E-commerce and Economic Development in Libya

A thesis submitted to the University of Wales Institute, Cardiff for the degree of Doctor of Philosophy Cardiff School of Management

Abdalla Hamed
April, 2009

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DECLARATION
I hereby declare that this dissertation, submitted in partial fulfilment of the requirements for the degree of Doctorate of Philosophy and entitled “E-commerce and Economic Development in Libya” represents my own work and that, to the best of my knowledge and belief, it contains no material previously published or written by another person.

Signed……………………………………….(Candidate) Date…………………………………………..

STATEMENT 1 This thesis has not already been accepted in substance for any degree and is not being concurrently submitted in candidature for any degree. Signed……………………………………….(Candidate) Date…………………………………………..

STATEMENT 2 I hereby give consent for my thesis, if accepted, to be available for photocopying and for inter library-loan, and for the title and summary to be made available to outside organizations Signed……………………………………….(Candidate) Date…………………………………………..

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Acknowledgment
In the end of this research I would like to emphasize my appreciation to:  My parents who support me financially and provided me the confidence to finish this dissertation  My supervisory team for guiding me through my journey  People who agreed to be interviewed and who accepted to answer the research questionnaire.  Brother, sisters and friends who have been waiting for my work achievements To all, thank you very much.

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Contents

Abstract ..................................................................................................................................................... XII Abbreviations ...........................................................................................................................................XIII Research outcomes...................................................................................................................................XVI PhD Consortium........................................................................................................................................ XVI Conferences papers ................................................................................................................................... XVI Seminars.................................................................................................................................................... XVI Business Seminar ...................................................................................................................................... XVI

Chapter one: Introduction
1.1 Background ............................................................................................................................................. 3 1.2 Economic development and e-commerce .............................................................................................. 3 1.3 Research problem ................................................................................................................................... 5 1.4 Aim and objectives .................................................................................................................................. 5 1.5 Research method ..................................................................................................................................... 6 1.6 Background of Libya .............................................................................................................................. 8 1.6.1 Geographical Location and Population ................................................................................................. 8 1.6.2 History of Libya .................................................................................................................................... 9 1.7 Structure of the thesis ........................................................................................................................... 11

Chapter two: Economic development
2.1 Introduction........................................................................................................................................... 18 2.2 Background of Economic Development .............................................................................................. 18 2.3 Classification of Countries ................................................................................................................... 19 2.4 Economic Development Measurements .............................................................................................. 20 2.5 Theories of Economic Development .................................................................................................... 23 2.5.1 The Linear stages ................................................................................................................................ 24 2.5.2 Structural Change Theory ................................................................................................................... 26 2.5.3 The International-Dependence Revolution.......................................................................................... 27 2.5.4 The Neo-Classical Counter-revolution................................................................................................ 28 2.6 Economic Development and Technology ............................................................................................ 29 2.7 Economic Development and ICT ......................................................................................................... 32 2.8 Economic Overview of Libya ............................................................................................................... 37

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2.8.1 Economy of the revolution:................................................................................................................. 37 2.8.2 The new economy approach................................................................................................................ 38 2.9 Summary................................................................................................................................................ 41

Chapter three: E-commerce
3.1 Introduction........................................................................................................................................... 47 3.2 Background ........................................................................................................................................... 47 3.2.1 Use of the Internet ............................................................................................................................... 47 3.2.2 Internet in developing countries .......................................................................................................... 48 3.2.3 Internet in Libya.................................................................................................................................. 50 3.3 E-commerce ........................................................................................................................................... 53 3.3.1 E-commerce categories ....................................................................................................................... 54 3.3.2 E-commerce in developing countries .................................................................................................. 57 3.3.3 E-commerce in Libya .......................................................................................................................... 60 3.4 E-government ........................................................................................................................................ 62 3.4.1 E-Government in developing countries ............................................................................................... 65 3.5 M-commerce......................................................................................................................................... 66 3.5.1 Mobile commerce in developing countries ......................................................................................... 68 3.6 Payment Methods.................................................................................................................................. 69 3.6.1 Payment in developing countries......................................................................................................... 71 3.7 Regulation and legislation .................................................................................................................... 73 3.8 E-commerce challenges......................................................................................................................... 74 3.9 Factors Influencing E-commerce Adoption ........................................................................................ 77 3.10 Summary.............................................................................................................................................. 81

Chapter four: Twoards a theoratical framework for E-commerce drivers and barriers
4.1 Introduction........................................................................................................................................... 87 4.2 Drivers and Barriers............................................................................................................................. 87 4.2.1 Cost ..................................................................................................................................................... 90 4.2.2 Payment Systems ................................................................................................................................ 92 4.2.3 Legislation and Regulation.................................................................................................................. 93 4.2.4 Infrastructure ....................................................................................................................................... 95 4.2.5 Culture and Religion ........................................................................................................................... 96 4.2.6 Government......................................................................................................................................... 97 4.2.7 Employment ........................................................................................................................................ 99 4.2.8 Competition....................................................................................................................................... 100 4.2.9 Traditional business .......................................................................................................................... 101 4.2.10 Economic Activities ........................................................................................................................ 102 4.3 The E-commerce Drivers and Barriers Model (1) ........................................................................... 104 4.5 Summary.............................................................................................................................................. 107

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Chapter five: Research method
5.1 Introduction......................................................................................................................................... 111 5.2 Research Purpose................................................................................................................................ 112 5.3 Research Design .................................................................................................................................. 113 5.3.1 Qualitative and Quantitative Methods ........................................................................................... 115 5.4 The Adopted Research Methodology ................................................................................................ 117 5.5 Secondary Data ................................................................................................................................... 119 5.6 Primary Data ....................................................................................................................................... 123 5.6.1 Interview ........................................................................................................................................... 124 5.6.2 Questionnaire .................................................................................................................................... 133 5.7 Method of Data Analysis .................................................................................................................... 138 5.7.1 Qualitative Data Analysis.................................................................................................................. 139 5.7.2 Quantitative Data Analysis................................................................................................................ 141 5.8 Ethical Considerations........................................................................................................................ 142 5.9 Summary.............................................................................................................................................. 143

