Factors Influencing the adoption of e-commerce by Small and Medium-Sized Enterprises (SMEs) in Algeria: a qualitative study

Abstract

Small and Medium sized Enterprises (SMEs) are regarded as the engine of the growth of the world economy. They had recently experienced rapid growth and improved their business activities in terms of customers’ number and revenue expansion when they began to embrace e-commerce and started using it in their business. However, although there is a growing interest in e-commerce, its use is still insufficient in Algeria. Therefore, this study aimed to identify the factors that influence the adoption of e-commerce by SMEs in Algeria. This study adopts a qualitative methodology which involves in-depth, structured interviews to identify the factors that affect SMEs for the adoption of e-commerce in Algeria. The result of research found the main factors hindering the adoption of e-commerce by SMEs in Algeria are the e-payment methods, non-readiness of banks, lack of legal protection and lack in awareness of the benefits of e- commerce, as well as fear of risks. However, some other elements are less significant to influence the adoption of e-commerce. These research findings will give an addition in terms of bringing and giving a chance to the SMEs' leaders and the Algerian economic officials and a clear view of e-commerce practices. This can help them to design a strategy to remove barriers tactfully to its advantage.