is high risk due to the current political and

unsettled situation.

- Theft or loss of ID documents and other belongings: passport, driving licence, bank cards,

travel tickets, laptop.

- The risk of flying – use of a non-reputable airline.

Therefore, the nterviews were conducted through web-based chat apps.

3.8 Challenges and Limitation

The questionnaires were sent to representatives to distribute to companies in Yemen. One of

the representatives was arrested by people controlling the capital of Yemen on his way back

after collecting around 15 completed questionnaire forms from the companies. They put him

in jail for three days and started questioning him concerning the questionnaires he had on

him. They asked him who do you work for, what are these papers about, what do you intend

to do with these papers and do you work for our enemies? He answered them and said the

papers were a survey sent to him by his cousin who is doing research on e-business adoption

to complete his Ph.D. degree in the UK. He said – ‘this is his email and phone number - you

can phone and ask him. I just collected them from the companies.’ Three days later, they

released him but refused to give the completed questionnaires back. It was therefore

necessary to use a different technique to overcome this issue, and so an online survey was

developed on the Qualtrics Survey Software and created a QR code linked to the online

survey.

Addtionally, the first page of the questionnaire was updated by adding the QR code linked to

the online survey and the online survey link. The respondents were asked to either complete

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the survey by hand or email it to the researcher, type in the link provided, or scan the QR code

to complete the survey online. By using this technique, the response rate increased.

3.9 Summary

This research has employed a mixed methods approach based on a pragmatist philosophy

and abductive approach. The research study was conducted using a multiple phase design,

which started with an initial study (mixed methods) to collect the data, as there is plenty of

literature regarding the factors affecting e-business adoption in developed and developing

countries, but less literature regarding these factors in Yemen, and as the researcher believes

that the affecting factors vary from environment to environment. The results of the initial

study informed the main study, with new factors and deeper information discovered, which

helped to modify the study’s conceptual framework. The questionnaire was developed and

translated into the Arabic language by a certified Arabic-English translator and then pilot

tested. The researcher undertook an online survey along with the hand delivery of

questionnaires to collect the quantitative data. The data collected has been analysed using

the PLS-SEM technique using Warp PLS 5.0 software. The results of the quantitative study

helped in the design of the interview questions, as the participants were asked in the

questionnaire to agree or disagree to take part in the interview stage of the study. The

researcher then interviewed five owners and managers based on the results, and the

interviews were analysed using thematic analysis techniques.

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 4.0 Chapter Four: Findings
4.1 Introduction

This chapter presents the results of the data collected from Yemeni SME owners and

managers. The analysis of the data is split into two phases. Phase one provides the descriptive

statistics for the findings on e-business activities in Yemeni SMEs. Also, an independent-

samples t-test was used to find the differences in the SMEs’ sizes based on Yemeni and

European definitions (YMIT, 2014, EC, 2005). Phase 2 concentrates on the structural

equation model technique, which was followed by the measurement model. Next, the

chapter examines the relationship between the barriers and drivers as predictor variables,

and their impact on the level of e-business adoption. The chapter then moves on to describe

the interview results. Qualitative thematic analysis has been used to identify e-business

activities and the factors that positively and negatively influence SMEs adopting e-business.

4.2 Phase 2 Findings

The purpose of conducting Phase 2 was to understand and explore the specific factors that

have an impact on e-business adoption in a Yemeni SME context using the conceptual

framework developed in Phase 1 as a lens for collecting data from Yemeni SMEs. To achieve

this, Phase 2 employed a mixed method approach. Phase 2 integrated different methods in

order to facilitate a deep understanding of the adoption level of e‐business in SMEs in Yemen,

and the factors that have an impact on these levels of e-business adoption. Phase 2 comprised

two stages and employed two separate data collection methods that include: semi-structured

interviews and survey questionnaires. The semi-structured interviews were conducted with

SME managers and owners in order to further explore their understanding of e‐business in

their enterprises, and to look for in‐depth views on the factors that have an impact on the

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implementation of e‐business by SMEs in Yemen. The survey questionnaire was used to

discover the impact of barriers, and the benefits from the different levels of e-business

adoption.

Although there were some practical difficulties with the primary research, these were

mitigated in the research design through the research being undertaken before the current

political situation in Yemen fully developed.

A total of four interviews were conducted with owners and managers. The interviews were

conducted through skype and were recorded. Qualitative thematic analysis was used to

identify e-business activities and the factors that positively and negatively influence SMEs

regarding adopting e-business. The SMEs’ survey characteristics are: - size: 1-50 employees;

location: Taiz and Sana’a in Yemen; business activities: retailer, wholesale, manufacturing,

and other services. An SME is a firm that employs not more than 50 employees based on the

Yemeni SME definition (YMIT, 2014). A total of 300 questionnaires were randomly distributed

to managers and owners in 300 SMEs in Yemen, and the return was 102 questionnaires, giving

a response rate of around 34%. The results of Phase 2 were published in the Strategic Change

journal with details of the methods and methodology used. Also, this provides more details

about the analysis techniques used. The article is attached in Appendix 6.

The data collected was analysed using the Statistical Package for the Social Sciences (SPSS)

software. An independent-samples t-test was used to find the differences in the size and age

of the SMEs, as well as the significant relationship between the size and age of SMEs and the

level of e-business adoption. Linear regression was used to examine the relationship between

the predictor variables on the level of e-business adoption.

A high percentage of the SMEs surveyed in Phase 2 were business services (41.2%) and

wholesale and retail (31.4%). Some 23.5% of SMEs have between one and nine employees,

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and 76.5% of SMEs have between 10 and 49 employees, therefore the majority of them are

medium sized firms. In addition, about 51% of the SMEs have been established for 10 years

and under, and 49% for over 10 years. Most of the SMEs’ owners and managers described

their understanding of e-business as an important technology for SMEs to grow; they stated

that e-business is the main method for selling and buying over the internet, as well as product

advertising. One participant stated:

‘Nowadays E-business has become an important factor for businesses,

and any business needs to adopt e-business to be able to compete in
the market.’

Furthermore, they mentioned that e-business has become a new way to grow their business

and achieve a global reach. When they were asked why they have not yet adopted e-

business, they mentioned barriers such as government and bank support, weak ICT

infrastructure, electricity and electronic payments, as well as legal aspects and the

regulations on e-business. They added that there was a lack of experts, skilled employers and

other barriers.

The benefits of e‐business adoption was measured through 12 questions using the Mean

scores of a 1–5 Likert scale (strongly disagree, disagree, neutral, agree and strongly agree) as

shown in Table 4-1. The result of the reliability test shows a Cronbach’s score of .865 which

means the construct (benefit of e‐business adoption) is reliable for data analysis.

Table 4-1 Benefit of e-Business Adoption result

Benefit of e-Business Adoption Mean Ranking

Reduce cost of business operations 4.57 1
Easy and fast exchange of documents and information 4.20 5
Improve customer service 4.33 2
Providing the customer with a more satisfying business experience 4.08 7
Increase the availability of products/service to customers 3.84 11
Improve accessibility to more customers 4.22 4
Support linkage with suppliers 4.08 6
Increase ability to compete 4.31 3
Providing managers better access to information 4.04 8

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 Support strategic decisions of managers 3.96 9
Support co-operative partnership in the industry 3.45 12
Save time 3.90 10
Cronbach’s Alpha 0.865 for N(12)

The barriers to e‐business adoption were measured through 15 questions using the mean

scores of a 1–5 Likert scale, as shown in Table 4-2. The result of the reliability test shows a

Cronbach’s score of .829, which means the construct (barriers of e‐business adoption) is

reliable for data analysis.

Table 4-2: Barriers of e-Business Adoption result

Barriers of e-Business Adoption Mean Ranking
Low level of technology usage within the organisation 4.02 6
Low level of literacy among SME owners 4.12 4
Unconvincing benefit to the organisation 3.69 9
Lack of qualified staff to develop, implement and support websites 3.63 10
Limited resources in terms of finance, computers software and hardware 3.31 14
High cost of internet connectivity and website 3.27 15
Inadequate transportation and delivery network 3.45 12
Inadequate telecommunication infrastructure such as poor internet connectivity 3.33 13
Lack of online payment process 3.57 11
Limited availability of online banking services 3.84 8
Lack of developed legal and regulatory systems 4.04 5
Lack of government support 3.92 7
Lack of popularity for online business transactions 4.45 2
Lack of electricity 4.31 3
Corruption 4.59 1
Cronbach’s Alpha 0.829 for N(15)

The analysis of the questionnaires considers the current state of e-business adoption in

Yemeni SMEs via the e‐business extended stage model. Only 20 percent of the SMEs are at

the ‘not started’ stage, with 80 percent at the ‘email stage’, and they use the emails for

communicating with their suppliers and customers. However, 68 percent of the businesses

that participated in this study have social media and use it to advertise their goods and

services. An interesting score is that most of the SMEs have their own website and only 33

percent use e-commerce for purposes such as to receive orders, but they process them

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 manually and receive the payment either by bank transfer or cash. Alternatively, none of the

respondents have any experience of using mobile apps, cloud computing, e-business or

transformed organisation.

Hypothesis 3, 4: There is a significant relationship between barriers and benefits factors and the level
of e-business adoption.

Table 4-3 :Regression analysis indicating the relative contributions of owner knowledge, barriers and benefits factors and the
level of e-business adoption.

Model Unstandardized Coefficients Standardized Coefficients

t Sig.
Beta (β)
B Std. Error
(Constant) -.097 .092 -1.053 .295
Barriers -.009 .019 -.036 -.452 .652
Benefits .030 .020 .132 1.525 .130

Table 4-3 shows the linear regression established the combination effect of benefit and

barriers factors on e-business adoption was not significant F (3, 98) = 24.007; R= .651; R

square= .424; adjusted R square= .406, p >0.05).

Table 11 shows the various relative contributions and level of significance of the independent

variables. Barriers (β=.-.036, P > 0.05) and Benefits (β= .132, P > 0.05). The results indicate the

barriers and benefits factor is not significant.

The results of Phase 2 have informed the research with regard to new barriers that influence

the adoption of e-business in Yemeni SMEs, which have not been researched in e-business

studies to the best knowledge of this study’s researcher, namely, the relationships between

government and SMEs, and the relationships between banks and SMEs and war, which are

explained later on in this chapter. The results of the initial study have been published in

Strategic Change ABS2 (Abdullah, et al., 2018). The results of the initial study have helped in

modifying the research’s conceptual framework and in developing hypotheses for the new

factors discovered (see Figure 3-2 below).

1- The relationship between government and SMEs

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The government and SMEs’ relationship refers to the degree of the relationship between the

SMEs and the government. The relationship could be a barrier if there is no effective

connection between them. Prior studies have found that the support of government for SMEs

has a significant effect on the adoption of e-commerce (Grandon and Person, 2004). The

encouragement and support of government for SMEs forms the key starting point for firms

to adopt e-business (Zhu and Thatcher, 2007).

Hamad et al. (2015) found that government support has a positive impact on level 1 adoption

(Electronic information search and content creation), level 2 (Electronic transaction), level 3

(Complex electronic transactions) and level 4 (Electronic collaboration). Thomas et al. (2015)

argue that the Welsh Government should provide SMEs with practical and accessible support

by encouraging and enabling SMEs to benefit and adopt e-business. In addition, the findings

of Doherty et al., (2015) suggest that the Irish government needs to provide enough

investment to maintain their ICT infrastructure, and high-speed and reliable broadband

infrastructure, in order to enable SMEs to adopt cloud computing with confidence.

Government motivation and support encourages SMEs to move and adopt e-business (Jeon

et al., 2006).

Several previous researchers have found that government support has a major impact on

SMEs’ decisions to adopt e-business (Papazafeiropoulou and Pouloudi, 2001 and Parker and

Castleman, 2009). However, the findings of Prodromos and Dimitrios (2016) reveal that

government support does not have an effect on e-business adoption. Agwu and Murray

(2015) found that the lack of support from the government has an impact on SME growth,

and according to Lacovou et al., (1995) government support to take advantage of EDI could

lead firms to becoming EDI-capable.

106
The results of the initial study conducted in this research reveal that the weak relationship

between government and SMEs has an impact on the owner’s decision concerning e-business

adoption. These relationships include the support and encouragement of the government,

and recognising the importance of e-business adoption, as well as the negative impact from

a lack of regular communication between them.

Therefore, the hypothesis for the effect of government and SME relationships on the e-

business extended stage model is:

H19. The relationships between government and SMEs have a positive effect on e-business

adoption levels.

2- The relationships between banks and SMEs

The banking industry and SME relationships, refers to the degree of the relationship between

SMEs and banks. The relationship could be a barrier if a positive relationship does not exist

between them. Financial support is a key motivator for SMEs to adopt e-business (Jeon et al.,

2006), and Agwu and Murray (2015) found that a lack of support from the banking industry

has an impact on SME growth.

The results of the initial study conducted in this research reveal that the lack of a relationship

between the banking industry and SMEs has an impact on the owner’s decision concerning e-

business adoption. These relationships include the support and encouragement of the

banking industry regarding the importance of e-business adoption, and a lack of regular

communication between them. There is also a lack of information about bank customers and

visa cards provided by banks to SMEs.

Therefore, the hypothesis for the effect of banks and SME relationships on the e-business

extended stage model is:

107
H20. The relationships between bank and SMEs have a positive effect on e-business adoption

levels.

3- War
War refers to the degree of unrest faced by businesses, which may affect SME strategies, and

how war has affected the decision to adopt e-commerce.

Kapurubandara and Lawson (2007) investigated the internal and external barriers to e-

commerce adoption and found that an unstable economy and political uncertainty have an

impact on the adoption of e-commerce. They also found that changing regulations with each

government has an impact on their decision towards adoption.

The 2012 rapid assessment survey on the impact of the crisis on Yemeni private enterprises

found that corruption, electricity costs and reliability, political instability and macroeconomic

uncertainty are major obstacles to Yemeni firms (Stone et al, 2012).

The results of the initial study conducted in this research reveal that the war has had an effect

on SME strategies and budgets for the adoption of internet technologies. Therefore, the

hypotheses are:

H21. War has a significant moderating effect on the relationship between organisational

readiness and e-business adoption levels.

H22. War has a significant moderating effect on the relationship between governmental

readiness and e-business adoption levels.

H23. War has a significant moderating effect on the relationship between regulation and e-

business adoption levels.

H24. War has a significant moderating effect on the relationship between security and e-

business adoption levels.

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H25. War has a significant moderating effect on the relationship between government and

SMEs relationships and e-business adoption levels.

H26. War has a significant moderating effect on the relationship between bank and SMEs

relationships and e-business adoption levels.

H27. War has a significant moderating effect on the relationship between relative advantage

and e-business adoption levels.

H28. War has a significant moderating effect on the relationship between awareness and e-

business adoption levels.

H29. War has a significant moderating effect on the relationship between compatibility and

e-business adoption levels.

H30. War has a significant moderating effect on the relationship between competitive

pressure and e-business adoption levels.

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 War

Cost H1a,b,c,e,f,g,h
,i Drivers
Organisation
H2a,b,c,e,f,g,h Relative
Readiness H6a,b,c,e,f,g,h
,i Advantage
,i
Government
Readiness H3a,b,c,e,f,g,h
,i Awareness
H7a,b,c,e,f,g,h
Regulation
H4a,b,c,e,f,g,h ,i
,i
Security Compatibility
H5a,b,c,e,f,g,h H8a,b,c,e,f,g,h
,i ,i
Government SMEs H19a,b,c,e,f,g,h,i
Relationships Competitive
H9a,b,c,e,f,g,h
Pressure
,i
Bank SMEs H20a,b,c,e,f,g,h,i
Relationships

Barriers

Firm Size

Figure 4-1: modified conceptual framework Source: current study

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4.3 Phase 3 Findings
4.3.1 Main survey and response rate

The SMEs’ survey characteristics are: size: 1-50 employees based on Yemen’s SME definition

(YMIT, 2014) and 1-249 employees based on the European definition (EC, 2005); location: the

capital of Yemen (Sana’a); business activities: a range of SMEs in Yemen across a range of

sectors. 768 questionnaire forms were distributed randomly to managers and owners in 768

SMEs in Yemen, and the return was 238 questionnaires, giving a response rate of around 31%.

32 uncompleted questionnaires were removed, leaving 206 completed questionnaires.

4.3.2 Descriptive Statistics

Descriptive analysis has been used to provide a summary of the study respondents’

characteristics, using frequencies, percentages and mean techniques.

4.3.2.1 E-business evolution stage model (Objective 1)

The analysis of the questionnaires considers the current state of e-business adoption in

Yemeni SMEs through the e-business evolution model, as explained in Figure 4-1, and only six

percent of the SMEs are at the ‘not started’ stage 0, with one percent at the ‘email’ stage 1.

However, 11 percent of the businesses are at stage 2 ‘social media’. Some eight percent of

the SMEs are at stage 3 ‘website’ and 28 percent are at stage 4 ‘e-commerce’. Also, four

percent of the SMEs are at stage 5 ‘mobile apps’ and two percent are at stage 6 ‘cloud

services’. Additionally, 13 percent of the SMEs are at stage 7 ‘e-business’ and 27 percent are

at stage 8 ‘transformed organisation’ (see Figure 4-2).

A low number of Yemeni SMEs have not adopted even basic technology such as email. Almost

all SMEs have an email and account on social media to communicate with suppliers and

customers, share documents across all departments and receive orders from customers, as

well as to advertise and promote their products and services. A number of SMEs have their

111
 own website to advertise and promote their products and services, and about half of them

use e-commerce for purposes such as to sell products and services and receive orders and

process them; only a small number of companies receive electronic payments, and the rest

process them manually and receive the payment either by bank transfer or cash. Regarding

the use of mobile apps by the SMEs, about half of the respondents that participated in this

study have their own mobile app to sell products and services to customers, and only half of

them have electronic payment facilities; the other half receive payment either by bank

transfer or cash. Almost two-thirds of the SMEs have adopted part of cloud services, and they

use these services to store emails, documents and orders to enable them to share them easily

with other departments, as well as owning ICT infrastructure on the cloud such as storage

capacity, networks and communication systems. In addition, a higher number have use of e-

business technology but have not fully adopted this, such as owning an electronic system to

allow them to communicate with suppliers electronically. Only about a third of the

participating SMEs are included among those transformed organisationally by having

automated and open systems to network with other organisations.

Transformed Organisational (27%) (40%)

E-business (13%)
(62%)

Cloud Services (2%)

(64%)

Mobile APP (4%)

(46%)

E-commerce
(28%) (81%)

Website (8%)
(81%)

Social Media
(11%) (92%)
Email
(1%)
Figure 4-2: Extended stage model (94%)

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4.3.2.1.1 Descriptive Statistics of Levels of e-business adoption

Table 4-4 illustrates the responses with regards to the adoption of level 1 (email) by Yemeni

SMEs. The responses range between ‘Usually’ (2.96) for using email to receive orders from

customers and ‘Mostly’ (3.62) for using email to communicate with customers, suppliers, and

partners. The results show that Yemeni SMEs have adopted Level 1 (email) and have internet

connections.

Table 4-4: Descriptive statistics of adoption level 1(Email)

Level 1 (Email) Never Rarely Usually Mostly Always Mean

F % F % F % F % F %
We use email to communicate with 19 9.2 23 11.2 37 18 65 31.6 62 31.1 3.62
customers, suppliers and partners
We use email to share documents 33 16 25 12.1 45 21.8 40 19.4 63 30.6 3.36
across company departments
We use email to receive orders from 43 20.9 39 18.9 47 22.8 38 18.4 39 18.9 2.96
customers

Table 4-2 illustrates the responses concerning the adoption of level 2 (Social Media) by

Yemeni SMEs. The responses range between ‘Usually’ (2.77) for using social media to

communicate with suppliers, partners, and customers and ‘Usually’ (3.26) for using social

media to attract customers. The results show that Yemeni SMEs have adopted Level 2 (Social

Media).

Table 0-1: Descriptive statistics of adoption level 2(Social Media)

Level 2 (Social Media) Never Rarely Usually Mostly Always Mean

F % F % F % F % F %
We use social media to attract 27 13.1 35 17 49 23.8 47 22.8 48 23.3 3.26
customers
We use social media to receive 25 12.1 33 16 50 24.3 54 26.2 44 21.4 3.29
orders from customers
We use social media to 43 20.9 54 26.2 45 21.8 36 17.5 28 13.6 2.77
communicate with suppliers,
partners and customers
We use social media to advertise 33 16 32 15.5 52 25.2 53 25.7 36 17.5 3.13
our products /services

113
Table 4-5 illustrates the responses concerning the adoption of level 3 (website) by Yemeni

SMEs. The responses range between ‘Usually’ (3.01) for having a website to communicate

with suppliers, partners and customers and ‘Usually’ (3.19) for having a website to advertise

their products/services. The results show that Yemeni SMEs have adopted Level 3 (Website).

Table 4-5: Descriptive statistics of adoption level 3(Website)

Level 3 (Website) Never Rarely Usually Mostly Always Mean

F % F % F % F % F %
We have a website to advertise our 48 23.3 20 9.7 41 19.9 38 18.4 59 28.6 3.19
products/ services
We have a website to publish basic 40 19.4 24 11.7 37 18 45 21.8 60 29.1 3.30
organisation information
We have a website to communicate 48 23.3 34 16.5 39 18.9 38 18.4 47 22.8 3.01
with suppliers, partners and
customers

Table 4-6 illustrates the responses concerning the adoption of level 4 (E-Commerce) by

Yemeni SMEs. The responses range between ‘Rarely’ (2.01) for receiving electronic payment

and ‘Usually’ (2.53) for selling the company products/services through the company website.

The results show that most of the Yemeni SMEs have adopted part of Level 4 (e-commerce).

Table 4-6: Descriptive statistics of adoption level 4(E-commerce)

Level 4 (E-commerce) Never Rarely Usually Mostly Always Mean

F % F % F % F % F %
We have a website to sell 65 31.6 48 23.3 41 19.9 23 11.2 29 14.1 2.53
products/ services
We have a website to receive and 70 34 47 22.8 36 17.5 33 16 20 9.7 2.45
manage customers’ orders
We have a website to receive 117 56.8 32 15.5 18 8.7 16 7.8 23 11.2 2.01
electronic payments

Table 4-7 illustrates the responses concerning the adoption of level 5 (Mobile Apps) by

Yemeni SMEs. The responses range between ‘Rarely’ (1.89) for receiving electronic payments

through the mobile app and ‘Rarely’ (2.15) for selling the company’s products/services and

managing customers’ orders through the company mobile app. The results show that Yemeni

SMEs have not fully adopted Level 5 (Mobile APPs).

114
Table 04-7: Descriptive statistics of adoption level 5(Mobil Apps)

Level 5 (Mobile Apps) Never Rarely Usually Mostly Always Mean

F % F % F % F % F %
We have mobile apps to sell 116 56.3 22 10.7 27 13.1 28 13.6 13 6.3 2.03
products/services
We have mobile apps to receive 110 53.4 17 8.3 37 18 23 11.2 19 9.2 2.15
and manage customers’ orders
We have mobile apps to receive 120 58.3 33 16 20 9.7 22 10.7 11 5.3 1.89
payments electronically

Table 4-8 illustrates the responses with regards to the adoption of level 6 (cloud services) by

Yemeni SMEs. The responses range between ‘Rarely’ (2.47) for using online cloud services to

own information technology infrastructure, storage capacity from networks and

communication systems to a great extent and ‘Usually’ (2.83) for using online cloud services

to store emails, documents and orders. The results show that the Yemeni SMEs have not fully

adopted Level 6 (Cloud services).

Table 4-8: Descriptive statistics of adoption level 6 (Cloud Services)

Level 6 (Cloud Services) Never Rarely Usually Mostly Always Mean

F % F % F % F % F %
We use online cloud services to store 73 35.4 16 7.8 33 16 41 19.9 43 20.9 2.83
emails, documents and orders
We use online cloud services to own 87 42.2 26 12.6 33 16 29 14.1 31 15 2.47
information technology
infrastructure, storage capacity from
networks and communication
systems to a great extent

Table 4-9 illustrates the responses about the adoption of level 7 (E-business) by Yemeni SMEs.

The responses range between ‘Usually’ (2.55) for liaising and collaborating with customers,

suppliers and partners electronically and ‘Usually’ (2.61) for having integrated systems to do

the firm’s work and communicate with suppliers and the process of production control

electronically. The results show that Yemeni SMEs have not fully adopted Level 7 (E-business).

115
Table 4-9: Descriptive statistics of adoption level 7 (E-business)

Level 7 (E-business) Never Rarely Usually Mostly Always Mean

F % F % F % F % F %
We liaise and collaborate with 81 39.3 31 15 22 10.7 43 20.9 29 14.1 2.55
customers, suppliers and partners
electronically
We have integrated systems to do 84 40.8 28 13.6 21 10.2 31 15 42 20.4 2.61
the firm’s work and communicate
with suppliers and the process of
production control electronically

Table 4-10 illustrates the responses concerning the adoption of level 8 (Transformed

Organisation) by Yemeni SMEs. The responses range between ‘Rarely’ (1.74) for having an

automated and open system to network with other organisations/individuals and ‘Rarely’

(1.93) for having an automated and open system to enable organisation partners to use ‘our’

internal system and updates. The results show that only a few Yemeni SMEs have adopted

Level 8 (Transformed Organisation).

Table 4-10: Descriptive statistics of adoption level 8 (Transformed Organisational)

Level 8 (Transformed Never Rarely Usually Mostly Always Mean

Organisation) F % F % F % F % F %
We have an automated and open 123 58.6 25 11.9 18 8.6 30 14.3 14 6.7 1.93
system to network with other
organisations/individuals
We have an automated and open 134 63.8 26 12.4 20 9.5 19 9 11 5.2 1.74
system to enable organisation partners
to use our internal system and updates

4.3.2.2 Descriptive Statistics on Barriers as Factors affecting the level of e-business

adoption
Table 4-11 illustrates that most Yemeni SMEs responded ‘Neutral’ (3.00) if the cost of e-

business applications, systems, and hardware is high, and (3.27) if the cost of e-business

training for employees is high. The results show that Yemini SMEs believe that the cost of

implementing e-business technology requirements such as hardware, software, website,

internet connection, and the system is medium and affordable.

116
Table 04-11: Descriptive statistics of cost factor result

Cost SDA DA N A SA Mean

F % F % F % F % F %
The cost of e-business applications, 27 13.1 50 24.3 38 18.4 78 37.9 13 6.2 3.00
systems and hardware are high
The cost of accessing to the Internet 18 8.7 54 26.2 30 14.6 88 42.7 16 7.8 3.15
is high
The cost of hosting websites and 24 11.7 48 23.3 25 12.1 89 43.2 20 9.7 3.16
engaging in e-business activities is
high
The cost of e-business training for 16 7.8 42 20.4 44 21.4 79 38.3 25 12.1 3.27
employees is high
The cost of ICT infrastructure is 20 9.7 32 15.5 49 23.8 88 42.7 17 8.3 3.24
high
The cost of developing and 13 6.3 29 14.1 54 26.2 93 45.1 17 8.3 3.35
maintaining the e-business is high

In terms of organisational readiness, the responses, as explained in Table 4-12, show that the

Yemeni SMEs either agreed or disagreed mostly (2.59) on having the financial resources to

implement e-business. On average, the Yemeni SMEs responded ‘Neutral’ (2.15) that most of

their employees have sufficient access to computers and the company has been highly

computerised within the Local Area Network (LAN).

Table 04-22: Descriptive statistics of organisational readiness factor result

Organisational Readiness SDA DA N A SA Mean

F % F % F % F % F %
Most of our employees have 93 45.1 59 28.6 26 12.6 8 3.9 20 9.7 2.15
sufficient access to computers
Most of our employees are 85 41.3 41 19.9 36 17.5 5 2.4 39 18.9 2.43
computer/internet literate
We are highly computerised with 82 39.8 67 32.5 25 12.1 8 3.9 24 11.7 2.15
Local Area Network (LAN)
We have internal system connected 66 32 63 30.6 32 15.5 21 10.2 24 11.7 2.39
among all departments and
branches
We have connectivity to the 87 42.2 69 33.5 24 11.7 6 2.9 20 9.7 2.06
Internet
We have IT experts 78 37.9 41 19.9 38 18.4 16 7.8 33 16 2.54
We have financial resources to 71 34.5 35 17 52 25.2 9 4.4 39 18.9 2.59
implement e-business

For Governmental Readiness, Table 4-13 illustrates that Yemeni SMEs agreed mostly (3.59)

on the current Internet connection; speed is good for e-business transactions was ‘Neutral’

117
(2.84) in Yemen, and that there are IT and e-business experts available in the labour market,

and electric power is uninterrupted. The results show that ICT infrastructure in Yemen is

almost reliable for e-business adoption.

Table 04-33: Descriptive statistics of governmental readiness factor result

Governmental Readiness SDA DA N A SA Mean

F % F % F % F % F %
In Yemen, the 47 22.8 8 3.9 48 23.3 38 18.4 65 31.6 3.38
telecommunication infrastructure
is reliable and efficient for e-
business
In Yemen, the commercial and 60 29.1 12 5.8 60 29.1 19 9.2 55 26.7 3.04
financial institutions available
have good ICT for e-business
In Yemen, the postal service is 46 22.3 5 2.4 47 22.8 38 18.4 70 34 3.44
reliable in supporting e-business
In Yemen, there is a secure 40 19.4 6 2.9 65 31.6 35 17 60 29.1 3.38
electronic payment system
available
In Yemen, there are e-business 66 32 8 3.9 58 28.2 25 12.1 49 23.8 3.08
applications and services
available in the market
In Yemen, the current Internet 36 17.5 8 3.9 35 17 47 22.8 80 38.8 3.59
connection speed is good for e-
business transactions
In Yemen, there are IT and e- 77 37.4 13 6.3 65 31.6 20 9.7 31 15 2.84
business experts available in the
labour market
In Yemen, the electricity supply is 123 59.7 43 20.9 20 9.7 14 6.8 6 2.9 1.72
uninterrupted

For the Governmental open data, Table 4-14 illustrates that the Yemeni SMEs’ responses

range between ‘Strongly Agree’ (4.10) on liaising with the government with regards to

updating us about the latest statistical number of internet users, and (4.28) on liaising with

the government with regards to providing the companies with information about ICT

infrastructure developments. The results demonstrate that the relationship between

government sectors and SMEs is strong.

Table 4-14: Descriptive statistics of government and SMEs relationship factor result

Government and SMEs SDA DA N A SA Mean

Relationship F % F % F % F % F %

118
 We liaise with the Government 11 5.3 4 1.9 27 13.1 119 57.8 45 21.8 4.28
with regards to providing us
information about ICT
infrastructure development.
We liaise with the Government 18 8.7 2 1 35 17 98 47.6 53 25.7 4.10
with regards to updating us about
the latest statistical number of
internet users
We liaise with the Government 17 8.3 4 1.9 27 13.1 95 46.1 63 30.6 4.11
with regards to updating us about
the good points about e-business
We liaise with the Government 12 5.8 8 3.9 24 11.7 103 50 59 28.6 4.15
with regards to the promotion of e-
business in SMEs
We liaise with the Government 28 13.6 13 6.3 33 16 79 38.3 53 25.7 3.76
with regards to their response to the
requirement of ICT infrastructure
that supports our strategy

With regards to the banking sectors’ open data, Table 4-15 illustrates that the Yemeni SMEs’

responses range between ‘Agree’ (3.34) on having co-operation with the banking industry in

terms of promoting e-business in SMEs, and (3.83) on having co-operation with the banking

industry to update them about the latest statistical number of e-banking users and visa card

holders. The results demonstrate that there is a good relationship between the banking sector

and SMEs.

Table 4-45: Descriptive statistics of bank open data factor result

Banks and SMEs Relationship SDA DA N A SA Mean

F % F % F % F % F %
We engage in co-operation with the 43 20.9 10 4.9 50 24.3 48 23.3 55 26.7 3.43
banking industry to provide us with
information about any new
technology they have implemented
that could support our strategy
We engage in co-operation with the 19 9.2 8 3.9 38 18.4 66 32 75 36.4 3.83
banking industry to update us about
the latest statistical number of e-
banking users and visa card holders
We engage in co-operation with the 34 16.5 11 5.3 38 18.4 57 27.7 66 32 3.60
banking industry to update us about
the good points about e-business
We engage in co-operation with the 48 23.3 15 7.3 37 18 43 20.9 63 30.6 3.34
banking industry in terms of
promoting e-business in SMEs
We engage in co-operation with the 40 19.4 12 5.8 41 19.9 53 25.7 60 29.1 3.50
banking industry to respond to the
requirements of implementing new
technology that supports our strategy

119
Table 4-16 illustrates that Yemeni SME responses range between ‘Agree’ (3.35) that a

telecommunication regulatory authority exists, and (3.61) on the existing policy to protect all

entities against fraud. The results show that the regulations that exist can almost all be

applied to e-business activities.