Chapter six: Findings
6.1 Introduction......................................................................................................................................... 147 6.2 E-commerce drivers and barriers...................................................................................................... 147 6.2.1 Competition....................................................................................................................................... 148 6.2.2 Cost ................................................................................................................................................... 156 6.2.3 Culture............................................................................................................................................... 164 6.2.4 Economic development ..................................................................................................................... 171 6.2.5 Employment ...................................................................................................................................... 176 6.2.6. Government...................................................................................................................................... 181 6.2.7 Infrastructure ..................................................................................................................................... 187 6.2.8 Legislation......................................................................................................................................... 194 6.2.9 Payment............................................................................................................................................. 200 6.2.10 Traditional business ........................................................................................................................ 207 6.2.11 Knowledge ...................................................................................................................................... 212 6.2.12 Security ........................................................................................................................................... 217 6.3 Pioneer Initiatives ............................................................................................................................... 219 6.4 Benefits of e-commerce to Libya........................................................................................................ 220 6.5 Other Comments ................................................................................................................................. 222 6.6 Summary.............................................................................................................................................. 222

Chapter seven: The three-quarter moon chapter
7.1 Introduction......................................................................................................................................... 233

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7.2 Drivers and barriers ........................................................................................................................... 233 7.3 The three-quarter moon model (specific to Libya) .......................................................................... 239 7.4 Action plan........................................................................................................................................... 242 7.4.1 Before e-commerce adoption ............................................................................................................ 242 7.4.2 During-adoption ................................................................................................................................ 246 7.4.3 After e-commerce adoption............................................................................................................... 249 7.5 The Three-Quarter Moon Model (General) ..................................................................................... 254 7.5.1 Capitalist approach............................................................................................................................ 255 7.5.2 Socialist approach ............................................................................................................................. 259 7.5.3 Technologically advanced countries ................................................................................................. 259 7.5.4 Deploying the Three Quarter Moon Model ....................................................................................... 261 7.5 Summary.............................................................................................................................................. 264

Chapter eight: Conclusion chapter
8.1 Introduction......................................................................................................................................... 270 8.2 Review of objectives ............................................................................................................................ 270 8.2.1 Reviewing the literature of Economic development ......................................................................... 270 8.2.2 Reviewing the literature of e-commerce ........................................................................................... 271 8.2.3Developing a theoretical framework to conceptualise e-commerce drivers and barriers ................... 272 8.2.4 Investigate practical drivers and barriers of E-Commerce and its impact on Libya’s economy ....... 273 8.2.5 Develop an implementation plan for e-commerce adoption in Libya ............................................... 279 8.2.7 Develop a model to assist in E-Commerce adoption in Libya and consider how the model can be generalised for other developing countries ................................................................................................ 279 8.3 Contribution of the body of knowledge ............................................................................................. 281 8.3.1 Contribution to theory ....................................................................................................................... 281 8.3.2 Contribution to Practice .................................................................................................................... 287 8.4 Limitations of the research................................................................................................................. 288 8.5 Recommendations ............................................................................................................................... 289 8.6 Future Research .................................................................................................................................. 290

9.0 References............................................................................................................................................ 292

Appendices
10.1 Interviewees’ comments tables: ....................................................................................................... 318 10.1.1 Data gathered: Use of tables............................................................................................................ 318 10.1.2 Important: example of use of tables ................................................................................................ 320 10.1.3 Competition:.................................................................................................................................... 322 10.1.4 Cost: ................................................................................................................................................ 326 10.1.5 Culture and Religion: ...................................................................................................................... 329 10.1.6 Economic Development: ................................................................................................................. 335 10.1.7 Employment: ................................................................................................................................... 342 10.1.8 Government :................................................................................................................................... 345

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10.1.9 Infrastructure:.................................................................................................................................. 351 10.1.10 Knowledge: ................................................................................................................................... 358 10.1.11 Legislation:.................................................................................................................................... 362 10.1.12 Payment:........................................................................................................................................ 365 10.1.13 Security ......................................................................................................................................... 373 10.1.14 Traditional Business:..................................................................................................................... 375 10.2: Interview question .......................................................................................................................... 381 10.3 Questionnaires’ answers................................................................................................................... 385 10.4 Questionnaire questions ................................................................................................................... 393 10.5 Questionnaire questions linked to e-commerce issues ................................................................... 401

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........................ 131 6.....................................................................................................................................1 Research method techniques and outcomes...........................................6 employment issues in Libya ............ 119 5..................... 98 4..........................4 infrastructure issues in literature .....................................................................................................................................10 economic activities issues in literature .................. 179 6.............................................8 competition issues in literature ................................................................................................. 206 6. 96 4........................................................2 usage of internet in libya ................................................. 29 3.................. 48 3.......... 61 4......................................... 162 6.......................................................................................................................................................... 90 4........ 118 5............................................................ 192 6........................................................................................... 188 6.............. 99 4................................................................... 175 6.List of tables 2.............................................................................................................................................................................................................................3 charge of dial-up and ADSL in libya.... 210 IX ............................................................................................................... 185 6..............................................................................5 culture and religion issues in literature................................2 payment issues in literature ......13 traditional business issues in findings .................................................4 leasedline capacity and price.......................................................................................................................................................................................... 92 4...............7 goverment issues in libya ....................................12 payment issues in libya .............................................................................................5 telephone line in libya ..................1 competition issues in Libya ................2 Interview questions linked to e-commerce issues .......................................................... 51 3...................................................... 102 5..................................................1 History of internet users ........9 comunications tools .............................................. 52 3..............................................................4 culture issues in libya ..................................................6 government issues in literature ...................................................................................................................................................11 ligislation issues in libya ................................ 101 4......................1 cost issues in literature................................................................................................................9 traditional business issues in literature ........................................................ 100 4...3 ligislation and regulation issues in literature .................... 169 6...............3 benefit of E-commerce .....................3 list of organisation interviewed .........5 economic development issues in libya ...........................7 employment issues in literature ............... 93 4........ 198 6........................................................................................................................................................................................................................................................................................1 Economic growth items ... 52 3..................................8 internet connection charges......... 190 6............ 167 6..........................................................................................................................................................................................................................................................................2 cost issues in Libya..................... 155 6..................10 infrastructure issues in libya .......... 95 4....................................

