Research Proposal: The Relationship between Technology Adoption and Strategy in E-commerce: A Focus on UAE Companies
Abstract
This study presents a proposal that seeks to understand the relationship between technology adoption and strategy in e-commerce with a focus on UAE companies where there has been a registered rise in online businesses. The population of interest proposed by the study is the large companies within UAE particularly in Abu Dhabi and Dubai. The study proposes to use descriptive quantitative methods to analyze data while data collection will be via questionnaires structured according to the Likert scale based on five levels of agreement. Further analysis of statistical data will be through SSPS where standard v=deviation and mean will be determined. Measurements of suggested hypotheses will be done through application of the T-test where the hypothesis, which will be in line with the set scales of agreement will be accepted. The conclusions from the study will be used to come up with recommendations relevant for application within UAE.
The Relationship between Technology Adoption and Strategy in E-commerce: A Focus on UAE Companies
Research OverviewToday, across the world, purchasing things has been made so easy that it is available just by clicking on the internet. The increase in the number of people who have digitalized gadgets such as phones and computers and connection to the internet has led to an upward growth in what is now known as E-Commerce. Businesses and industries that have taken their business from the traditional approach to the use of this new strategy have continuously registered increase in their revenues due to the rise of customer numbers on the platform. Studies on the trend of E-commerce in the United States have been reported to have been on the rise over the years along the correlated rise in mobile phone dependence.
Reports from E-commerce research companies on the growth of the industry across the globe have reported that globally, the potential of business growth lies in this sector. Elbeltagi, Al Sharji, Hardaker, and Elsetouhi (2013) are part of the researchers who analyzed the e-commerce market through; population numbers, adoption of internet and broadband levels, customer feedback, and data from historical records of online sales in the US. The results from the analysis were used to reflect global trends on e-commerce where they found that sales based on online businesses were on the rise across the globe. Additionally, the research forecasted that the Asia-Pacific and Middle-East region, where there is rapid growth of e-commerce, would overshadow the US as the largest industry for online businesses (Elbeltagi et al., 2013). With the evident relationship between the rise of technology adoption and e-commerce and the expected global growth companies and organizations are expected to take up the opportunity and create strategies that will ensure maximum revenues from the e-commerce industry.
The United Arabs Emirates (UAE) particularly Abu Dhabi and Dubai, are known globally for their large malls and shopping centers, which have gained customers from across the globe. However, despite the wide umber of shopping activities that take place across the region, response to the use of internet over the years has been slow, with most customers preferring to shop physically in the malls (Lowe, 2012). In a report, Ghandour (2015) notes that the trend of online shopping in the UAE was noted to be on the rise indicating a future where e-commerce may replace shopping at the malls. Globally, internet penetration in the UAE and the greater Middle East region is very high, which means that the number of users is high, which creates a good foundation for e-commerce. Studies done by payment companies looking to increase their profits through online transactions such as MasterCard have done their studies on the region where they have noted the continuous rise in online users opting to shop online (Lowe, 2012) The rise of e-commerce is attributed to the increase in use of Information Technology in commerce, which depends on market reliance on the various technological tools that serve as advantageous business strategies both externally and internally (Lowe, 2012).
However, firms in the UAE seeking to create a profitable niche in e-commerce, should not rush to convert their business since they need to have a clear understanding of what e-commerce involves; particularly on the use of technology and approaches to make it favorable for consumers. It should be noted that e-commerce is not just a mode of carrying out business activities but rather an aspect of business that impacts hugely on the competitive advantage of a company (Elbeltagi et al., 2013). The impact of e-commerce on the internal and external environment of a business leads to the need for a change of business strategy to a strategy that favors the competitive position for the company. Since the adoption of e-commerce in most countries has only started recently, there is limited literature on the relationship between technological adoption and e-commerce strategies. With regard to this limitation, the proposed study seeks to answer the question; what is the relationship between technology adoption and strategy in e-commerce in various UAE companies?
The objectives of the proposed study will, therefore, be understanding the level of e-commerce adoption in the UAE, and understanding the relationship between technology adoption and e-commerce strategy. Fulfillment of the objectives will lead to further conclusions that will contribute to the literary wealth on the topic and additionally come up with recommendations that UAE companies can implement depending on the findings of the proposed strategy.
Theoretical FrameworkAccording to Al-Fawaeer (2014), the adoption of e-commerce strategies like other business strategies can be measured through analysis of; internal factors, market, and competitive factors, which are all constituted into the business structure. Internal factors are mainly related to cost factors while market factors are aspects of the business related to location, suppliers and buyers and finally competitive factors are those that make companied gain more favor from their customers against their competition. The study notes that the adoption of technology in e-commerce particularly through ICT helps businesses expand on the international platform of commerce where more strategic advantages are available for companies.