Table 4-56: Descriptive statistics of regulation factor result

Regulation SDA DA N A SA Mean

F % F % F % F % F %
In Yemen, there exists a 51 24.8 4 1.9 54 26.2 35 17 62 30.1 3.35
telecommunication regulatory
authority
In Yemen, there exists e-business 29 14.1 7 3.4 59 28.6 40 19.4 71 34.5 3.52
policy and regulations
In Yemen, there exists policies to 28 13.6 6 2.9 48 23.3 56 27.2 68 33 3.68
protect all entities against fraud
In Yemen, there exists regulations to 32 15.5 10 4.9 46 22.3 60 29.1 58 28.2 3.61
protect users and businesses from
cybercrime
In Yemen, the government’s 35 17 6 2.9 54 26.2 50 24.3 61 29.6 3.55
business law supports e-business

Table 4-17 illustrates that most Yemeni SMEs responded ‘Agree’ (3.35) that the e-business

environment is secure enough, and (3.41) that e-business is associated with sufficient security

safeguards, and the results show that Yemeni SMEs believe that the e-business environment

is secure enough to adopt e-business.

Table 04-67: Descriptive statistics of security factor

Security SDA DA N A SA Mean

F % F % F % F % F %
In Yemen e-business is associated 39 18.9 12 5.8 57 27.7 49 23.8 49 23.8 3.41
with sufficient security safeguards
In Yemen Internet protocols are 43 20.9 10 4.9 54 26.2 38 18.4 61 29.6 3.36
adequate to support secure electronic
ordering and payments
In Yemen the e-business 43 20.9 7 3.4 65 31.6 39 18.9 52 25.2 3.35
environment is secure enough

120
4.3.2.3 Descriptive Statistics for Drivers that push SMEs toward a level of e-business
adoption
In terms of relative advantage, Table 4-18 illustrates that Yemeni SMEs agreed mostly (3.77)

that e-business adoption is useful to reduce the cost of business operations, and (3.96) that

e-business adoption is useful to improve internal communications and processes. The results

show that SMEs would benefit from adopting e-business.

Table 04-78: Descriptive statistics of relative advantage factor

Relative advantage SDA DA N A SA Mean

F % F % F % F % F %
E-business adoption is useful to 4 1.9 18 8.7 26 12.6 110 53.4 48 23.3 3.87
increase business profitability
E-business adoption is useful to 4 1.9 16 7.8 19 9.2 112 54.4 55 26.7 3.96
improve internal communications
and process
E-business adoption is useful to 5 2.4 16 7.8 31 15 102 49.5 52 25.2 3.87
expand the local and international
market
E-business adoption is useful to 6 2.9 17 8.3 21 10.2 107 51.9 55 26.7 3.91
improve communication with
suppliers and trading partners
E-business adoption is useful to 6 2.9 15 7.3 20 9.7 113 54.9 52 25.2 3.92
improve customer services
E-business adoption is useful to 4 1.9 20 9.7 26 12.6 101 49 55 26.7 3.89
reduce the cost of communication
E-business adoption is useful to 5 2.4 25 12.1 40 19.4 79 38.3 57 27.7 3.77
reduce the cost of business operation
E-business adoption is useful to 2 1 22 10.7 29 14.1 101 49 52 25.2 3.87
reduce the costs of advertisement
and sales

In terms of awareness, Table 4-19 illustrates that Yemeni SMEs’ responses range between

‘Neutral’ (3.28) that they are aware of e-business implementation of their partner

organisations, and Agree (3.83) that they know about the impact of e-business on their

industry. The results show that SME owners and managers are aware of e-business activities.

Table 04-89: Descriptive statistics of Awareness factor

Awareness SDA DA N A SA Mean

F % F % F % F % F %
We are aware of e-business 12 5.8 34 16.5 60 29.1 84 40.8 16 7.8 3.28
implementation in our partner
organisations

121
 We are aware of our competitors’ 17 8.3 28 13.6 55 26.7 87 42.2 19 9.2 3.31
e-business implementation
We recognise the opportunities and 12 5.8 26 12.6 43 20.9 107 51.9 18 8.7 3.45
threats associated with e-business
We understand the potential 7 3.4 22 10.7 27 13.1 114 55.3 36 17.5 3.73
benefits of e-business to our
business
We know about the impact of e- 5 2.4 17 8.3 32 15.5 105 51 47 22.8 3.83
business on our industry

In terms of compatibility, Table 4-20 illustrates that the Yemeni SMEs’ responses range

between ‘Neutral’ (3.50) for the implementation of e-business is compatible with their ICT

infrastructure, and Agree (3.62) for the implementation of e-business is compatible with their

business strategy. The results show that most Yemeni SMEs are compatible with the adoption

of e-business activities.

Table 04-20: Descriptive statistics of compatibility factor

Compatibility SDA DA N A SA Mean

F % F % F % F % F %
The implementation of e-business is 8 3.9 31 15 45 21.8 94 45.6 28 13.6 3.50
compatible with our ICT
infrastructure
The implementation of e-business is 6 2.9 27 13.1 37 18 106 51.5 30 14.6 3.62
compatible with our business
strategy
The implementation of e-business is 8 3.9 26 12.6 53 25.7 91 44.2 28 13.6 3.51
compatible with all aspects of our
work

In terms of competitive pressure, Table 4-21 illustrates that Yemeni SMEs’ responses show

that they agree mostly (3.90) that firms that readily implement new technologies will be

competitive, and (3.67) that they will lose their customers to their competitors if they do not

adopt e-business. The results suggest that Yemeni SMEs are aware of the business activities

of their competitors.

Table 04-21: Descriptive statistics of competitive pressure factor

Competitive Pressure SDA DA N A SA Mean

F % F % F % F % F %
Firms that readily implement new 7 3.4 14 6.8 23 11.2 110 53.4 52 25.2 3.90
technologies will be competitive

122
 We will lose our customers to our 4 1.9 27 13.1 49 23.8 80 38.8 46 22.3 3.67
competitors if we do not adopt e-
business
It is a strategic necessity to use e- 4 1.9 19 9.2 26 12.6 105 51 52 25.2 3.88
business to compete in the
marketplace
Our competitors can drive our 12 5.8 20 9.7 34 16.5 86 41.7 54 26.2 3.73
company to adopt e-business

4.3.2.4 Descriptive Statistics of Moderating Variables

Table 4-22 illustrates that Yemeni SMEs’ responses show mostly agree (4.22) that the war

has affected their business strategy to develop ICT, and (4.32) that the war has affected the

ICT and e-business applications’ budget. The results show that the war in Yemen has had a

strong impact on Yemeni SMEs.

Table 4-92: Descriptive statistics of War factor

War SDA DA N A SA Mean

F % F % F % F % F %
The war has affected the ICT and e- 6 2.9 6 2.9 21 10.2 57 27.7 116 56.3 4.32
business applications’ budget
The war has affected our business 6 2.9 6 2.9 29 14.1 61 29.6 104 50.5 4.22
strategy to develop ICT
The war has affected our business ICT 7 3.4 8 3.9 9 4.4 78 37.9 104 50.5 4.28
infrastructure

The war has driven us to use the 7 3.4 31 15 35 17 62 30.1 71 34.5 3.77
internet and social media
The war has driven us to install solar 7 3.4 12 5.8 13 6.3 57 27.7 117 56.8 4.29
panels to cover the power outages

Table 4-23 illustrates the number of SMEs based on firm size and based on Yemeni and

European SME definitions (YMIT, 2014, EC, 2005). In terms of the Yemeni SME definition, 18.4

percent of the companies are micro-sized firms with 1-3 employees; 28.2 percent are small

sized firms with 4-9 employees; 25.7 percent of the SMEs are medium-sized firms with 10-49

employees, and 27.7 percent are large sized firms with 50 and above employees. In terms of

the European SME definition, about 46.6 percent of SMEs are micro-sized firms with 1-9

employees; 25.7 percent are small-sized firms with 10-49 employees, and 27.7 are medium-

sized firms with 50-249 employees.

123
Table 4-103: Descriptive statistics of Firm size factor
Firm Size Yemeni definition Europe definition

Frequency Percent Frequency Percent

1-3 employees 38 18.4 1-9 employees 96 46.6
4-9 employees 58 28.2 10-49 employees 53 25.7

10-49 employees 53 25.7 50-249 employees 57 27.7

50-249 employees 57 27.7

Total 206 100.0 206 100.0

Table 4-24 illustrates the types of firms that participated in this research. The results show

that 11.2 percent operate in the food and beverage sector; 3.4 percent in the construction

sector; 6.3 in the marketing and advertising sector; 18.4 percent in the computer and

electronic products sector; 2.9 percent in the tourism and hospitality services sectors; 6.3

percent in business Services; 4.4 percent in insurance and financial services; 32.25 percent in

wholesale and retail, and 14.6 percent in other sectors.

Table 04-114: illustrate the Company Operation

Type Frequency Percent

Food and beverage 23 11.2
Construction 7 3.4
Marketing and Advertising 13 6.3
Computer and Electronic Products 38 18.4
Tourism and Hospitality services 6 2.9
Business Services 13 6.3
Insurance and Financial Services 9 4.4
Wholesale and Retail 67 32.5
Other 30 14.6
Total 206 100.0

Table 4-25 illustrates the period the firm has been operating. Some 21.8 percent of the SMEs

have been operating for five years or less; 23.3 percent for 5 to 9 years; 27.7 percent for 10 to

19 years; 21.4 percent for 20-49 years, and 5.8 percent for 50 years or above.

Table 04-125: illustrate the Company Age

SME Age Frequency Percent

124
 5 years or less 45 21.8
5 to 9 years 48 23.3
10 to 19 years 57 27.7
20-49 years 44 21.4
50 or Above 12 5.8
Total 206 100.0

4.3.3 Non-response bias

Table 4.26 illustrates the differences between early and late respondents. A t-test analysis was

conducted for the first and last fifty respondents. The result is insignificant at P> 0.05, which

means there is no difference between early and late responses.

Table 4-136: Non-response bias

t-test for Equality of Means

95% Confidence

Sig. Interval of the

(2- Mean Std. Error Difference

t df tailed) Difference Difference Lower Upper

L1Email1 Equal variances assumed .678 98 .499 .160 .236 -.308 .628

Equal variances not assumed .678 97.946 .499 .160 .236 -.308 .628

L1Email2 Equal variances assumed -.277 98 .782 -.080 .289 -.653 .493

Equal variances not assumed -.277 97.999 .782 -.080 .289 -.653 .493

L2SocialMedia3 Equal variances assumed -.245 98 .807 -.060 .245 -.546 .426

Equal variances not assumed -.245 97.638 .807 -.060 .245 -.546 .426

L2SocialMedia4 Equal variances assumed .404 98 .687 .100 .248 -.392 .592

Equal variances not assumed .404 96.279 .687 .100 .248 -.392 .592

L3Website1 Equal variances assumed 1.019 98 .311 .320 .314 -.303 .943

Equal variances not assumed 1.019 96.409 .311 .320 .314 -.303 .943

L3Website3 Equal variances assumed .067 98 .947 .020 .299 -.573 .613

Equal variances not assumed .067 97.547 .947 .020 .299 -.573 .613

L4eCommerce1 Equal variances assumed .138 98 .890 .040 .289 -.534 .614

Equal variances not assumed .138 96.940 .890 .040 .289 -.534 .614

L4eCommerce2 Equal variances assumed .368 98 .714 .100 .272 -.439 .639

Equal variances not assumed .368 96.803 .714 .100 .272 -.439 .639

L5MobileApp1 Equal variances assumed -.350 98 .727 -.100 .286 -.667 .467

Equal variances not assumed -.350 97.039 .727 -.100 .286 -.667 .467

L5MobileApp3 Equal variances assumed -.843 98 .401 -.220 .261 -.738 .298

125
 Equal variances not assumed -.843 97.829 .401 -.220 .261 -.738 .298

L6Cloud1 Equal variances assumed 1.482 98 .142 .460 .310 -.156 1.076

Equal variances not assumed 1.482 97.495 .142 .460 .310 -.156 1.076

L7eBusiness1 Equal variances assumed .850 98 .397 .260 .306 -.347 .867

Equal variances not assumed .850 97.323 .397 .260 .306 -.347 .867

L8TO1 Equal variances assumed -.068 98 .946 -.020 .294 -.603 .563

Equal variances not assumed -.068 97.995 .946 -.020 .294 -.603 .563

Cost1 Equal variances assumed -.949 98 .345 -.220 .232 -.680 .240

Equal variances not assumed -.949 97.790 .345 -.220 .232 -.680 .240

Cost6 Equal variances assumed .104 98 .917 .020 .191 -.360 .400

Equal variances not assumed .104 97.532 .917 .020 .191 -.360 .400

OReadiness1 Equal variances assumed -.084 98 .933 -.020 .239 -.494 .454

Equal variances not assumed -.084 95.942 .933 -.020 .239 -.494 .454

OReadiness2 Equal variances assumed 1.255 98 .213 .280 .223 -.163 .723

Equal variances not assumed 1.255 97.446 .213 .280 .223 -.163 .723

OReadiness5 Equal variances assumed 1.777 98 .079 .360 .203 -.042 .762

Equal variances not assumed 1.777 96.749 .079 .360 .203 -.042 .762

GReadiness1 Equal variances assumed 1.185 98 .239 .260 .219 -.176 .696

Equal variances not assumed 1.185 97.299 .239 .260 .219 -.176 .696

GReadiness5 Equal variances assumed -.389 98 .698 -.080 .206 -.488 .328

Equal variances not assumed -.389 95.269 .698 -.080 .206 -.488 .328

GSRelationships1 Equal variances assumed -.102 98 .919 -.020 .196 -.410 .370

Equal variances not assumed -.102 97.973 .919 -.020 .196 -.410 .370

GSRelationships2 Equal variances assumed .828 98 .410 .180 .217 -.251 .611

Equal variances not assumed .828 95.618 .410 .180 .217 -.251 .611

BSRelationships4 Equal variances assumed .676 98 .501 .180 .266 -.349 .709

Equal variances not assumed .676 96.618 .501 .180 .266 -.349 .709

BSRelationships5 Equal variances assumed .476 98 .635 .120 .252 -.380 .620

Equal variances not assumed .476 98.000 .635 .120 .252 -.380 .620

Regul1 Equal variances assumed .270 98 .788 .060 .223 -.382 .502

Equal variances not assumed .270 94.639 .788 .060 .223 -.382 .502

Regul5 Equal variances assumed 1.012 98 .314 .220 .217 -.211 .651

Equal variances not assumed 1.012 97.454 .314 .220 .217 -.211 .651

Security2 Equal variances assumed .086 98 .931 .020 .232 -.440 .480

Equal variances not assumed .086 96.615 .931 .020 .232 -.440 .480

Security3 Equal variances assumed .087 98 .931 .020 .230 -.437 .477

Equal variances not assumed .087 97.447 .931 .020 .230 -.437 .477

RAdvantage3 Equal variances assumed .803 98 .424 .140 .174 -.206 .486

Equal variances not assumed .803 97.108 .424 .140 .174 -.206 .486

RAdvantage8 Equal variances assumed .745 98 .458 .140 .188 -.233 .513

Equal variances not assumed .745 95.288 .458 .140 .188 -.233 .513

126
 Awareness1 Equal variances assumed 1.386 98 .169 .280 .202 -.121 .681

Equal variances not assumed 1.386 92.998 .169 .280 .202 -.121 .681

Awareness5 Equal variances assumed 1.655 98 .101 .300 .181 -.060 .660

Equal variances not assumed 1.655 87.759 .101 .300 .181 -.060 .660

Compat1 Equal variances assumed .796 98 .428 .160 .201 -.239 .559

Equal variances not assumed .796 97.650 .428 .160 .201 -.239 .559

Compat3 Equal variances assumed 1.259 98 .211 .240 .191 -.138 .618

Equal variances not assumed 1.259 91.439 .211 .240 .191 -.139 .619

CPressure3 Equal variances assumed 1.958 98 .053 .340 .174 -.005 .685

Equal variances not assumed 1.958 83.080 .054 .340 .174 -.005 .685

CPressure4 Equal variances assumed .911 98 .365 .200 .220 -.236 .636

Equal variances not assumed .911 97.596 .365 .200 .220 -.236 .636

MWar1 Equal variances assumed .947 98 .346 .180 .190 -.197 .557

Equal variances not assumed .947 90.993 .346 .180 .190 -.198 .558

MWar4 Equal variances assumed .896 98 .372 .200 .223 -.243 .643

Equal variances not assumed .896 97.346 .372 .200 .223 -.243 .643

4.3.4 Structural equation model (SEM) Findings

This section presents Phase 3 and Phase 4 findings.

4.3.4.1 Measurement model

The measurement model was used to measure the reliability and validity of the

questionnaires used in this study survey. Straub, et al., (2004) point out that measuring the

reliability of the constructs would allow an assessment of to what extent a set of items are

consistent in what they intend to measure. The reliability of the constructs can be measured

by using Cronbach Alpha (α) and composite reliability measurements (Hair, et al., 2011). To

ensure whether a construct is reliable or not the cut-off value of Cronbach’s Alpha and

composite reliability is required to be 0.7, or 0.6 if we require it to be exploratory research

(Malhotra, 2004).

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4.3.4.1.1 Measurement model for reflective latent variables

The Cronbach’s alpha and composite reliability for email, social media, website, e-commerce,

mobile app, cloud services, e-business, transformed organisational, cost, organisational

readiness, governmental readiness, government and SMEs relationship, bank and SMEs

relationship, regulation, security, relative advantage, awareness, compatibility pressure, war

and firm size are above the recommended level of 0.7 (see Table 4-27).

Table 4-147: Cronbach’s alpha and composite reliability

Factors (reflective) Cronbach’s alpha Composite reliability

Email 0.817 0.892
Social Media 0.847 0.897
Website 0.901 0.938
E-Commerce 0.857 0.913
Mobile APP 0.938 0.960
Cloud services 0.909 0.956
e-Business 0.883 0.945
Transformed organisational 0.886 0.946
Cost 0.887 0.914
Organisational readiness 0.860 0.893
Governmental readiness 0.858 0.890
The relationships between 0.923 0.943
government and SMEs
The relationships between 0.900 0.926
banks and SMEs
Regulation 0.886 0.917
Security 0.853 0.911
Relative advantage 0.930 0.943
Awareness 0.894 0.922
Compatibility 0.880 0.926
Competitive pressure 0.834 0.889
War 0.827 0.881
Firm size 1.000 1.000

Table 4-28 shows the loadings and P-value of indicators. All indicators for latent variables

were found to be significant, and the combined loadings are higher than 0.5 and the p-value

less than 0.5.

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Table 04-158: Combined loadings and cross-loadings of indicators

Level1 (Email) Loadings P value

Email.1 0.898 <0.001
Email.2 0.838 <0.001
Email.3 0.832 <0.001
Level2 (Social Media) Loadings P value
Social Media.1 0.863 <0.001
Social Media.2 0.849 <0.001
Social Media.3 0.805 <0.001
Social Media.4 0.792 <0.001
Level3 (Website) Loadings P value
Website.1 0.927 <0.001
Website.2 0.927 <0.001
Website.3 0.886 <0.001
Level4 (E-commerce) Loadings P value
E-commerce.1 0.861 <0.001
E-commerce.2 0.918 <0.001
E-commerce.3 0.867 <0.001
Level5 (Mobile App) Loadings P value
Mobile App.1 0.941 <0.001
Mobile App.2 0.966 <0.001
Mobile App.3 0.923 <0.001
Level6 (Cloud Services) Loadings P value
Cloud Services.1 0.957 <0.001
Cloud Services.2 0.957 <0.001
Level7 (E-business) Loadings P value
E-business.1 0.946 <0.001
E-business.2 0.946 <0.001
Level8 (Transformed Organisational) Loadings P value
Transformed Organisational.1 0.948 <0.001
Transformed Organisational.2 0.948 <0.001
War Loadings P value
War1 873 <0.001
War2 892 <0.001
War3 879 <0.001
War4 554 <0.001
War5 627 <0.001
Firm Size Loadings P value
FirmSize 1.000 1.000

Table 4-29 shows the combined loadings and cross-loadings of indicators and the P-value. All

indicators for all latent variables were found to be significant, and the combined loadings

higher than 0.5, and the p-value less than 0.5.

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Table 4-29: Combined loadings and cross-loadings of indicators

Cost ORead GRead G.S.R B.S.R Regul Secur RelAd Aware Compat CPrs SE P value
Cost.1 0.790 0.007 0.069 0.213 -0.187 -0.122 0.155 0.035 -0.006 -0.163 0.093 0.060 <0.001
Cost.2 0.797 -0.008 0.098 0.145 -0.153 -0.117 0.100 -0.166 0.013 -0.034 0.163 0.060 <0.001
Cost.3 0.848 0.016 0.103 -0.012 -0.050 -0.133 0.089 -0.026 0.102 0.032 -0.002 0.059 <0.001
Cost.4 0.757 -0.029 -0.073 0.080 -0.033 -0.038 0.044 0.112 -0.179 0.212 -0.102 0.060 <0.001
Cost.5 0.830 0.033 -0.115 -0.197 0.217 0.199 -0.267 0.065 0.004 -0.053 -0.077 0.060 <0.001
Cost.6 0.778 -0.024 -0.089 -0.220 0.201 0.212 -0.116 -0.016 0.051 0.015 -0.078 0.060 <0.001
ORead.1 0.034 0.797 -0.028 -0.054 -0.032 -0.122 0.134 -0.012 0.012 -0.064 0.013 0.060 <0.001
ORead.2 0.053 0.668 -0.073 -0.110 0.180 -0.250 0.172 -0.061 -0.075 -0.070 0.124 0.061 <0.001
ORead.3 -0.029 0.807 -0.177 0.107 -0.017 0.162 -0.108 0.147 -0.076 -0.047 -0.056 0.060 <0.001
ORead.4 -0.074 0.808 -0.021 0.108 -0.056 -0.082 0.139 0.080 -0.115 0.103 -0.025 0.060 <0.001
ORead.5 -0.053 0.669 0.106 -0.131 0.095 0.029 -0.199 0.162 -0.070 0.133 -0.014 0.061 <0.001
ORead.6 0.031 0.743 0.102 0.015 -0.051 0.098 -0.155 -0.162 0.208 -0.151 0.107 0.061 <0.001
ORead.7 0.051 0.663 0.126 0.030 -0.092 0.162 0.002 -0.184 0.132 0.113 -0.147 0.061 <0.001
GRead.1 0.018 -0.095 0.712 -0.050 -0.068 -0.290 0.136 -0.143 0.211 -0.030 0.104 0.061 <0.001
GReadi.2 0.100 -0.010 0.719 -0.048 0.082 0.005 -0.107 0.083 0.037 -0.044 -0.016 0.061 <0.001
GRead.3 -0.012 0.007 0.806 0.233 -0.234 0.128 -0.131 0.201 0.010 -0.144 -0.035 0.060 <0.001
GRead.4 -0.071 0.106 0.814 0.103 -0.146 0.042 -0.005 -0.039 0.020 -0.100 0.065 0.060 <0.001
GRead.5 0.052 0.177 0.765 -0.118 0.089 -0.030 -0.044 0.045 -0.038 0.042 0.015 0.060 <0.001
GRead.6 -0.164 -0.127 0.709 0.065 -0.116 -0.002 0.110 -0.057 -0.200 0.104 0.090 0.061 <0.001
GRead.7 0.183 0.154 0.628 -0.530 0.636 0.286 -0.126 -0.078 0.062 0.016 -0.327 0.062 <0.001
GRead.8 -0.111 -0.320 0.620 0.354 -0.177 -0.179 0.250 -0.066 -0.138 0.271 0.085 0.063 <0.001
G.S.R.1 0.052 0.008 0.014 0.886 -0.107 -0.034 0.061 0.037 -0.040 0.004 0.037 0.059 <0.001
G.S.R.2 0.017 0.039 -0.027 0.912 -0.014 0.027 0.015 0.030 -0.071 0.012 -0.036 0.059 <0.001
G.S.R.3 0.046 0.017 0.091 0.921 0.054 0.051 -0.075 0.054 0.027 -0.083 0.011 0.059 <0.001
G.S.R.4 -0.006 -0.043 0.024 0.885 0.047 0.015 0.003 -0.002 0.093 -0.128 0.051 0.059 <0.001
G.S.R.5 -0.130 -0.026 -0.121 0.770 0.021 -0.071 -0.002 -0.140 -0.008 0.227 -0.072 0.060 <0.001
B.S.R.1 0.025 0.141 -0.141 -0.103 0.848 0.196 -0.045 0.055 0.016 -0.016 -0.087 0.059 <0.001
B.S.R.2 0.003 -0.007 -0.029 0.449 0.824 0.089 -0.050 0.063 -0.169 0.040 0.138 0.060 <0.001
B.S.R.3 -0.084 -0.054 0.047 0.006 0.907 -0.044 0.044 0.008 -0.002 -0.054 0.017 0.059 <0.001
B.S.R.4 0.028 -0.091 0.089 -0.306 0.865 0.020 -0.009 -0.003 -0.007 0.051 -0.035 0.059 <0.001
B.S.R.5 0.036 0.018 0.031 -0.029 0.782 -0.277 0.060 -0.133 0.170 -0.018 -0.033 0.060 <0.001
Regul.1 0.113 0.182 0.032 -0.144 0.160 0.735 -0.354 0.005 0.097 0.033 -0.139 0.061 <0.001
Regul.2 0.062 0.040 0.016 -0.155 0.079 0.851 0.044 -0.091 0.077 -0.141 -0.037 0.059 <0.001
Regul.3 -0.041 -0.025 -0.016 0.158 -0.103 0.902 0.016 0.049 -0.045 -0.006 0.004 0.059 <0.001
Regul.4 -0.021 -0.032 -0.063 0.071 -0.129 0.868 0.184 -0.042 -0.084 0.011 0.161 0.059 <0.001
Regul.5 -0.103 -0.149 0.040 0.042 0.026 0.787 0.062 0.085 -0.029 0.117 -0.012 0.060 <0.001
Secur.1 -0.018 -0.003 -0.066 0.078 -0.052 0.073 0.884 -0.132 -0.005 -0.047 0.072 0.059 <0.001
Secur.2 0.064 -0.034 0.046 -0.042 0.065 0.049 0.886 0.156 -0.089 0.054 -0.080 0.059 <0.001
Secur.3 -0.047 0.038 0.020 -0.037 -0.013 -0.125 0.868 -0.025 0.096 -0.007 0.008 0.059 <0.001
RelAd.1 0.001 -0.126 0.076 -0.064 0.068 -0.241 0.168 0.785 -0.095 0.190 0.085 0.060 <0.001
RelAd.2 -0.012 0.109 -0.200 0.035 0.022 0.171 -0.046 0.836 -0.011 0.163 -0.219 0.059 <0.001
RelAd.3 0.036 0.107 0.075 0.086 -0.041 -0.194 0.168 0.747 0.012 -0.033 0.094 0.060 <0.001
RelAd.4 -0.046 0.028 0.008 0.193 -0.225 0.262 -0.213 0.828 0.152 -0.107 0.036 0.060 <0.001
RelAd.5 -0.016 -0.023 -0.034 -0.098 0.066 0.119 -0.049 0.850 0.064 0.010 -0.214 0.059 <0.001
RelAd.6 0.043 0.012 -0.024 -0.022 0.062 -0.115 0.063 0.837 -0.019 -0.129 0.036 0.059 <0.001
RelAd.7 0.027 -0.057 0.130 0.067 -0.079 -0.150 0.001 0.813 -0.056 -0.065 0.117 0.060 <0.001
RelAd.8 -0.029 -0.045 -0.013 -0.181 0.119 0.105 -0.063 0.859 -0.050 -0.024 0.086 0.059 <0.001
Aware.1 0.157 -0.053 0.105 -0.117 -0.013 0.044 -0.091 0.157 0.838 0.008 0.047 0.059 <0.001
Aware.2 0.029 -0.039 0.278 -0.288 0.142 -0.135 0.014 0.029 0.828 0.097 -0.043 0.060 <0.001
Aware.3 -0.046 -0.009 -0.169 0.129 -0.104 0.208 -0.114 -0.046 0.859 -0.231 0.075 0.059 <0.001
Aware.4 -0.101 0.059 -0.042 0.157 -0.053 -0.112 0.286 -0.101 0.823 0.046 0.024 0.060 <0.001
Aware.5 -0.040 0.043 -0.164 0.115 0.031 -0.014 -0.086 -0.040 0.843 0.088 -0.104 0.059 <0.001
Compat.1 -0.003 0.096 -0.017 0.126 -0.143 -0.085 0.125 -0.016 0.121 0.883 -0.082 0.059 <0.001
Compat.2 -0.014 0.034 -0.023 -0.137 0.118 0.017 0.018 -0.162 -0.047 0.911 0.136 0.059 <0.001
Compat.3 0.017 -0.129 0.040 0.015 0.021 0.066 -0.141 0.179 -0.071 0.901 -0.057 0.059 <0.001
CPrs.1 -0.028 0.073 0.100 -0.001 -0.019 -0.102 0.120 -0.132 0.206 -0.273 0.814 0.060 <0.001
CPrs.2 0.042 0.018 0.046 0.049 -0.094 -0.195 0.076 -0.150 0.066 -0.022 0.819 0.060 <0.001
CPrs.3 -0.004 -0.016 -0.096 -0.055 0.155 0.122 -0.090 0.288 -0.195 0.225 0.820 0.060 <0.001
CPrs.4 -0.010 -0.075 -0.049 0.008 -0.044 0.174 -0.105 -0.008 -0.076 0.068 0.816 0.060 <0.001
Notes: ORead= Organisational readiness; GRead= Governmental readiness; G.S.R= Government and
SMEs Relationships; B.S.R= Bank and SMEs Relationships; Regul= Regulation; Secur= Security; RelAd=
Relative advantage; Aware= Awareness; Compat= Compatibility; CPrs= Competitive pressure.

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In addition, Table 4-30 shows the convergent validity which was measured by average

variance extracted (AVE). The results show the AVEs above the recommended level of 0.5.

Therefore, these latent variables have convergent validity.

Table 4-30: Average variance extracted (AVE)

Factors (reflective) AVE

Email 0.733
Social Media 0.686
Website 0.835
E-Commerce 0.779
Mobile APP 0.890
Cloud 0.916
e-Business 0.895
Transformed organisational 0.898
Cost 0.641
Organisational readiness 0.546
Governmental readiness 0.508
Government open data 0.768
Bank open data 0.716
Regulation 0.690
Security 0.773
Relative advantage 0.673
Awareness 0.703
Compatibility 0.807
Competitive pressure 0.668
War 0.606
Firm size 1.000

Tables 4-31 and 4-32, show that all of the square roots of AVEs are greater than the

correlation of the relevant construct. Therefore, there is acceptable discriminate validity

created for each latent variable. The square roots of AVEs for each construct are in bold font.

Table 04-31: Square roots of average variances extracted (AVEs)

Factors (reflective) Square roots of average variances extracted (AVEs)

Email 0.856
Social Media 0.828
Website 0.914
E-Commerce 0.882
Mobile APP 0.943
Cloud 0.957
e-Business 0.946
Transformed organisational 0.948

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 War 0.779
Firm Size 1.000

Table 04-162: Square roots of average variances extracted (AVEs)

Cost ORead GRead G.S.R B.S.R Regul Secur RelAd Aware Compat CPrs
Cost 0.800 -0.034 0.011 -0.034 -0.114 0.117 0.111 0.021 0.085 0.145 0.043
ORead -0.034 0.739 0.268 0.185 0.317 0.058 0.024 0.219 0.285 0.404 0.264
GRead 0.011 0.268 0.713 0.463 0.452 0.554 0.388 0.155 0.151 0.185 0.020
G.S.R -0.034 0.185 0.463 0.876 0.694 0.408 0.314 0.011 0.124 0.112 0.056
B.S.R -0.114 0.317 0.452 0.694 0.846 0.292 0.263 0.222 0.249 0.284 0.178
Regul 0.117 0.058 0.554 0.408 0.292 0.831 0.670 0.052 0.081 0.028 0.085
Secur 0.111 0.024 0.388 0.314 0.263 0.670 0.879 0.083 0.090 0.097 0.058
RelAd 0.021 0.219 0.155 0.011 0.222 0.052 0.083 0.820 0.480 0.389 0.513
Aware 0.085 0.285 0.151 0.124 0.249 0.081 0.090 0.480 0.838 0.527 0.462
Compat 0.145 0.404 0.185 0.112 0.284 0.028 0.097 0.389 0.527 0.898 0.457
CPrs 0.043 0.264 0.020 0.056 0.178 0.085 0.058 0.513 0.462 0.457 0.817
Notes: ORead= Organisational readiness; GRead= Governmental readiness; G.S.R= Government and
SMEs Relationships; B.S.R= Bank and SMEs Relationships; Regul= Regulation; Secur= Security; RelAd=
Relative advantage; Aware= Awareness; Compat= Compatibility; CPrs= Competitive pressure.