.........................4 before-adoption issues (general) .................6 goverment issues in findings.............................................................................. 374 10.......................................................10 payment issues in findings .....................................................7 infrastructure issues in findings.............................................................. 220 7............1 before-adoption issues to libya................12 traditional business issues in findings .........................................................................2 cost issues in findings ....................................................................5 During-adoption issues (general) ....................... 325 10......................................... 341 10.1 competition issues in findings..................................................6 after-adoption issues (general) ................................................................................................................3 culture issues in findings.................................................................................................... 328 10.........9 ligislation issues in findings ....... 248 7.....................................................5 employment issues in findings................... 364 10................................................... 361 10...... 372 10............. 350 10.................... 250 7................................................. 401 X ...........................14 Reasons of using E-commerce....... 258 10.......................................................................................................................................................................................................................................3 after-adoption issues to libya ...............................................................................................................................................................................................................2 During-adoption issues to libya ....................................................................... 245 7...4 economic activities issues in findings ........................................................................................................................................................... 257 7......................................... 256 7............. 321 10....................................6............................................................ 357 10............................................................................... 334 10....................................................... 317 10..................................... 344 10...........11 securty issues in findings ......8 knowledge issues in findings...............................13 questionnaire questions and e-commerce issues.......................0 List of organisation interviewed .........................................................................................................................

................1 economic development model based on it ......................................................... 190 6..................................................................3 the three-quarter moon model (specific to libya) ..................................... 179 6.........................................................................................................1 internet usage 2007 ....................................................................1 e-commerce drivers and barriers (1)...........2 Internet services providers ................................................................1 The four e-commerce actors....................................................1 reduction of adminstration work ........................................................................................................................................................... 226 7............................. 252 7.............3 E-commerce awarness .................................... 254 7............. 36 3........2 the adoption stages ......4 the three-quarter moon model (general) .................................................................................................................................................................................... 105 6...............5 e-commerce drivers and barriers (2).......................................................................... 241 7........... 219 6.......5 the classification model ...............................2 Factors of e-commerce adoption decision ................................................................................................................................................................................................................................................................ 79 4..... 216 6............................................4 fear of securty...................................................................................... 260 7..........................................List of figures 2.. 263 XI . 50 3......................

Additionally. infrastructure. economic development. 15 semi-structured interviews were conducted involving decision makers. the literature on e-commerce drivers and barriers issues has been expanded. It is now widely accepted by policy makers that e-commerce is at the centre of an economic and social transformation that is affecting all countries. All issues were examined in Libya. Firstly. less-technologically advanced and technologically advanced. legislation and regulation. employment. and rapid economic growth is usually accompanied by rapid structural change. These four actors and the plan of action comprise the three-quarter moon model that encourages the fourth actor (ecommerce users) to complete the circle of adoption. E-commerce creates new economic and social landscapes. a questionnaire was distributed across a population of 150 Libyan Internet users on a faceto-face basis. The classification model classifies countries according to their technological advancement. cost. companies and e-commerce users). These issues created the theoretical framework. The research process involves a mixed research approach. government officials. One of the main drivers of economic development is technology. XII . Most issues (competition. The new classification groups countries into non-technologically advanced. Moreover. Technology adoption usually results in rapid economic growth. the research findings confirmed the effects of these issues on e-commerce adoption.Abstract This thesis develops a conceptual framework of the drivers and barriers to e-commerce adoption in developing countries such as Libya. The plan of action is driven by four main actors (Government. The thesis concludes with a plan of action to assist Libya’s government on e-commerce adoption. government. technologically advanced countries. payment system) could be drivers or barriers. The thesis concludes that the threequarter moon model can be generalized to other developing countries and proposes a classification model for e-commerce adoption along with a formula of Internet involvement. the research findings resulted in an amended theoretical framework by introducing two new issues (knowledge and security). E-commerce enables producers in developing-country to overcome traditional business limitations. Secondly. managers and general employees regarding e-commerce and economic development in Libya. There are many drivers and barriers to the adoption of e-commerce.

Return Channel by Satellite Electronic commerce Electronic Economy Electronic Government Electronic Mail Electronic Procurement Foreign Direct Investment XIII .Abbreviations 3G ADSL AR ATM AW B2B B2C BA C2C CBL CI CPI DSL DVB-RCS E-commerce E-economy E-government E-mail E-procurement FDI Third Generation Asymmetric Digital Subscriber Line Al-Reiad Internet Café Automated Teller Machine Al-Wesam Internet Cafe Business to Business Business to Consumer Bader Al Hasse Group Consumer to Consumer Central Bank of Libya Concord Investment Consumer Price Index Digital Subscriber Line Digital Video Podcasting.

D LCB LDCs LIB LTT M-commerce MEB MIDS MOC NGO OC OCC Government to Business/ Consumer Group of eight industrial countries Giga Bite Gross Domestic Product Gross National Income Human Development Index Information and communication technology Internet Service Provider Information Technology Kilo bite Libyan Dinar Libyan Commercial Bank Less Developed Countries Libyanna Libyan Telecommunication Technology Mobile Commerce Mobile Websites Matrix Information and Directory Services Ministry of Commerce Non-Governmental Organisations Oil Company Oil and Construction Company XIV .G2B/C G-8 Gb GDP GNI HDI ICT ISP IT Kb L.

S.OECD OLPC OPEC OPTC PC PPP SMEs TFP TNC U. UN UNCTAD UNDP WAP Wi-Fi WIPO WTO Organisation for Economic Cooperation and Development One Laptop Per Child Organisation of Petroleum Exporting Countries Organisation of postal and telecommunication Company Personal Computer Purchasing Power Parity Small and Medium Enterprises Total Factor Productivity Transnational Corporation United Kingdom United Sates of America United Nation United Nation Conference in Trade and Development United Nation Development Program Wireless Application Protocol Wireless Fidelity World Intellectual Property Organisation World Trade Organisation XV .K U.

