Factors Influencing E-Commerce Adoption in Uzbekistan SMEs

INTRODUCTIONMany countries understand the enormous advantages brought about by the accelerated development and proliferation of information and communication technologies (ICT). It would be rather naive to suggest that the Internet and ICT technologies are not having a major impact upon the ways in which we work and live today. The last two decades have observed an explosive growth in the use of Internet technologies, especially the World Wide Web, for business purpose. Most of the organizations in the developing countries now conduct business through the Internet. Business organizations, regardless of their size, have applied Internet technological tools in a wide range of their business activities including advertising, online delivery of goods and services(Chung,2008; Fillion, 2008; Kim, 2007). Both public and private sector organizations now invest heavily on digitization in the hope of getting a competitive edge in the market. The internet, with its rapid growth, has created a promising future for developing transactions from using traditional methods to the generation of e-Commerce(Al-Dmour, 2012). One of the most profound changes currently transpiring in the world of business is the introduction of e-Commerce. It provides unparalleled opportunities for companies to expand worldwide by increasing market share and reducing costs. Also, the growth in demand for digital signature registration suggests a growth in the number of online transactions.The emergence of the Internet has allowed SMEs to compete effectively and efficiently in both domestic and international market. SMEs' ability to successfully adopt and utilize the Internet and e-Commerce maintains their stability and future survival. The SME sector plays a significant role in its contribution to the national economy in terms of the wealth created and the number of people employed(Abdel, 2012). SMEs in Uzbekistan represent the greatest share of the productive units of the country's economy and the current national policy addresses means of further developing the capacities. Uzbekistan has a rich resource base, both in terms of natural resources and human resources, to aid in SME development.While e-Commerce in developing countries takes an advantage of a well-developed infrastructure and regulatory environment, developing countries have to discover new ways to overcome many challenges found in the environment. This research intends to perform an empirical study on the factors influencing e-Commerce adoption by SMEs in Uzbekistan. The research focuses on developing the research model for the development of e-Commerce adoption based on the previous study. It also investigates and determines the factors influencing on the perceived benefits of e-Commerce adoption by SMEs in Uzbekistan. We used SPSS 18.0 program for the statistical analysis of data, using a sample of 165 questionnaire respondents.LITERATURE REVIEWConceptual BackgroundConceptual Background of e-Commercee-Commerce applications first started in the early 1970s. e-Commerce is defined as the conduct of commerce in goods and services, with the assistance of telecommunications and telecommunications-based tools(Roger, 2000). It simply means the ability to buy or sell goods and services online. Primary methods of online business include EDI, e-mail, fax, Electronic Fund Transfer (EFT), and Internet. e-Commerce has also been defined as "sharing of business information, maintaining business relationships, and conducting business transactions by means of telecommunications and networks"(Zwass, 1996). By considering the research area, we give both a narrow and broad definition. In a narrow view, e-Commerce is online shopping via internet, but a broader view sees it as more than just buying and selling goods! it includes various processes. This study focused mainly on the narrow definition.Conceptual Background of SMEsSMEs consist of a very heterogeneous group. …