4.3.4.2 Structural model

4.3.4.2.1 Structural model for level 1 (Email)

Three out of the seven barriers are found to have a significant positive effect on level 1 (email)

adoption as follows: cost (β=0.16, P<.01), organisational readiness (β=0.29, P<.01) and

regulation (β=0.14, P=0.02) have a significant positive effect on level 1 email adoption. On the

other hand, governmental readiness (β=0.04, P=0.28), governmental and SMEs’ relationships

(β=0.10, P=0.07), bank and SMEs’ relationships (β=0.10, P=0.07) and security (β=0.05,

P=0.25) have no effect at level 1 (email) adoption. However, only awareness (β=0.26, P<.01),

out of the four drivers, has been found to have a significant effect on level 1 (email) adoption.

While relative advantage (β=0.00, P0.48), compatibility (β=0.1, P=0.42) and competitive

pressure (β=0.07, P=0.16) have no effect level 1 (email) adoption (see Figure 4-3).

The effect of size on cost, organisational readiness, regulations, and awareness are 0.025,

0.111, 0.027 and 0.087. These results indicate that organisational readiness, cost, regulations,

and awareness have a small effect on level 1 (email) adoption.

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The R square is the second point used to judge a structural model. The results show that cost,

organisational readiness, regulations, and awareness together explain 22% of the variance in

level 1 (email).

As shown in Table 4-33, the Q2 for level 1(email) adoption=0.306 is greater than zero. This

result shows that the model’s predictive validity is convinced.

Table 04-173: The influence of Exogenous LVs on the Endogenous LVs (Email)

(Path) (level 1, Email) Path Coefficient (β) S.E P-Value

Exogenous > Endogenous
Cost > Email 0.16 0.068 <0.01 0.025 0.22 0.31
Organisational readiness 0.29 0.066 <0.01 0.111
> Email
Regulation > Email 0.14 0.068 0.02 0.027
Awareness > Email 0.26 0.066 <0.01 0.087
Note: LVs= Latent Variables, Endogenous Variables= Dependent Variables and Exogenous Variables=
Independent Variables. S.E= Standard errors for path coefficients and = Effect sizes for path coefficients.

The results reveal that the cost of accessing the internet is high and the cost of ICT

infrastructure is high, which causes them not to adopt email. In terms of organisational

readiness, the results show that most of the employees have insufficient access to computers,

and most of the employees are computer/internet illiterate. In terms of regulations, the

results reveal that most of the SMEs do not know that there exists a telecommunication

regulatory authority, and whether policies exist to protect all entities against fraud. In terms

of awareness, the results show that SMEs are aware of their competitors’ technological

implementations that drive the company to move toward adopting new technologies.

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Figure 04-3: Level 1(Email)

Cost

β=0.16
P<0.01

Email β=0.26 Awareness

Organisational β=0.29
P<0.01
Readiness P<0.01

R² = 0.22
β=0.14
P=0.02
Regulation

134
4.3.4.2.2 Structural model for level 2 (Social media)

Figure 4.4 illustrates that four out of the seven barriers are found to have a significant positive

effect on level 2 (Social Media) adoption as follows: Cost (β=0.16, P<0.01); organisational

readiness (β=0.14, P<0.02); governmental readiness (β=0.15, P<0.02), and regulation (β=0.17,

P<0.01) have a positive effect on level 2 (Social media) adoption. On the other hand,

governmental and SME relationships (β=0.07, P=0.14), bank and SME relationships (β=0.00,

P=0.49) and security (β=0.02, P=0.39) have no effect on level 2 (Social media) adoption.

However, two out of the four drivers are found to have a significant positive effect on level 2

(Social Media) adoption as follows: awareness (β=0.20, P<0.01) and competitive pressure

(β=0.15, P<0.01) have a significant effect on level 2 (Social media) adoption. While relative

advantage (β=0.02, P=0.38) and compatibility (β=0.05, P=0.25) have no effect on level 2

(Social media) adoption (see Figure 4-3).

The effective size for cost, organisational readiness, governmental readiness, regulation,

awareness and competitive pressure are 0.021, 0.033, 0.035, 0.032, 0.072 and 0.012. The

results indicate that cost, organisational readiness, governmental readiness, regulations,

awareness and competitive pressure have a small effect on level 2 (Social media) adoption.

R square was also used to judge the structural model. The results show that cost,

organisational readiness, governmental readiness, regulation, awareness and competitive

pressure together explain 15% of the variance in level 2 (Social Media).

As shown in Table 4-34 the Q2 for level 2 (Social Media) adoption =0.252 which is greater than

zero. This result shows that the model’s predictive validity is convinced.

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Table 4-184: The influence of Exogenous LVs on the Endogenous LVs (Social Media)

(Path) (level 2, Social Path Coefficient (β) S.E P-Value

Media)
Exogenous > Endogenous
Cost > Social Media 0.16 0.068 <0.01 0.021 0.15 0.252
Organisational readiness> 0.14 0.068 <0.02 0.033
Social Media
Governmental readiness > 0.15 0.068 < 0.02 0.035
Social Media
Regulation > Social Media 0.17 0.068 <0.01 0.032
Awareness > Social Media 0.20 0.067 <0.01 0.072
Competitive pressure> 0.15 0.069 <0.01 0.012
Social Media
Note: LVs= Latent Variables, Endogenous Variables= Dependent Variables and Exogenous Variables=
Independent Variables. S.E= Standard errors for path coefficients and F^2= Effect sizes for path coefficients.

The results show that the cost of accessing the internet is high and the cost of ICT

infrastructure is high, which causes them not to adopt social media. In terms of organisational

readiness, the results show that most of the employees have insufficient access to a

computer, and most of the employees are computer/internet illiterate. In terms of

governmental readiness, the results show that there were interruptions in electricity power

and the internet connection speed was slow. In terms of regulation, the results show that

most of the SMEs do not know if a telecommunications regulatory authority exists and if there

are policies to protect all entities against fraud. Additionally, the results show that SMEs are

aware of competitors’ technological implementations, which are driving the company to

move towards adopting new technologies. In terms of competitive pressure, the results show

that firms that readily implement new technologies would be competitive, and they will lose

customers if they do not adopt these technologies.

With regards to drivers, banks’ ICT infrastructure, government readiness, relative advantage,

strategy, and awareness are the drivers found to have an impact on the adoption of e-

136
business activities. War was found to have an impact between the barriers, drivers and the

adoption of e-business activities.

137
Figure 04-4: Level2 (Social Media)

Cost

Awareness
β=0.16
P<0.01
Organisational β=0.20
Readiness P<0.01
β=0.14
P=0.02
Social Media

β=0.15
Governmental P<0.01 β=0.15
Readiness
R² = 0.15 P<0.01
Competitive
Pressure
β=0.157
P<0.01

Regulation

138
C1 Company interview results

The results for level 2 (social media), show that there were some anomalous results that

required being investigated. Therefore, an interview was conducted with a company C1

manager at level 1 (email) based on their quantitative results. The anomalous result was that

the C1 company does not have any issues with regards to the adoption of e-business, whereas

the C1 company is still at level 1 (email). C1 Company does not consider cost as a barrier to

adoption, while the other companies considered cost to be an issue. The C1 manager was

asked why they are still at level 1 (email), even though they have all the financial and human

resources requirements for adopting more advanced technologies. The C1 manager replied:

“The cost of adopting new technologies is not an issue for our company, even
though the cost is high” and “we have experts in the field of internet
technologies”.

The C1 manager was asked again about the reasons behind these delays. The C1 manager

said: the delay in adopting these technologies has been due to:

“The Company’s philosophy is that the use of the internet is a waste of time;
personally I agree with this opinion. We do not think and feel that we will gain a
lot of benefit from adopting e-business activities”.

The C1 manager then added:

“In fact, there is a conviction among the company’s management and employees
that the benefits that could be gained from adopting e-business activities are
little in these days and the current country situation. Who can convince us firstly?
We have complete accountancy software installed in across the department and
branches which does the job”.

The C1 manager had opposing views to his previous comments by saying:

“We started to benefit from internet technology in terms of connecting the

surveillance cameras with our branches, which enables us to control the branches
from anywhere and anytime”.

The C1 manager was asked about his answer in the survey that the use of e-business will

expand the company’s share in the market. He replied:

139
 “I meant when I answered the survey, the use of e-business would expand our
share in the market, in terms of marketing and exports in the future”.

The C1 manager was asked if they have a strategy regarding expanding in the market. He

replied:

“Currently we do not have a strategy in place regarding the adoption of e-

business and expanding the market share. We think that the benefits we will get
from adopting e-business are weak and not worth the investment”.

The C1 manager was asked if there are other barriers that prevent them from adopting e-

business. He said:

“My company does not face any barriers and challenges from one side. From
another side, it could be due to the other organisation's partners we work with
who do not use these technologies. Also the lack of ICT infrastructure in the
country”.

The C1 manager was asked about when and how his company can be convinced to adopt e-

business. He said:

“Once the organisation's partners and competitors adopt e-business activities and
the country’s ICT infrastructure improves we will adopt e-business as other
organisations”.

The C1 manager was asked about how he will he know about the country’s ICT infrastructure

improvement. He said:

“How we could deal with the government, whereas the government almost all
work that government’s institutions do are manually not electronic”.

From his reply, it could be understood that he just assumed that the government does not

use e-Systems, which would make it difficult for his company to deal with and have

relationships with the government. There might, therefore, be a lack of communication

between SMEs and the government. It can be understood from C1’s comment that there is

perhaps a lack of understanding and awareness of the benefit of e-business. This lack of

awareness would delay their decision towards its adoption. Opposing the C1 comment about

140
no benefits being gained from adopting internet technology, they commented on a different

question that they have gained benefits from using the internet. It seems to be that company

C1 does not know what the benefits of e-business actually are. There is a lack of knowledge

within the management department. It seems to be that the C1 Company does not have a

clear strategy towards expanding their market share and adopting e-business technology.

C1 Company might not adopt e-business for their benefit but to keep up with competitors.

The following is a summary of the interpretation of anomalous quantitative results from the

interview with the C1 Company:

1- C1 company philosophy is that the use of the internet is a waste of time

2- The current war has affected the ICT infrastructure

3- The benefits that can be gained from adopting e-business activities are not worth the

investment

4- They will adopt e-business not for the benefit they may gain, but if their competitors

do so first

4.3.4.2.3 Structural model for level 3 (Website)

Figure 4.5 illustrates that two out of the seven barriers: cost (β=0.12, P<0.04) and

organisational readiness (β=0.24, P<0.01) have a positive effect on level 3 (website) adoption.

On the other hand, governmental readiness (β=0.10, P=0.7), governmental and SME

relationships (β=0.11, P=0.05), bank and SME relationships (β=0.03, P=0.33), regulations

(β=0.02, P=0.41) and security (β=0.00, P=0.49) have no effect on level 3 (website) adoption.

However, only awareness (β=0.19, P<0.01) out of the four drivers has a significant effect on

level 3 (website) adoption. Whereas, relative advantage (β=0.00, P=0.47), compatibility

141
(β=0.06, P=0.18) and competitive pressure (β=0.07, P=0.17) have no effect on level 3

(website) adoption (see Figure 4-4).

The effective size for cost, organisational readiness and awareness are 0.019, 0.084, and

0.061. The results indicate that cost, organisational readiness and awareness have a small

effect on level 3 (Website) adoption.

R square was also used to judge a structural model. The results show that cost, organisational

readiness and awareness together, explain 20% of the variance in level 3 (Website).

As shown in Table 4-35 Q2 for level 3 (Website) adoption = 0.253 which is greater than zero.

This result tells us that the model’s predictive validity is convinced.

Table 4-195: The influence of Exogenous LVs on the Endogenous LVs (Website)

(Path) (level 2, Website) Path Coefficient S.E P-Value

Exogenous > Endogenous (β)
Cost > Website 0.12 0.068 <0.04 0.019 0.23 0.253
Organisational readiness> Website 0.24 0.067 <0.01 0.084
Awareness > Website 0.19 0.067 <0.01 0.061
Note: LVs= Latent Variables, Endogenous Variables= Dependent Variables and Exogenous Variables=
Independent Variables. S.E= Standard errors for path coefficients and F^2= Effect sizes for path coefficients.

The results show that the cost of accessing the internet and implementing ICT infrastructure

and hosting a website is high, which may cause them not to adopt a website. In terms of

organisational readiness, the results show that most of the employees have insufficient

access to a computer and most of the employees are computer/internet illiterate.

Additionally, the results show that SMEs are aware of competitors’ technological

implementations and they consider these to drive the company to move towards adopting

new technologies.

142
Figure 04-5: Level 3 (Website)

Cost

β=0.12
P<0.04

Website β=0.19 Awareness

Organisational β=0.24
P<0.01
Readiness P<0.01

R² = 0.23

143
C2 Company

The results for level 2 (social media) show that there are some anomalous results that

required being investigated. Therefore, an interview was conducted with a company C1

manager at level 1 (email) based on their quantitative results. In addition, an interview was

conducted with a company C2 owner at level 2 (Social Media) based on his quantitative

results. The anomalous result was that the C2 Company has all the financial and human

resources to adopt more advanced e-business but they have not adopted it yet.

The C2 owner was asked the reasons behind the delay in adopting e-business. The C2

owner replied:

“The customers are the primary barrier as they do not have bank accounts and
visa debit cards to purchase products, and a high number of our target audience
does not have any idea about these technologies”.

The C2 owner was asked about the reasons. He said:

“Because they do not trust banks and these technologies, even though the bank is
issuing visa cards”.

The C2 owner was asked if they know about the number of bank accounts and visa cards

holders. He replied:

“No”.

He was asked about the reasons. He said:

“Because we don’t have any communication with banks”.

Again, he was asked why there was no communication. He said:

“The banks always require complicated guarantees to save themselves when

individuals and companies request some sort of facilities they need. Also, because
they do not respect the law. Therefore, non-law enforcement means lost rights”.

144
Company C2 thinks there is a lack of awareness and understanding of the importance of

buying online amongst their customers due to the customers not trusting these

technologies. From the company C2 comment, it can be understood that company C2 is just

making assumptions about their customers’ activities. As company C2 mentioned above, the

banks issue visa cards but their customers do not have bank accounts and visa cards.

Company C2 has a lack of awareness of their customers as they do not know the exact

number of bank accounts and visa card holders. To conclude, there is a lack of relationships

between the banking industry and SMEs.

The following is a summary of the interpretation of anomalous quantitative results from the

interview with the C2 Company:

1- Lack of coordination with the banking industry

2- Lack of awareness and understanding of the benefit of e-business

3- Lack of research into customers’ internet activities

C3 Company

The results for level 2 (Social Media) also show that there were some anomalous results that

required being investigated. Therefore, an interview was conducted with a company C3

owner at level 2 (Social Media) based on his quantitative results. The anomalous result was

that the C3 Company sells and communicates with customers and suppliers via email. Also,

the C3 Company are aware of e-business activities and are ready to adopt but are not

adopting. The C3 owner was asked,

“You have mentioned in the questionnaires that adopting e-business is not

costly, but your company is still in the early stages, and also you mentioned your
company has gained many benefits by using email and social media. Please tell
me the reasons behind the delay in adopting e-business.”

145
The C3 owner replied:

Adopting e-business activities is important and it was one of our priorities. We

have experienced many benefits from using email and social media in our work.
Therefore, we think we will gain even more benefits from adopting e-business
activities such as expanding our share in the market, and the number of
customers and sales will increase and the company will grow”.

The C3 owner added:

“However, new technologies such as cloud computing will make the cost of
adopting e-business activities much cheaper and we have the skilled employees
who will be able to cope with the changes. Unfortunately, in Yemen, most of the
consumers belong to tribes, which makes it difficult to attract them and convince
them to buy and pay online, and the number of internet users is too low.
However, we have started the first step toward e-business adoption by adopting
email and social media. We are always ready to make changes once we notice
the consumers have moved forward to adopting internet technology, otherwise
we will not”.

The C3 owner added:

“The war has also affected our strategy and the country’s infrastructure such as
the power being interrupted, so the internet speed connection becomes slow.
Therefore, we have delayed our decision until the country settles and the war
stops”.

The C3 owner was asked a question based on the previous comment about how
they received information about the number of internet users. He replied:

“We had a statistical report back in 2003, but we have not had any update since
and we do not know the exact number now”.

The C3 owner was asked how they will adopt e-business in the future if they do not know

the number of internet users, as they mentioned they will move once the consumers move.

He said:

“We will keep predicting the number of internet users based on the environment
around us such as the number of internet users in my home area. Because it is not
easy to get hold of the correct statistical report on internet users in the country”.

146
The C3 owner was asked if he decided to adopt e-business based on the rapid increase in

internet users, but the country and banking industry ICT infrastructure remains weak, what

will you do?

He replied:

“Definitely, we will request from them to develop their ICT infrastructure.

However, there are many issues that need to be in place before we adopt e-
business activities such as electronic payment systems, regulations, trust and post
services”.

The C3 owner was asked to provide more in-depth information about the comment above.
He said:

“The big challenge we will face in adopting e-business activities is trust between
the consumers and firms. How will I trust the consumers to pay me, how will the
consumers trust me to deliver the products they paid for”.

The C3 owner added:

“As I mentioned earlier, most of the consumers belong to tribes and they do not
trust internet technologies, and I predict if we adopt e-business activities only a
few of the consumers will cope with it and the rest will carry on traditionally.
People need to be educated about the importance of the use of e-business
activities”.

It can be noted from the C3 owner’s comments that his company has an understanding and

awareness of the benefits of e-business adoption as they are willing to adopt more

technologies in the near future. However, company C3 is still facing challenges as they think

their customers need to be aware of the benefits of e-business before they adopt. Company

C3 is just predicting the number of internet users by the number of internet users living

around the company. Therefore, it can be claimed that company C3 has a lack of

understanding of their customers and the number of internet users, which will delay their

decision more. It can also be understood that the current war has had a huge impact on the

country’s infrastructure and company C3’s strategy, which will delay their decision.

147
The following is a summary of the interpretation of anomalous quantitative results from the

interview with the C3 Company:

1- War has affected the ICT infrastructure

2- Lack of understanding of their customers and the number of internet users will delay

their decision more

C4 Company

The results for level 2 (Social Media), show that there were some anomalous results that

required being investigated. Therefore, an interview was conducted with a company C4

owner at level 2 (Social Media) based on his quantitative results. The anomalous result was

that the C4 Company is still at an early stage, even though they are aware of the importance

of e-business and the benefits that the company may gain. They also have a strategy in place

to develop a website and adopt e-business activities, but they are still at an early stage. The

C4 owner was asked about the reasons for not adopting e-business. The C4 owner replied:

“The current war has impacted our short-term strategy of adopting e-business.
We just only delayed the decision until the war has settled.”

The C4 owner added:

“The deterioration of the economy has also impacted the consumers’ ability to
buy as used to be. Also, it is due to the difficulty of the importing process and the
increase in insurance fees”.

The C4 owner was asked if there are any other challenges. He said:

“The government does not encourage investments and development in the

country, and they do not provide all sorts of support. Also, the increase in customs
fees, foreign currencies are not available, the country is not secure and the
increase in the shipping rates.”

The C4 owner was asked if they have a relationship with the government. He said:

“LOL HAHAHAHAHAH, you really made me laugh, we all need the government to
be away from us and we will adopt e-business activities”.

148
The C4 owner was asked why his company wants to adopt e-business. He said:

“Adopting e-business activities will gain my company many benefits, such as

hitting the targets at low cost and in less time, and we can monitor the customer
feedback easier. It will enable us to understand how our competitors work.”

It can be noted from the company C4 owner’s comments that his company has a strategy for

adopting e-business in place, and they have just delayed their decision on e-business

adoption due to the current war which has had an effect on the ICT infrastructure. Company

C4 is aware of the potential benefits of e-business adoption. Also, company C4 has

knowledge about their customers. The lack of government support has also had an impact

on their decision, and lack of knowledge amongst the customers has had an impact on their

decision. It seems that there is a lack of trust between the government and company C4.

The following is a summary of the interpretation of anomalous quantitative results from the

interview with the C4 Company:

1- War has affected the ICT infrastructure and strategy

2- The deterioration of the economy has also impacted the consumers’ ability to buy as they

used to

3- There are difficulties due to the importing process and the increase in insurance fees

4- The government does not encourage investment and the development of the country,

and they do not provide all sorts of support

4.3.4.2.4 Structural model for level 4 (e-Commerce)

Figure 4-6 illustrates that two out of the seven barriers: organisational (β=0.21, P<.01) and

regulations (β=0.18, P<.01) have a positive effect on level 4 (e-commerce) adoption. While

cost (β=0.03, P=0.32), governmental readiness (β=0.04, P=0.29), governmental and SME

relationships (β=0.09, P=0.11), bank and SME relationships (β=0.10, P=0.08), and security

149
(β=0.05, P=0.23) have no effect on level 4 (e-commerce) adoption. However, two out of the

four drivers: awareness (β=0.27, P<.01) and competitive pressure (β=0.15, P=.02) have a

positive effect on level 4 (e-commerce) adoption. Whereas, relative advantage (β=0.01,

P=0.43), compatibility (β=0.00 P=0.47) have no effect on level 5 (e-commerce) adoption (see

Figure 5.5). The effective size for organisational readiness, regulations, awareness and

competitive pressure are 0.060, 0.051, 0.112 and 0.048. The results indicate that

organisational readiness, regulations, awareness and competitive pressure have a small effect

on level 4 (e-commerce) adoption.

R square was also used to judge the structural model. The results show that organisational

readiness, regulations, awareness and competitive pressure explain 28% of the variance in

level 4 (e-commerce). As shown in Table 4-36, Q2 for level 4 (e-commerce) adoption = 0.284,

which is greater than zero. This result tells us that the model’s predictive validity is convinced.

Table 04-206: The influence of Exogenous LVs on the Endogenous LVs (E-commerce)

(Path) ( level 4, e-commerce) Path S.E P-Value

Exogenous > Endogenous Coefficient (β)
Organisational readiness> E-commerce 0.21 0.067 <0.01 0.060 0.28 0.284
Regulation > E-commerce 0.18 0.067 <0.01 0.051
Awareness > E-commerce 0.27 0.066 <0.01 0.112
Competitive pressure > E-commerce 0.15 0.068 <0.01 0.048
Note: LVs= Latent Variables, Endogenous Variables= Dependent Variables and Exogenous Variables=
Independent Variables. S.E= Standard errors for path coefficients and F^2= Effect sizes for path coefficients.

The results show that most of the employees have insufficient access to a computer and

most of the employees are computer/internet illiterate. In terms of regulations, the results

show that most SMEs do not know if a telecommunications regulatory authority exists, and

if policies exist to protect all entities against fraud; in addition, there is an absence of e-

commerce policy and regulations. Additionally, the results show that SMEs are aware of

competitors’ technological implementations and they consider these to drive the company

150
to move towards adopting new technologies, as well as recognising the opportunities and

threats associated with e-commerce. In terms of competitive pressure, the results show that

firms that readily implement e-commerce will be competitive and they will lose customers if

they do not adopt these technologies.

151
Figure 04-6: Level 4 (e-Commerce)

Awareness

Organisational β=0.21 β=0.27

Readiness P<0.01 P<0.01
E-Commerce

β=0.15
R² = 0.28 P=0.02 Competitive
β=0.18 Pressure
P<0.01
Regulation

152
C5 Company

The results for level 2 (Social media), show that there were some anomalous results that

required being investigated. Therefore, an interview was conducted with a company C5

owner at level 3 (Website) based on his quantitative results. The anomalous result was that

the C5 Company is at level 3 (website) and is really active over the internet and

communicates with customers and suppliers via email. Also, the C5 Company uses social

media, and a website, as a good platform to market their goods and attract customers. The

C5 Company is aware about e-business activities and is ready to adopt more e-business

activities, but is not adopting them. The C5 owner was asked about the reasons behind not

using social media and a website for sales purposes. The C5 owner replied:

“Unfortunately, we won’t be able to do so as we are a biscuit, sweet and dessert

supplier and distributor. It is difficult to do sales over the internet due to the low
level of our client’s education and they do not trust computers, the internet, and
technologies. We found it difficult to do business with them traditionally because
their thinking is limited and traditional”.

The C5 owner was asked to explain more and give evidence about the clients’ education

levels and why customers do not trust the internet. He said:

“They prefer to buy their products from local shops as they can touch the
products and compare the size and the type. Also, our clients prefer paying for
their goods in cash rather than transferring money to our bank account because
they think that the bank and internet will steal their money.”

The C5 owner was asked if there is anything else that has an impact on their decision. He
said:

“The war has had a huge impact on the speed of the internet and the power is
always interrupted.”

The C5 owner was asked if they can request the government to improve the internet
speed. He replied:

“Unfortunately, where is the government?”

153
The C5 owner was asked about their relationship with the banking industry based on his
answer in the quantitative survey. He said:

“Our relationship with banks are using our bank accounts and transferring our
employees’ salaries through our e-banking accounts to allow employees to
withdraw their salaries from ATM services”.

The C5 owner was asked what convinced them to use e-banking services. He replied:

“As we visit the banks on a daily basis to deposit and withdraw from our account,
the bank asked us if we would be interested in using e-banking. Our bank
manager spent time with me to explain to me the advantages of using e-banking
and supplied me with all the information regarding this. I was interested in this
service and I started using it and I made my staff use it too.”

The C5 owner was asked who could convince him to adopt e-business. He said:

“Based on the clients’ and consumers’ acceptance. Also once the suppliers adopt
e-business and force us to adopt it, we will adopt it, otherwise it will be difficult.”

He added:

“Consumers need be aware of the importance and the benefits of e-business. We

can adopt e-business quickly and easy. We need a technological revolution in the
country.”

It can be understood from the company C5 owner’s comments that despite them having a

good awareness of the potential benefits of e-business activities, the C5 Company still has a

lack of understanding about e-business activities. Company C5 thinks that there is a lack of

knowledge and awareness amongst the customers concerning the benefits of e-business,

which is having an impact on their decision.

The C5 Company has been affected by the current war; they claim that the war has affected

the country’s ICT infrastructure and internet speed. The C5 Company thinks there is no

government in the country, as they cannot notice any sort of support and help. It seems that

Company C5 has an awareness of the importance of technology as they have adopted e-

banking and they have gained many benefits. The C5 Company believes that they will not

154
 adopt e-business unless their suppliers adopt it and force them to. To summarise, the C5

owner’s comments show that he thinks the country needs a technological revolution.

The following is a summary of the interpretation of anomalous quantitative results from the

interview with the C5 Company:

1- The war has had a huge impact on the speed of the internet

2- The power is always interrupted

3- Waiting for the suppliers to adopt e-business first

4- Lack of relationship with the banking industry and government

Table 04-217: Summary of the interpretation of anomalous quantitative results

Anonymous issues Reason 1 Reason 2 Reason 3 Reason 4

C1 company does not have C1, thinks The current war Thinks the C1 will adopt e-
any issues with regards to the the internet is has affected the benefits are not business once its
adoption of e-business, a waste of ICT infrastructure worth the competitors do so
whereas C1 company is still time investment
at level 1 (email)
C2 Company has all the Lack of Lack of awareness Lack of research
financial and human coordination and into the
resources to adopt more with the understanding of customers’
advanced e-business but banking the benefit of e- internet activities
they have not adopted it yet industry business
C3 Company sells and War has Lack of
communicates with affected the understanding of
customers and suppliers by ICT their customers
email. Also, the C3 Company infrastructure and the number
is aware of e-business of internet users,
activities and is ready to which will delay
adopt them, but they have their decision
not adopted e-business more
C4 Company is still at an early War has The deterioration The difficulty of The government
stage, even though they are affected the of the economy the importing does not encourage
aware of the importance of ICT has also impacted process and the investment and the
e-business and the benefits infrastructure the consumers’ increase in development of the
that the company may gain and strategy ability to buy as insurance fees country, and they do
they used to not provide all sorts
of support
C5 Company is at level 3 The war has The power is Waiting for the Lack of relationship
(website) and is really active had a huge always suppliers to adopt with the banking
over the internet and impact on the interrupted e-business first industry and
communicates with speed of the government
customers and suppliers by internet
email

155
4.3.4.2.5 Structural model for level 5 (Mobile App)

Figure 4-7 illustrates that two out of the seven barriers - organisational readiness (β=0.15,

P<0.01) and governmental readiness (β=0.17, P<.01) - have a positive effect on level 5 (Mobile

App) adoption. While cost (β=0.02, P=0.36), governmental and SME relationships (β=0.10,

P=0.08), banking and SME relationships (β=0.06, P=0.19), regulations (β=0.09, P=0.09), and

security (β=0.02 P=0.40) have no effect on level 5 (Mobile App) adoption. However, three out

of the four drivers: awareness (β=0.37, P<.01), compatibility (β=0.15, P<.02) and competitive

pressure (β=0.28, P<.01) have a positive effect on level 5 (Mobile App) adoption. Whereas,

the relative advantage (β=0.04, P=0.30) has no effect on level 5 (Mobile App) adoption (see

Figure 4.7).

The effective size for organisational readiness, governmental readiness, awareness,

compatibility and competitive pressure are 0.034, 0.048, 0.176, 0.032 and 0.121. The results

indicate that awareness has a medium effect on level 5 (Mobile App) adoption; whereas

organisational readiness, governmental readiness, compatibility and competitive pressure

have a small effect on level 5 (Mobile App) adoption.

The R square was also used to judge the structural model. The results show that organisational

readiness, governmental readiness, awareness, compatibility and competitive pressure

explain 39% of the variance in level 5 (Mobile App).

As shown in Table 4-38 Q2 for level 5 (Mobile App) adoption = 0.358, which is greater than

zero. This result tells us that the model’s predictive validity is convinced.

Table 04-228: The influence of Exogenous LVs on the Endogenous LVs (Mobile APPs)

(Path) (level 5, Mobile APPs) Path S.E P-Value

Exogenous > Endogenous Coefficient (β)
Organisational readiness> Mobile APP 0.15 0.068 <0.01 0.036 0.39 0.358
Government readiness > Mobile APP 0.17 0.068 <0.01 0.047
Awareness > E-commerce 0.37 0.065 <0.01 0.171
Competibility> Mobile APP 0.15 0.068 <0.02 0.032
Competitive pressure > Mobile APP 0.28 0.066 <0.01 0.121

156
 Note: LVs= Latent Variables, Endogenous Variables= Dependent Variables and Exogenous Variables=
Independent Variables. S.E= Standard errors for path coefficients and F^2= Effect sizes for path coefficients.

The results show that most of the employees have insufficient access to a computer, and most

of the employees are computer/internet illiterate. In terms of governmental readiness, the

results show that electrical power is interrupted, the internet connection speed is slow, the

electronic payment system is not secure enough and available, and e-commerce applications

and services are not available in the market. Additionally, the results show that SMEs are

aware of competitors’ technological implementations, and they consider these to drive the

company to move towards adopting new technologies; in addition, they recognise the

opportunities and threats associated with e-commerce. In terms of compatibility, the results

show that for SMEs on the mobile apps level, the implementation of e-business is compatible

with the company’s ICT infrastructure and strategy. In terms of competitive pressure, the

results show that firms that readily implement e-commerce will be competitive and they will

lose customers if they do not adopt these technologies.

157
Figure 4-7: Level 5 (Mobile App)

Awareness

Organisational β=0.15 β=0.37

Readiness P<0.01 P<0.01
Mobile App β=0.15
P<0.02 Compatibility
β=0.28
R² = 0.39 P<0.01
β=0.17
P<0.01 Competitive
Government
Pressure
Readiness

158
4.3.4.2.6 Structural model for level 6 (Cloud Services)

Figure 4-8 illustrates that three out of the seven barriers: organisational readiness (β=0.13,

P=0.03), governmental readiness (β=0.20, P<0.01) and bank and SME relationships (β=0.13,

P=0.03) have a positive effect on level 6 (Cloud Services) adoption; while cost (β=0.06,

P=0.20), governmental and SME relationships (β=0.07, P=0.16), regulations (β=0.05, P=0.26)

and security (β=0.00, P=0.49) have no effect on level 6 (Cloud Services) adoption. However,

two out of the four drivers: awareness (β=0.20, P<.01) and competitive pressure (β=0.24,

P<.01) have a positive effect on level 6 (Cloud Services) adoption. On the other hand, relative

advantage (β=0.02, P=0.36) and compatibility (β=0.05, P=0.24) have no effect on level 6

(Cloud Services) adoption (see Figure 5.7).

The effective size of organisational readiness, governmental readiness, bank and SME

relationships, awareness and competitive pressure, are 0.043, 0.067, 0.047, 0.081 and 0.097

respectively. These results indicate that organisational readiness, governmental readiness,

bank and SME relationships, awareness and competitive pressure have a small effect on level

6 (Cloud Services) adoption.

R square was also used judge the structural model. The results show that organisational

readiness, governmental readiness, bank and SME relationships, awareness and competitive

pressure explain 34% of the variance in level 6 (Cloud Services).

As shown in Table 4.39, Q2 for level 6 (Cloud services) adoption = 0.339, which is greater than

zero. This result tells us that the model’s predictive validity is convinced.