Ball. (2007) Al-Aser University. Berger H. (2006) CRM Research. Kuala Lumpur Hamed. The three-quarter moon. D (2008). (2007) UWIC research committee Business Seminar  Key-note Speaker (2008) Doing Business in Libya. Ball. Cleary. Singapore XVI . Globalisation and e-commerce issues. P. Cleary. IE Singapore. IBIMA. IBIMA. UKAIS. A. Libya E-commerce and Economy. P. Cleary P. A. D (2009). A. Hamed. A new model for e-commerce adoption. Berger. H. A. Cleary P. UWIC E-commerce in Developing Countries. Hamed. A. Morocco. Bangkok. E-commerce drivers and barriers. (2006) E-commerce in developing countries. Cairo      Seminars    E-commerce in Libya. A. D (2008). Berger H. Thailand. D (2008) E-commerce and economic development. Ball. D (2008). Ball. E-commerce as a tool for economic development. D (2008). Berger and H. H. Berger. Ball. Tripoli. P. Cleary. UK Hamed.Research outcomes PhD Consortium  Hamed. Can e-commerce measure globalisation?. E-CASE. A. Berger H. PhD Consortium. A new classification method in digital revolution. the destiny of 21st century. UK Academy of Information Systems. Conferences papers  Hamed. Marrakech. Cheltenham. Ball. IBIMA. Cleary P. Kuala Lumpur Hamed. Bournemouth. IBIMA.

Chapter one: Introduction Chapter One Introduction 1 .

.......................................................................................................................................................................................................................................................................................................................................................6...........1 Background ................................................. 3 1.. 3 1............. 6 1..................................................................................................................................... 11 2 ...........................................................................................................................................................................Chapter one: Introduction 1.............. 5 1.................6......................................3 Research problem .......................2 Economic development and e-commerce ......................................7 Structure of the thesis .......... 9 1...........................6 Background of Libya ............................................................................................................4 Aim and objectives ........................... 8 1...................................................1 Geographical Location and Population ..............2 History of Libya ............ 8 1. 5 1...........5 Research method ......

Hammond. both public and private. Technology is not something that just happens to economies.2 Economic development and e-commerce The study of economic development is one of the newest. Economic development must deal with the economic. and most challenging branches of the broader disciplines of economics and political economies (Meier and Rauch. Todaro.Chapter one: Introduction 1. Asia. in particular Libya. 1999. 1999). 2001. 1999). 1. OECD. One of the main drivers for economic development that has become apparent over recent years is technology. it is a process that countries need to consciously and actively promote and nurture (James. necessary to bring about rapid and large scale improvement in the standard of living for the masses of povertystricken. most exciting. 2003). and Latin America (Todaro. 2001. 2005). social. 3 . political and institutional mechanisms. malnourished and illiterate people of Africa. It is now widely accepted that information and communications technologies (ICT) and e-commerce are at the centre of an economic and social transformation that is affecting all countries (Chan and Lee.1 Background This chapter summarises the research in this thesis and provides an overview of the adoption of Internet technology tools and e-commerce in the economy of developing countries.

A significant proportion of the Third World is already partially developed and a significant proportion of the population has a demographic profile similar to that of the developed economies (Mann. not only for organisations. 2004). 2004). It is generally believed that e-commerce enables developing country producers to overcome traditional limitations associated with restricted access to information. In many cases. 2002. 2000). lack of payment systems that can support online transactions.Chapter one: Introduction The Third World has a well-recognised e-commerce and marketing potential. et al. Organisations that are going to adopt e-commerce need to consider restructuring their entire business and create new strategies. The revolution of e-commerce presents micro. Cohen. 2003). but also for governments (Callioni. 4 . 2000.. high market-entry costs. UNCTAD. Developing countries need to take into consideration that building telecommunications infrastructure is costly. Maitland 2001). 2003). The majority of developing countries face limitations on the development of their electronic economy (e-economy) stemming largely from low income levels. 2000. and cultural resistance to online trade (UNCTAD.and macroeconomic challenges. and isolation from potential markets (April and Cradock. countries will need inflows of Foreign Direct Investment (FDI) to improve domestic infrastructure (Jenkins and Thomas. They also need to implement new management processes. follow different procedures for managing their employees and build a well-structured and secure payment system (Well. change their business culture. low literacy rates.

whereas other countries.3 Research problem Most developing consumer markets face severe limitations in terms of connectivity. such as Libya. such as Libya. Consequently. not yet been undertaken in Libya. access to other means of payment for online purchases and accessibility in terms of physical deliveries (Straub. to the best knowledge of the researcher. ability to pay. the study is important because it throws light on the difficulty of using e-commerce and establishes why e-commerce adoption is risky. 1. This research will attempt to investigate the reason for this lack of benefit by identifying the drivers and barriers for e-commerce adoption in developing countries. Further. deliveries. a model will be proposed that may help such countries to adopt e-commerce. have benefited significantly. 2003). face when adopting e-commerce? 5 . willingness to make purchases online. such as India and China. ownership of credit cards. This study is significant in that previous studies have.4 Aim and objectives This research will aim to answer the following questions: What are the drivers and barriers that developing countries.Chapter one: Introduction 1. Some countries have invested heavily in Internet infrastructure and have still failed to gain significant benefit.

1. the following objectives are thus formulated: 1. 2. 3.Chapter one: Introduction Can a plan of action and a model be developed the purpose of which would be to assist Libya in adopting e-commerce? Can the proposed plan of action and a model of adoption be generalised to be used by other developing countries? In order to answer these questions. Investigate practical drivers and barriers to e-commerce in Libya and the impact of e-commerce activities on the Libyan economy. 5. Develop an implementation plan for e-commerce adoption in Libya. 4.5 Research method The generation of data and information relating to the research topic is explained and rationalised according to the research questions. Critically review the literature of e-commerce in general and developing countries in particular and other related subjects. The purpose behind this research is to 6 . 6. Develop a theoretical framework to conceptualise e-commerce drivers and barriers. Critically review the literature of economic development and other related subjects. Develop a model to assist e-commerce adoption in Libya and consider how the model can be generalised for other developing countries.

