Determinants of eCommerce Adoption by SMEs: Perspectives from the Limpopo Province

Digitalisation has revolutionised the ways of doing business. Big businesses worldwide have adopted e-commerce as a new way of business that reduces transaction costs. The growth of SMEs in developing countries like South Africa is one solution to poverty alleviation. However, the adoption of E-commerce by SMEs has remained challenged, as seen during the Covid19 lockdown. A few studies have been conducted that evaluate the factors influencing e-commerce adoption by SMEs within the context of South Africa. Underpinned by pragmatism philosophy, this research takes an inductive approach. Using the PRISMA guidelines, the study provides a critical and systematic Literature Review for the adoption of e-commerce by SMEs. Four factors were identified to have a causal effect on the adoption of e-commerce by SMEs in Limpopo. Quantitative methods were applied to evaluate the contribution of culture, technological preparedness, Politic factors, and organisational factors to trust in e-commerce by SMEs in the Limpopo province of South Africa. A questionnaire survey was administered to 243 SMEs in Limpopo Province. Data were analysed using SPSS and Amos software. Technological preparedness and Organisational factors significantly influenced ecommerce adoption by SMEs in Limpopo compared to socio-cultural and political factors. Based on these findings, government policies can be improved to focus more on addressing technological issues and empower SMEs to enhance their preparedness to adopt e-commerce.