159
Table 4-239: The influence of Exogenous LVs on the Endogenous LVs (Cloud Services)

(Path) ( level 6, Cloud) Path S.E P-Value

Exogenous > Endogenous Coefficient (β)
Organisational readiness> Cloud 0.13 0.068 <0.03 0.043 0.34 0.339
Government readiness > Cloud 0.20 0.067 <0.01 0.067
The relationships between Banks and 13 0.068 <0.03 0.047
SMEs> Cloud
Awareness > Cloud 0.20 0.067 <0.01 0.081
Competitive pressure > Cloud 0.24 0.067 <0.01 0.097
Note: LVs= Latent Variables, Endogenous Variables= Dependent Variables and Exogenous Variables=
Independent Variables. S.E= Standard errors for path coefficients and F^2= Effect sizes for path coefficients.

The results show that most of the employees have insufficient access to a computer, and most

of the employees are computer/internet illiterate and there is a lack of IT experts within the

firm. In terms of governmental readiness, the results show that electrical power is

interrupted, the internet connection speed is slow, and the electronic payment system is not

secure enough and available; in addition, e-commerce applications and services are not

available in the market. In terms of bank and SME relationships, the results reveal that there

is a lack of communication between banks and SMEs with regards to the implementation of

new technologies by the banking sector that could support SMEs in adopting advanced

technologies and supporting their technology strategy. Additionally, the results show that

SMEs are aware of competitors’ technological implementations, and they consider these to

drive the company to move towards adopting new technologies, as well as recognising the

opportunities and threats associated with e-commerce. In terms of competitive pressure, the

results show that firms that readily implement e-commerce will be competitive and they will

lose customers if they do not adopt these technologies.

160
Figure 04-8: Level 6 (Cloud Services)

Awareness

Organisational β=0.13 β=0.20

Readiness P<0.03 P<0.01
Cloud Service

β=0.20 β=0.24
Governmental R² = 0.34
P<0.01 P<0.01 Competitive
Readiness
pressure

β=0.13
P<0.03
The relationships
between Banks
and SMEs

161
4.3.4.2.7 Structural model for level 7 (E-business)

Figure 4-9 illustrates that three out of the seven barriers: cost (β=0.12, P<0.05), organisational

readiness (β=0.15, P<0.01) and governmental readiness (β=0.22, P<0.01) have a positive

effect on level 7 (E-business) adoption; while, governmental and SME relationships (β=0.01,

P=0.41), bank and SME relationships (β=0.05, P=0.24), regulations (β=0.11, P=0.05), and

security (β=0.04, P=0.30) have no effect on level 7 (E-business) adoption. However, three out

of the four drivers: awareness (β=0.23, P<0.01), compatibility (β=0.14, P>0.02) and

competitive pressure (β=0.17, P<0.01) have a positive effect on level 7 (E-business) adoption.

On the other hand, the relative advantage (β=0.00, P=0.49) has no effect on level 7 (E-

business) adoption (See Figure 4-8).

The effective size for cost, organisational readiness, governmental readiness, awareness,

compatibility and competitive pressure are 0.021, 0.061, 0.074, 0.100, 0.064 and 0.066

respectively. The results indicate that cost, organisational readiness, governmental readiness,

awareness, compatibility and competitive pressure have a small effect on level 7 (E-business)

adoption.

R square was also used to judge the structural model. The results show that cost,

organisational readiness, governmental readiness, awareness, compatibility and competitive

pressure explain 40% of the variance in level 7 (E-business).

As shown in Table 4-40, Q2 for level 7 (E-business) adoption = 0.405 which is greater than

zero. This result tells us that the model’s predictive validity is convinced.

162
Table 4-40: The influence of Exogenous LVs on the Endogenous LVs (E-business)

(Path) (level 7, E-business) Path S.E P-Value

Exogenous > Endogenous Coefficient (β)
Cost > E-business 0.12 0.068 <0.05 0.021
Organisational readiness> E-business 0.15 0.068 <0.01 0.061 0.40 0.405
Government readiness > E-business 0.22 0.067 <0.01 0.074
Awareness > E-Business 0.23 0.067 <0.01 0.100
Competibility> E-business 0.14 0.068 <0.02 0.064
Competitive pressure > E-business 0.17 0.067 <0.01 0.066
Note: LVs= Latent Variables, Endogenous Variables= Dependent Variables and Exogenous Variables=
Independent Variables. S.E= Standard errors for path coefficients and F^2= Effect sizes for path coefficients.

The results show that the cost of accessing the internet and implementing ICT infrastructure,

hosting a website and engaging in e-business activities, e-business applications, systems and

hardware, e-business training for employees and developing and maintaining the e-business

is high. In terms of organisational readiness, the results reveal that most of the employees

have insufficient access to a computer; most of the employees are computer/internet

illiterate, and there are not enough financial resources to implement e-business. In terms of

governmental readiness, the results show that electrical power is interrupted, internet

connection speed is slow, the electronic payment system is not secure enough and available,

e-business applications and services are not available in the market and postal services are

not reliable in supporting e-business. All these aforementioned barriers are delaying the

SMEs’ decision to adopt e-business. Additionally, the results show that SMEs are aware of

competitors’ technological implementations and they consider these to drive the company to

move towards adopting new technologies; they recognise the opportunities and threats

associated with e-business, and SME owners understand the potential benefits of e-business.

In terms of compatibility, the results show that for SMEs at the mobile apps level, the

implementation of e-business is compatible with the company’s ICT infrastructure and

strategy. In terms of competitive pressure, the results show that firms that readily implement

e-commerce will be competitive and they will lose customers if they do not adopt e-business.

163
Figure 04-9: Level 7 (E-Business)

Cost
Awareness
β=0.12 β=0.23
P<0.05 P<0.01

Organisational β=0.15 E-business β=0.14 Compatibility

Readiness P<0.01 P=0.02
β=0.17
R² = 0.40
P<0.01
β=0.22
P<0.01 Competitive
Governmental Pressure
Readiness

164
4.3.4.2.8 Structural model for level 8 (Transformed Organisational)

Figure 4-10 illustrates that two out of the seven barriers: governmental (β=0.21, P<.01) and

bank and SME relationships (β=0.13, P=0.03) have a positive effect on level 8 (Transformed

organisational) adoption; while cost (β=0.08, P=0.12), organisational readiness (β=0.06,

P=0.19), governmental and SME relationships (β=0.03, P=0.31), regulations (β=0.07, P=0.14)

and security (β=0.05, P=0.24) have no effect on level 8 (Transformed organisational) adoption.

However, three out of the four drivers: awareness (β=0.13, P=0.03), compatibility (β=0.15,

P<.01) and competitive pressure (β=0.16, P<.01) have a positive effect on level 8

(Transformed organisational) adoption. On the other hand, relative advantage (β=0.07,

P=0.16) has no effect on level 8 (Transformed organisational) adoption.

The effective size for governmental readiness, bank open data, awareness, compatibility, and

competitive pressure are 0.067, 0.045, 0.042, 0.055 and 0.049 respectively. The results

indicate that bank open data, security, compatibility and competitive pressure have a small

effect on level 8 (Transformed Organisational) adoption (see Figure 5.9).

R square was also used to judge the structural model. The results show that governmental

readiness, bank open data, awareness, compatibility, and competitive pressure explain 26%

of the variance in level 8 (Transformed organisational).

As shown in Table 4-41, Q2 for level 8 (Transformed Organisational) adoption = 260 which is

greater than zero. This result tells us that the model’s predictive validity is convinced.

Table 04-41: The influence of Exogenous LVs on the Endogenous LVs (Transformed Orginsational)

(Path) (level 8, Transformed Path S.E P-Value

Orginsational) Coefficient (β)
Exogenous > Endogenous
Government readiness > Transformed 0.21 0.067 <0.01 0.067 0.26 0.260
Orginsational
The relationships between Banks and 0.13 0.068 <0.03 0.045
SMEs > Transformed Orginsational

165
 Awareness > Transformed 0.13 0.068 <0.03 0.042
organisational
Compatibility > Transformed 0.15 0.068 <0.01 0.055
organisational
Competitive pressure > Transformed 0.16 0.068 <0.01 0.049
organisational
Note: LVs= Latent Variables, Endogenous Variables= Dependent Variables and Exogenous Variables=
Independent Variables. S.E= Standard errors for path coefficients and F^2= Effect sizes for path coefficients.

The results show that electrical power is interrupted, the internet connection speed is slow,

the electronic payment system is not secure enough or available, e-business applications and

services are not available in the market, and postal services are not reliable in supporting e-

business. All these barriers mentioned above are delaying SMEs’ decisions to adopt e-

business. Additionally, the results show that SMEs are aware of competitors’ technological

implementations and they consider these to drive the company to move towards adopting

new technologies; in addition, they recognise the opportunities and threats associated with

e-business, and SMEs’ owners understand the potential benefit of e-business. In terms of

compatibility, the results show that for the SMEs at the mobile apps level, the implementation

of e-business is compatible with the company’s ICT infrastructure and strategy. In terms of

competitive pressure, the results show that firms that readily implement e-commerce will be

competitive and they will lose customers if they do not adopt e-business.

166
Figure 04-10: Level 8 (Transformed Organisational)

Governmental
Awareness
Readiness
β=0.21 β=0.13
P<0.01 P=0.03

Transformed β=0.15
P<0.01 Compatibility
Organisationa
l

β=0.13 R² = 0.26 β=0.16

P=0.03
P<0.01
The relationships
between Banks Competitive
and SMEs Pressure

167
4.3.4.3 Summary of Significant and non-significant barriers
Table 4-42 summarises the significant and non-significant barriers that deter Yemeni SMEs

from adopting e-business. Cost, organisational readiness, and lack of regulations are barriers

to level 1 (Email). Cost, organisational readiness, governmental readiness, and regulations are

barriers to level 2 (Social Media). Cost and organisational readiness are barriers to level 3

(Website). Organisational readiness and regulation are barriers to level 4 (E-commerce).

Organisational readiness and governmental readiness are barriers to level 5 (Mobile App).

Organisational readiness, governmental readiness and banks and SME relationships are

barriers to level 6 (Cloud Services). Cost, organisational readiness, and governmental

readiness are barriers to level 7 (E-business). Governmental readiness and banks and SME

relationships are barriers to level 8 (Transformed Organisational). In addition, as shown in

Table 4-40, organisational readiness and governmental readiness have an effect on almost all

levels.

Table 4-242: Significant and non-significant Barriers

Email Social Media Website E-commerce Mobile App Cloud E-business Transformed
Services Organisational
Barrier Barrier Barrier Barrier Barrier Barrier Barrier Barrier
Cost Cost Cost Cost Cost Cost Cost Cost

Organisation Organisation Organisation Organisation Organisation Organisation Organisation Organisation

Readiness Readiness Readiness Readiness Readiness Readiness Readiness Readiness
Government Government Governmental Governmental Governmental Governmental Government Government
Readiness Readiness Readiness Readiness Readiness Readiness Readiness Readiness
Government and Government and Government and Government and Government and Government and Government and Government and
SMEs SMEs SMEs SMEs SMEs SMEs SMEs SMEs Relationships
Relationships Relationships Relationships Relationships Relationships Relationships Relationships
Banks and SMEs Banks and SMEs Banks and SMEs Banks and Banks and SMEs Banks and Banks and Banks and SMEs
Relationships Relationships Relationships SMEs Relationships SMEs SMEs Relationships
Relationships Relationships Relationships
Regulations Regulations Regulations Regulations Regulations Regulations Regulations Regulations
Security Security Security Security Security Security Security Security

4.3.4.4 Summary of Significant and non-significant Drivers

Table 4-43 summarises the significant and non-significant driver factors that push or prevent

Yemeni SMEs from adopting e-business. Awareness is the only factor that drives SMEs to

adopt level 1 (Email). Awareness and competitive pressure are factors that drive SMEs to

168
adopt level 2 (Social Media). Awareness is the only factor that drives SMEs to adopt level 3

(Website). Awareness and competitive pressure are factors driving SMEs to adopt level 4 (E-

commerce). Awareness, compatibility and competitive pressure are factors driving SMEs to

adopt level 5 (Mobile App). Awareness and competitive pressure are factors driving SMEs to

adopt for level 6 (Cloud Services). Awareness, compatibility and competitive pressure are

factors driving SMEs to adopt level 7 (E-business). Awareness, compatibility and competitive

pressure are factors driving SMEs to adopt level 8 (Transformed Organisational). In addition,

as shown in Table 4-41, awareness and competitive pressure have an effect on almost all

levels.

Table 4-253: Significant and non-Significant Drivers

Email Social Media Website E-commerce Mobile App Cloud E-business Transformed
Services Organisational
Driver Driver Driver Driver Driver Driver Driver Driver
Relative Relative Relative Relative Relative Relative Relative Relative
Advantage Advantage Advantage Advantage Advantage Advantage Advantage Advantage
Awareness Awareness Awareness Awareness Awareness Awareness Awareness Awareness
Compatibility Compatibility Compatibility Compatibility Compatibility Compatibility Compatibility Compatibility
Competitive Competitive Competitive Competitive Competitive Competitive Competitive Competitive
pressure pressure pressure pressure pressure pressure pressure pressure

4.3.4.5 Structural model for moderating variables (war and firm size)
4.3.4.5.1 Structural model for level 1 (Email) with moderating variables (war and firm

size)

Figure 4-11 illustrates the moderating variables (War and Firm Size) that moderate the

barriers and drivers. As shown in Figure 4-11, the moderator war has a significant moderating

effect on the relationship between organisational readiness and level 1 (Email) adoption. The

path coefficient of the moderating effect has a value of (β=0.14, P<.02). As the path coefficient

has a positive effect that moderates a positive direct relationship, the relationship between

organisational readiness and level 1 (Email) adoption will go up in value as war increases.

Additionally, the moderator war has a significant moderating effect on the relationship

between awareness and level 1 (Email) adoption. The path coefficient of the moderating

169
effect has a value of (β=0.23, P<.01). As the path coefficient has a positive effect that

moderates a positive direct relationship, the relationship between awareness and level 1

(Email) adoption will go up in value as war increases.

On the other hand, the moderating variable war does not have a significant moderating effect

on cost, regulation, and level 1 (Email) adoption. In terms of the moderating variable firm size,

the results show that the moderator firm size has a significant moderating effect on the

relationship between regulation and level 1 (Email) adoption. The path coefficient of the

moderating effect has a value of (β=0.12, P=0.04). As the path coefficient has a positive effect

that moderates a positive direct relationship, the relationship between regulation and level 1

(Email) adoption will go up in value as the firm gets bigger. Additionally, the moderator firm

size has a significant moderating effect on the relationship between awareness and level 1

(Email) adoption. The path coefficient of the moderating effect has a value of (β=0.23, P<.01).

As the path coefficient has a positive effect that moderates a positive direct relationship, the

relationship between awareness and level 1 (Email) adoption will go up in value as the firm

size gets bigger. On the other hand, the moderating variable firm size has no significant

moderating effect between cost, organisational readiness, and level 1 (Email) adoption.

170
Figure 04-11: Level 1 Email with moderating variables

Firm Size

β=0.03
Cost
P=0.32 β=0.12
β=0.12
P=0.03
P=0.04
β=0.11
P=0.05
β=0.07
P=0.17

β=0.16 Awareness
Organisational β=0.27 Email
P<0.01
Readiness P<0.01

R² = 0.31
β=0.23
β=0.11 β=0.14 β=0.06 P<0.01
P=0.05 P<0.02 P=0.19

Regulation
β=0.02
P=0.40

War
171
4.3.4.5.2 Structural model for level 2 (Social Media) with moderating variables (war and
firm size)
Figure 4-12 illustrates the moderating variables (War and Firm Size) that moderate the

barriers and drivers. As shown in Figure 5-11, the moderator war has a significant moderating

effect on the relationship between awareness and level 2 (Social Media) adoption. The path

coefficient of the moderating effect has a value of (β=0.19, P<.01). As the path coefficient has

a positive effect that moderates a positive direct relationship, the relationship between

awareness and level 2 (Social Media) adoption will go up in value as war increases. On the

other hand, the moderating variable war does not have a significant moderating effect

between cost, organisational readiness, regulation, competitive pressure and level 2 (Social

Media) adoption. In terms of the moderating variable firm size, the results show that the

moderator firm size has a significant moderating effect on the relationship between cost and

level 2 (Social Media) adoption. The path coefficient of the moderating effect has a value of

(β=0.12, P=0.04). As the path coefficient has a positive effect that moderates a positive direct

relationship, the relationship between cost and level 2 (Social Media) adoption will go up in

value as the firm size gets bigger. Moreover, the moderator firm size has a significant

moderating effect on the relationship between regulation and level 2 (Social Media) adoption.

The path coefficient of the moderating effect has a value of (β=0.31, P<.01). As the path

coefficient has a positive effect that moderates a positive direct relationship, the relationship

between regulation and level 2 (Social Media) adoption will go up in value as the firm gets

bigger. On the other hand, the moderating variable firm size has no significant moderating

effect between organisational readiness, governmental readiness, awareness, competitive

pressure and level 2 (Social Media) adoption.

172
Figure 4-12: Level 2 Social media with moderating variables

Firm Size

β=0.01
P=0.46

Cost
β=0.12 Awareness
β=0.02 P=0.04
P=0.39 β=0.10
P=0.07

Organisational β=0.13 Social Media

Readiness P=0.03
β=0.15
β=0.17 R² = 0.26 P=0.01 Competitive
P<0.01 β=0.07 β=0.19 Pressure
P=0.16 P<0.01

Governmental β=0.09
Readiness β=0.09 P=0.10
P=0.09 β=0.00
β=0.04 P=0.48
P=0.027
β=0.06
P=0.19

Regulation

War
173
4.3.4.5.3 Structural model for level 3 (Website) with moderating variables (war and firm
size)
Figure 4-13 illustrates the moderating variables (War and Firm Size) that moderate the

barriers and drivers. As shown in Figure 4-12, the moderator war has a significant moderating

effect on the relationship between awareness and level 3 (Website) adoption. The path

coefficient of the moderating effect has a value of (β=0.12, P=0.04). As the path coefficient

has a positive effect that moderates a positive direct relationship, the relationship between

awareness and level 3 (Website) adoption will go up in value as war increases. On the other

hand, the moderating variable war has no significant moderating effect between cost,

organisational readiness, and level 3 (Website) adoption.

174
Figure 04-23: Level 3 Website with moderating variables

Firm Size

β=0.00
Cost P=0.48

β=0.04 β=0.07
P=0.38 P=0.14

Website β=0.20 Awareness

P<0.01

R² = 0.25

β=0.26 β=0.07
P<0.01 β=0.12
P=0.16
Organisational P<0.04
Readiness

β=0.11
P=0.05

War

175
4.3.4.5.4 Structural model for level 4 (E-commerce) with moderating variables (war and
firm size)

Figure 4-14 illustrates the moderating variables (War and Firm Size) that moderate the

barriers and drivers. As shown in Figure 4-13, the moderator firm size has a significant

moderating effect on the relationship between regulations and level 4 (E-commerce)

adoption and the path coefficient has a value of (β=0.20, P<0.01). As the path coefficient has

a positive effect that moderates a positive direct relationship, the relationship between

regulation and level 4 (E-commerce) adoption will go up in value as the firm gets bigger.

Moreover, the moderator firm size has a significant moderating effect on the relationship

between awareness and level 4 (E-commerce) adoption and the path coefficient has a value

of (β=0.13, P=0.03). As the path coefficient has a positive effect that moderates a positive

direct relationship, the relationship between awareness and level 4 (E-commerce) adoption

will go up in value as the firm size increases. On the other hand, the moderating variable firm

size does not have a significant moderating effect between organisational readiness,

competitive pressure and level 4 (E-commerce) adoption. In terms of the moderating variable

war, the results show that this moderating variable has no significant moderating effect

between organisational readiness, regulations, awareness, competitive pressure and level 4

(E-commerce) adoption.

176
Figure 04-34: Level 4 E-Commerce with moderating variables

Firm Size

β=0.13
P=0.03

Awareness
β=0.05
Organisational β=0.22 P=0.25
β=0.22
Readiness P<0.01 P<0.01
E-Commerce

β=0.11
R² = 0.32 P=0.06 Competitive
β=0.09 β=0.06 Pressure
P=0.09 P=0.10
Regulation
β=0.02
β=0.04 P=0.39
β=0.08
P=0.27
P=0.12

War
177
4.3.4.5.5 Structural model for level 5 (Mobile App) with moderating variables (war and
firm size)
Figure 4-15 illustrates the moderating variables (War and Firm Size) that moderate the

barriers and drivers. As shown in Figure 4-14, the moderator firm size has a significant

moderating effect on the relationship between awareness and level 5 (Mobile App) adoption

and the path coefficient has a value of (β=0.15, P=0.02). As the path coefficient has a positive

effect that moderates a positive direct relationship, the relationship between awareness and

level 5 (Mobile App) adoption will go up in value as the firm size gets bigger. On the other

hand, the moderating variable firm size has no significant moderating effect between

organisational readiness, governmental readiness, compatibility, competitive pressure and

level 5 (Mobile App) adoption. In terms of the moderating variable war, the results show that

the moderating variable war has no significant moderating effect between organisational

readiness, governmental readiness, awareness, compatibility, competitive pressure and level

5 (Mobile App) adoption.

178
Figure 04-45: Level 5 Mobile App with moderating variables

Firm Size

β=0.15
P=0.02

Awareness
β=0.09
Organisational β=0.11 P=0.10 β=0.31
Readiness P=0.06 P<0.01
Mobile App

β=0.18
R² = 0.42 P<0.01 Compatibility
β=0.18
β=0.05 β=0.11
P<0.01
Governmental P=0.22 P=0.05
Readiness
β=0.05
P=0.25 β=0.30
β=0.02
P<0.01
P=0.41
Competitive
β=0.09 Pressure
P=0.08

War
179
4.3.4.5.6 A structural model for level 6 (Cloud Services) with moderating variables (war
and firm size).
Figure 4-16 illustrates the moderating variables (War and Firm Size) that moderate the

barriers and drivers. As shown in Figure 4-15, the moderator war has a significant moderating

effect on the relationship between awareness and level 6 (Cloud Services) adoption, and the

path coefficient has a value of (β=0.12, P=0.04). As the path coefficient has a positive effect

that moderates a positive direct relationship, the relationship between awareness and level

6 (Cloud Services) adoption will go up in value as war increases. On the other hand, the

moderating variable war has no significant moderating effect between organisational

readiness, governmental readiness, bank and SMEs relationships, competitive pressure and

level 6 (Cloud Services) adoption. In terms of the moderating variable firm size, the results

show that the moderating variable firm size has no significant moderating effect between

organisational readiness, governmental readiness, bank and SME relationships, awareness,

competitive pressure and level 6 (Cloud Services) adoption.

180
Figure 04-56: Level 6 Cloud Services with moderating variables

Firm Size

β=0.07
P=0.14

β=0.05
P=0.23 Awareness

Organisational β=0.11 β=0.14

Readiness P=0.06 P=0.02
Cloud Service

β=0.25
R² = 0.33 P<0.01 Competitive
β=0.18 Pressure
β=0.12
P<0.01 β=0.00
Governmental P=0.04
P=0.49
Readiness
β=0.04
β=0.00
P=0.27
β=0.12 P=0.48
P=0.04
β=0.02
P=0.40
Bank and SMEs
Relationships
War
181
4.3.4.5.7 A structural model for level 7 (E-business) with moderating variables (war and
firm size).
Figure 4-17 illustrates the moderating variables (War and Firm Size) that moderate the

barriers and drivers factor. As shown in Figure 4-16, the moderator war has a significant

moderating effect on the relationship between governmental readiness and level 7 (E-

business) adoption, and the path coefficient of the moderating effect has a value of (β=0.12,

P=0.04). As the path coefficient has a positive effect that moderates a positive direct

relationship, the relationship between governmental readiness and level 7 (E-business)

adoption will go up in value as war increases. Additionally, the moderator war has a significant

moderating effect on the relationship between awareness and level 7 (E-business) adoption,

and the path coefficient of the moderating effect has a value of (β=0.13, P=0.03). As the path

coefficient has a positive effect that moderates a positive direct relationship, the relationship

between awareness and level 7 (E-business) adoption will go up in value as war increases. On

the other hand, the moderating variable war has no significant moderating effect between

cost, organisational readiness, compatibility, competitive pressure and level 7 (E-business)

adoption. In terms of the moderating variable firm size, the moderator firm size has a

significant moderating effect on the relationship between cost and level 7 (E-business)

adoption and the path coefficient of the moderating effect has a value of (β=0.18, P<0.01). As

the path coefficient has a positive effect that moderates a positive direct relationship, the

relationship between cost and level 7 (E-business) adoption will go up in value as the firm gets

bigger. On the other hand, the moderating variable firm size has no significant moderating

effect between organisational readiness, governmental readiness, awareness, compatibility,

competitive pressure and level 7 (E-business) adoption.

182
Figure 4-67: Level 7 E-business with moderating variables

Firm Size

β=0.11
β=0.04
P=0.05
P=0.29
β=0.00
P=0.47
β=0.05
Cost β=0.18
P=0.23 Awareness
P<0.01
β=0.17 (R) 5i
β=0.19
P<0.01
P<0.01

Organisational β=0.18 E-business (R) β=0.16 Compatibility

Readiness P<0.01 2i P<0.01

R² = 0.37
β=0.19 β=0.19
β=0.11 β=0.13 P<0.01 Competitive
P<0.01
Governmental P=0.06 P=0.03 Pressure
β=0.07 β=0.02
Readiness P=0.36
P=0.16
β=0.05
β=0.12 P=0.25
P<0.04

War (R) 5i 183

4.3.4.5.8 A structural model for level 8 (Transformed Organisational) with moderating
variables (war and firm size)
Figure 4-18 illustrates the moderating variables (War and Firm Size) that moderate the

barriers and drivers. As shown in Figure 4-177, the moderator firm size has a significant

moderating effect on the relationship between awareness and level 8 (Transformed

Organisational) adoption and the path coefficient of the moderating effect has a value of

(β=0.12, P=0.04). As the path coefficient has a positive effect that moderates a positive direct

relationship, the relationship between awareness and level 8 (Transformed Organisational)

adoption will go up in value as the firm gets bigger. On the other hand, the moderating

variable firm size has no significant moderating effect on governmental readiness, bank and

SME relationships, compatibility, competitive pressure and level 8 (Transformed

Organisational) adoption. In terms of the moderating variable war, the results show that the

moderating variable war has no significant moderating effect between governmental

readiness, bank and SME relationships, awareness, compatibility, competitive pressure and

level 8 (Transformed Organisational) adoption.

184
Figure 04-78: Level 8 Transformed Organisational with moderating variables

Firm Size
(R) 1i

β=0.08
P=0.13
β=0.09
β=0.12
P=0.11
P=0.04 Awareness
Governmental β=0.01
β=0.07 (R) 5i
Readiness (R) 8i P=0.42 β=0.10
P=0.15
β=0.20 P=0.07
P<0.01
β=0.13 Compatibility
Transformed
P=0.03 (R) 3i
Organisational
(R) 2i
β=0.21
P<0.01
β=0.09 R² = 0.21
P=0.09 Competitive
β=0.12
Bank and SMEs Pressure
P=0.05
Relationships β=0.11 (R) 4i
(R) 5i P=0.06 β=0.05
β=0.01
P=0.25
P=0.45
β=0.04
P=0.28

War (R)
1855i
4.3.5 SMEs definitions differences t-test

Table 4-44 illustrates the differences between the Yemeni SMEs’ definition and European

SMEs’ definition. The data set was divided into two data set SMEs that have employees

between (1-49) and SMEs that have employees between (50-249). A t-test analysis was

conducted for both data sets. The results show that only organisational readiness would have

a difference concerning adopting Yemeni or European SMEs’ definition as the P value was less

than 0.05. Otherwise, the result was insignificant at P> 0.05, which means there is no

difference between adopting either definition.

Table 04-264: SMEs’ Definition T-Test

t-test for Equality of Means

95%
Confidence

Sig. Interval of the

(2- Mean Std. Error Difference

t df tailed) Difference Difference Lower Upper

L1Email1 Equal variances assumed -2.044 204 .042 -.402 .197 -.790 -.014

Equal variances not

-2.192 117.777 .030 -.402 .184 -.766 -.039
assumed
L1Email2 Equal variances assumed -2.332 204 .021 -.515 .221 -.951 -.080
Equal variances not
-2.485 116.044 .014 -.515 .207 -.926 -.105
assumed
L1Email3 Equal variances assumed -.165 204 .869 -.036 .219 -.469 .396
Equal variances not
-.164 100.353 .870 -.036 .220 -.474 .401
assumed
L2SocialMedia1 Equal variances assumed -.587 204 .558 -.123 .209 -.535 .289
Equal variances not
-.618 112.911 .538 -.123 .199 -.516 .271
assumed
L2SocialMedia2 Equal variances assumed .039 204 .969 .008 .203 -.392 .408
Equal variances not
.040 106.761 .968 .008 .198 -.384 .400
assumed
L2SocialMedia3 Equal variances assumed .318 204 .751 .066 .208 -.343 .475
Equal variances not
.332 111.575 .740 .066 .198 -.327 .459
assumed
L2SocialMedia4 Equal variances assumed -1.722 204 .087 -.352 .205 -.756 .051

186
 Equal variances not
-1.909 127.320 .058 -.352 .185 -.718 .013
assumed
L3Website1 Equal variances assumed -1.528 204 .128 -.362 .237 -.830 .105
Equal variances not
-1.630 116.522 .106 -.362 .222 -.802 .078
assumed
L3Website2 Equal variances assumed -2.023 204 .044 -.464 .229 -.916 -.012
Equal variances not
-2.239 126.788 .027 -.464 .207 -.874 -.054
assumed
L3Website3 Equal variances assumed -
-2.490 204 .014 -.569 .228 -.118
1.019
Equal variances not
-2.780 129.418 .006 -.569 .205 -.973 -.164
assumed
L4eCommerce1 Equal variances assumed -1.096 204 .274 -.239 .218 -.668 .191
Equal variances not
-1.169 116.476 .245 -.239 .204 -.643 .166
assumed
L4eCommerce2 Equal variances assumed -.177 204 .860 -.037 .212 -.455 .380
Equal variances not
-.191 119.091 .849 -.037 .196 -.426 .351
assumed
L4eCommerce3 Equal variances assumed -.491 204 .624 -.108 .220 -.541 .325
Equal variances not
-.501 105.454 .618 -.108 .215 -.535 .319
assumed
L5MobileApp1 Equal variances assumed -.155 204 .877 -.032 .210 -.447 .382
Equal variances not
-.160 109.088 .873 -.032 .203 -.435 .370
assumed
L5MobileApp2 Equal variances assumed -.077 204 .939 -.017 .220 -.450 .416
Equal variances not
-.082 114.698 .935 -.017 .207 -.427 .393
assumed
L5MobileApp3 Equal variances assumed -.045 204 .964 -.009 .196 -.396 .378
Equal variances not
-.046 107.306 .963 -.009 .191 -.388 .370
assumed
L6Cloud1 Equal variances assumed -1.447 204 .150 -.356 .246 -.842 .129
Equal variances not
-1.464 103.929 .146 -.356 .243 -.839 .126
assumed
L6Cloud2 Equal variances assumed -1.986 204 .048 -.465 .234 -.926 -.003
Equal variances not
-1.937 96.598 .056 -.465 .240 -.941 .011
assumed
L7eBusiness1 Equal variances assumed -1.383 204 .168 -.326 .236 -.792 .139
Equal variances not
-1.380 101.008 .171 -.326 .237 -.796 .143
assumed
L7eBusiness2 Equal variances assumed -1.105 204 .271 -.277 .251 -.771 .217

187
 Equal variances not
-1.115 103.228 .268 -.277 .248 -.769 .216
assumed
L8TO1 Equal variances assumed -1.859 204 .065 -.385 .207 -.793 .023
Equal variances not
-1.780 93.413 .078 -.385 .216 -.814 .044
assumed
L8TO2 Equal variances assumed -.381 204 .704 -.071 .187 -.441 .298
Equal variances not
-.392 107.924 .696 -.071 .182 -.432 .289
assumed
Cost1 Equal variances assumed .131 204 .896 .024 .185 -.341 .389
Equal variances not
.137 110.466 .892 .024 .178 -.328 .376
assumed
Cost2 Equal variances assumed .579 204 .563 .104 .180 -.251 .460
Equal variances not
.597 108.099 .552 .104 .175 -.242 .451
assumed
Cost3 Equal variances assumed 1.034 204 .302 .197 .191 -.179 .573
Equal variances not
1.054 105.412 .295 .197 .187 -.174 .568
assumed
Cost4 Equal variances assumed 1.664 204 .098 .296 .178 -.055 .647
Equal variances not
1.667 101.741 .099 .296 .178 -.056 .649
assumed
Cost5 Equal variances assumed -.580 204 .563 -.101 .174 -.445 .243
Equal variances not
-.595 107.044 .553 -.101 .170 -.438 .235
assumed
Cost6 Equal variances assumed -.012 204 .991 -.002 .161 -.318 .315
Equal variances not
-.012 109.087 .990 -.002 .155 -.309 .305
assumed
OReadiness1 Equal variances assumed -3.072 204 .002 -.499 .162 -.819 -.179
Equal variances not
-3.474 133.457 .001 -.499 .144 -.783 -.215
assumed
OReadiness2 Equal variances assumed -2.528 204 .012 -.421 .166 -.749 -.093
Equal variances not
-2.629 110.090 .010 -.421 .160 -.738 -.104
assumed
OReadiness3 Equal variances assumed -3.179 204 .002 -.541 .170 -.876 -.205
Equal variances not
-3.342 112.663 .001 -.541 .162 -.862 -.220
assumed
OReadiness4 Equal variances assumed -
-3.317 204 .001 -.658 .198 -.267
1.049
Equal variances not -
-3.440 109.373 .001 -.658 .191 -.279
assumed 1.037
OReadiness5 Equal variances assumed -3.118 204 .002 -.500 .160 -.815 -.184