2000) were conducted involving decision makers. 7 . 2006). the researcher undertook direct observation (Gill and Johnson. 2003. where very few or no earlier studies have been conducted. The researcher assumed the role of an objective analyst. Lastly. 2004). Secondly. This was aimed at understanding the barriers experienced and anticipate future potential barriers. government officials. Johnson and Christensen. a questionnaire (Bell. 2001) was distributed across a population of 150 Libyan Internet users on a face-to-face basis. 2003. 1997). The researcher adopted a mixed research approach (Saunders et al. Firstly. Pilot testing was carried out for both the interview and questionnaire designs in terms of their structure and substance. 2000. The research process is described in terms of a critical analysis of relevant research approaches. 1997) of Libyan Internet users in order to recognise the social and/or human difficulties experienced whilst engaging in basic e-commerce activities. managers and general employees regarding e-commerce and economic development in Libya. This was aimed at observing social reality in the context of examining the potential of e-commerce within the Libyan economy. Collis and Hussey. 15 semi-structured interviews (Robson..Chapter one: Introduction ascertain the effect of using e-commerce in the economic development of developing countries such as Libya. A combination of tape recording and note taking was utilised during interview sessions to maximise the validity of data collected aimed at minimising the weaknesses of both methods (Stewart and Cash. making a detached interpretation of those data that have been collected in an apparently value-free manner (Gill and Johnson. Burms.

and is said to be growing at a rate of 3. seven times the size of the United Kingdom and one-sixth larger than Alaska.6 Background of Libya 1. infoplease.774. The country is bounded by the Mediterranean Sea to the north.Chapter one: Introduction Additionally. km.5 8 . 2002.5 million.6. over 90 percent of the land is desert or semi-desert. QSR NUD*IST Vivo (NVivo). However. the Libyan population is estimated to be 5. was utilised to store and analyse the range of qualitative data collected (Myers 1997. Further investigation was required to establish how the identified themes might inter-relate and link into sub-categories (Orlikowski 1993). Data analysis concerned applying ‘open coding’ that involved analysis of the content where data were analysed and categorised into themes. This is commonly known as axial coding and was used to uncover the relationships within the categories until saturation occurred. Microsoft Excel was used to accommodate and analyse data collated for quantitative purposes. 2006). 1.440 sq. and the country climate is affected by the Mediterranean Sea to the north and the Sahara to the south (Terterov and Wallace. According to Terterov and Wallace (2002). by Niger. Yin 2003).1 Geographical Location and Population Libya is the fourth largest country in Africa with an area of approximately 1. Chad and Sudan to the south and by Algeria and Tunisia to the west. Egypt and Sudan to the east. The information department of the Great Jamahiriya. a qualitative software product. 2005. including numerous foreign residents. three times the surface area of France.

the people of Libya have been subjected to varying degrees of foreign control.2 History of Libya The roots of human settlement in Libya go back to the prehistoric period of the Stone Age. Although the Greeks and Romans left impressive ruins at Cyrene.6. The population is young (almost 50 per cent are under 20 years old) and 86 per cent urban .000 BC to 2000 BC This period had left evidence of human settlement in Libya through a wealth of paintings and engravings left on stones inside mountain caves that are generally located in the southern part of Libya. The Phoenicians. Additionally. Spaniards. According to the Information Department of Great Jamahiriya (2006). one of the highest population growth rates in the world.one of the highest urbanisation rates in the world. Arabic is the language of instruction. Vandals and Byzantines ruled all or parts of Libya. Carthaginians. Leptis Magna and Sabratha.Chapter one: Introduction percent. It starts around 10. mostly from Mediterranean empires. Greeks. Public education in Libya is free and compulsory for children ages 6 to 15. Libya was first colonised in the 12th century BC. most of the population are educated and a number of highly-qualified people were counted in the country. 1. the country has now one of the highest literacy rates in Africa. In the 9 . Romans. For most of their history. little else remains today to testify to the presence of these ancient cultures. Some 97 percent of the adult population is literate. Muslim Arabs conquered Libya in the seventh century AD as they proceeded to conquer all of North Africa and the Iberian Peninsula concurrent with the spread of Islam.

The information department for the Great Jamahiriya. 2006. British and French forces occupied the area. After years of resistance the country became an Italian colony. 2006. 1949. Country Review. When Libya declared its independence on December 24. 2006)). resulted in Italy's annexation of Libya. 21. The General People Committee for Tourism. except Egypt) as the official name of the colony. which consisted of the provinces of Cyrenaica. 1969. when a Colonel Qaddafi and a group of young army officers overthrew the royal government and established a republic under the name Libyan Arab Republic. Tripolitania and Cyrenaica were under British administration. A new era in the history of Libya began on September 1. it was the first country to achieve independence through the United Nations. 2002. Muammar alQaddafi. Libya's leader. From 1943 to 1951. and Fezzan (Terterov and Wallace. (Terterov and Wallace. 2002. most of the indigenous peoples adopted Islam and the Arabic language and culture.Chapter one: Introduction following centuries. 1952. 1. the United Nations General Assembly passed a resolution stating that Libya should become independent before January. Italy adopted the name "Libya" (used by the Greeks for all of North Africa. The Library of Congress. which began in 1911. On Nov. 2006). introduced a plan to reorganise the Libyan state. Following World War II. The plan essentially ensured that the country would be run by a new representative body called the General People's 10 . while the French controlled Fezzan. In 1934. The Italo-Turkish War. 1951. Tripolitania. In 1976.

