Determinants of mobile commerce adoption by Small and Medium Enterprises in Polokwane Municipality

Abstract

The aim of the study was to determine the relationships between determinants of mobile commerce adoption and the actual adoption of mobile commerce by Small and Medium Enterprises in Polokwane Municipality. The study utilised the quantitative research approach with 146 SME owner respondents from population of 261 owners using a random sampling technique. The questionnaire was developed from the empirical literature review. The determinants of m-commerce were represented by technological, organisational and environmental contextual factors. M-commerce was measured using 11 questions against all other contextual factor variables . Data was cleaned to enhance its fitness for further analysis. To attain this, normality, mean and standard deviation, skewness and kurtosis were performed. The data was found to be fit for the purpose of the study. Furthermore, the data was tested for validity and reliability and it satisfied the requirements. Descriptive statistics, ANOVA and regression analysis were used to analyse the data. ANOVA was used to test for sub-hypotheses and to make a decision on whether to accept or reject the stated hypotheses based on the significance level. Regression analysis was used to test main hypotheses. ANOVA results showed that all technological factors (perceived benefits, perceived costs, perceived compatibility), organisational factors (technology readiness), environ mental factors (customer pressure, supplier pressure, competitor pressure) and technology acceptance model factors (perceived usefulness) significantly predicted m commerce adoption. On the other hand, factors such as gender, age, level of education and perceived ease of use were not significant predictors of m-commerce adoption. Based on the above results, SMEs should improve on their handling of determinants of m-commerce as they effectively influence the adoption of m-commerce. The government also needs to boost the SME sector by introducing several measures which can expose small businesses to enabling business environment.