Factors Affecting The Adoptation Of E-commerce In Small And Medium Size Enterprises In Mozambique

This thesis takes a closer look at the electronic commerce in small and medium-size enterprises in Mozambique.It is primarily focus on the set of factors that has prevented small and medium-size enterprises from adopting e-commerce in one of the smallest African country using the three quarter moon model to measure the online sales volume in the country.As we apparently know,the world is witnessing a robust transition from the orthodox way of doing business to e-commerce.However,a substantial number of countries remain relatively far behind from shifting to e-commerce and among them is Mozambique.Since the inception of technology and how quick it has revolutionized our world,it has become appallingly obvious that our technology has exceeded our humanity.Our world is virtually taken over by technology and as such,the e-commerce has undisputedly emerged to be popular and beneficial to both the customers and businesses all over the word.In order for firms to stay competitive in the marketplace domestically and internationally,businesses have always strived to improve themselves by creating better ways to meet their customers' needs given rise to internet business.Some of the world renown and flourishing online ventures include Amazon,eBay,Alibaba,JD.COM,Snap deal,Flipkart,and GoogleThere is a direct correlation between Internet access and online sales.E-commerce development is hinged on the overall performance of the economy,consumer's purchasing power parity,and the population size.In which case,Mozambique being a low developing country with a very low per capita income with poor Internet connectivity,high illiteracy rate and extreme poverty leaves consumers with less to spare for online shopping compared to the United States and China.E-commerce is preferred than the orthodox business due to its access to new customers,cost reduction,easy operational efficiencies,streamlining of business processes,enhancing a firm's market reach,supplier contacts and trading partners,creation of new ways of selling existing products and greater competitive advantage.This study explores the factors affecting the adaptation of e-commerce in both the small and medium-size enterprises SMEs in Mozambique using the three quarter moon approach which is measured in terms of the internet users,Foreign direct investment inflow(FDI),gross domestic product(GDP),literacy,income,population,security of the Internet servers,unemployment,mobile cellular subscriptions and access to electricity.The study revealed three main variables namely,gross domestic product GDP,foreign direct investment FDI,internet security plus unemployment are significantly responsible for why small and medium-size enterprises are not able to adopt e-commerce in Mozambique.