11 . The information department of the Great Jamahiriya.7 Structure of the thesis This thesis consists of eight chapters. It analyses the effect of technology on economic activities and evaluates the use of technology as a tool for developing the economy. and background information about Libya and its history. The second chapter reviews literature on economic development and evaluates economic development theory and its effect on developing country economies.Chapter one: Introduction Congress. Country Review. 2006). three and four). 2007. the problem to be investigated. research questions and objectives. The third chapter reviews and analyses the existing literature relevant to e-commerce and the Internet. an introductory chapter. and the transformations it has undergone to date. 1. 2002. The literature consists of three chapters (Chapters two. It discusses briefly the latest technologies and the way other countries managed to gain benefit of these new technologies. outlines the significance of the study. or GPC (Terterov and Wallace. This chapter. It looks at the events which have made e-commerce possible.

developing a theoretical framework to conceptualise e-commerce drivers and barriers The fifth chapter discusses the research methodology utilised for the purposes of the present study as well as describing the research instrument employed to generate the data and information required. The seventh chapter discusses the research findings and e-commerce development in the light of the literature review (chapters two. knowledge and security.e. The sixth chapter presents and analyses the findings of the primary data generated from research interviews and the questionnaire and modifies the theoretical framework developed in chapter four. i. It shows the links between the theoretical framework and the survey instrument used for collecting data and provides an explanation of the interview structure. It proposes a plan of action and new model and strategy for Libya regarding the adoption of e-commerce. The revised framework developed in this chapter confirms the relevance of the issues identified in the literature review in the Libyan context and adds two new issues previously unreported.Chapter one: Introduction The fourth chapter reviews literature on e-commerce drivers and barriers. It discusses the drivers and barriers of e-commerce and the Internet in more detail based on previous research conducted in other countries in the developed and developing world and critically summarises the main drivers and barriers for developing countries such as Libya. The proposed 12 . three and four).

Additionally. 13 . recommendations for the adoption of e-commerce for governments and companies and provides suggestions for future research.Chapter one: Introduction model is generated from reviewing the literature of e-commerce. the chapter introduces a generalised model for other developing countries along with a new measurement for the stage of ecommerce adoption. It sets out the limitations of the research. Chapter eighth provides a summary of the conclusions which have been drawn using the available data and the analysis. economic development and the findings of the research chapter.

Chapter two: Economic development 14 .

Chapter two: Economic development Chapter two Economic development 15 .

.............................................................................................................7 Economic Development and ICT ............................ 23 2.................................................................................................................................... 37 2.................. 41 16 .................... 29 2...............5 Theories of Economic Development ......4 Economic Development Measurements ................................ 18 2.. 18 2...................... 27 2.................................................................3 The International-Dependence Revolution........................................................................................................................................................2 Background of Economic Development ....................................... 19 2.....................5.........................................................................................4 The Neo-Classical Counter-revolution................................................1 ECONOMY OF THE REVOLUTION: .........Chapter two: Economic development 2.........................1 Introduction...........................................................................................5...................................8.......................................5...............6 Economic Development and Technology ...... 20 2........................................ 37 2.................................. 38 2................................. 32 2................2 Structural Change Theory ...................................................................3 Classification of Countries .............................................................................. 26 2...................................8 Economic Overview of Libya ........................... 28 2......................5....................................... 24 2................8..............................................................................................1 The Linear stages ....................................................9 Summary........................................................................................2 The new economy approach....

Chapter two: Economic development 17 .

This chapter discusses the different theories of economic development and critically evaluates each of these theories and how they are used. Todaro (1999) argues that economic development is not the same as the economies of advanced capitalist nations (modern neoclassical economies). 18 . These methods are discussed in this chapter. and provides a summary of what developing countries should do in order to achieve economic development. He defined it as: It is nothing more or less than the economies of contemporary poor. It also explains different methods of classifying countries according to United Nations and World Bank criteria. Growth may be necessary but not sufficient for development. However.Chapter two: Economic development 2. the two terms are not identical. and most challenging branches of the broader disciplines of economics and political economy. Economic development is usually measured using Gross Domestic Product (GDP). This chapter gives a brief background on economic development. most exciting. Human Development Index (HDI) and Purchasing Power Parity (PPP). It also emphasises the use of technology and ICT in economics and explains how they contribute to economic development. Nor is it similar to the economies of centralised socialist societies (Marxist or Command economies). underdeveloped Third World nations whith varying ideological orientations. 2.1 Introduction A major goal for developing countries is economic development or economic growth.2 Background of Economic Development The study of economic development is one of the newest.

g. both public and private. Furuholt and Kristiansen. and Latin America. He stated that researchers are still trying to understand what causes the difference between a healthy less-developed country economy that is growing rapidly and an unhealthy less-developed country economy that is growing slowly or not at all. 19 .000 or less).000). 2006. p7). political and institutional mechanisms. and very complex yet similar economic problems that usually demand new ideas and novel approaches (Todaro1999. necessary to bring about rapid and large scale improvements in the standard of living for the masses of poverty stricken malnourished and illiterate people of Africa. Dada.000 or more). Upper-middle-income countries ($3. Todaro (1999) and others (e.Chapter two: Economic development diverse cultural background. 2006.3 Classification of Countries The classification of development used by the World Bank divides countries into four groups on the basis of income per capita according to countries’ Gross National Income (GNI). Asia. Lower-middle-income countries ($1001-$3000). Meier and Rauch (2005) believe that the study of economic growth in less-developed countries is not as advanced as had been previously supposed. High-income countries ($9. Furthermore. Kodakanchi et al. 2007) stated that economic development must deal with social.. These categories were roughly:     Low-income countries ($1. 2.000-$9.

including low levels of human development. Both comparative (i.e. designated as least-developed countries. was used almost exclusively as the primary measure of economic development. or GDP. and Latin American members of the UN Conference on Trade and Development (UNCTAD) often are referred to as the Third World (UNCTAD. the United Nations designated 25 countries with a low per capita income. In 1971. natural handicaps. African. 2002).4 Economic Development Measurements Until recent years a country’s aggregate output. or OPEC. Since then. and the middle and low-income countries as developing. all low and middle-income countries except high-income Slovenia). 2006).   The 25 poorest countries. underdeveloped or less-developed countries or the South (World Bank Report.Chapter two: Economic development Sometimes high-income countries are designated as developed countries or the North. Yet there is still a concern as to how to categorise the following:  The 26 economies in transition (East Central Europe and the former Soviet Union. the 134 Asian. Blackwell. low share of manufacturing in gross product. 1986). And 106 other developing countries (Nafziger. and low economic diversification (Simonis.  The eight members of the Organisation of Petroleum Exporting Countries. 1991. 2002). Moreover. between countries) and 20 . and low adult-literacy rates as least-developed. the United Nations has added other criteria to this list of marginalised economies. 2.

