Designing Government Strategies to Facilitate Diffusion of Online Commerce: A focus on KSA

Abstract

This paper presents proposed government strategies to facilitate diffusion of online commerce in the Kingdom of Saudi Arabia (KSA). The development of e-commerce in KSA is progressing very slowly compared to the developed and leading developing nations. Accordingly, this research was conducted to find the key factors involved in this phenomenon. A major finding presented here, is that both buyers and sellers emphasize the need for government involvement to support and promote development of online commerce. Particularly, it indicates the need for strategic government initiatives to provide regulation, legislation, education, and trusted infrastructure for secure payment and delivery. Saudi Arabia presents a unique cultural, technological and political context for the development of e-commerce. We highlight the particular motivators and potential benefits of Saudi government involvement in e-commerce development. Also we review the experience of other countries in this regard. A new model for formulating roles and strategic government initiatives to support the successful diffusion of online retailing in KSA is presented and discussed. This will be of interest to any following the development of ecommerce and the information economy in the Arab nations.