188
 Equal variances not
-3.361 119.125 .001 -.500 .149 -.794 -.205
assumed
OReadiness6 Equal variances assumed -2.730 204 .007 -.502 .184 -.865 -.140
Equal variances not
-2.774 104.730 .007 -.502 .181 -.862 -.143
assumed
OReadiness7 Equal variances assumed -2.382 204 .018 -.406 .171 -.743 -.070
Equal variances not
-2.353 99.005 .021 -.406 .173 -.749 -.064
assumed
GReadiness1 Equal variances assumed -1.036 204 .301 -.184 .178 -.534 .166
Equal variances not
-1.020 98.305 .310 -.184 .180 -.542 .174
assumed
GReadiness2 Equal variances assumed -2.109 204 .036 -.351 .167 -.680 -.023
Equal variances not
-2.329 126.018 .021 -.351 .151 -.650 -.053
assumed
GReadiness3 Equal variances assumed -1.691 204 .092 -.289 .171 -.625 .048
Equal variances not
-1.717 104.630 .089 -.289 .168 -.622 .045
assumed
GReadiness4 Equal variances assumed -2.142 204 .033 -.354 .165 -.679 -.028
Equal variances not
-2.317 120.139 .022 -.354 .153 -.656 -.052
assumed
GReadiness5 Equal variances assumed -2.553 204 .011 -.429 .168 -.761 -.098
Equal variances not
-2.619 106.918 .010 -.429 .164 -.754 -.104
assumed
GReadiness6 Equal variances assumed -2.056 204 .041 -.357 .174 -.700 -.015
Equal variances not
-2.139 110.154 .035 -.357 .167 -.688 -.026
assumed
GReadiness7 Equal variances assumed .857 204 .393 .151 .177 -.197 .500
Equal variances not
.888 109.394 .376 .151 .170 -.186 .489
assumed
GReadiness8 Equal variances assumed -1.040 204 .300 -.173 .167 -.502 .155
Equal variances not
-1.148 126.051 .253 -.173 .151 -.472 .125
assumed
GReadiness9 Equal variances assumed .756 204 .450 .127 .168 -.204 .457
Equal variances not
.770 105.170 .443 .127 .165 -.200 .453
assumed
GSRelationships1 Equal variances assumed -.777 204 .438 -.122 .158 -.433 .188
Equal variances not
-.747 94.136 .457 -.122 .164 -.448 .203
assumed
GSRelationships2 Equal variances assumed .178 204 .859 .029 .162 -.291 .348
Equal variances not
.178 101.923 .859 .029 .162 -.292 .349
assumed

189
GSRelationships3 Equal variances assumed -.311 204 .756 -.051 .163 -.372 .271
Equal variances not
-.320 107.726 .750 -.051 .158 -.364 .263
assumed
GSRelationships4 Equal variances assumed .203 204 .839 .034 .170 -.300 .369
Equal variances not
.207 105.697 .836 .034 .166 -.295 .364
assumed
GSRelationships5 Equal variances assumed .436 204 .663 .086 .198 -.304 .476
Equal variances not
.456 110.977 .650 .086 .189 -.289 .462
assumed
BSRelationships1 Equal variances assumed -1.750 204 .082 -.324 .185 -.689 .041
Equal variances not
-1.840 112.687 .068 -.324 .176 -.673 .025
assumed
BSRelationships2 Equal variances assumed .058 204 .954 .010 .171 -.328 .347
Equal variances not
.059 107.542 .953 .010 .166 -.320 .340
assumed
BSRelationships3 Equal variances assumed -1.205 204 .229 -.226 .187 -.595 .144
Equal variances not
-1.239 107.321 .218 -.226 .182 -.587 .136
assumed
BSRelationships4 Equal variances assumed -1.333 204 .184 -.258 .194 -.640 .124
Equal variances not
-1.292 95.557 .199 -.258 .200 -.655 .138
assumed
BSRelationships5 Equal variances assumed -1.043 204 .298 -.199 .191 -.577 .178
Equal variances not
-1.064 105.788 .290 -.199 .187 -.571 .172
assumed
Regul1 Equal variances assumed -.886 204 .377 -.150 .170 -.485 .184
Equal variances not
-.960 120.570 .339 -.150 .157 -.460 .160
assumed
Regul2 Equal variances assumed .456 204 .649 .076 .166 -.251 .402
Equal variances not
.520 135.918 .604 .076 .146 -.212 .363
assumed
Regul3 Equal variances assumed 1.169 204 .244 .200 .171 -.138 .538
Equal variances not
1.224 111.627 .224 .200 .164 -.124 .525
assumed
Regul4 Equal variances assumed 1.191 204 .235 .222 .186 -.145 .588
Equal variances not
1.219 106.325 .225 .222 .182 -.139 .582
assumed
Regul5 Equal variances assumed .619 204 .537 .108 .175 -.236 .452
Equal variances not
.665 118.150 .507 .108 .163 -.214 .430
assumed
Security1 Equal variances assumed 2.052 204 .041 .382 .186 .015 .749

190
 Equal variances not
2.066 102.836 .041 .382 .185 .015 .749
assumed
Security2 Equal variances assumed .478 204 .633 .085 .179 -.267 .438
Equal variances not
.482 103.148 .631 .085 .177 -.266 .437
assumed
Security3 Equal variances assumed -.168 204 .867 -.029 .173 -.371 .313
Equal variances not
-.178 115.311 .859 -.029 .163 -.352 .294
assumed
RAdvantage1 Equal variances assumed -1.033 204 .303 -.150 .145 -.437 .136
Equal variances not
-1.046 103.849 .298 -.150 .144 -.435 .135
assumed
RAdvantage2 Equal variances assumed -2.788 204 .006 -.393 .141 -.671 -.115
Equal variances not
-3.243 143.018 .001 -.393 .121 -.633 -.154
assumed
RAdvantage3 Equal variances assumed -1.827 204 .069 -.272 .149 -.564 .021
Equal variances not
-1.889 108.559 .062 -.272 .144 -.556 .013
assumed
RAdvantage4 Equal variances assumed -2.411 204 .017 -.363 .151 -.660 -.066
Equal variances not
-2.721 132.735 .007 -.363 .134 -.628 -.099
assumed
RAdvantage5 Equal variances assumed -2.394 204 .018 -.350 .146 -.638 -.062
Equal variances not
-2.701 132.679 .008 -.350 .130 -.606 -.094
assumed
RAdvantage6 Equal variances assumed -.697 204 .487 -.106 .152 -.405 .194
Equal variances not
-.702 103.012 .484 -.106 .151 -.405 .193
assumed
RAdvantage7 Equal variances assumed -2.265 204 .025 -.371 .164 -.693 -.048
Equal variances not
-2.787 164.109 .006 -.371 .133 -.633 -.108
assumed
RAdvantage8 Equal variances assumed -.900 204 .369 -.133 .147 -.423 .158
Equal variances not
-.977 121.011 .331 -.133 .136 -.402 .136
assumed
Awareness1 Equal variances assumed -1.678 204 .095 -.266 .158 -.578 .046
Equal variances not
-1.751 110.849 .083 -.266 .152 -.566 .035
assumed
Awareness2 Equal variances assumed -2.265 204 .025 -.378 .167 -.706 -.049
Equal variances not
-2.439 118.908 .016 -.378 .155 -.684 -.071
assumed
Awareness3 Equal variances assumed -.962 204 .337 -.152 .158 -.464 .160
Equal variances not
-.970 103.243 .334 -.152 .157 -.463 .159
assumed

191
Awareness4 Equal variances assumed -1.346 204 .180 -.206 .153 -.508 .096
Equal variances not
-1.449 118.722 .150 -.206 .142 -.488 .076
assumed
Awareness5 Equal variances assumed -1.211 204 .227 -.180 .148 -.472 .113
Equal variances not
-1.265 111.101 .208 -.180 .142 -.461 .102
assumed
Compat1 Equal variances assumed -2.213 204 .028 -.352 .159 -.665 -.038
Equal variances not
-2.395 120.189 .018 -.352 .147 -.642 -.061
assumed
Compat2 Equal variances assumed -1.726 204 .086 -.263 .153 -.564 .037
Equal variances not
-1.822 113.621 .071 -.263 .145 -.550 .023
assumed
Compat3 Equal variances assumed -1.860 204 .064 -.290 .156 -.597 .017
Equal variances not
-1.979 115.585 .050 -.290 .146 -.580 .000
assumed
CPressure1 Equal variances assumed .557 204 .578 .084 .151 -.214 .382
Equal variances not
.554 100.327 .581 .084 .152 -.217 .385
assumed
CPressure2 Equal variances assumed -1.691 204 .092 -.269 .159 -.583 .045
Equal variances not
-1.724 105.480 .088 -.269 .156 -.578 .040
assumed
CPressure3 Equal variances assumed -.592 204 .554 -.088 .149 -.382 .206
Equal variances not
-.617 110.347 .539 -.088 .143 -.372 .195
assumed
CPressure4 Equal variances assumed .345 204 .730 .061 .176 -.286 .408
Equal variances not
.367 115.357 .714 .061 .166 -.267 .389
assumed
MWar1 Equal variances assumed .796 204 .427 .121 .152 -.178 .420
Equal variances not
.689 79.120 .493 .121 .175 -.228 .470
assumed
MWar2 Equal variances assumed 1.173 204 .242 .181 .154 -.123 .485
Equal variances not
1.042 82.265 .301 .181 .174 -.164 .526
assumed
MWar3 Equal variances assumed 1.625 204 .106 .244 .150 -.052 .539
Equal variances not
1.374 76.560 .173 .244 .177 -.109 .597
assumed
MWar4 Equal variances assumed 1.463 204 .145 .267 .182 -.093 .626
Equal variances not
1.434 97.418 .155 .267 .186 -.103 .636
assumed
MWar5 Equal variances assumed 2.462 204 .015 .396 .161 .079 .713

192
 Equal variances not
2.298 89.224 .024 .396 .172 .054 .738
assumed

4.4 Summary
To summarise, the results have been presented using the descriptive findings collected from

Yemeni SME owners and managers’ statistics for the respondents. The reliability and validity

measurement models test was used to test the reliability and validity of the constructs and

indicators. The results show that the data are reliable and valid to carry out the structural

equation model. Also, the structural model reveals the relationships between the barriers and

drivers and levels of e-business adoption. The results show that there are some barriers and

drivers affecting the levels of e-business adoption. Moreover, the model fit and quality indices

test were used to determine whether the model fits with the data, and the results prove the

model’s fit with the data. A t-test was used for non-response bias to test the differences

between early and late responses. The results show that there are no differences. Lastly, in

this chapter, a t-test was used to determine if there are any differences between the Yemeni

and European SMEs’ definition affecting the results.

The results show that the cost of accessing the internet is high and the cost of ICT

infrastructure is high, which causes them not to adopt email. In terms of organisational

readiness, the results show that most of the employees have insufficient access to computers

and most of the employees are computer/internet illiterate. In terms of regulations, the

results show that most of the SMEs do not know that a telecommunications regulatory

authority exists, and whether policies exist to protect all entities against fraud. In terms of

awareness, the results show that SMEs are aware of competitors’ technological

implementations that drive the company to move toward adopting new technologies.

193
The results show that the cost of accessing the internet is high and the cost of ICT

infrastructure is high, which causes them not to adopt social media. In terms of organisational

readiness, the results show that most of the employees have insufficient access to a

computer, and most of the employees are computer/internet illiterate. In terms of

governmental readiness, the results show that there are interruptions in electric power and

the internet connection speed is slow. In terms of regulations, the results show that most of

the SMEs do not know if a telecommunication regulatory authority exists and if policies exist

to protect all entities against fraud. Additionally, the results have revealed that SMEs are

aware of competitors’ technological implementations, and these drive the company to move

towards adopting new technologies. In terms of competitive pressure, the results show that

firms that readily implement new technologies would be competitive and they will lose

customers if they do not adopt these technologies.

With regards to the drivers, bank ICT infrastructure, government readiness, relative

advantage, strategy, and awareness are the drivers that have been found to have an impact

on the adoption of e-business activities. War was found to have an impact between the

barriers, drivers and the adoption of e-business activities.

The results highlight how the cost of accessing the internet and implementing ICT

infrastructure and hosting a website is high, which may cause SMEs not to adopt a website.

In terms of organisational readiness, the results show that most of the employees have

insufficient access to a computer, and most of the employees are computer/internet illiterate.

Additionally, the results show that SMEs are aware of competitors’ technological

implementations, and they consider these to drive the company to move towards adopting

new technologies.

194
The results show that most of the employees have insufficient access to a computer and most

of the employees are computer/internet illiterate. In terms of regulations, the results show

that most SMEs do not know if a telecommunications regulatory authority exists, or policies

to protect all entities against fraud, and there is an absence of e-commerce policy and

regulations. In addition, they recognise the opportunities and threats associated with e-

commerce. In terms of competitive pressure, the results show that firms that readily

implement e-commerce will be competitive and they will lose customers if they do not adopt

these technologies.

The results show that most of the employees have insufficient access to a computer and most

of the employees are computer/internet illiterate. In terms of governmental readiness, the

results show that electrical power is often interrupted, the internet connection speed is slow,

the electronic payment system is not secure enough and available, and e-commerce

applications and services are not available in the market. Additionally, the results have

revealed that SMEs are aware of competitors’ technological implementations and they

consider these to drive the company to move towards adopting new technologies, and they

recognise the opportunities and threats associated with e-commerce. In terms of

compatibility, the results show that for SMEs at the mobile apps level, the implementation of

e-business is compatible with the company’s ICT infrastructure and strategy. In terms of

competitive pressure, the results show that firms that readily implement e-commerce will be

competitive and they will lose customers if they do not adopt these technologies.

The results show that most of the employees have insufficient access to a computer, and most

of the employees are computer/internet illiterate and there is a lack of IT experts within the

firm. In terms of governmental readiness, the results show that electrical power is

interrupted, the internet connection speed is slow, and the electronic payment system is not

195
secure enough and available, and e-commerce applications and services are not available in

the market. In terms of bank and SME relationships, the results show that there is a lack of

communication between banks and SMEs with regards to the implementation of new

technologies by the banking sector that could support SMEs in adopting advanced

technologies and supporting their technology strategy. Additionally, the results show that

SMEs are aware of competitors’ technological implementations and they consider these to

drive the company to move towards adopting new technologies, and they recognise the

opportunities and threats associated with e-commerce. In terms of competitive pressure, the

results show that firms that readily implement e-commerce will be competitive and they will

lose customers if they do not adopt these technologies.

The results show that the cost of accessing the internet and implementing ICT infrastructure,

hosting a website and engaging in e-business activities, e-business applications, systems and

hardware, e-business training for employees and developing and maintaining the e-business

is high. In terms of organisational readiness, the results show that most of the employees

have insufficient access to a computer; most of the employees are computer/internet

illiterate, and there are not enough financial resources to implement e-business. In terms of

governmental readiness, the results show that electrical power is often interrupted, internet

connection speed is slow, the electronic payment system is not secure enough and available,

e-business applications and services are not available in the market and postal services are

not reliable in supporting e-business. All these barriers mentioned above are delaying the

SMEs’ decision to adopt e-business. Additionally, the results show that SMEs are aware of

their competitors’ technological implementations and they consider these to drive the

company to move towards adopting new technologies; they recognise the opportunities and

threats associated with e-business, and SME owners understand the potential benefits of e-

196
business. In terms of compatibility, the results show that for SMEs at the mobile apps level,

the implementation of e-business is compatible with the company’s ICT infrastructure and

strategy. In terms of competitive pressure, the results show that firms that readily implement

e-commerce will be competitive and they will lose customers if they do not adopt e-business.

The results show that electrical power is interrupted, the internet connection speed is slow,

the electronic payment system is not secure enough and available, e-business applications

and services are not available in the market, and postal services are not reliable in supporting

e-business. All these barriers are delaying SMEs’ decision to adopt e-business. In terms of

compatibility, the results show that for the SMEs at the mobile apps level, the implementation

of e-business is compatible with the company’s ICT infrastructure and strategy. In terms of

competitive pressure, the results show that firms that readily implement e-commerce will be

competitive and they will lose customers if they do not adopt e-business.

197
 5.0 Chapter Five: Discussion
5.1 Introduction

The purpose of this chapter is to discuss the findings from this study, while taking into

consideration previous studies, to discover whether there is confirmation, agreement, or

divergence between them. This chapter discusses the findings on the level of e-business

activities in Yemeni SMEs, and the impact of the barriers and drivers on each of the e-

business adoption levels. It also discusses how war and firm size have moderated the

relationship between the barriers and drivers with the levels of e-business adoption.

5.2 Objective 1: To discover to what extent Yemeni SMEs are engaging in e-

business activities.

Going back to 2008, Al-Marti (2008) argues that e-business concepts were comparatively

unknown and untrusted amongst Yemen SMEs and the general population. However,

Almotamar (2014) argues that the Yemeni e-commerce sector has witnessed rapid growth

and has exceeded expectations, becoming a new way of shopping compared with previous

years. There is now increasing reliance on e-commerce and goods that enter Yemen through

this medium to the tune of millions of dollars annually (Almotamar, 2014). Moreover, this

study also suggests that Yemeni SMEs have engaged and adopted appropriate levels of e-

business activities (see section 5.2.2.1), which is in line with the study by Almotamar (2014)

mentioned previously. This increase in the adoption of e-business in Yemeni SMEs might be

due to the awareness of the SMEs’ owners and managers that e-business is required in order

to grow their company. Yemeni SMEs need to measure their level of e-business adoption

continuously and to keep up-to-date with rapidly changing technology.

198
E-business development in organisations is assumed to be a phased process in which firms

are found to move from email, through to a website, e-commerce, and to more advanced

technology such as e-business, before becoming transformed organisations that enable

SMEs to perform online selling and buying.

This study’s findings presented in section 5.2.2.1 support previous studies (Hoque, 2000; Paul

et al. 2003; 2000; Teo and Pian, 2004, Vosloo, 2003; Willcocks and Sauer, 2000), in that e-

business development in some organisations does progress from email towards more

advanced technology and being a transformed organisation. This study’s findings also reveal

that e-business development in some organisations begins with the adoption of cloud

services, and then progresses towards a more integrated organisation. In other words, there

are two entry points to enable SMEs to adopt e-business activities. These two entry points

are stage 1 (email) and stage 6 (cloud services). Note, however, that entry to technology at

stage 6 does not necessarily preclude the later adoption of technologies from stages (1 to 5),

where finance and capabilities permit, as SMEs may retrospectively adopt ‘lesser’

technologies. This is a significant finding because it is different to previous research

described in the literature and what has already found, as mentioned above. Also, it is

important due to a new entry point in the stage model being found, with SMEs able to start

at adoption stage 6 (cloud services), instead of starting from the bottom stage (email), since

cloud services are able to provide SMEs with email accounts. The findings may assist owners

and decision makers in measuring e-business activities through this study’s stage model and

to find out their current level.

This study has conducted a valuable examination of e-business adoption among SMEs in

Yemen and their level of e-business adoption activities. The extended e-business stage

199
model developed in this study incorporates several new factors that reflect the recent

advances in ICT, namely social media, cloud services and mobile applications. This extended

model offers a contemporary tool for assessing the degree of ICT maturity in SMEs. SMEs are

not required to start climbing the ladder of e-business adoption from stage 1 (email), as this

study has found that SMEs are able to start from cloud services at stage 6. This result could

save SMEs the costs that need to be invested to adopt e-business, and also time, as well as

the ICT infrastructure that is required for e-business adoption.

5.3 Objective 2: To find out what is detering Yemeni SMEs from adopting e-

business

This section discusses the effect of cost; organisational readiness and government readiness;

the relationship between government and SMEs; the relationship between banks and SMEs;

regulations, and security for each level of e-business adoption. The findings have revealed

that there are general barriers that have a positive effect on all levels of e-business adoption,

and that these are specific for each level. This study has found that cost, organisational

readiness, and regulations are barriers for level 1 (Email). Cost, organisational readiness,

governmental readiness, and regulations are barriers for level 2 (Social Media). Cost and

organisational readiness are barriers for level 3 (Website). Organisational readiness and

regulations are barriers for level 4 (E-commerce). Organisational readiness and governmental

readiness are barriers for level 5 (Mobile App). Organisational readiness, governmental

readiness and the relationships between banks and SMEs are barriers for level 6 (Cloud

Services). Cost, organisational readiness, and governmental readiness are barriers for level 7

(E-business). Governmental readiness, and banks and SME relationships are barriers for level

8 (Transformed Organisation).

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5.3.1 Cost

The literature has identified cost as a considerable barrier to e-business adoption, for

example, Parida et al. (2010) report that the high cost involves developing and maintenance,

and the cost of information communication technology (ICT) has prevented SMEs from

adopting internet technologies. Ghobakhloo et al. (2012) found that SMEs have less

tolerance of accepting the costs and risks associated with adopting new technologies, and

Rogers, (1995), Schneider, (2007) and Tornatzky and Klein (1982) consider cost to have an

effect on the decision to adopt a new technology, which may delay the use and

implementation of new technology. Also, Al-Somali et al. (2015) found that cost (high

telecommunication costs, cost of software development tools for integrated computer

systems, cost of new computer equipment, and the high investments necessary) has a

significant effect on the stabilisation of the e-commerce adoption stage (interactive, or

transactive or integrated e-commerce in which most business transactions are conducted

electronically).

This study’s findings are similar to Parida et al. (2010), Ghobakhloo et al. (2012), Rogers,

(1995), Schneider, (2007), Tornatzky and Klein, (1982) and Al-Somali et al. (2015) in that

cost is a significant barrier.

This is an important finding because it is different to the studies mentioned in the literature,

as this study has found that cost only has a positive and significant effect on level 1 (email),

level 2 (social media), level 3 (website) and level 7 (e-business) adoption. This explains why

SMEs who adopt new and first technology, require huge investment to develop their ICT

infrastructure and cover the cost of developing and maintaining these technologies. Once

these SMEs have adopted the first three stages, for the rest of the stages to cloud

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 computing, cost will not be a problem for them. When SMEs want to adopt e-business, this

requires them to invest in developing their ICT infrastructure.

However, in line with the interview analysis in Chapter Four, it has been shown that cost is

not a considerable barrier, but is being affected by the current war, which is discussed later

on in section 5.5. Also, it is because it is difficult to integrate with banks, which is discussed

in section 5.3.5.

This study has similar findings to Marston et al (2011) in that cost is not a considerable

barrier to adopting cloud computing, and it could reduce the cost of adopting internet

technologies. However, as the interview analysis has shown, cloud computing has the

advantage of reducing the cost of adopting e-business activities.

5.3.2 Organisational Readiness

The literature has identified that organisational readiness (lack of computer access amongst

employees, lack of computer and internet knowledge, weak ICT infrastructure, lack of

financial resources and IT experts) is a barrier to e-business adoption. For example, Kaynak

et al. (2005), Bolongkikit et al. (2006), Hamed et al. (2008), Paul et al. (2003 1) and Al-

Mamaryet al. (2014 5) report that SMEs face difficulties in retraining employees with the

required skills and knowledge, and difficulty finding skilled IT staff with the requisite levels

of e-business skills. Also, White et al. (2014) and Afolayan et al. (2015), report that lack of

resources and the level of training of employees are internal barriers that lie inside the

organisation. Other studies, such as Paul et al. (2003) and Hamed et al. (2008), report that

limited resources and lack of investments in IT and e-business are barriers to IT and e-

business adoption. Also, lack of ICT infrastructure and personal computers for employees

are obstacles to e-business adoption. Mehrtens et al. (2001), report that the lack of ICT

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literacy among owners and employees is another barrier that inhibits effective ICT

deployment within SMEs. Moreover, according to Golding et al. (2008), employees face

difficulties adopting new technology, even though they are highly skilled employees. There

is also a lack of skills and knowledge within organisations. In particular, a lack of qualified

staff and limited financial resources has an impact on the adoption of e-commerce (Taylor

and Owusu, 2012).

Additionally, researchers, such as Wang and Shi, (2009), Tian and Bao, (2007), Scupola,

(2003), Harrison et al., (1997), Lacovou et al., 1995) and Cragg and King, (1993), have argued

for many years that organisational readiness is an important factor affecting the adoption

of internet technologies.

With regards to the Yemeni context, Al-Mamaryet al., (2014 5) explain that Yemeni firms

are facing difficulties in accepting new technology due to the lack of skilled and experienced

employees. Further, according to Zolait et al. (2010), Yemeni firms face challenges in

adopting e-commerce activities due to employees belonging to the ‘before the internet

generation’ as well as there being a lack of experts.

This study has found that organisational readiness has a positive and significant effect on

level 1 (Email), level 2 (Social Media), level 3 (Website), and level 4 (e-commerce), similar to

the findings of Kaynak et al. (2005), Bolongkikit et al. (2006), Hamed et al. (2008), Paul et al.

(2003) and Al-Mamaryet al.,(2014 5), White et al. (2014 3), Mehrtens et al. (2001), Al-

Mamaryet al. (2014 5), Zolait et al.,(2010 6), and Taylor and Owusu (2012) in that

organisational readiness is a barrier to e-business activities.

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5.3.3 Government Readiness

Previous studies have considered government readiness (weak ICT infrastructure, lack of

commercial and financial institutions ICT infrastructure, absence of a secure e-payment

system, slow internet speed, lack of IT experts and poor electricity power) as a considerable

obstacle to e-business adoption. For example, the OECD (2004) reports that the higher the

level of internet connection and communication service providers available at competitive

prices, the greater the benefit for businesses from adopting internet technologies,

depending on their requirements. In addition, firm owners’ decisions towards adopting e-

business activities may be affected by the speed and availability of broadband. A high-speed

internet connection enables SMEs to explore and adopt more applications and spend more

time online (OECD, 2004). Additionally, White et al. (2014) and Afolayan et al. (2015) report

that weak infrastructure and e-commerce infrastructure prevent SMEs from adopting e-

commerce. Also, Taylor and Owusu, (2012) have reported that a lack of electronic payment

systems and lack of online banking are affecting the adoption of e-business.

This study’s findings are similar to those of ISO (2015 report) who found weak e-commerce

infrastructure, such as appropriate Internet speeds, postal services and electronic payment,

are obstacles to the growth of e-commerce in Yemen compared to other countries in the

region and around the World. Also, similar to Zolait et al. (2010 6), it was found that most

Yemeni companies who use the internet for business purposes are limited because there

are only two Internet providers available in Yemen, and they are owned by the Yemeni

government. However, as the interview analysis in Chapter Four showed, the war has

affected and destroyed the country’s ICT infrastructure, which is discussed further in section

5.5.

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 These findings suggest that firms’ owners should employ ICT experts to help the company

identify the need for development to move the company towards the adoption of e-

business. For instance, the e-business environment and infrastructure must be continuously

improved to facilitate e-business applications such as high-speed internet, a full

functionality website, and secure order processing and payment systems. Furthermore,

Yemeni SME employees need to be trained to use such technology.

5.3.4 The relationship between government and SMEs

As discussed in Chapter Three, section 3.2.1.4, the relationship between government and

SMEs, government support, encouragement and promoting of e-business in SMEs, will help

SME owners to adopt more advanced internet technologies. Also, government involvement

in the SMEs’ boards and continuous contact between them will help them understand these

technologies better. Many authors have discussed the importance of government support

and how it may affect the adoption of e-business. For example, Premkumar and Roberts

(1999), Hamad et al., (2015) and Zhu and Thatcher (2007) found support from government

affected the decision to adopt information technologies. Additionally, Zhu and Thatcher

(2007), found the encouragement and support of government for SMEs is a key point in firms

adopting e-business. Thomas et al. (2015) argue that the Welsh Government should provide

SMEs with practical and accessible support by encouraging and enabling them to benefit from

the adoption of e-business. A study by Doherty et al. (2015) suggests that the Irish

Government needs to have enough investment to maintain their ICT infrastructure, and a

high-speed and reliable broadband infrastructure, in order to enable SMEs to adopt cloud

computing with confidence. Jeon et al. (2006), report that government motivation and

support will encourage SMEs to move into, and adopt, e-business.

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This study finds that the relationship between government and SMEs has an insignificant

effect on the adoption of e-business, which is similar to Chatzoglou and Chatzoudes (2016)

who found that government support does not have an effect on e-business adoption.

Despite the results of the initial study conducted in phase 2 of this research, which found that

a lack of relationship between government and SMEs has an impact on the owner’s decision

concerning e-business adoption, the main result of the study in phase 3 found there were no

effects. This is because the interview analysis in phase 4 shows that Yemeni company owners

do not want government support or a relationship, as corruption has increased due to the

war, which is discussed in section 5.5.

The finding suggests that the government should support and encourage SMEs to adopt e-

business activities and improve and develop the ICT infrastructure. In addition, the

government should strengthen their relationship with SMEs and provide them with the latest

statistical reports on internet users. The government needs to understand the benefit of

improving the economy by supporting SMEs. Moreover, the government should fight

corruption and prevent it.

5.3.5 The relationship between banks and SMEs

As discussed in section 2.2.1.5, the relationship between banks and SMEs refers to the

degree of support and encouragement from the banking industry for SMEs to adopt internet

technologies. The literature has identified that a lack of bank support for SMEs could

prevent them from adopting e-business. For example, Jeon et al. (2006) found that financial

support is a key motivator for SMEs to adopt e-business. Additionally, Agwu and Murray

(2015) report that the lack of support from the banking industry has an impact on SME

growth.

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 The finding suggests that the banking sector should support, encourage and promote e-

business activities to SMEs and improve and develop the ICT infrastructure. The banking

sector should also strengthen their relationship with SMEs and provide them with the latest

statistical reports on bank accounts and visa card holders. Also, the banking sector should

provide easy access to all bank facilities for SMEs and improve their electronic payment

systems.

5.3.6 Regulations

The literature has identified regulations as a considerable barrier to e-commerce adoption.

For example, Al-Somali et al. (2015) found that legislation and regulations have a positive

and significant effect on e-commerce in Saudi SMEs. Additionally, Xu et al. (2004), Zhu et al.

(2006c), Dasgupta et al. (1999), and Gibbs and Kraemer (2004), found regulations to be an

important factor for e-business adoption in developing countries, because adopting

internet technologies requires clear government policies and regulations to organise online

transactions and products for consumers. However, in Yemen, e-business laws and

regulations are not sufficient and are not known; there is no adequate legal protection for

internet buying and selling, and no information about e-business privacy and production

(Yemen reference). Therefore, the Yemeni government must develop and introduce

adequate legal protection for online transactions and e-business transactions, to enable

SMEs to move forward and adopt e-business.

This study has findings similar to Agwu and Murray (2015), who found that the absence of

an online business regulatory framework has prevented most SMEs from adopting e-

commerce in Nigeria. This study also finds that regulations (the absence of

telecommunications regulatory authorities and e-business policies and regulations) have

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 had a positive effect on level 1 (email), level 2 (social media) and level 4 (e-commerce). On

the other hand, regulations have had no effect on the rest of the levels of e-business

activities because email, social media and e-commerce are the most adaptive technologies

for Yemeni SMEs, and these three stages involve the techniques of buying and selling.

5.3.7 Security

Previous studies have identified security as a considerable barrier to IT and e-business

adoption. Security has also prevented SMEs from adopting internet technologies. For

example, Parazoglou (2006), Pahladsingh (2006), Abdullah et al. (2016, 2018), Khatibi et al.

(2007) and PayPal (2013) found that security issues have been considered the main

challenge that may impact on the adoption of e-business. Additionally, Doherty et al.’s

(2015) study reveals that Irish SMEs would move to a cloud environment when they gain

confidence in the security of their data. Lyer and Henderson (2010), Sue (2011) and

Armburst et al. (2010) also found that security has a major impact on the adoption of cloud

services.

However, this study found that security does not have an effect on any level of e-business

activities. Also, this study’s findings are similar to Al-Somali (2015) and Mpye et al. (2007)

who found security to be an insignificant barrier to e-commerce adoption.

This study’s results show that Yemeni SMEs do not consider security to be a barrier to the

adoption of e-business activities. This could be because SMEs in Yemen believe that the

absence of a regulatory framework for e-commerce is a serious problem for them when

adopting internet technologies, as they need a law to organise online business, which was

discussed earlier in section 5.3.6.