growth rates based on a constant American dollar (USD) values often mask the distribution of wealth. excessively focused on economic development without connection to the capabilities of those institutions to expedite economic development of citizens (Holmes and Gutiérrez de Piñeres. Existing attempts to assess national development are still suffering from conceptual and measurement challenges. More explicit attempts at capturing the level of human well-being were made by Morris (1979) and more recently in the UN’s HDI (DasGupta. HDI. Recognising the inadequacy of this measure of well-being. Overall growth rate is another economic development measurement. Measuring economic development is a difficult process. The countries of Asia also tend to be in the medium development classification but lower down the ranking than countries in Latin America. These different measures always tell different stories (Todaro. in general. The countries of Latin America tend to be high up in the category medium human development. education. Growth rates 21 . The category of low human development is almost entirely made up of countries from sub-Saharan Africa. 1999). the United Nations began to devise and collect other macro-level quantitative measures of health. To remedy the failure of GDP to capture purchasing power inequality and to allow crosscountry comparisons. 1993). growth in GDP per capita was commonly used to describe changes in well-being (Ayres and Macey. employment and housing in addition to real income data in the mid1950s. This has led to a literature that is. Growth rates being measured in PPP.Chapter two: Economic development over time. 2006). PPP equivalents were constructed. 2005). and independent measures of inequality based on the preferences of decision and policymakers. Development indicators suggest pronounced regional differences. However.

2007) and can be categorised as global. The digital divide is a term often used to describe disparities in opportunities to access the Internet between wealthy and poor nations (Furuholt and Kristiansen. such as public care and social organisation. which also contribute to well-being and freedom of individuals. The global disparities in access to the Internet and other information and communication technologies have led to a ‘digital divide’ between technological ‘have’ and ‘have-nots’ (United Nations. Other measures were constructed to address the fact that income alone is not a sufficient measure of development. 2005). 2006. The problem is that this measure reveals more about the quantity as opposed to the quality of life. 2004). At the national level. Anand and Sen (2000) claim that it neglects other crucial factors. and Seok Ling. Furuholt and Kristiansen. in particular those where a clear tendency of increased concentration on information is seen to flow to urban and central areas (Wong. The physical quality of life index is a composite score of life expectancy. Ayres and Macey. 2005). 22 . However. there is an urban-rural digital divide (Rao. This division can be seen in developing countries.Chapter two: Economic development can increase dramatically but still fail to raise the overall well-being of the general population of a country or region (Holmes and Gutiérrez de Piñeres. Mwesige. 2006. infant mortality and literacy. 2007). regional or national. a new method to measure economic development and growth is necessary to overcome all the weaknesses identified by the existing methods to give a better understanding of the real situation in different countries in the world. 2001.

Malthus. It was primarily an economic theory of development in which the right quantity and mixture of saving. 2005). Theories and patterns of structural change. the emergence of a fifth approach that has been witnessed . Ricardo) a concern with the heavy variables of capital population. In addition. But the new development economists went beyond their classical and neoclassical predecessors to consider the kind of policies that an active state and international community could adopt to accelerate a country’s rate of development (Meier and Rauch. and foreign aid were all that was necessary to enable Third World nations to proceed along an economic growth path that historically had been followed by the more developed countries (Meier and Rauch. and the objective of what Adam Smith termed the “progress of opulence” in the progressive state. The linear stage of growth which included Rostow’s stages of development. investment.Chapter two: Economic development 2. Smith. 23 .an approach called the new or endogenous theory of economic growth. 2005). 2005). The post-World War II literature on economic development has been dominated by four major and some times competing strands of thought. The international dependence revolution and new classical. Todaro (1999) stated that.5 Theories of Economic Development The new development economics has a relationship with the old growth economics of classical economists (e. Therefore major strands in economic development literature were now being reviewed.g. and free market counter-revolution (Meier and Rauch.

5. The first focused on theories and patterns of structural change. 1999. the pre-conditions for 24 . and the resulting proliferation of dual economies and dual societies both within and among the nations of the world (Todaro. Mookherjee. Rostow has set forth a new historical synthesis about the beginning of modern economic growth (Nafziger. and used modern economic theory and statistical analysis in an attempt to portray the internal process of structural change that a typical developing country must undergo if it is to succeed in generating and sustaining a process of rapid economic growth (Sato. as lying within one of five categories: the traditional society. in their economic dimensions. According to the Rostow doctrine cited in Todaro (1999). The linear stage approach was largely replaced in the 1970s by two competing economic schools of thought.S. was more radical and political in orientation. 2006). It viewed underdevelopment in terms of international and domestic power relationships. 2002).1 The Linear stages When interest in the poor nations of the world really began economists were caught off guard. He argued that: it is possible to identify all societies. Walter W. The second. the international dependence revolution. They had the experience of the Marshall Plan under which a massive amount of U. 1999) In Stages of Economic Growth (1962).Chapter two: Economic development 2. the transition from underdevelopment to development can be described in terms of a series of steps or stages through which all countries must proceed. institutional and structural economic rigidities. financial and technical assistance enabled the war-torn countries of Europe to rebuild and modernise their economies in a matter of a few years (Todaro. 1999).

