What Are the Factors Affecting the Adoption of Business-To-Business Electronic Commerce by Ready-Made Garments Export SMEs in Bangladesh?
[Thesis]
Al-Amin, Md
Sommerville, Stephen
University of Wales Trinity Saint David (United Kingdom)
2020
299
D.B.A.
University of Wales Trinity Saint David (United Kingdom)
2020
Main Focus: This study aimed to investigate the factors that affect B2B e-commerce adoption by the RMG export SMEs in the developing country context of Bangladesh. All over the world, e-commerce has considerably transformed ways of conducting business. A great deal of evidence shows, however, that SMEs in developing countries are lagging behind their counterparts in developed countries. This research will guide manufacturing SMEs in developing countries, such as Bangladeshi RMG export SMEs, in the adoption of B2B e-commerce. Data Collection Techniques: This research undertaken, using an interpretive paradigm for collecting data from the selected RMG export SMEs, large RMG export organisations and experts associated with the RMG export business. The principal data collection tools and techniques used were open-ended semi-structured questions through face-to-face interviews, as well as document analysis. Conceptual Framework: A conceptual framework developed to gather different factors associated with e-commerce adoption as defined in the research question: "What are the factors affecting the adoption of Business-to-Business (B2B) Electronic Commerce (E-commerce) by Ready-Made Garments (RMG) export SMEs in Bangladesh?". Data collected from the interviews were analysed to gather deeper insights into the findings based on the elements of the TOE framework and CATWOE analysis. The elements of data include: 1) The nature and characteristics of the business; 2) The use of ICT and web applications by the company; 3) Senior management's perceptions of B2B e-commerce adoption; 4) The factors that affect and influence B2B e-commerce adoption; 5) Identification of government initiatives for the adoption of B2B e-commerce, and 6) Suggestions to ease the adoption of B2B e-commerce by the RMG export SMEs in Bangladesh. Principal Findings: Several factors have been identified that have a negative impact on the adoption of B2B e-commerce by the RMG export SMEs in Bangladesh. These mentioned below- A lack of senior management knowledge about the global scope and benefits of B2B e-commerce for organisations; a lack of financial ability in the organisations and more comprehensive investment for adopting technology; a lack of financial support from financial institutions; a lack of quality B2B e-commerce software; a lack of combination of IT skilled human resources with RMG business knowledge; a lack of support from business partners and their readiness to take part in B2B e-commerce; a lack of support from government and BGMEA to improve ICT infrastructure in the RMG sector; the complexity of legal issues related to online transactions; political instability and uncertainty; language and communication problems when using the internet. Also, there are some of the other factors identified in this research that will influence the adoption decision of B2B e-commerce by the RMG export SMEs in Bangladesh. These are as follows, access to new markets; the sourcing of raw materials; improving communication with clients and better marketing opportunities; the availability of a third-party website for B2B e-commerce; support from the government and BGMEA. Contribution to Knowledge: This study makes a theoretical contribution to this research area by combining the TOE framework with a CATWOE analysis of the factors identified for a broader perspective of B2B e-commerce adoption. That has, until now, been absent from the current literature of B2B e-commerce adoption in the context of SMEs. Also, this study provides a conceptual framework to guide government of Bangladesh, BGMEA, RMG export SMEs, software developer and other associated stakeholders in creating a system so that RMG export SMEs can efficiently adopt B2B e-commerce without massive changes to their businesses. This conceptual framework can potentially be used in the context of manufacturing industries of different developing countries.