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5.4 Objective 3: To explore what drives Yemeni SMEs to be engaged in e-business

activities

This section discusses the effect of drivers on the level of e-business adoption. The findings

have revealed that there are general drivers that have a positive effect on all levels of e-

business adoption, and these are specific for each level. Awareness is the only driver that

drives SMEs to adopt all levels of e-business adoption. Competitive pressure is driving SMEs

to adopt level 2 (Social Media), level 4 (E-commerce), level 5 (Mobile App), level 6 (Cloud

Services), level 7 (E-business) and level 8 (Transformed Organisational). Compatibility is

driving SMEs to adopt level 5 (Mobile App), level 7 (E-business) and level 8 (Transformed

Organisational).

5.4.1 Relative Advantage

Some of the previous literature has identified relative advantage as a considerable driver

towards IT and e-business adoption. For example, Acilar and Aaramasa (2010) and Beign

(2009) found that relative advantage has the power to drive companies to adopt IT and e-

business. Additionally, authors such as Hamed et al. (2015), Sharma and Sheth, (2010), Zhu

et al., (2006) and Tan et al., (2009) have found that relative advantage is the most significant

driver that has a strong impact on ICT and e-commerce adoption. Mndzebele, (2013) found

that relative advantage has an appositive relationship with the adoption of e-commerce in

the hotel industry.

Despite the above findings, the study’s results have revealed no relationship between

relative advantage and the adoption of e-business activities, which is in accordance with the

findings of Seyal and Rahman, (2003) who found that relative advantage has no effect on

the adoption of e-business in SMEs. Additionally, this finding supports the findings of Teo

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 et al., (1998) who found no relationship between relative advantage and internet adoption

and SMEs that had already adopted internet technology but did not gain any advantages.

Despite SMEs in Yemen being aware of the advantages of adopting e-business activities,

those SMEs that had already adopted a higher level of e-business activities did not see this

relative advantage as a driver behind their adoption of e-business. This result suggests that

SMEs in Yemen have adopted, or will adopt, e-business activities just to keep their

customers.

This is an important finding because it is different to previous studies’ findings, as this study

has revealed no relationships between e-business adoption and relative advantage.

5.4.2 Awareness

Previous studies have considered awareness of IT and e-business adoption as an important

factor that has an impact on the adoption of technology and life decisions. Awareness could

drive companies to be more technology adoptive and able to compete. For example,

Lacovou et al. (1995) found that some of the firms participating in their research have not

adopted EDI yet due to a lack of awareness; whereas other firms with high awareness have

adopted an integrated EDI system, and others have put a plan in place. The support of

government for EDI adoption could increase awareness towards the advantages of EDI, but

still, firms are required to have awareness too (Lacovou et al., 1995). Lack of awareness of

the benefits of e-commerce within Chinese firms, and for consumers, could delay their

decision to adopt (UNCTAD, 2001).

This study has found awareness to be a strong driver that pushes firms to adopt e-business

activities, which is similar to Lacovou et al. (1995) who found firms with higher awareness

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 adopt technologies more easily and quickly than firms who do not have awareness.

However, in Yemen, some firms have adopted e-business because they have higher

awareness. On the other hand, other firms have not adopted higher levels of e-business

activities because they are not sure about the relative advantages, which were discussed

earlier in section 5.4.2, that they would gain, even though they have high awareness.

To conclude, most of the Yemeni SMEs have an awareness of the importance of e-business

adoption. Some have already adopted it, and others were about to adopt, but the war has

prevented them, which is discussed later in section 5.5. The findings of this study may help

owners and managers with regards to creating greater awareness of the drivers of e-

business that can push their company towards adopting more e-business activities. They

should understand that there are different drivers to each level of e-business activities

adoption; moreover, Yemeni SME owners and managers should consider the benefits of e-

business adoption as a driver towards adopting more e-business activities.

5.4.3 Compatibility

Previous studies have identified compatibility as another considerable driver towards e-

business adoption. For example, Teo et al., (1998), report that SMEs with strong

compatibility will adopt e-business and its technologies much faster and more easily.

Additionally, Zue et al., (2006) and Al-Qirim (2007) found compatibility to be a strong driver

behind e-commerce adoption.

However, this study has found, as mentioned in Chapter Four, that compatibility is an

insignificant driver for level 1 (email), level 2 (social media), level 3 (website), level 4 (e-

commerce) and level 6 (cloud services) adoption, and a significant driver for level 5 (Mobile

App), level 7 (e-business) and level 8 (transformed organisational). This study’s findings are

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 similar to Ramayahetet al., (2016) in that compatibility has an insignificant effect on website

adoption in Malaysian SMEs, and Low et al. (2011) who found compatibility to be an

insignificant driver for cloud computing. Additionally, this is despite the findings of

Mndzebele (2013), who found compatibility to be a driver for e-commerce adoption in the

hotel industry, and Ainin et al. (2015) who found compatibility to have a positive influence

on Facebook usage.

This study’s findings suggest that Yemeni SMEs do not need to be ICT compatible to adopt

email, social media, website, e-commerce and cloud computing because these technologies

are online based technologies which do not require a strong ICT infrastructure; while

technologies such e-business require a strong and compatible ICT infrastructure before

adoption. Again, as discussed in section 5.2, SMEs do not necessarily preclude the later

adoption of technologies from stage 1 to 5 where finance and ICT capabilities permit, and

SMEs may retrospectively adopt ‘lesser’ technologies. Therefore, as this study’s results have

revealed, compatibility can be a considerable driver as the firm adopts a higher level of e-

business activities.

5.4.4 Competitive pressure

The literature has identified competitive pressure as a considerable driver for SMEs to adopt

e-business activities. For example, Lacovou et al. (1995), Molla and Licker (2005a and 2005b)

and Al-Somali et al. (2015) found that market forces have a high impact on driving SMEs to

adopt e-business activities.

This study has produced similar findings to Hamad et al. (2015) who found that competitive

pressure has a positive impact on level 2 adoption (Electronic transaction), while it has no

impact on level 1 (Electronic information search and content creation), 3 (Complex

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 electronic transactions) and 4 (Electronic collaboration). Additionally, this is similar to Looi

(2005), who found that competitive pressure motivated SMEs in Brunei to adopt e-

commerce, and Abed et al. (2015) who found that competitive pressure has an influence on

the adoption of social media.

This result explains why Yemeni SMEs believe competitive pressure motivated them to

adopt e-business activities to keep their customers. However, in the interviews analysed in

Chapter Four, it was found that some of the Yemeni firms would adopt e-business activities

once their competitors adopted and retained their customers. The finding suggests that

managers/owners must keep up to date with the technological changes in their

competitors’ companies in the market. Also, they must not wait for the competitor to adopt

a new technology before they adopt it.

5.5 War and firm size as moderating variables

The previous literature has identified that unrest in economies can affect business. For

example, Kapurubandara and Lawson (2007) found that an unstable economy and political

uncertainty have an impact on the adoption of e-commerce, and also that changing

regulations with each government has an impact on their decision towards adoption.

Additionally, the 2012 Rapid Assessment Survey on the impact of the crisis on Yemeni

private enterprises found that corruption, electricity, political instability and

macroeconomic uncertainty are major obstacles to Yemeni firms (Andrew et al, 2012). As

discussed in Chapter Four, war and firm size have an effect on the relationship between the

barriers and drivers regarding the level of e-business adoption.

This study has similar findings to Kapurubandara and Lawson, (2007) and Andrew et al

(2012), in that war would have an impact on e-commerce regulations and organisational

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and government readiness. However, as the interview analysis showed, war has had an

effect on the SMEs’ decision towards the adoption of internet technologies. Most of the

SMEs interviewed described the war as an unexpected factor that could delay their decision

and destroy the ICT infrastructure of the country and organisation. In the meantime, the

war has had a positive impact on the adoption of e-business activities in Yemeni SMEs. War

has driven some Yemeni companies to use more internet technologies and find alternative

ways of attracting customers.

Thus, the results of phase 2 conducted in this research have revealed that war has an effect

on SMEs’ strategies and their budget for the adoption of internet technologies. This is an

important finding because it is different to what is contained in the literature. This study

has found war to be a driver for adopting e-business activities rather than just being a

barrier to adoption. There was an increase in the number of internet users and also an

increase in online shopping companies. More Yemeni SMEs have social network pages

compared to before the war.

In terms of firm size as a moderator variable, it has an impact on the relationship between

the barriers and drivers with the level of e-business adoption. Previous studies have argued

that firm size is a barrier, while others report it is not a barrier to e-business adoption. For

example, Parazoglou (2006) argues that the main challenge that may affect the adoption of

e-business is company size, and Wymer and Regan (2005) and Hamad et al. (2015) found

that firm size has an effect on e-commerce adoption; while Jean et al. (2006) and Scupola

(2009) found firm size did not have an impact on e-commerce adoption.

This study has similar findings to Parazoglou (2006), Wymer and Regan, (2005) and Hamad

et al. (2015) in that the bigger the company the greater the adoption of e-business activities.

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This study has found firm size to moderate the relationship between barriers, drivers and

the level of e-business adoption. The problem regarding regulations affects adoption in

companies when the company becomes larger. Also, the cost of e-business ICT

requirements and development will increase once the company is bigger. Additionally, firm

size will increase the awareness of the importance of e-business and drive the company to

adopt higher levels of e-business once the company becomes larger.

These findings are considered important because firm size is found to be a moderator rather

than being a barrier that affects e-commerce adoption.

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 5.6 Final Conceptual Framework
The modified research model in Chapter Four (Figure 4-2) can now be seen modified below (Figure 5-1) to facilitate the reader’s understanding of how changes

were incorporated into the research model based on the literature review (Phase 1); the findings of the initial study (Phase 2); the quantitative study (Phase

3), and the qualitative study (Phase 4). This model indicates the barriers and drivers that affect the level of e-business activities and the moderating variables.

Figure 0-1: Final Research Conceptual Framework

War

Transformed Organisational S8

Cost Drivers
S1,S2,S3,S7
Organisation
Readiness S1,S2,S3,S4,S5, S1,S2,S3,S4,S5 Awareness
S6,S7 ,S6,S7,S8
Government
Readiness S2,S5,S6,S7
,S8 Compatibility
Bank SMEs S5, S7, S8
Relationships S6, S8
Regulation Competitive
S1, S2, S4 S2,S4,S5,S6,S7 Pressure
,S8
Barriers

Firm Size
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5.7 Summary

This chapter has discussed the findings from the questionnaire survey and the interviews and

compared them with previous studies, thereby meeting the aims of the study. It has also

discussed the effect of the moderating variables, war and firm size, on the relationships

between barriers, drivers and the level of e-business adoption.

This study has involved undertaking a valuable examination of e-business adoption among

SMEs in Yemen and the level of e-business adoption activities. The extended e-business stage

model developed in this study incorporates several new factors that reflect the recent

advances in ICT, namely, social media, cloud services and mobile applications. This extended

model offers a contemporary tool for assessing the degree of ICT maturity in SMEs. SMEs do

not necessarily start climbing the ladder of e-business adoption from the first stage 1 (email),

as this study has found that some SMEs were able to start from cloud services stage 6. This

result could save SMEs the costs that need to be invested to adopt e-business, and also the

time and ICT infrastructure that is required for e-business adoption.

This study’s results are an important finding because they are different to the previous

research mentioned in the literature, as this study has found that cost has only a positive and

significant effect on level 1 (email), level 2 (social media), level 3 (website) and level 7 (e-

business) adoption. This explains why SMEs who adopt new technology first require huge

investment to develop the ICT infrastructure and cover the cost of developing and

maintaining these technologies. Once these SMEs have adopted the first three stages, for the

rest of the stages to cloud computing, cost will not be a problem for them. When SMEs want

to adopt e-business, this requires them to invest in developing their ICT infrastructure.

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Most of this study’s findings are in line with previous studies on the different contexts and

environments of SMEs adopting e-business. Several previous studies have confirmed the

reliability of this study’s findings.

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 6.0 Chapter Six: Conclusion
6.1 Introduction

The purpose of this chapter is to conclude the research and and describe how it has met the

aim and hypotheses. This chapter also discusses the study’s contribution to the literature

followed by recommendations for future research. This chapter concludes the thesis by

reviewing the study, which has addressed the aim of critically evaluating the adoption of e-

business activities in Yemeni SMEs. The aim prompted the development of the research

questions that have informed the theoretical framework’s development, as shown in Figure

2-3.

An abductive approach was adopted, comprising a survey and interviews to generate SEM on

the barriers and drivers to e-business adoption.

This study proffers the following contribution to knowledge: Firstly, the extended stage

model that is discussed in detail in sections 6.3 and 6.6.2. Secondly, the notion of a multi-

entry point is discussed in detail in section 6.6.2. Finally, a practical contribution for SMEs’

managers and governments is discussed in detail in section 6.6.3.

6.2 Overview of the study

The aim of this research has been to critically evaluate the adoption of e-business activities in

Yemeni SMEs. The literature review of previous studies provided the current study with

general literature on the barriers and drivers that may affect the adoption of e-business

activities (Paul et al., 2003, Hamed et al., 2008, Ntoko, 2008, Zolait et al., 2010, PayPal, 2013,

Chaffey, 2011, Al-Somali et al., 2013, Chaffey and White, 2010, Al-Somali et al., 2015, Abdullah

et al, 2016, 2018; White et al. 2014 and Afolayan et al., 2015). Based on the previous studies

into IT and e-business, stage models and theories in IT, this study has involved developing a

219
conceptual framework as a lense to collect and analyse the data (Nolan, 1973, Poon and

Swatman, 1999; Martin and Matlay, 2001; Daniel et al., 2002; Rao et al., 2003; Taylor and

Murphy, 2004, Hoque, 2000, Willcocks and Sauer, 2000 Kumar, Kumar, 2014, Sin Tan et al.,

2009, Sharma and Sheth, 2010, OECD, 2004, Tornatzky and Fleischer, 1990; Rogers, 1962).

Therefore, this study has involved conducting an initial study in phase 2 to better understand

the factors affecting the adoption of e-business activities in SMEs in a Yemeni context. The

data gathered through the questionnaire and interviews have been useful for identifying the

challenges that Yemeni SMEs are facing, such as lack of IT infrastructure. The data gathered

has been methodically analysed using SPSS and WarpPLS. The findings of the research are

important to determine the status of e-business activities in Yemeni SMEs and the barriers

and drivers. Using the Structural Equation Modelling technique, this study has revealed that

there are general barriers and drivers affecting all levels of e-business activities specific to

each level of e-business adoption. War and firm size have moderated the relationship

between barriers, drivers and the adoption level of e-business activities, and these have

alsobeen discussed. The research has resulted in a thorough evaluation of the level of e-

business activities in Yemeni SMEs, and it has been found that most Yemeni SMEs are

engaging in e-business activities, although they are facing many challenges which they are

willing to overcome.

6.3 Key Findings

6.3.1 Objective 1: To discover to what extent Yemeni SMEs are engaging in e-

business activities

The extended e-business stage model developed in this study is based on previous stage

models and includes new technologies, namely, social media, mobile app and cloud services.

The extended stage model has been used to evaluate the status of e-business activities in

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SMEs in Yemen. To conclude the results of the evaluation, a low number of Yemeni SMEs have

not adopted even basic technology such as email. Almost all SMEs have an email and social

media account which they use to communicate with suppliers and customers, share

documents across all departments and receive orders from customers, as well as advertise

and promote their products and services. High numbers of SMEs have their own website to

advertise and promote their products and services, and about half of them use e-commerce

for purposes such as to sell products and services and receive orders and process them; only

a few companies receive electronic payments and the rest process them manually and receive

payment either via bank transfer or cash.

Regarding the use of mobile apps by the SMEs, about half of the SMEs who participated in

this study have their own mobile app to sell products and services to customers, and only half

of them have electronic payment facilities; the other half receive payments either by bank

transfer or cash. Almost two-thirds of the SMEs have partially adopted cloud services and they

use these services to store emails, documents and orders to enable them to share more easily

with other departments, as well as owning ICT infrastructure on the cloud such as storage

capacity, networks, and communication systems. In addition, a higher number of SMEs have

use of e-business technology but have not fully adopted this, such as owning an electronic

system to allow them to communicate with suppliers electronically. Only about a third of the

participating SMEs, along with those transformed organisationally, have automated and open

systems to network with other organisations.

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6.3.2 Objective 2: To find out what is detering Yemeni SMEs from adopting e-

business

The results show that the cost of accessing the internet is high, and the cost of ICT

infrastructure is also high, which causes SMEs not to adopt email, social media, a website, or

e-business. In terms of organisational readiness, the results show that most of the employees

have insufficient access to a computer and most of the employees are computer/internet

illiterate. In terms of governmental readiness, the results show there are interruptions in

electric power and the internet connection speed is slow. In terms of regulations, the results

show that most of the SMEs do not know if a telecommunications regulatory authority exists,

and whether policies exist to protect all entities against fraud. In terms of banks and SME

relationships, the results have revealed that there is a lack of communication between banks

and SMEs with regards to the implementation of new technologies by the banking sector that

could support SMEs in adopting advanced technologies, and supporting their technology

strategy.

As a positive effect that moderates a positive direct relationship between organisational

readiness and the adoption of email and websites has been found, the effect is likely to

increase as war increases. Additionally, as there is a positive effect that moderates a positive

direct relationship between government readiness and the adoption of e-business, the effect

should increase if the war continues.

In terms of firm size, the effect of organisational readiness will increase as the company gets

bigger, because there is a positive effect that moderates a positive direct relationship

between organisational readiness and the adoption e-business. Additionally, the impact of

regulations will increase as the company gets bigger because there is a positive effect that

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moderates a positive direct relationship between regulations and the adoption of email,

social media and e-commerce. The effect of cost will increase as the company gets bigger

because there is a positive effect that moderates a positive direct relationship between cost

and the adoption of e-business.

To conclude, the significant barriers that deter Yemeni SMEs from adopting e-business are

cost, organisational readiness, and regulations, which are barriers for level 1 (Email). Cost,

organisational readiness, governmental readiness, and regulation are barriers for level 2

(Social Media). Cost and organisational readiness are barriers for level 3 (Website).

Organisational readiness and regulation are barriers for level 4 (E-commerce). Organisational

readiness and governmental readiness are barriers for level 5 (Mobile App). Organisational

readiness, governmental readiness and the relationships between banks and SME are barriers

for level 6 (Cloud Services). Cost, organisational readiness, and governmental readiness are

barriers for level 7 (E-business). Governmental readiness and the relationships between banks

and SMEs are barriers for level 8 (Transformed Organisational). In addition, organisational

readiness and governmental readiness have an effect on almost all levels.

6.3.3 Objective 3: To explore what drives Yemeni SMEs to be engaged in e-

business activities.

Among the significant drivers that push Yemeni SMEs to adopt e-business, awareness is the

only factor that drives SMEs to adopt level 1 (Email). Awareness and competitive pressure are

factors driving SMEs to adopt level 2 (Social Media). Awareness is the only factor that drives

SMEs to adopt level 3 (Website). Awareness and competitive pressure are factors driving

SMEs to adopt level 4 (E-commerce). Awareness, compatibility and competitive pressure are

factors driving SMEs to adopt level 5 (Mobile App). Awareness and competitive pressure are

223
factors driving SMEs to adopt level 6 (Cloud Services). Awareness, compatibility and

competitive pressure are factors driving SMEs to adopt level 7 (E-business). Awareness,

compatibility and competitive pressure are factors driving SMEs to adopt level 8 (Transformed

Organisational). In addition, awareness and competitive pressure have an effect at almost all

levels.

The results show that SMEs are aware of competitors’ technological implementations and

they consider these to drive the company to move towards adopting new technologies; they

recognise the opportunities and threats associated with e-business, and most SME owners

understand the potential benefits of e-business. In terms of compatibility, the results show

that for SMEs at the mobile apps level, the implementation of e-business is compatible with

company ICT infrastructure and strategy. In terms of competitive pressure, the results show

that firms that readily implement e-commerce will be competitive and they will lose

customers if they do not adopt e-business.

Relative advantage was found to have no effect on the adoption of e-business activities

because SMEs adopt e-business activities to compete in the market rather than to benefit the

company.

Awareness drives companies to adopt email, social media, a website, mobile apps, cloud

services, e-business, and become a transformed organisation as the war increases, because

there is a positive effect that moderates a positive direct relationship between awareness and

the adoption level of e-business activities. In terms of firm size, awareness drives companies

to adopt email, e-commerce and mobile apps as the company gets bigger, because there is a

positive effect that moderates a positive direct relationship between awareness and the

adoption level of e-business activities. Additionally, compatibility can drive companies to be

224
a transformed organisation as the company gets bigger, because there is a positive effect that

moderates the positive direct relationship between awareness and the adoption level of e-

business activities.

6.4 Contribution to knowledge

6.4.1 Empirical contribution

In terms of its empirical contribution, this study is considered to be unique in the field of e-

business adoption in the context of Yemen. The literature review has explained that empirical

studies into e-business adoption in SMEs remain comparatively rare in developing countries.

This is especially so in Middle Eastern countries. Although many studies have researched

SMEs in developing countries, in the context of Yemen, research remains comparatively rare;

therefore, this study has been able to contribute towards that gap.

In addition, most of the previous studies focused on a general view of e-business adoption in

SMEs (Aladwani, 2003, Zolait et al., 2010, Al-Marti, 2008, Almotamar, 2014). This study has

considered SMEs’ adoption of e-business from the perspective of the level of adoption.

Therefore, it has made an original contribution towards the current body of knowledge on

the adoption of e-business. Additionally, previous authors have used stage models to

understand the levels of e-business adoption in SMEs in developed and developing countries,

but there is a gap due to not including new technologies such as social media in the stage

models. Therefore, this study has contributed toward the literature on stage models by

addressing this gap.

Moreover, previous authors have studied the factors that may affect the adoption of e-

business in developed and developing countries. However, according to best knowledge of

this author, no research has been conducted in the context of Yemeni SMEs. Therefore, this

225
study has also contributed toward the study of the effect of barriers and drivers on the levels

of e-business adoption specifically in Yemen.

6.4.2 Theoretical contribution

There are many stage models that have been developed since 1973 to study IT, e-commerce

and e-business adoption in businesses, but these stage models have not changed to cope with

the technology revolution. In order to address this gap, there was a need to develop a new

stage model, based on the previous stage models, able to cope with the technology

revolution; therefore, this study has developed a new stage model for electronic business

adoption. Building upon previous adoption stage models, it recognises the recent

developments in information technology that businesses have harnessed; social media, for

example, is now having a significant influence on the way businesses and consumers interact

(Chaffey and White, 2010). The extended stage model developed here incorporates ‘social

media’ (OECD, 2015), ‘mobile applications’ and ‘cloud technologies’ (OECD, 2015). These new

factors have been added from the evolution of the technology that SMEs should implement

through the process of adopting e-business. The e-business evolution stage model has been

verified using empirical research to assess the progression of e-business activities in Yemen

for Small and Medium Enterprises (SMEs). Furthermore, most studies have used stage models

with a definition of e-commerce that states e-commerce is regarded as a subset of e-business

(Davis and Benamati 2003). The current study adopts the definition of e-business that

considers e-business as supporting (see section 1.2) the range of business processes using all

electronically mediated information exchanges, both inside and outside an organisation, as

well as including all e-commerce activity (Chaffey, 2011). To conclude, this study has made an

original theoretical contribution by recognising the gap in the previous stage models, and

through developing a stage model that is able to cope with the rapid changes in technology.

226
E-business development in organisations is assumed to be a phased process in which firms

are found to move from email, through to social media, a website, e-commerce, and mobile

apps, to more advanced technology such as e-business, and to becoming transformed

organisations that enable SMEs to carry out online selling and buying. Utilising electronic

payments, for example, while being an e-transformed organisation allows transactions and

communications to be conducted electronically and be automated. This study confirms that

e-business development in some organisations does progress from email towards more

advanced technology and being a transformed organisation.

However, the study also reveals that e-business development in some organisations begins

with the adoption of cloud services and then progresses towards a more integrated

organisation. In other words, the results can claim a new contribution to knowledge in that

there are two entry points that enable SMEs to adopt e-business activities. These two entry

points are stage 1 (email) and stage 6 (cloud services). Note, however, that entry to

technology at stage 6 does not necessarily preclude the later adoption of technologies from

stages 1-5. Where finance and capabilities have an influence, SMEs may retrospectively adopt

‘lesser’ technologies. This extended model offers a contemporary tool for assessing the

degree of ICT maturity in SMEs, as shown in Figure 6-1 below:

227
 Transformed Organisational S8

E-business S7

Second entry
Cloud Services S6
point

Mobile APP S5

E-commerce
S4

Website S3

Social
Media S2
First entry
Email
S1 point
Figure 6-1: Extended Stage Model

To conclude, this study has also made an original theoretical contribution by recognising two

entry points to the stage model (stage 1 email and stage 6 cloud services).

Most previous studies have focused on a general view of e-business adoption in SMEs, such

as Aladwani (2003), Zolait et al. (2010), Al-Marti (2008), and Almotamar (2014). In addition,

most of these studies have not studied the impact of barriers and drivers on the levels of e-

business adoption in the context of Yemeni SMEs. Therefore, by addressing this gap, this study

has considered SMEs’ adoption of e-business from the perspective of the level of adoption.

Also, this study has investigated the barriers and drivers that affect the level of e-business

adoption.

This study has found that war moderates the relationship between the barriers, drivers and

levels of e-business adoption. Moreover, this study has identified new barriers that effect the

adoption of e-business activities that have not been studied previously in the context of

Yemeni SMEs, namely: war and the relationship between government, banking sectors and

SMEs; therefore, it has made an original contribution towards the current body of knowledge

228
on the adoption of e-business. This study has made an original theoretical contribution to the

body of knowledge by developing a conceptual framework that can be used to study the

barriers and drivers that have an impact on the level of e-business adoption.

This study has used two definitions of SMEs (Yemeni and European definitions see section

1.2.1 in Chapter 1) to analyse the data collected, and it has found that there are no differences

in adopting e-business either by the Yemeni or European SME definitions. Therefore, it has

made an original contribution towards the current body of knowledge on the adoption of e-

business activities.

6.4.3 Practical contribution and implications

In terms of practical contribution and the implications of this study, the findings could be used

to provide recommendations to owners, decision makers, researchers, banks and

government. The findings from this study may help owners and policy makers overcome the

barriers that prevent them from adopting e-business activities.

6.6.3.1 Level of e-business activities in SMEs (e-business stage model)

Using the e-business stage model developed in this study could assist owners and policy

makers to evaluate their company status in terms of the e-business activities they have

adopted. It will also help them to identify the requirements needed to move through the

different stages of e-business activities adoption.

The owners and policy makers of Yemeni SMEs need to be aware of the new entry (cloud

computing) to e-business activities which will help them to adopt more advanced

technologies without a need to move from email towards advanced technologies. However,

entry to technology at stage 6 does not necessarily preclude the later adoption of

technologies from stages 1-5. Where finance and capabilities permit, SMEs may

229
retrospectively adopt ‘lesser’ technologies. This extended model offers a contemporary tool

for assessing the degree of ICT maturity in SMEs.

6.6.3.2 Barriers to e-business adoption

The owners and managers of Yemeni SMEs need to be supported to gain an understanding of

the benefits that their businesses can achieve from adopting e-business, especially in relation

to business growth. Owners and managers should be aware of the technology they have to

keep up-to-date with the evolution of technology. Firms’ owners should employ ICT experts

to help the company identify the need for development to move the company towards the

adoption of e-business. For instance, the e-business environment and infrastructure must be

continuously improved to facilitate e-business applications such as high speed internet, a full

functionality website, and secure order processing and payment systems. Furthermore,

Yemeni SME employees need to be trained to use such technology.

The owners and managers of Yemeni SMEs need to understand that barriers to the adoption

of e-business activities occur at different levels and different factors affect each level. These

carry implications for owner/managers of SMEs who should realise that there are different

levels of e-business activities adoption. Hence, they have to concentrate on the barriers

relevant to each stage.

The owners and managers need to better understand and keep up to date with the latest

statistical reports on the number of internet users, and the number of bank account and visa

card holders, rather than assuming the number, which could help them to move forward and

adopt more e-business activities. SMEs need to strengthen their relationship with the

government and banking sector in order to receive the best support.

230
The government should support and encourage SMEs to adopt e-business activities and

improve and develop the ICT infrastructure. In addition, the government should strengthen

their relationship with SMEs and provide them with the latest statistical reports on internet

users. The government needs to understand the benefit of improving the economy by

supporting SMEs. Moreover, the government should fight corruption and prevent it.

The banking sector should support, encourage and promote e-business activities to SMEs, and

improve and develop the ICT infrastructure. The banking sector should also strengthen their

relationship with SMEs and provide them with the latest statistical reports on bank accounts

and visa card holders. Also, the banking sector should provide easy access to all bank facilities

for SMEs and improve the electronic payment system.

6.6.3.3 Drivers to e-business activities adoption

The findings of this study may help owners and managers with regards to an awareness of the

drivers of e-business that can push their company towards adopting more e-business

activities. They should understand that there are different drivers to each level of e-business

activities adoption that they may have already. Yemeni SME owners and managers should

consider the benefits of e-business adoption as a driver to adopt more e-business activities.

This study has been carried out in a conflict area during a war, which made the research

difficult to conduct. The author faced many challenges during data collection, which has been

discussed earlier in section 5.1. However, this study could offer other researchers some

solutions to overcome the challenges in conflict areas. Researchers should use an online

based survey with QR to collect data and use web based interviews such as WhatsApp,

Facebook messenger, IMO and Skype to overcome the challenges and risks.

231
6.5 Post War Implications
SMEs are important for the economic development of any country. This study recommends

policy makers improve and develop the country’s IT infrastructure to facilitate SMEs to adopt

IT technologies and improve their performance. They may also introduce policies to improve

coordination between government departments and SMEs to understand the needs and

requirements of SMEs. Policy makers can also encourage the banking industry and financial

institutions to cooperate with SMEs to enable them to have access to finance and discuss

their IT technological requirements with them. Additionally, this research recommends policy

makers introduce policies and regulations for online transactions, as this will help SMEs to

adopt internet technologies. Moreover, policy makers may encourage SMEs to adopt internet

technologies and assist them by meeting all necessary requirements. As a result of the SMEs

growing by adopting these technologies, the country’s economy would improve as well. This

research recommends that Yemeni SMEs are supported by policy makers to gain an

understanding of the benefits that their business can achieve from adopting e-business,

especially in relation to business growth. Policy makers may provide ICT experts to help the

company identify the need for development to move the company toward the adoption of e-

business. For instance, the e-business environment and infrastructure must be continuously

improved to facilitate e-business applications such as high-speed internet, a full functionality

website, and secure order processing and payment systems.

Policy makers should support and encourage SMEs to adopt e-business activities and improve

and develop the ICT infrastructure. The government should strengthen their relationship with

SMEs and provide them with the latest statistical reports on internet users. The government

needs to understand the benefits with regard to improving the economy by supporting SMEs.

Importantly, the government should fight corruption and prevent it. In addition, the

232
government may encourage banks and industry to coordinate and co-operate with SMEs to

increase awareness of e-business adoption and support their first step costs. Motivating SMEs

that are still in the early stages to move forward and adopt appropriate levels of e-business

could be done by learning from SMEs that have already adopted e-business, and therefore,

grow their market share. The government may provide essential advice, ICT consultancy and

experts for SMEs to enable them to adopt e-business. Moreover, the government could

provide regular courses and programmes on the implementation of e-business to SMEs’

owner/managers across all SME sectors to increase their skills, knowledge and to help them

to recognise the importance of adopting e-business.

The banking sector should support, encourage and promote e-business activities to SMEs

and improve and develop the ICT infrastructure. The banking sector should strengthen their

relationship with SMEs and provide them with the latest statistical reports on bank account

and visa card holders. Also, the banking sector should provide easy access to all banking

facilities for SMEs and improve the electronic payment system.

This research has found there is a lack of databases available for SMEs, so the government

could introduce measures to maintain proper databases for SMEs operating in Yemen. This

would also help future researchers to carry out research on SMEs.

To conclude, by following all of the above-mentioned recommendations, this may increase

the diffusion of e-business implementation in Yemeni SMEs, and may lead to a positive impact

on economic development.

6.6 Study limitations and Future research

It should be noted that this research has some limitations similar to other studies. Firstly, the

researcher was unable to travel to Yemen for data collection due to the war in Yemen and the

233
cost. Therefore, to overcome this limitation, an online survey was used for quantitative data

collection by sending the link to SMEs owner/managers via email and social media. In

addition, questionnaires were sent to representatives in Yemen for distribution to SMEs.

Moreover, interviews were conducted via social media such as WhatsApp and Facebook.

Secondly, the number of interviews is small, again due to the war, and therefore, it would be

useful for future research to expand on the number of interviews. Finally, the results of this

study have been gained from a single type of respondent (owners or managers) from each of

the SMEs, therefore perhaps losing the opportunity to understand the differences between

the owner and managers’ views on the actual barriers and drivers to e-business adoption.