McElheran (2015) investigated the relationship that exists between the adoption of technology and strategy in business with a focus on e-commerce where they seek to explain why business strategies must be aligned interdependently with e-commerce strategies. Illustration of the interrelationships between e-commerce and strategy are explained through a study of e-business strategy adoption channels, such as distribution, segmentation of the market, and business networks under distribution. In that case, technology adoption aims to help foster better customer relations, which creates a competitive edge where long term relationships with mediators. Market segmentation, as a business strategy adopted in e-commerce, where McElheran (2015) notes that use of commerce has resulted in segmentation, which they recommend it be based on geographic location, demographics status and rate of consumption. They note that subjecting diverse customer populations to similar strategies simply because they access services using similar online platforms may thwart business growth (McElheran, 2015). The study also notes that while dealing with business systems, e-commerce based companies have better leverage if they adopt ecommerce based on an interdependent approach with the corresponding market factors.
Sin et al. (2016) centered their research on factors influencing adoption of e-commerce in Malaysian-based SMEs using the technological organizational external framework (TOE). The results of their study led them to conclude that technological factors such as the internet, cost, security of information technology systems, organization’s readiness and IT strategy were insignificant when it came to influencing the e-commerce adoption in SMEs. However, technological readiness and strategies of specific SMEs were found to have had relevant influence on adoption of e-commerce, particularly in low levels in SMEs (Sin et al., 2016). The study however had limitations related to technological aspects, which could have influenced the negative conclusion on how technology interacts with ecommerce adoption. The study suggests that other variables of technology such as complexity and compatibility with business strategies be examined to better understand the adoption levels of ecommerce in SMEs.
HypothesesBased on the above review the proposal formulates the following two hypotheses;
- There is no relevant relationship between technology adoption and e-commerce business strategies in the UAE companies
- There is a significance relationship between technological adoption and e-commerce business strategies in the UAE companies.
Dependent variable will be the e-commerce strategy will serve as the dependent variable since it is hugely influenced by technological aspects, which will be measured based on; internal, market and competitive factors. The independent variable on the other hand will be adoption of technology will serve as the independent variables and will be investigated using the various roles played by web based functions such as web- contacts, customer care and online product and service delivery abilities.
MethodologyThe proposed study will use descriptive quantitative research to help achieve the set study goals; the data will consequently be converted into statistical form to make it more relevant to this study. The study suggests using a population derived from large companies as opposed to SMEs since the results may be more relevant to a wider field of people. The selected participating companies will be randomly selected though their participation will depend on their willingness to participate in the study.
Data will be collected using questionnaires, which will make it easier to transfer data collected into numerical form. Statistical reliability of data will be through the Chronbach’s alpha of <0.1. The Likert coded scale will be used based on five ratings based on respondent’s level of agreement with a situation as presented in the questionnaire. The results will be analyzed using the Statistical Package for Social Sciences (SSPS), where mean and standard deviation will be calculated. The T-test will be used to test the given hypothesis and find out which will be accepted as true.
ConclusionAdoption of technology according to previous studies appears to be relevant to the creation of e-commerce business strategy. Additionally, it has been observed that increased dependence on information technology (IT) has led to an increase in e-commerce users, which has consequently led to more businesses shifting their business to online platforms. The results of this study seek to understand the relevance of the relationship between adoption of technology and e-commerce strategy focusing on UAE based companies. With a clear understanding of this relationship, the proposed study will come up with recommendations that can be applied by UAE e-commerce businesses.
References
Al-Fawaeer, M. (2014). Exploring the relationship between e-commerce adoption and business strategy: an applied study on the Jordanian telecommunication companies. Journal of Management Research, 6(1), 141. Retrieved from http://macrothink.org/journal/index.php/jmr/article/download/4558/3948
Elbeltagi, I., Al Sharji, Y., Hardaker, G., & Elsetouhi, A. (2013). The role of the owner-manager in SMEs’ adoption of information and communication techfwhichnology in the United Arab Emirates. Journal of Global Information Management (JGIM), 21(2), 23-50. Retrieved from https://www.researchgate.net/profile/Ibrahim_Elbeltagi/publication/236236885_The_Role_of_the_Owner-Manager_in_SMEs'_Adoption_of_Information_and_Communication_Technology_in_the_United_Arab_Emirates/links/02e7e51f6806f07cf8000000.pdf
Ghandour, A. (2015). An analysis of factors affecting growth and barriers of e-commerce in UAE. In the proceedings of the International conference on Intelligent Systems, Control and Manufacturing Technology (ICICMT’2015), Abu Dhabi, UAE (pp. 16-17). Retrieved from https://www.researchgate.net/profile/Ahmad_Ghandour2/publication/277018828_An_analysis_of_Factors_Affecting_Growth_and_Barriers_of_E-Commerce_in_UAE/links/5560c75808ae9963a119f970.pdf
Lowe, A. (2012). UAE holds largest shares of e-commerce sales in the region. Gulf News. Retrieved from http://gulfnews.com/business/sectors/retail/uae-holds-largest-share-of-e-commerce-sales-in-region-1.970176
