Factors Influencing E-Commerce Adoption by Retailers in Saudi Arabia: A Quantitative Analysis

Abstract

This paper presents findings from a study examining the diffusion and adoption of online retailing in Saudi Arabia. Although the country has the largest and fastest growing Information and Communication Technologies (ICT) sector in the Arab region, growth in e-commerce activities has not progressed at a commensurate rate. In general, Saudi retailers have not kept pace with the global growth of online retailing. The authors have conducted research to identify and explore key issues that influence Saudi retailers in deciding whether or not to adopt online channels. As part of a larger research project using mixed methods, this paper focuses on a quantitative analysis of responses obtained from a survey of retailers in Saudi Arabia. The design of the questionnaire instrument was based on the findings of a qualitative analysis reported in a previous paper. The main findings of the current study include a list of key factors that affect retailers' e-commerce adoption, such as lack of online payment options and lack of clear legislation on e-commerce in Saudi Arabia, and quantitative indications of the relative strengths of the various relationships.