Therefore, future research should target both owners and managers from each of the SMEs

being researched in order to understand the differences between their views on the actual

barriers and drivers to e-business adoption.

Future research may use the extended stage model developed in this study in developed and

developing countries to validate the model. Future studies could also use the conceptual

framework developed in this study in Yemen post war and compare the results with this

study’s results. In addition, the conceptual framework developed in this study might be

helpful to further research conducted in similar times of political unrest, and the multiphase

mixed methods approach used in this research might be useful to researchers conducting

studies into SMEs in the future.

234
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250
 Appendices
Appendix 1: Questionnaire form (English)

Survey on E-Business Adoption in Yemeni SMEs

Dear CEO/Manager/Owner
As a part of my Ph.D. research at University of South Wales, I am conducting a study to analyse the
e-business activities among firms in Yemen and to investigate the factors that affecting the e-
business adoption. You are among a small number of professionals I am asking to complete the
attached questionnaire. Your response is important to the completion of this study. The survey
should take no longer than 15 minutes.
Your identity will be anonymous and your responses will be confidential. You are free to withdraw at
any time with no prior notice. There are no right or wrong answers, but please answer as truthfully
as possible.
I will share the result of this study with you if you indicate your interest and I truly appreciate your
time and interest.
If you need more information about the study, please do not hesitate to contact the principal
investigator, Mr Ahmed Abdullah by email: Ahmed.abdullah@southwales.ac.uk
Thank you for your participation.

Ahmed Abdullah
PhD candidate
E-business& Management Information System
Newport Business School – University of South Wales
Newport City Campus, Usk way, Newport, NP20 2BP, UK
Tel: 00441633435382
Mobile: 00447846166625

251
 E-Business Adoption in Yemeni SMEs

E-Commerce defined as an external activity of buying and selling products and services online.

E-business: the term of electronic business defined in this research as the integration of internal and
external organizational processes and the connection between the organisation and their suppliers and
partners as well as customer satisfaction.

Cloud services: refers to ICT services used over the Internet as a set of computing resources to access
software, storage capacity and so on.

Mobile App: is a software application developed specifically for use on small, wireless computing
devices, such as smartphones and tablets, rather than desktop or laptop computers. It also allows
consumers to access contact information, e-commerce pages and coupons or deals quickly and easily,
anywhere and anytime. It also allow consumers to purchase and pay for company products or services.

1- Use of internet technology

To what extent does your company engage in the following e-business activities?
Within our organisation we use email Never Rarely Usually Mostly Always
We use email to Communicate with customers, suppliers and
partners
We use email to share documents across company department
We use email to receive orders from customers
Within our organisation We use social media Never Rarely Usually Mostly Always
We use social media to attract customer
We use social media to advertise our products /services
We use social media to receive orders from customers
We use social media to communicate with suppliers, partners and
customers
Within our organisation We have website Never Rarely Usually Mostly Always
We have website to advertise our products/ services
We have website to publish basic organisation information
We have website to communicate with suppliers, partners and
customers
We have website to sell products/ services
We have website to receive and manage customers’ orders
We have website to receive electronic payment
Within our organisation We have mobile apps Never Rarely Usually Mostly Always
We have mobile apps to sell products/services
We have mobile apps to receive and manage customers’ orders
We have mobile apps to receive payment electronically
Within our organisation We use online cloud services Never Rarely Usually Mostly Always
We use online cloud services to store emails, documents and orders
We use online cloud services to own information technology
infrastructure, storage capacity from networks and communication
systems to a great extent.
Within our organisation we Never Rarely Usually Mostly Always
We liaise and collaborate with customers, suppliers and partners
electronically.

252
We have integrated systems to do firm’s work and communicate with
suppliers and the process of production control electronically
We have an automated and open system to network with other
organisations/ individuals
We have an automated and open system to enable organisation
partners to use our internal system and updates.

2- E-business Barriers
Please response on the following scale.
I. Cost
Strongly Disagree Neutral Agree Strongly
The cost of Disagree Agree
The cost of e-business applications, systems and hardware are
high.
The cost of accessing to the Internet is high.
The cost of hosting websites and engaging in e-business activities
is high.
The cost of e-business training for employees is high
The cost of ICT infrastructure is high
The cost of developing and maintaining the e-business is high

II. Organisational Readiness

Within our organisation Strongly Disagree Neutral Agree Strongly
Disagree Agree
employees have sufficient access to computers.
most of our employees are computer/internet literate
we have highly computerised with Local Area Network (LAN)
we have internal system connected among all department and
branches
we have connectivity to the Internet.
we have IT experts
we have financial resources to implement e-business

III. Government Readiness

In Yemen Strongly Disagree Neutral Agree Strongly
Disagree Agree
In Yemen the telecommunication infrastructure is reliable and
efficient for e-business.
In Yemen the available commercial and financial institutions have
good ICT for e-business
In Yemen the postal service is reliable in supporting e-business
In Yemen there is a secure electronic payment system available.
In Yemen there are e-business applications and services available
in the market
In Yemen the current Internet connection speed is good for e-
business transactions.
In Yemen there are IT and e-business experts available in the
labour market
In Yemen the electricity power is uninterrupted

253
 IV. Government Open Data
We liaise with the Government with regards Strongly Disagree Neutral Agree Strongly
Disagree Agree
We liaise with the Government with regards to provide us
information about ICT infrastructure development.
We liaise with the Government with regards to update us about the
latest statistical number of internet users.
We liaise with the Government with regards to update us about the
good point about e-business.
We liaise with the Government with regards to the promotion of
e-business in SMEs
We liaise with the Government with regards to the respond to the
requirement of ICT infrastructure that support our strategy

V. Banks Open Data

We have a co-operation with Banking industry Strongly Disagree Neutral Agree Strongly
Disagree Agree
We have a co-operation with Banking industry to provide us
information about any new technology they have implemented
that could support our strategy.
We have a co-operation with Banking industry to update us about
the latest statistical number of e-banking users and visa card
holders
We have a co-operation with Banking industry to update us about
the good point about e-business.
We have a co-operation with Banking industry in terms of
promoting e-business in SMEs
We have a co-operation with Banking industry to responds to the
requirement of implementing new technology that support our
strategy

VI. Regulation
In Yemen Strongly Disagree Neutral Agree Strongly
Disagree Agree
In Yemen there exists a telecommunication regulatory authority
In Yemen there exists e-business policy and regulation
In Yemen there exists policy to protect all entities against fraud.
In Yemen there exists regulation protect users and business from
cybercrime
In Yemen the Government business law support e-business

VII. Security
In Yemen Strongly Disagree Neutral Agree Strongly
Disagree Disagree
In Yemen E-business is associated with sufficient security
safeguards
In Yemen Internet protocols are adequate to support secure
electronic ordering and payments.
In Yemen E-business environment is secure enough

254
 3- E-business Drivers
I. Relative Advantage
E-business adoption is useful Strongly Disagree Neutral Agree Strongly
Disagree Agree
E-business adoption is useful to increase business profitability.
E-business adoption is useful to improve internal communications
and process
E-business adoption is useful to expand the local and international
market
E-business adoption is useful to improve communication with
suppliers and trading partners.
E-business adoption is useful to improve customer services
E-business adoption is useful to reduce the cost of communication
E-business adoption is useful to reduce the cost of business
operation
E-business adoption is useful to reduce the costs of advertisement
and sales

II. Awareness
Within our organisation Strongly Disagree Neutral Agree Strongly
Disagree Agree
we aware of e-business implementation of our partner organisations
we aware of our competitors’ e-business implementations
we recognise the opportunities and threats associated with e-business
we understand the potential benefit of e-business to our business
we know about the impact of e-business in our industry

III. Compatibility
The implementation of e-business is Strongly Disagree Neutral Agree Strongly
Disagree Agree
The implementation of e-business is compatible with our ICT
infrastructure.
The implementation of e-business is compatible with our business
strategy.
The implementation of e-business is compatible with all aspects of
our work

IV. Competitive Pressure

Within our industry Strongly Disagree Neutral Agree Strongly
Disagree Agree
firms that readily implement new technologies will be competitive.
we will lose our customers to our competitors if we do not adopt e-
business
it is a strategic necessity to use e-business to compete in the
marketplace
our competitors can drive our company to adopt e-business

255
 V. War
The war has Strongly Disagree Neutral Agree Strongly
Disagree Agree
The war has affected the ICT and e-business applications’ budget.
The war has affected our business strategy to develop ICT.
The war has affected our business ICT infrastructure
The war has driven us to use the internet and social media
The war has driven us to install solar panel for covering the power
outages

4- Organisation profile

Company operations (specify the single most Number of Employees:

important industry). 1-3 employees’
Food and beverage 4-9 employees
Construction 10-49 employees
Marketing and Advertising 50-249 employees
Computer and Electronic Products 250 and more
Tourism and Hospitality services
Business Services
Insurance and Financial Services
Wholesale and Retail
Other: (Specify)_______________
How long has your organisation been in existence? Your Position:
5 years or less Owner, Managing Director, CEO;
5 to 9 years Business Operation Manager, COO
10 to 19 years Administration/Finance Manager, CFO
20-49 years Information services (IS) Manager, Planner
Other: (Specify) _______________
50 and more

Any comments
--------------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------------
THANK YOU FOR COMPLETING THIS QUESTIONNAIRE. Would you be willing to participate in the next stage of
this research in the form of consultative interviews? (Please provide your email address and phone number).
Email Address: _______________________________________________________________________
Phone Number: ______________________________________________________________

Would you like to receive the executive summary of the finding of this survey? (Please provide me
with the following information)
Company Name: _______________________________________________________
Email Address: _______________________________________________________

THANK YOU FOR COMPLETING THIS SURVEY!

256
‫)‪Appendix 2: Questionnaire form (Arabic‬‬

‫إستبيان حول تطبيق التجارة االلكترونية في الشركات اليمنية‬

‫سعادة الرئيس التنفيذي‪ /‬المدير‪ /‬المالك الموقر‬

‫يقوم الباحث ‪ /‬أحمد عبد الرحمن عبده سعيد عبد هللا ‪ ،‬الباحث بجامعة ساوث ويلز(‪)University of South Wales‬‬
‫في المملكة المتحدة ‪ ،‬بإجراء بحث علمي يلقي الضوء على مستويات تطبيق الشركات اليمنية للتجارة االلكترونية‬
‫والعوامل التي توثر على استخدامها وتطبيقها‪.‬‬

‫الهدف من الدراسة‬
‫ان الشركات (صغيرة ومتوسطة الحجم) لها مكانة مهمة في الهيكل االقتصادي الي دولة‪ .‬وفي ظل تزايد المنافسة المحلية‬
‫والعالمية فان الكثير من الشركات تسعى لالستفادة من الفرص التي تقدمها التكنولوجيا‪ .‬كما ان استخدام االنترنت‬
‫والوسائل االلكترونية االخرى في االعمال االلكترونية تعتبر احد اهم العوامل لزيادة القدرات للشركات على المنافسة مع‬
‫الشركات الكبيرة‪ .‬وعلى ذلك يهدف هذا البحث الى دراسة وتقيم اعتماد انشطة التجارة االلكترونية في الشركات اليمنية‬
‫وكذلك دراسة العوامل التي توثر على مستويات تطبيق التجارة االلكترونية‪.‬‬

‫مشاركتكم في هذا البحث محل تقدير الباحث وارائكم تقدم معلومات قيمة للدراسة‪ .‬اود التاكيد على ان هذا االستبيان‬
‫يستخدم الغراض البحث العلمي وان البيانات المستخدمة سوف تعامل بخصوصية وسرية تامة‪ .‬كما يمكنكم الحصول على‬
‫نسخة من ملخص الدراسة عند الطلب‪.‬‬

‫إذا تطلب األمر لمزيد من التوضيح ومعلومات عن هذه الدراسة‪ ،‬يرجى عدم التردد في التواصل مع الباحث عن طريق‬
‫البريد االلكتروني‪Ahmed.abdullah@southwales.ac.uk :‬‬

‫شكراً على حسن تعاونكم‪،،،،،،‬‬

‫الباحث‪ /‬أ حمد عبد هللا‬

‫إدارة نظم المعلومات و االعمال االلكترونية‬
‫جامعة ساوث ويلز‪ ،‬المملكة المتحدة‬
‫ت‪00441633435382:‬‬
‫موبايل‪00447846166625 :‬‬

‫‪257‬‬
 ‫تبني التجارة االلكترونية في الشركات اليمنية‬
‫يعرف مصطلح "التجارة االلكترونية" (‪ ،)e-commerce‬بأنها عملية التحول من النظام التقليدي إلى نظام جديد يعتمد على‬
‫إستخدام تقنيات المعلومات والشبكات الحاسوبية مثل إستخدام اإلنترنت والبريد االلكتروني إلدارة وتنفيذ مختلف أعمال الشركة إلكترونيا ً‬
‫كإدارة عمليات البيع والشراء وخدمة الزبائن والتعامل مع الموردين‪.‬‬

‫وكذلك يمكن تعريف "االعمال االلكترونية" (‪ ،)e-business‬بانها عبارة عن تكامل العمليات التنظمية الداخلية والخارجية للمنظمة‬
‫‪ ،‬وكذلك االتصال والتعامل بين المنظمة والموردين والشركاء‪.‬‬

‫"الحوسبة السحابية" (‪ ،)Cloud Computing‬هي مصطلح يشير إلى المصادر واألنظمة الحاسوبية المتوافرة تحت الطلب‬
‫عبر شبكة االنترنت والتي تستطيع توفير عدد من الخدمات الحاسوبية المتكاملة دون التقيد بالموارد المحلية بهدف التيسير على‬
‫الشركات وتشمل ‪:‬مساحة لتخزين البيانات والنسخ االحتياطية وبرامج متخصصة وخدمة البريد اإللكتروني واستضافة المواقع‬
‫االلكترونية والطباعة عن بعد‪.‬‬
‫تطبيق الهواتف واالجهزة الذكية (‪ ،)Mobile App‬هو تطبيق برامج صمم خصيصا لالستخدام على أجهزة الكمبيوتر الصغيرة‪،‬‬
‫والالسلكية‪ ،‬مثل الهواتف الذكية وأقراص‪ ،‬بدالً من أجهزة كمبيوتر سطح المكتب أو الكمبيوتر المحمول‪ .‬كما يتيح للمستهلكين‬
‫للحصول على معلومات جهة االتصال‪ ،‬والصفحات اإللكترونية و يتعامل معها بسرعة وسهولة‪ ،‬وفي أي مكان وفي أي وقت‪ .‬كما‬
‫أنها تسمح للمستهلكين بالشراء والدفع لشركة المنتجات أو الخدمات‪.‬‬

‫إستخدام تقنيات اإلنترنت‬

‫الى اي مدي تنجز االنشطة التالية اليكترونيا في شركتكم‪.‬‬
‫دائما‬ ‫غالبا‬ ‫احيانا‬ ‫نادراً‬ ‫أبدا‬ ‫يتم إستخدام االيميل االكتروني‬
‫في التواصل مع العمالء ‪ ،‬الموردين والشركاء‬
‫في مشاركة الملفات والتفرير في جميع اقسام الشركة‬
‫في استالم طلبات الشراء من العمالء‬
‫دائما‬ ‫غالبا‬ ‫احيانا‬ ‫نادراً‬ ‫أبدا‬ ‫يتم إستخدام مواقع التواصل االجتماعي‬
‫في استقطاب وجذب الزبائن‬
‫في االعالنات عن منتجات ‪ /‬خدمات الشركة‬
‫في استالم طلبات الشراء من العمالء‬
‫في التواصل مع العمالء ‪ ،‬الموردين والشركاء التجارين‬
‫دائما‬ ‫غالبا‬ ‫احيانا‬ ‫نادراً‬ ‫أبدا‬ ‫الشركة لديها موقع االلكتروني على االنترنت ويستخدم‬
‫في االعالنات عن منتجات ‪ /‬خدمات الشركة‬
‫في نشر المعلومات االساسية وعنواين الشركة‬
‫في التواصل مع العمالء ‪ ،‬الموردين والشركاء التجارين‬
‫في بيع منتجات ‪ /‬خدمات الشركة‬
‫في استالم وادارة الطلبات الشرائية من العمالء‬
‫في استالم المدفوعات االلكترونية (القيمة الشرائية للطلب)‬
‫دائما‬ ‫غالبا‬ ‫احيانا‬ ‫نادراً‬ ‫أبدا‬ ‫الشركة لديها تطبيق الهواتف واالجهزة الذكية (‪ ،)Mobile App‬ويستخدم‬
‫في بيع منتجات ‪ /‬خدمات الشركة‬
‫في استالم وادارة الطلبات الشرائية من العمالء‬
‫في استالم المدفوعات االلكترونية (القيمة الشرائية للطلب)‬
‫دائما‬ ‫غالبا‬ ‫احيانا‬ ‫نادراً‬ ‫أبدا‬ ‫الشركة تستخدم تقنية الحوسبة السحابية)‪(Cloud Computing‬‬
‫في تخزين الملفات وااليميالت والطلبات في االنترنت‬
‫المتالك مساحة تخزنية وانظمة تقنية المعلومات واالتصاالت لحد كبير في االنترنت‬
‫دائما‬ ‫غالبا‬ ‫احيانا‬ ‫نادراً‬ ‫أبدا‬ ‫الشركة‬
‫تقوم بمعالجة أوامر الشراء‪ ،‬ومعالجة المدفوعات‪ ،‬دعم العمالء والتعاون مع الشركاء التجارين الكترونيا ً‬
‫لديها نظم متكاملة ويتم من خاللها إدارة المشتريات‪ ،‬أوامر الشراء والدفع ‪ ،‬تجديد المخزون ‪ ،‬والتواصل‬
‫مع الموردين ‪ ،‬وعملية مراقبة اإلنتاج الكترونيا ً‬
‫لديها نظام مدمج مع انظمة خارجية (شركات او جهات خارجية او اخرى) الكترونيا ً ‪ ،‬بحيث تقوم بعملية‬
‫استالم الطلبات والمدفوعات الكترونيا وتلقائيا‬
‫لديها نظام اآللي يسمح للشركاء التجارين من الوصول واستخدام انظمة الشركة الداخلية‬
‫الكترونيا ً‬

‫‪258‬‬
 ‫‪ -5‬معوقات تبني التجارة االلكترونية‬
‫الرجاء االجابة على االسئلة التالية‪:‬‬
‫‪ .VIII‬التكلفة‬
‫أوافق بشدة‬ ‫أوافق‬ ‫محايد‬ ‫ال أوافق‬ ‫ال أوافق بشدة‬ ‫تكلفة‬
‫استخدام التجارة االلكترونية وانظمتها في الشركة مرتفعة‬
‫االشتراك باالنترنت مرتفعة‬
‫إنشاء‪ ،‬استضافة وصيانة موقع الكتروني للشركة على شبكة االنترنت مرتفعة‬
‫تدريب الموظفين وصقل مهاراتهم لمواكبة التطور التكنولوجي مرتفعة‬
‫البنية التحتية لتقنية المعلومات واالتصاالت مرتفعة‬
‫تطوير وصيانة انظمة التجارة االلكترونية مرتفعة‬

‫‪.IX‬الموارد والبنية التحتية لتقنيات المعلومات المتوفرة داخل الشركة‬

‫أوافق بشدة‬ ‫أوافق‬ ‫محايد‬ ‫ال أوافق‬ ‫ال أوافق بشدة‬ ‫داخل الشركة‬
‫معظم الموظفين لديهم اجهزة كمبيوتر‬
‫معظم الموظفين لديهم خبرات كافية في استخدام الكمبيوتر واالنترنت‬
‫لدينا شبكة داخلية لربط الحواسيب مع بعضها البعض‬
‫لدينا شبكة لربط حواسيب وانظمة الفروع مع بعضها البعض‬
‫لدينا اتصال باالنترنت‬
‫لدينا خبراء في تقنيات المعلومات‬
‫لدينا الموارد المالية الكافية لتطبيق و تبني التجارة االلكترونية‬

‫‪ .X‬البنية التحتية المتعلقة بالدولة و المؤسسات المالية‬

‫أوافق بشدة‬ ‫أوافق‬ ‫محايد‬ ‫ال أوافق‬ ‫ال أوافق بشدة‬ ‫في اليمن‬
‫البنية التحتية لتقنية المعلومات واالتصاالت فعالة لدعم التجارة االلكترونية‬
‫البنية التحتية للمؤسسات المالية والبنوك قادرة على دعم إجراءات الدفع االلكتروني‬
‫خدمات البريد والشحن فعالة بالشكل الكافي لدعم المعامالت التجارية االلكترونية‬
‫خدمات الدفع االلكتروني متوفرة‪ ،‬فعالة و محمية لدعم التجارية االلكترونية‬
‫نظم المعلومات‪ ،‬برامج وتطبيقات المعامالت التجارية االلكترونية متوفرة‬
‫خطوط وخدمات االتصال الالسلكية (‪ )wireless‬متوفرة و فعالة‬
‫سرعة االنترنت الحالية جيدة لدعم المعامالت التجارية االلكترونية‬
‫يوجد في سوق العمل خبراء في نظم المعلومات وتقنية التجارة االلكترونية‬
‫التيار الكهربائي متوفر بدون انقطاع‬

‫‪ .XI‬عالقة الشركة بالحكومة‬

‫أوافق بشدة‬ ‫أوافق‬ ‫محايد‬ ‫ال أوافق‬ ‫ال أوافق بشدة‬ ‫يوجد تواصل وتعاون مع الحكومة بحيث‬
‫يتم تزويدنا بالمعلومات عن اي تطوير في البنية التحتية لتقنية المعلومات واالتصاالت‬
‫الخاصة بالدولة‬
‫يتم تزويدنا باحدث احصائية لعدد مستخدمي االنترنت‬
‫يتم تزويدنا بمعلومات عن اهمية تبني التجارة االلكترونية في الشركات‬
‫يوجد هناك دورمهم للحكومة في تعزيز استخدام التجارة االلكترونية في شركتنا‬
‫نقوم عند الحاجة بمطالبة الحكومة في تطوير البنية التحتية لتقتية المعلومات‬
‫واالتصاالت لتالئم استراتيجية الشركة‬

‫‪ .XII‬عالقة الشركة بقطاع البنوك‬

‫أوافق بشدة‬ ‫أوافق‬ ‫محايد‬ ‫ال أوافق‬ ‫ال أوافق بشدة‬ ‫يوجد تواصل وتعاون مع قطاع البنوك بحيث‬
‫يتم تزويدنا بالمعلومات عن اي تقنية جديدة تم تبنيها من قبل البنوك والتي يمكن ان‬
‫تدعم استرتجية الشركة تكنولوجيا ً‬
‫يتم تزويدنا باحدث احصائية لعدد مستخدمي االعمال المصرفية االلكترونية وبطاقات‬
‫االئتمان او البطاقات مسبوقة الدفع االلكتروني‬
‫يتم تزويدنا بمعلومات عن اهمية تبني التجارة االلكترونية في الشركات‬
‫يوجد هناك دورمهم للبنوك في تعزيز استخدام التجارة االلكترونية في الشركات‬

‫‪259‬‬
 ‫نقوم عند الحاجة بمطالبة البنوك لتطبيق تقنية جديدة تتالئم مع استراتيجية الشركة‬
‫‪ .XIII‬التشريعات الحكومية‬
‫أوافق بشدة‬ ‫أوافق‬ ‫محايد‬ ‫ال أوافق‬ ‫ال أوافق بشدة‬ ‫في اليمن‬
‫يوجد هيئة تنظمية وقانونية متخصصة في تنظيم اعمال االتصاالت السلكية والالسلكية‬
‫يوجد إطار قانوني لتظيم المعامالت التجارية االلكترونية بشكل آمن‬
‫يوجد قوانين واضحة لحماية الشركات والعمالء ضد االحتيال االلكتروني‬
‫يوجد قوانين لحماية العمالء والشركات من الجريمة االلكترونية (‪)cybercrime‬‬
‫قوانين االعمال التجارية الحكومية تدعم المعامالت التجارية االلكترونية‬
‫‪ .XIV‬أمن المعلومات‬
‫أوافق بشدة‬ ‫أوافق‬ ‫محايد‬ ‫ال أوافق‬ ‫ال أوافق بشدة‬ ‫في اليمن‬
‫األعمال التجارية اإللكترونية مرتبطة بضمانات أمنية كافية‬
‫بيئة االنترنت توفر بروتكوالت لدعم الشراء والبيع والدفع االلكتروني بطريقة امنة‬
‫بيئة االعمال التجارية االلكترونية عملية امنة‬

‫‪E-business Drivers -6‬‬

‫فوائد تبني التجارة االلكترونية‬
‫أوافق بشدة‬ ‫ال أوافق محايد أوافق‬
‫‪.VI‬‬
‫ال أوافق بشدة‬ ‫من فوائد استخدام وتبني المعامالت التجارية االلكترونية‬
‫زيادة مبيعات وارباح الشركة‬
‫تسهيل عملية التواصل الداخلي وجعل سير العمليات داخل الشركة اكثر كفاءة‬
‫زيادة الحصة السوقية محليا ً ودوليا‬
‫تحسين التنسيق مع الموردين و بين قنوات التوزيع‬
‫تحسين أداء خدمات العمالء و التواصل مع العمالء بشكل افضل‬
‫تقليل تكلفة التواصل مع العمالء والموردين‬
‫تقليل تكلفة التخزين‪ ،‬التشغيل‪ ،‬عمليات االنتاج والمشتريات‬
‫تقليل تكلفة التسويق واالعالنات عن المنتجات ‪ /‬الخدمات‬

‫الوعي‬ ‫‪.VII‬‬
‫أوافق بشدة‬ ‫أوافق‬ ‫محايد‬ ‫ال أوافق‬ ‫ال أوافق بشدة‬ ‫في الشركة‬
‫نحن على دراية باي تبني او استخدام للتجارة االلكترونية من قبل شركائنا التجارين‬
‫نحن على دراية باي تبني او استخدام للتجارة االلكترونية من قبل منافسينا‬
‫نحن على معرفة بالفرص والتهديدات الناتجة عن استخدام التجارة االلكترونية‬
‫نحن مدركون عن اهمية تطبيق التجارة االلكترونية والفوائد العائدة منها‬
‫نحن على دراية بمدى تأثير التجارة االلكترونية على مجال عمالنا‬

‫التوافق‬ ‫‪.VIII‬‬
‫أوافق بشدة‬ ‫أوافق‬ ‫محايد‬ ‫ال أوافق‬ ‫ال أوافق بشدة‬ ‫تبني واستخدام التجارة االلكترونية‬
‫سوف يكون متوافق مع البنية التحتية لتقنية المعلومات للشركة‬
‫سوف يكون متوافق مع استرتجية الشركة واهدافها‬
‫سوف يكون متوافق مع كل طرق قيامنا بأعمال الشركة‬

‫ضغوط المنافسين‬ ‫‪.IX‬‬

‫أوافق بشدة‬ ‫أوافق‬ ‫ال أوافق محايد‬ ‫ال أوافق بشدة‬ ‫تاثير انشطة المنافسين على انشطة الشركة بحيث‬
‫الشركات التي تطبق وتتبنى تقنية حديثة ومتطورة تكون قادرة على المنافسة‬
‫عدم تطبيق التجارة االلكترونبة يؤدي لخسارة الشركة لجزء من عمالئها لمنافسيها‬
‫هناك ضرورة لوجود استراتيجية لتطبيق التجارة االلكترونية للمنافسة في سوق العمل‬
‫تبني التجارة االلكترونية من قبل المنافسين يجبرنا على تبنيها‬
‫الحرب‬ ‫‪.X‬‬
‫أوافق بشدة‬ ‫أوافق‬ ‫محايد‬ ‫ال أوافق‬ ‫ال أوافق بشدة‬ ‫الحرب في اليمن‬
‫أثرت على الميزانية المخصصة لتطوير البنية التحتية لتقنية المعلومات واالتصاالت‬
‫أثرت على أسترتجية الشركة في تطوير البنية التحتية لتقنية المعلومات واالتصاالت‬
‫اثرت على البنية التحتية لتقنية المعلومات االتصاالت في الشركة والدولة‬

‫‪260‬‬
 ‫دفعت الشركة تستخدم االنترنت ومواقع التواصل االجتماعي بكثافة‬
‫دفعت الشركة تستخدم ألواح الطاقة الشمسية كبديل لالنقطاع التيار الكهربائي المستمر‬
‫‪ -7‬معلومات عامة عن الشركة‬

‫عدد موظفي الشركة‪:‬‬
‫‪ 3 -1‬موظف‬
‫‪ 9 - 4‬موظف‬
‫‪ 49 -10‬موظف‬
‫‪ 249 - 50‬موظف‬
‫‪ 250‬او اكثر‬
‫أخرى الرجاء التوضيح‪..........................‬‬
‫المسمى الوظيفي‪:‬‬
‫رئيس‪ ،‬رئيس تنفيذي او مالك‬
‫مديرالعمليات التجارية‬
‫مدير اإلدارة المالية‪ ،‬المدير المالي‬
‫مدير إداري او مدير خدمات نظم المعلومات‬
‫أخرى الرجاء التوضيح‪.........................‬‬
‫النشاط او المجال االساسي الذي تعمل به الشركة‪ (.‬الرجاء اختيار‬
‫النشاط االقرب لمجال عملكم)‪.‬‬
‫االغدية والمشروبات‬
‫البناء والمقاوالت‬
‫التسويق واإلعالنات‬
‫أجهزة الكمبيوتر والمنتجات االلكترونية‬
‫السياحة والخدمات الفندقية‬
‫خدمات األعمال التجارية‬
‫الخدمات المالية والتامين‬
‫تجارة التجزئة او الجملة‬
‫أخرى الرجاء التوضيح‪.................................‬‬
‫منذ متى تم تأسيس الشركة؟‬
‫أقل من ‪ 5‬سنوات‬
‫‪ 9 - 5‬سنوات‬
‫‪ 19 - 10‬سنة‬
‫‪ 49 - 20‬سنة‬
‫أخرى الرجاء التوضيح‪..........................‬‬

‫تعليقات أخرى‬
‫‪-------------------------------------------------------------------------------------------------------------------------------------‬‬
‫‪--------------------------------------------------------------------------------------------------------------------------------------‬‬
‫‪--------------------------------------------------------------------------------------------------------------------------------------‬‬

‫شكرا لتعاونكم في اكمال االستبيان‪ .‬هل انتم على إستعداد للمشاركة في المرحلة الثانية من هذا البحث الجراء مقابلة مع‬
‫معكم؟ ( الرجاء تزويدنا برقم الهاتف وااليميل االلكتروني الخاص بكم‪ /‬في حالة الموافقة)‪.‬‬

‫االيميل االلكتروني‪__________________________________________________________________ :‬‬

‫رقم الهاتف ‪________________________________________________________________ :‬‬

‫كمشارك في البحث‪ ،‬لك الخيار بان تزودنا باسم شركتك وعنوان بريدها‪ ،‬ليتسنى لنا االتصال بكم وارسال ملخص النتائج‬
‫النهائية للدراسة‪ .‬هذا ونقدر دعمكم لنا‪ .‬ونأكد لكم ان جميع المعلومات سوف تعامل بخصوصية وسرية تامة‪.‬‬

‫اسم الشركة ‪______________________________________________________________________:‬‬

‫البريد االلكتروني ‪___________________________________________________________________:‬‬

‫رقم الفاكس ‪______________________________________________________________________:‬‬

‫شكرا لتعاونكم في اكمال االستبيان‪،،،،،،،‬‬

‫‪261‬‬
Appendix 3: Interview information sheet
Dear CEO/Owner /Manager,
You are invited to participate in a research project. This information sheet describes the
project. Please read this sheet carefully and be confident that you understand its contents
before deciding whether to participate. For any information about the research, you can
contact (Ahmed Abdullah, 00447846166625, ahmed.abdullah@southwales.ac.uk).

I am undertaking PhD research at the Business and Society faculty at the University of South
Wales, United Kingdom. I am currently conducting research on e-business adoption and its
effect amongst Small and Medium Sized Enterprises (SMEs) in Yemen. This research is being
supervised by Dr. Gareth White, Professor Brychan Thomas. The aim of the research is to
critically evaluate the adoption of e-business activities in Yemeni SMEs.
E-Business is defined as the integration of internal and external organisational processes and
the connection between the organisation and their suppliers and partners as well as customer
satisfaction.
You have been approached for this interview because you agreed to take part in the second
stage of this research. Therefore, I would like to invite you to be part of this important study.
During the interview I would like to discover information from SME leaders about their use of
e-business and identify the factors that promote its adoption.

You are invited to participate in a one-on-one interview that will take approximately 30-60
minutes to complete. Your contribution in this interview is valuable because the findings from
this project will assist in understanding ways to improve the e-business activities of SMEs in
Yemen. Questions will not cause you any discomfort or potential risk. The interview will be
audio-taped with your permission.
Due to the nature of the data collection process, we are obtaining written consent from you.
Please read the consent form carefully and be confident that you understand its contents
before signing the form. If you have any questions about the project please do not hesitate
to contact me on the above email or phone.
All information obtained from the interview will be used for research purposes, and will be
destroyed once the project is completed.

