Abstract

MTHEMBU, PS; KUNENE, LN  and  MBHELE, TP. Barriers to E-commerce adoption in African countries. A qualitative insight from Company Z. JCMAN [online]. 2018, vol.15, n.spe, pp.265-304. ISSN 1815-7440.

With the rise of e-commerce, most organisations are turning to online activities as a way of conducting their businesses. This change in doing business has been found to have been a preferred option for penetrating certain markets. However, as great and innovative this is for retailers to shift into the e-tailing space, it has been met with challenges in the different countries across the African continent. There were barriers identified in different countries some common across different countries and others not so common. Deeply entrenched in the narrative about e-commerce barriers in Africa are factors that are socio-economic, cultural, institutional and cognitive. It is crucial for organisations present in Africa or those that wish to enter the different African markets to understand how best to participate in this region. In an attempt to understand e-business participation for African Multi-Country strategy, Company Z was approached to learn more about their best practice and failures learnt in participating in e-business within different countries in Africa. What was clear from their responses is that Africa is not a country, but a continent with different countries that have different barriers. This study was an exploratory study into this phenomenon, to create a better understanding of the barriers organisations may face and how best to deal with them. The study followed on interpretivism philosophy as it aimed to understand the decision rationale that management at this organisation followed. Data was collected through semi-structured individual interviews, which were analysed using thematic analysis. Conclusions were reached that identified a model for e-commerce barriers in the African context. Three phases were identified, namely the Environmental Phase, Growth & Sustainability Phase and the Control Phase. Though the results are not confirmed for all countries, they can be used as a guide in understanding how best to approach various countries in Africa, provided environmental variables are similar to those discussed in this article.

Keywords : Institutionalisation; security and socio-economy.

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