McElheran, K. (2015). Do market leaders lead in business process innovation? The case (s) of e-business adoption. Management Science, 61(6), 1197-1216. Retrieved from https://www.researchgate.net/profile/Kristina_Mcelheran/publication/228197257_Do_Market_Leaders_Lead_in_Business_Process_Innovation_The_Cases_of_E-Business_Adoption/links/56ad057108ae28588c5fbb29.pdf
Sin, K. Y., Osman, A., Salahuddin, S. N., Abdullah, S., Lim, Y. J., & Sim, C. L. (2016). Relative advantage and competitive pressure towards implementation of e-commerce: Overview of Small and Medium Enterprises (SMEs). Procedia Economics and Finance, 35, 434-443. Retrieved from http://www.sciencedirect.com/science/article/pii/S221256711600054X
Introduction
The research topic is about investigating the correlation between technological adaptation and strategic moves within the E-commerce setting. The study focuses on companies that are located in the UAE in general which have registered and efficient online operations. Technology has become part of the contemporary society as businesses are being encouraged to adopt the incorporated measures there is a need to ensure that the technology and ICT environment is examined adequately. It is without a doubt that today, the prosperity of large and small corporations relies on their ability to utilize technological aspects of conducting business. However, despite the associated benefits in such setting the challenges that arise in such operations due to the complexity of advancement and constant changes cannot be ignored. The study, therefore, seeks to enquire on the underlying relationship amid technological implementation and all the adopted strategies within the E-commerce sector. The topic was selected because in the recent years the use of technology in the industrial setting mainly by E-commerce businesses has been on the rise. It means that technology is a significant determinant of business success and therefore the research will seek to create awareness to the more substantial populace regarding the resulting benefits and challenges from technological adaptation and the measures that can be applied to overcome the hurdles. Technology adaptation in the economic world is a reality that cannot be ignored in the contemporary society. The subject, therefore, connects to my general view of the world as one that depends on technological growth and practical application.
Research Questions
- What is the correlation between technology embracement and E-commerce strategy?
- What are the effects of technology implementation in E-commerce?
- What are the drivers and the level of technology adaptation in UAE?
Research Objectives
- Determine the level of e-commerce adoption in the UAE
- Establish the relationship between technology adoption and e-commerce strategy.
- Determine the effect of technology adaptation on E-commerce companies in UAE.
One of the dominant worldviews that I have acquired is that research is the driving source of dealing with social injustices and marginalization. Through research, the causes of the existing issues can be established which in turn leads to the development of solutions to deal with the problems. Most practitioners agree that research is essential in creating awareness and familiarity of trends and issues. In the industrial setting, businesses might not prosper if they lack the knowledge on how they can best operate their businesses. Empirical literature can be used to prove this worldview while following descriptive research. I have critically and thoroughly assessed this worldview through the conducted investigation. In that by determining the association amid strategies and technology acquisition in the contemporary society, it is evident that the notion of that research is necessary for building knowledge will be developed. Some worldviews usually benefit a specific way of reporting about the study and human encounters. In that, as humans, we tend to justify what we believe in. It, therefore, means that the researcher will manage to report favoring a particular side of the research.
The above worldview is directly linked to the data collection approaches that will be applied in the research. In that, to create a keen awareness of technological adaptation among UAE E-commerce businesses a critical paradigm with a mixed methodology will be relied on. The approach will seek to generate adequate information that is needed for the study. However, the analytical limitation that my worldview will be subjected to is time since the approach will make much data that must be analyzed based on coding. Time and resources might affect the outcome of the procedure. The research paradigm that will be applied in the case is a case study. The investigation will mainly be based on the E-commerce companies that operate within UAE. My worldview appreciates the generation of knowledge in general regarding the research process as a whole. It asserts that experience is essential in providing evidence and justification to the raised claims in research.
Conclusion
It is without a doubt that this assessment has generated a new awakening through research paradigm. In other words, research paradigms are the systematic plan and approach to carrying out an investigation reliably and accurately. It means that for any given research to be successful, then the methodology and procedures must be suitable. The context of the inquiry usually determines the model that is to be applied in conducting research. However, some questions have emerged during the learning such as the effectiveness of the models and their influence on research in general. The study will contribute to the creation of new knowledge by informing the audience about the association amid technology embracement and strategies that the E-commerce businesses adopt in general. I do believe that the research is beneficial socio-economically and it will seek to inform on how the complexity of technology can be avoided.
Literature that informs this theoretical essay:
The academic references that best interact with the study’s questions and concepts include books and journal articles. The recommendations will mainly be collected from the educational sites mostly from the internet which offers variety. The legitimacy of the sources is ensured by checking for the domain name and publication. The validity will be determined by the years of writing since recent references are needed more. The referencing approach that the research will use is the APA format as it best suits the needs of the study.