262
I would be very grateful if you could participate in an interview regarding this research. You
are free to withdraw at any time with no prior notice. Please indicate your willingness to
participate in this exercise by signing and returning the declaration below. Thank you

Yours faithfully,
Ahmed Abdullah
(PhD candidate)

Declaration
I wish to be interviewed. I understand that any information I provide will remain strictly
confidential and only for the purpose of this research.
Signature …………………………………………………….
Organisation………………………………………………..

263
Appendix 4: Non-response rate t-test

Independent Samples Test

t-test for Equality of Means

95% Confidence

Mean Std. Error Interval of the

Sig. (2- Differenc Differenc Difference

t df tailed) e e Lower Upper

L1Email1 Equal variances

.678 98 .499 .160 .236 -.308 .628
assumed

Equal variances 97.94

.678 .499 .160 .236 -.308 .628
not assumed 6
L1Email2 Equal variances
-.277 98 .782 -.080 .289 -.653 .493
assumed
Equal variances 97.99
-.277 .782 -.080 .289 -.653 .493
not assumed 9
L1Email3 Equal variances
.000 98 1.000 .000 .278 -.553 .553
assumed
Equal variances 97.95
.000 1.000 .000 .278 -.553 .553
not assumed 7
L2SocialMe Equal variances
2.077 98 .040 .480 .231 .021 .939
dia1 assumed
Equal variances 97.99
2.077 .040 .480 .231 .021 .939
not assumed 3
L2SocialMe Equal variances
3.187 98 .002 .720 .226 .272 1.168
dia2 assumed
Equal variances 97.83
3.187 .002 .720 .226 .272 1.168
not assumed 1
L2SocialMe Equal variances
-.245 98 .807 -.060 .245 -.546 .426
dia3 assumed
Equal variances 97.63
-.245 .807 -.060 .245 -.546 .426
not assumed 8
L2SocialMe Equal variances
.404 98 .687 .100 .248 -.392 .592
dia4 assumed
Equal variances 96.27
.404 .687 .100 .248 -.392 .592
not assumed 9
L3Website1 Equal variances
1.019 98 .311 .320 .314 -.303 .943
assumed
Equal variances 96.40
1.019 .311 .320 .314 -.303 .943
not assumed 9

264
L3Website2 Equal variances
.926 98 .357 .280 .302 -.320 .880
assumed
Equal variances 96.81
.926 .357 .280 .302 -.320 .880
not assumed 4
L3Website3 Equal variances
.067 98 .947 .020 .299 -.573 .613
assumed
Equal variances 97.54
.067 .947 .020 .299 -.573 .613
not assumed 7
L4eComme Equal variances
.138 98 .890 .040 .289 -.534 .614
rce1 assumed
Equal variances 96.94
.138 .890 .040 .289 -.534 .614
not assumed 0
L4eComme Equal variances
.368 98 .714 .100 .272 -.439 .639
rce2 assumed
Equal variances 96.80
.368 .714 .100 .272 -.439 .639
not assumed 3
L4eComme Equal variances
.543 98 .589 .160 .295 -.425 .745
rce3 assumed
Equal variances 97.51
.543 .589 .160 .295 -.425 .745
not assumed 4
L5MobileAp Equal variances
.441 .508 -.350 98 .727 -.100 .286 -.667 .467
p1 assumed
Equal variances 97.03
-.350 .727 -.100 .286 -.667 .467
not assumed 9
L5MobileAp Equal variances
.427 .515 -.622 98 .535 -.180 .289 -.754 .394
p2 assumed
Equal variances 97.46
-.622 .535 -.180 .289 -.754 .394
not assumed 8
L5MobileAp Equal variances
.133 .716 -.843 98 .401 -.220 .261 -.738 .298
p3 assumed
Equal variances 97.82
-.843 .401 -.220 .261 -.738 .298
not assumed 9
L6Cloud1 Equal variances
1.244 .267 1.482 98 .142 .460 .310 -.156 1.076
assumed
Equal variances 97.49
1.482 .142 .460 .310 -.156 1.076
not assumed 5
L6Cloud2 Equal variances
.334 .564 -.325 98 .746 -.100 .307 -.710 .510
assumed
Equal variances 97.91
-.325 .746 -.100 .307 -.710 .510
not assumed 3
L7eBusines Equal variances
2.911 .091 .850 98 .397 .260 .306 -.347 .867
s1 assumed

265
 Equal variances 97.32
.850 .397 .260 .306 -.347 .867
not assumed 3
L7eBusines Equal variances
1.645 .203 1.981 98 .050 .640 .323 -.001 1.281
s2 assumed
Equal variances 97.59
1.981 .050 .640 .323 -.001 1.281
not assumed 0
L8TO1 Equal variances
.015 .902 -.068 98 .946 -.020 .294 -.603 .563
assumed
Equal variances 97.99
-.068 .946 -.020 .294 -.603 .563
not assumed 5
L8TO2 Equal variances
.001 .978 -.221 98 .826 -.060 .272 -.599 .479
assumed
Equal variances 97.65
-.221 .826 -.060 .272 -.599 .479
not assumed 7
Cost1 Equal variances
-.949 98 .345 -.220 .232 -.680 .240
assumed
Equal variances 97.79
-.949 .345 -.220 .232 -.680 .240
not assumed 0
Cost2 Equal variances -
98 .141 -.320 .216 -.748 .108
assumed 1.483
Equal variances - 97.74
.141 -.320 .216 -.748 .108
not assumed 1.483 3
Cost3 Equal variances
-.650 98 .517 -.160 .246 -.649 .329
assumed
Equal variances 97.99
-.650 .517 -.160 .246 -.649 .329
not assumed 9
Cost4 Equal variances
-.967 98 .336 -.200 .207 -.610 .210
assumed
Equal variances 97.37
-.967 .336 -.200 .207 -.610 .210
not assumed 4
Cost5 Equal variances -
98 .240 -.240 .203 -.643 .163
assumed 1.182
Equal variances - 97.36
.240 -.240 .203 -.643 .163
not assumed 1.182 4
Cost6 Equal variances
.104 98 .917 .020 .191 -.360 .400
assumed
Equal variances 97.53
.104 .917 .020 .191 -.360 .400
not assumed 2
OReadines Equal variances
-.084 98 .933 -.020 .239 -.494 .454
s1 assumed
Equal variances 95.94
-.084 .933 -.020 .239 -.494 .454
not assumed 2

266
OReadines Equal variances
1.255 98 .213 .280 .223 -.163 .723
s2 assumed
Equal variances 97.44
1.255 .213 .280 .223 -.163 .723
not assumed 6
OReadines Equal variances
.985 98 .327 .240 .244 -.243 .723
s3 assumed
Equal variances 98.00
.985 .327 .240 .244 -.243 .723
not assumed 0
OReadines Equal variances
.704 98 .483 .200 .284 -.364 .764
s4 assumed
Equal variances 97.98
.704 .483 .200 .284 -.364 .764
not assumed 6
OReadines Equal variances
1.777 98 .079 .360 .203 -.042 .762
s5 assumed
Equal variances 96.74
1.777 .079 .360 .203 -.042 .762
not assumed 9
OReadines Equal variances
2.031 98 .045 .500 .246 .011 .989
s6 assumed
Equal variances 95.60
2.031 .045 .500 .246 .011 .989
not assumed 6
OReadines Equal variances
.177 98 .860 .040 .226 -.408 .488
s7 assumed
Equal variances 98.00
.177 .860 .040 .226 -.408 .488
not assumed 0
GReadines Equal variances
1.185 98 .239 .260 .219 -.176 .696
s1 assumed
Equal variances 97.29
1.185 .239 .260 .219 -.176 .696
not assumed 9
GReadines Equal variances
-.196 98 .845 -.040 .204 -.445 .365
s2 assumed
Equal variances 92.04
-.196 .845 -.040 .204 -.445 .365
not assumed 7
GReadines Equal variances
.000 98 1.000 .000 .216 -.429 .429
s3 assumed
Equal variances 96.56
.000 1.000 .000 .216 -.429 .429
not assumed 0
GReadines Equal variances
.392 98 .696 .080 .204 -.325 .485
s4 assumed
Equal variances 97.57
.392 .696 .080 .204 -.325 .485
not assumed 9
GReadines Equal variances
-.389 98 .698 -.080 .206 -.488 .328
s5 assumed

267
 Equal variances 95.26
-.389 .698 -.080 .206 -.488 .328
not assumed 9
GReadines Equal variances
.378 98 .706 .080 .211 -.339 .499
s6 assumed
Equal variances 96.92
.378 .706 .080 .211 -.340 .500
not assumed 7
GReadines Equal variances
.179 98 .859 .040 .224 -.405 .485
s7 assumed
Equal variances 96.74
.179 .859 .040 .224 -.405 .485
not assumed 6
GReadines Equal variances
-.501 98 .617 -.100 .199 -.496 .296
s8 assumed
Equal variances 95.00
-.501 .617 -.100 .199 -.496 .296
not assumed 6
GReadines Equal variances
-.637 98 .525 -.140 .220 -.576 .296
s9 assumed
Equal variances 97.85
-.637 .525 -.140 .220 -.576 .296
not assumed 8
GSRelation Equal variances
-.102 98 .919 -.020 .196 -.410 .370
ships1 assumed
Equal variances 97.97
-.102 .919 -.020 .196 -.410 .370
not assumed 3
GSRelation Equal variances
.828 98 .410 .180 .217 -.251 .611
ships2 assumed
Equal variances 95.61
.828 .410 .180 .217 -.251 .611
not assumed 8
GSRelation Equal variances
.191 98 .849 .040 .209 -.375 .455
ships3 assumed
Equal variances 97.10
.191 .849 .040 .209 -.375 .455
not assumed 2
GSRelation Equal variances
.495 98 .621 .100 .202 -.301 .501
ships4 assumed
Equal variances 94.68
.495 .622 .100 .202 -.301 .501
not assumed 0
GSRelation Equal variances
.000 98 1.000 .000 .247 -.491 .491
ships5 assumed
Equal variances 97.56
.000 1.000 .000 .247 -.491 .491
not assumed 6
BSRelation Equal variances
1.618 98 .109 .400 .247 -.091 .891
ships1 assumed
Equal variances 97.95
1.618 .109 .400 .247 -.091 .891
not assumed 5

268
BSRelation Equal variances
1.417 98 .160 .320 .226 -.128 .768
ships2 assumed
Equal variances 97.93
1.417 .160 .320 .226 -.128 .768
not assumed 9
BSRelation Equal variances
.570 98 .570 .140 .246 -.348 .628
ships3 assumed
Equal variances 97.78
.570 .570 .140 .246 -.348 .628
not assumed 0
BSRelation Equal variances
.676 98 .501 .180 .266 -.349 .709
ships4 assumed
Equal variances 96.61
.676 .501 .180 .266 -.349 .709
not assumed 8
BSRelation Equal variances
.476 98 .635 .120 .252 -.380 .620
ships5 assumed
Equal variances 98.00
.476 .635 .120 .252 -.380 .620
not assumed 0
Regul1 Equal variances
.270 98 .788 .060 .223 -.382 .502
assumed
Equal variances 94.63
.270 .788 .060 .223 -.382 .502
not assumed 9
Regul2 Equal variances
-.659 98 .511 -.140 .212 -.561 .281
assumed
Equal variances 97.22
-.659 .511 -.140 .212 -.561 .281
not assumed 6
Regul3 Equal variances
.000 98 1.000 .000 .218 -.432 .432
assumed
Equal variances 98.00
.000 1.000 .000 .218 -.432 .432
not assumed 0
Regul4 Equal variances
.000 98 1.000 .000 .231 -.459 .459
assumed
Equal variances 98.00
.000 1.000 .000 .231 -.459 .459
not assumed 0
Regul5 Equal variances
1.012 98 .314 .220 .217 -.211 .651
assumed
Equal variances 97.45
1.012 .314 .220 .217 -.211 .651
not assumed 4
Security1 Equal variances
.566 98 .573 .140 .247 -.351 .631
assumed
Equal variances 97.89
.566 .573 .140 .247 -.351 .631
not assumed 0
Security2 Equal variances
.086 98 .931 .020 .232 -.440 .480
assumed

269
 Equal variances 96.61
.086 .931 .020 .232 -.440 .480
not assumed 5
Security3 Equal variances
.087 98 .931 .020 .230 -.437 .477
assumed
Equal variances 97.44
.087 .931 .020 .230 -.437 .477
not assumed 7
RAdvantag Equal variances
1.983 98 .050 .360 .182 .000 .720
e1 assumed
Equal variances 86.11
1.983 .051 .360 .182 -.001 .721
not assumed 7
RAdvantag Equal variances
.793 98 .430 .140 .177 -.210 .490
e2 assumed
Equal variances 97.08
.793 .430 .140 .177 -.211 .491
not assumed 5
RAdvantag Equal variances
.803 98 .424 .140 .174 -.206 .486
e3 assumed
Equal variances 97.10
.803 .424 .140 .174 -.206 .486
not assumed 8
RAdvantag Equal variances
1.137 98 .258 .220 .194 -.164 .604
e4 assumed
Equal variances 95.52
1.137 .259 .220 .194 -.164 .604
not assumed 3
RAdvantag Equal variances
1.882 98 .063 .320 .170 -.017 .657
e5 assumed
Equal variances 80.89
1.882 .063 .320 .170 -.018 .658
not assumed 2
RAdvantag Equal variances
1.104 98 .272 .220 .199 -.175 .615
e6 assumed
Equal variances 97.69
1.104 .272 .220 .199 -.175 .615
not assumed 2
RAdvantag Equal variances
.312 98 .756 .060 .192 -.322 .442
e7 assumed
Equal variances 97.87
.312 .756 .060 .192 -.322 .442
not assumed 0
RAdvantag Equal variances
.745 98 .458 .140 .188 -.233 .513
e8 assumed
Equal variances 95.28
.745 .458 .140 .188 -.233 .513
not assumed 8
Awareness Equal variances
1.386 98 .169 .280 .202 -.121 .681
1 assumed
Equal variances 92.99
1.386 .169 .280 .202 -.121 .681
not assumed 8

270
Awareness Equal variances
1.965 98 .052 .400 .204 -.004 .804
2 assumed
Equal variances 88.53
1.965 .053 .400 .204 -.005 .805
not assumed 8
Awareness Equal variances
1.778 98 .079 .340 .191 -.040 .720
3 assumed
Equal variances 85.42
1.778 .079 .340 .191 -.040 .720
not assumed 8
Awareness Equal variances
2.184 98 .031 .380 .174 .035 .725
4 assumed
Equal variances 92.07
2.184 .032 .380 .174 .034 .726
not assumed 3
Awareness Equal variances
1.655 98 .101 .300 .181 -.060 .660
5 assumed
Equal variances 87.75
1.655 .101 .300 .181 -.060 .660
not assumed 9
Compat1 Equal variances
.796 98 .428 .160 .201 -.239 .559
assumed
Equal variances 97.65
.796 .428 .160 .201 -.239 .559
not assumed 0
Compat2 Equal variances
.934 98 .352 .180 .193 -.202 .562
assumed
Equal variances 93.41
.934 .352 .180 .193 -.202 .562
not assumed 4
Compat3 Equal variances
1.259 98 .211 .240 .191 -.138 .618
assumed
Equal variances 91.43
1.259 .211 .240 .191 -.139 .619
not assumed 9
CPressure1 Equal variances
2.234 98 .028 .400 .179 .045 .755
assumed
Equal variances 78.46
2.234 .028 .400 .179 .044 .756
not assumed 4
CPressure2 Equal variances
.000 98 1.000 .000 .196 -.389 .389
assumed
Equal variances 92.92
.000 1.000 .000 .196 -.389 .389
not assumed 7
CPressure3 Equal variances
1.958 98 .053 .340 .174 -.005 .685
assumed
Equal variances 83.08
1.958 .054 .340 .174 -.005 .685
not assumed 0
CPressure4 Equal variances
.911 98 .365 .200 .220 -.236 .636
assumed

271
 Equal variances 97.59
.911 .365 .200 .220 -.236 .636
not assumed 6
MWar1 Equal variances
.947 98 .346 .180 .190 -.197 .557
assumed
Equal variances 90.99
.947 .346 .180 .190 -.198 .558
not assumed 3
MWar2 Equal variances
1.944 98 .055 .360 .185 -.007 .727
assumed
Equal variances 88.60
1.944 .055 .360 .185 -.008 .728
not assumed 0
MWar3 Equal variances
1.635 98 .105 .300 .184 -.064 .664
assumed
Equal variances 84.12
1.635 .106 .300 .184 -.065 .665
not assumed 8
MWar4 Equal variances
.896 98 .372 .200 .223 -.243 .643
assumed
Equal variances 97.34
.896 .372 .200 .223 -.243 .643
not assumed 6
MWar5 Equal variances
1.858 98 .066 .380 .205 -.026 .786
assumed

Equal variances 93.85

1.858 .066 .380 .205 -.026 .786
not assumed 5

272
Appendix 5: SMEs definitions differences t-test

t-test for Equality of Means

95%
Confidence

Sig. Interval of the

(2- Mean Std. Error Difference

t df tailed) Difference Difference Lower Upper

L1Email1 Equal variances assumed -2.044 204 .042 -.402 .197 -.790 -.014

Equal variances not

-2.192 117.777 .030 -.402 .184 -.766 -.039
assumed
L1Email2 Equal variances assumed -2.332 204 .021 -.515 .221 -.951 -.080
Equal variances not
-2.485 116.044 .014 -.515 .207 -.926 -.105
assumed
L1Email3 Equal variances assumed -.165 204 .869 -.036 .219 -.469 .396
Equal variances not
-.164 100.353 .870 -.036 .220 -.474 .401
assumed
L2SocialMedia1 Equal variances assumed -.587 204 .558 -.123 .209 -.535 .289
Equal variances not
-.618 112.911 .538 -.123 .199 -.516 .271
assumed
L2SocialMedia2 Equal variances assumed .039 204 .969 .008 .203 -.392 .408
Equal variances not
.040 106.761 .968 .008 .198 -.384 .400
assumed
L2SocialMedia3 Equal variances assumed .318 204 .751 .066 .208 -.343 .475
Equal variances not
.332 111.575 .740 .066 .198 -.327 .459
assumed
L2SocialMedia4 Equal variances assumed -1.722 204 .087 -.352 .205 -.756 .051
Equal variances not
-1.909 127.320 .058 -.352 .185 -.718 .013
assumed
L3Website1 Equal variances assumed -1.528 204 .128 -.362 .237 -.830 .105
Equal variances not
-1.630 116.522 .106 -.362 .222 -.802 .078
assumed
L3Website2 Equal variances assumed -2.023 204 .044 -.464 .229 -.916 -.012
Equal variances not
-2.239 126.788 .027 -.464 .207 -.874 -.054
assumed
L3Website3 Equal variances assumed -
-2.490 204 .014 -.569 .228 -.118
1.019
Equal variances not
-2.780 129.418 .006 -.569 .205 -.973 -.164
assumed
L4eCommerce1 Equal variances assumed -1.096 204 .274 -.239 .218 -.668 .191

273
 Equal variances not
-1.169 116.476 .245 -.239 .204 -.643 .166
assumed
L4eCommerce2 Equal variances assumed -.177 204 .860 -.037 .212 -.455 .380
Equal variances not
-.191 119.091 .849 -.037 .196 -.426 .351
assumed
L4eCommerce3 Equal variances assumed -.491 204 .624 -.108 .220 -.541 .325
Equal variances not
-.501 105.454 .618 -.108 .215 -.535 .319
assumed
L5MobileApp1 Equal variances assumed -.155 204 .877 -.032 .210 -.447 .382
Equal variances not
-.160 109.088 .873 -.032 .203 -.435 .370
assumed
L5MobileApp2 Equal variances assumed -.077 204 .939 -.017 .220 -.450 .416
Equal variances not
-.082 114.698 .935 -.017 .207 -.427 .393
assumed
L5MobileApp3 Equal variances assumed -.045 204 .964 -.009 .196 -.396 .378
Equal variances not
-.046 107.306 .963 -.009 .191 -.388 .370
assumed
L6Cloud1 Equal variances assumed -1.447 204 .150 -.356 .246 -.842 .129
Equal variances not
-1.464 103.929 .146 -.356 .243 -.839 .126
assumed
L6Cloud2 Equal variances assumed -1.986 204 .048 -.465 .234 -.926 -.003
Equal variances not
-1.937 96.598 .056 -.465 .240 -.941 .011
assumed
L7eBusiness1 Equal variances assumed -1.383 204 .168 -.326 .236 -.792 .139
Equal variances not
-1.380 101.008 .171 -.326 .237 -.796 .143
assumed
L7eBusiness2 Equal variances assumed -1.105 204 .271 -.277 .251 -.771 .217
Equal variances not
-1.115 103.228 .268 -.277 .248 -.769 .216
assumed
L8TO1 Equal variances assumed -1.859 204 .065 -.385 .207 -.793 .023
Equal variances not
-1.780 93.413 .078 -.385 .216 -.814 .044
assumed
L8TO2 Equal variances assumed -.381 204 .704 -.071 .187 -.441 .298
Equal variances not
-.392 107.924 .696 -.071 .182 -.432 .289
assumed
Cost1 Equal variances assumed .131 204 .896 .024 .185 -.341 .389
Equal variances not
.137 110.466 .892 .024 .178 -.328 .376
assumed
Cost2 Equal variances assumed .579 204 .563 .104 .180 -.251 .460
Equal variances not
.597 108.099 .552 .104 .175 -.242 .451
assumed

274
Cost3 Equal variances assumed 1.034 204 .302 .197 .191 -.179 .573
Equal variances not
1.054 105.412 .295 .197 .187 -.174 .568
assumed
Cost4 Equal variances assumed 1.664 204 .098 .296 .178 -.055 .647
Equal variances not
1.667 101.741 .099 .296 .178 -.056 .649
assumed
Cost5 Equal variances assumed -.580 204 .563 -.101 .174 -.445 .243
Equal variances not
-.595 107.044 .553 -.101 .170 -.438 .235
assumed
Cost6 Equal variances assumed -.012 204 .991 -.002 .161 -.318 .315
Equal variances not
-.012 109.087 .990 -.002 .155 -.309 .305
assumed
OReadiness1 Equal variances assumed -3.072 204 .002 -.499 .162 -.819 -.179
Equal variances not
-3.474 133.457 .001 -.499 .144 -.783 -.215
assumed
OReadiness2 Equal variances assumed -2.528 204 .012 -.421 .166 -.749 -.093
Equal variances not
-2.629 110.090 .010 -.421 .160 -.738 -.104
assumed
OReadiness3 Equal variances assumed -3.179 204 .002 -.541 .170 -.876 -.205
Equal variances not
-3.342 112.663 .001 -.541 .162 -.862 -.220
assumed
OReadiness4 Equal variances assumed -
-3.317 204 .001 -.658 .198 -.267
1.049
Equal variances not -
-3.440 109.373 .001 -.658 .191 -.279
assumed 1.037
OReadiness5 Equal variances assumed -3.118 204 .002 -.500 .160 -.815 -.184
Equal variances not
-3.361 119.125 .001 -.500 .149 -.794 -.205
assumed
OReadiness6 Equal variances assumed -2.730 204 .007 -.502 .184 -.865 -.140
Equal variances not
-2.774 104.730 .007 -.502 .181 -.862 -.143
assumed
OReadiness7 Equal variances assumed -2.382 204 .018 -.406 .171 -.743 -.070
Equal variances not
-2.353 99.005 .021 -.406 .173 -.749 -.064
assumed
GReadiness1 Equal variances assumed -1.036 204 .301 -.184 .178 -.534 .166
Equal variances not
-1.020 98.305 .310 -.184 .180 -.542 .174
assumed
GReadiness2 Equal variances assumed -2.109 204 .036 -.351 .167 -.680 -.023
Equal variances not
-2.329 126.018 .021 -.351 .151 -.650 -.053
assumed
GReadiness3 Equal variances assumed -1.691 204 .092 -.289 .171 -.625 .048

275
 Equal variances not
-1.717 104.630 .089 -.289 .168 -.622 .045
assumed
GReadiness4 Equal variances assumed -2.142 204 .033 -.354 .165 -.679 -.028
Equal variances not
-2.317 120.139 .022 -.354 .153 -.656 -.052
assumed
GReadiness5 Equal variances assumed -2.553 204 .011 -.429 .168 -.761 -.098
Equal variances not
-2.619 106.918 .010 -.429 .164 -.754 -.104
assumed
GReadiness6 Equal variances assumed -2.056 204 .041 -.357 .174 -.700 -.015
Equal variances not
-2.139 110.154 .035 -.357 .167 -.688 -.026
assumed
GReadiness7 Equal variances assumed .857 204 .393 .151 .177 -.197 .500
Equal variances not
.888 109.394 .376 .151 .170 -.186 .489
assumed
GReadiness8 Equal variances assumed -1.040 204 .300 -.173 .167 -.502 .155
Equal variances not
-1.148 126.051 .253 -.173 .151 -.472 .125
assumed
GReadiness9 Equal variances assumed .756 204 .450 .127 .168 -.204 .457
Equal variances not
.770 105.170 .443 .127 .165 -.200 .453
assumed
GSRelationships1 Equal variances assumed -.777 204 .438 -.122 .158 -.433 .188
Equal variances not
-.747 94.136 .457 -.122 .164 -.448 .203
assumed
GSRelationships2 Equal variances assumed .178 204 .859 .029 .162 -.291 .348
Equal variances not
.178 101.923 .859 .029 .162 -.292 .349
assumed
GSRelationships3 Equal variances assumed -.311 204 .756 -.051 .163 -.372 .271
Equal variances not
-.320 107.726 .750 -.051 .158 -.364 .263
assumed
GSRelationships4 Equal variances assumed .203 204 .839 .034 .170 -.300 .369
Equal variances not
.207 105.697 .836 .034 .166 -.295 .364
assumed
GSRelationships5 Equal variances assumed .436 204 .663 .086 .198 -.304 .476
Equal variances not
.456 110.977 .650 .086 .189 -.289 .462
assumed
BSRelationships1 Equal variances assumed -1.750 204 .082 -.324 .185 -.689 .041
Equal variances not
-1.840 112.687 .068 -.324 .176 -.673 .025
assumed
BSRelationships2 Equal variances assumed .058 204 .954 .010 .171 -.328 .347
Equal variances not
.059 107.542 .953 .010 .166 -.320 .340
assumed

276
BSRelationships3 Equal variances assumed -1.205 204 .229 -.226 .187 -.595 .144
Equal variances not
-1.239 107.321 .218 -.226 .182 -.587 .136
assumed
BSRelationships4 Equal variances assumed -1.333 204 .184 -.258 .194 -.640 .124
Equal variances not
-1.292 95.557 .199 -.258 .200 -.655 .138
assumed
BSRelationships5 Equal variances assumed -1.043 204 .298 -.199 .191 -.577 .178
Equal variances not
-1.064 105.788 .290 -.199 .187 -.571 .172
assumed
Regul1 Equal variances assumed -.886 204 .377 -.150 .170 -.485 .184
Equal variances not
-.960 120.570 .339 -.150 .157 -.460 .160
assumed
Regul2 Equal variances assumed .456 204 .649 .076 .166 -.251 .402
Equal variances not
.520 135.918 .604 .076 .146 -.212 .363
assumed
Regul3 Equal variances assumed 1.169 204 .244 .200 .171 -.138 .538
Equal variances not
1.224 111.627 .224 .200 .164 -.124 .525
assumed
Regul4 Equal variances assumed 1.191 204 .235 .222 .186 -.145 .588
Equal variances not
1.219 106.325 .225 .222 .182 -.139 .582
assumed
Regul5 Equal variances assumed .619 204 .537 .108 .175 -.236 .452
Equal variances not
.665 118.150 .507 .108 .163 -.214 .430
assumed
Security1 Equal variances assumed 2.052 204 .041 .382 .186 .015 .749
Equal variances not
2.066 102.836 .041 .382 .185 .015 .749
assumed
Security2 Equal variances assumed .478 204 .633 .085 .179 -.267 .438
Equal variances not
.482 103.148 .631 .085 .177 -.266 .437
assumed
Security3 Equal variances assumed -.168 204 .867 -.029 .173 -.371 .313
Equal variances not
-.178 115.311 .859 -.029 .163 -.352 .294
assumed
RAdvantage1 Equal variances assumed -1.033 204 .303 -.150 .145 -.437 .136
Equal variances not
-1.046 103.849 .298 -.150 .144 -.435 .135
assumed
RAdvantage2 Equal variances assumed -2.788 204 .006 -.393 .141 -.671 -.115
Equal variances not
-3.243 143.018 .001 -.393 .121 -.633 -.154
assumed
RAdvantage3 Equal variances assumed -1.827 204 .069 -.272 .149 -.564 .021

277
 Equal variances not
-1.889 108.559 .062 -.272 .144 -.556 .013
assumed
RAdvantage4 Equal variances assumed -2.411 204 .017 -.363 .151 -.660 -.066
Equal variances not
-2.721 132.735 .007 -.363 .134 -.628 -.099
assumed
RAdvantage5 Equal variances assumed -2.394 204 .018 -.350 .146 -.638 -.062
Equal variances not
-2.701 132.679 .008 -.350 .130 -.606 -.094
assumed
RAdvantage6 Equal variances assumed -.697 204 .487 -.106 .152 -.405 .194
Equal variances not
-.702 103.012 .484 -.106 .151 -.405 .193
assumed
RAdvantage7 Equal variances assumed -2.265 204 .025 -.371 .164 -.693 -.048
Equal variances not
-2.787 164.109 .006 -.371 .133 -.633 -.108
assumed
RAdvantage8 Equal variances assumed -.900 204 .369 -.133 .147 -.423 .158
Equal variances not
-.977 121.011 .331 -.133 .136 -.402 .136
assumed
Awareness1 Equal variances assumed -1.678 204 .095 -.266 .158 -.578 .046
Equal variances not
-1.751 110.849 .083 -.266 .152 -.566 .035
assumed
Awareness2 Equal variances assumed -2.265 204 .025 -.378 .167 -.706 -.049
Equal variances not
-2.439 118.908 .016 -.378 .155 -.684 -.071
assumed
Awareness3 Equal variances assumed -.962 204 .337 -.152 .158 -.464 .160
Equal variances not
-.970 103.243 .334 -.152 .157 -.463 .159
assumed
Awareness4 Equal variances assumed -1.346 204 .180 -.206 .153 -.508 .096
Equal variances not
-1.449 118.722 .150 -.206 .142 -.488 .076
assumed
Awareness5 Equal variances assumed -1.211 204 .227 -.180 .148 -.472 .113
Equal variances not
-1.265 111.101 .208 -.180 .142 -.461 .102
assumed
Compat1 Equal variances assumed -2.213 204 .028 -.352 .159 -.665 -.038
Equal variances not
-2.395 120.189 .018 -.352 .147 -.642 -.061
assumed
Compat2 Equal variances assumed -1.726 204 .086 -.263 .153 -.564 .037
Equal variances not
-1.822 113.621 .071 -.263 .145 -.550 .023
assumed
Compat3 Equal variances assumed -1.860 204 .064 -.290 .156 -.597 .017
Equal variances not
-1.979 115.585 .050 -.290 .146 -.580 .000
assumed

278
 CPressure1 Equal variances assumed .557 204 .578 .084 .151 -.214 .382
Equal variances not
.554 100.327 .581 .084 .152 -.217 .385
assumed
CPressure2 Equal variances assumed -1.691 204 .092 -.269 .159 -.583 .045
Equal variances not
-1.724 105.480 .088 -.269 .156 -.578 .040
assumed
CPressure3 Equal variances assumed -.592 204 .554 -.088 .149 -.382 .206
Equal variances not
-.617 110.347 .539 -.088 .143 -.372 .195
assumed
CPressure4 Equal variances assumed .345 204 .730 .061 .176 -.286 .408
Equal variances not
.367 115.357 .714 .061 .166 -.267 .389
assumed
MWar1 Equal variances assumed .796 204 .427 .121 .152 -.178 .420
Equal variances not
.689 79.120 .493 .121 .175 -.228 .470
assumed
MWar2 Equal variances assumed 1.173 204 .242 .181 .154 -.123 .485
Equal variances not
1.042 82.265 .301 .181 .174 -.164 .526
assumed
MWar3 Equal variances assumed 1.625 204 .106 .244 .150 -.052 .539
Equal variances not
1.374 76.560 .173 .244 .177 -.109 .597
assumed
MWar4 Equal variances assumed 1.463 204 .145 .267 .182 -.093 .626
Equal variances not
1.434 97.418 .155 .267 .186 -.103 .636
assumed
MWar5 Equal variances assumed 2.462 204 .015 .396 .161 .079 .713

Equal variances not

2.298 89.224 .024 .396 .172 .054 .738
assumed

279

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