Todaro. Moreover this growth would then be self-sustaining. and attitudinal conditions to convert new capital effectively into higher level 25 . the tricks of development embodied in the theory of stages of growth did not always work. or constraint on. the drive to maturity and the age of high mass consumption. If a country wanted to grow. P 174). The Marshall Plan according to Miler et al. including capital.Chapter two: Economic development take-off into self-sustaining growth. Thus the capital constraint stage approach to growth and development become rational and an opportunistic tool for justifying massive transfers of capital and technological assistance from the developed to the less-developed nations. increased transport investment to enlarge the market and production specialisation. an expansion of imports. Well. Unfortunately. 1994. and if it could not generate saving and investment of national income. 2005). it could seek to fill this saving gap through either foreign aid or private foreign investment (Thirwall. was the relatively low level of new capital formation in most poor countries. the faster it could develop. institutional. Finally. (Todaro. development according to this theory. so that a growing urban population can be fed. In fact Rostow and others defined the take-off stage in a way that the more the country saves. worked for Europe because the European countries receiving aid possessed the necessary structural..   Then a revolution in agriculture. Rostow’s precondition stage for sustained industrialisation includes radical change in three non-industrial sectors:  First. 1999. The main obstacle to. financed perhaps by exporting some natural resources. the take-off. 1999. (2003).

1999). 1999. There are two models. an underdeveloped economy consists of two sectors: a traditional overpopulated rural subsistence sector and a high productivity modern urban industrial sector into which labour from the subsistence sector is gradually transferred. 2001). Finally the level of wages in the urban industrial sector is assumed to be constant and determined as a given premium over a fixed average subsistence level of wages in the traditional agricultural sector (Todaro. the stage theory failed to take into account the crucial fact that contemporary Third World nations are part of a highly integrated and complex international system in which even the best and most intelligent development strategies can be nullified by external forces beyond a country’s control. the Lewis Model and structure change and patterns theory. including the transformation of production and change in 26 . urbanised and more industry-diverse manufacturing and service economy (Mookherjee. 2001). 1999. These will be presented in turn. The other structural theory is the structural change and patterns theory (Gregor and Johnston. Todaro. 2. In the Lewis model. Gregor and Johnston. However.Chapter two: Economic development of output. Structural change and patterns of development structural change involve virtually all economic functions.2 Structural Change Theory Structural change theory focused on the mechanisms by which underdeveloped economies transform their domestic economic structures from a heavy emphasis on traditional subsistence agriculture to a more modern. at an even more fundamental level.5.

2001). as a result of growing disenchantment with both Rostow’s stages and structural-change models. entrepreneurship. Essentially.Chapter two: Economic development the composition of consumer demand. such as urbanisation and the growth and distribution of a country’s population. and global trade expansion. Empirical structural-change analysis emphasises both domestic and international constraints on development. international-dependence models gained increasing support. The idea behind this new development model is that basic services should generally be provided by businesses .5. and resource use as well as change in socioeconomic factors. both domestic and international. international trade. 2. the international-dependence model views Third World countries as beset by institutional. Gregor and Johnston. since this approach has a very mixed track record and declining support (Todaro.3 The International-Dependence Revolution During the 1970s. and caught up in a dependence and dominance relationship with rich countries. political. such as a country’s resource endowment. The right 27 . 1999). Traditional. and its physical and population size as well as institutional constraints such as government policies and objectives (Todaro. 1999.sometimes directly and sometimes in partnership with governments or networks of non-governmental organisations (NGOs). one that goes beyond the conventional focus on free-market capitalism. Achieving a better future will require a new development model. top-down development directed by governments and financed by foreign aid be inadequate. especially among Third World intellectuals. and economic rigidities. The optimistic analysts include economic constraints.

1999). a fourth approach prevailed.Chapter two: Economic development strategies can enable the poor to become customers and pay for the services they receive.4 The Neo-Classical Counter-revolution Throughout much of the 1980s. it is primarily the result of government intervention and regulation of the economy (Todaro. Free markets will result in encouraging international traders to contribute in a country economy and will result in reducing production costs and lowering product prices. 2001. Sato. They argue that there are items that effect economic growth such as promoting competitive free markets. is not due to exploitative external and internal forces as expounded by dependency theories. The following items in Table 2. 28 . 2. The neo-classicists contend that slow or negative growth results from poor resource allocation from non-market prices and excessive Less-Developed Countries (LDCs) state intervention. according to this theory. the neo-classical counterrevolution in economic thought which emphasised the beneficial role of free markets.5. services that will improve their quality of life and increase their productivity (Hammond. 2002). Rather. the open economy and the privatisation of inefficient and wasteful public enterprises. Failure to develop.1 will spur increased efficiency and economic growth.

a few neoclassical and institutional economists began to develop the new growth theory. 2006. Adelman. Creating new technologies requires investment. 1999). government may still have an important role to play in the development process (Todaro.1 Economic growth items Item 1 2 3 4 5 6 7 8 (Nafziger. even in a neoclassical world of private markets. James (1999) stated that a more rapidly the technology is able to be adopted and put to work in an economy. 1999). it is a process that countries need to consciously and actively promote and nurture. 2005). 1999. In the case of capital creation. if the potential benefits of technological knowledge are to be effectively achieved (James. and for which certain socioeconomic preconditions must be met. the more rapid will be the pace of economic 29 . It attempts to modify an external traditional growth theory in a way that helps explain why some countries develop rapidly while others stagnate and why.6 Economic Development and Technology The adoption of technology is not something that just happens to economies.Chapter two: Economic development Table 2. Sato. someone must use resources that could have been devoted to something else in order to create. 2. refine and put into practice a productive idea (Well. 2002) Promoting competitive free markets Privatising public enterprises Supporting exports and free international trade Liberalising trade Removing barriers to foreign investments Rewarding domestic saving Reducing government spending and monetary expansion Removing regulations and price distortion in financial resource Finally in the late 1980s and 1990s.

Meier and Rauch (2005) argued that the actual technology in use is thus circumscribed. sold. believes that the larger the gap between a country’s technology. 1999). first by the nature of world technology and then by the availability to the country of known technology. 2003. 30 . Technology usually changes the way in which factors of production are combined to produce output. and finally by the choice made among those available. Meier and Rauch. at least implicitly by hosting within their economies translational corporations. If the technology in use is thought to be inappropriate. Many countries have attempted to follow this diffusion path. as well as others (Keng and Ali. 2001. the major source of cutting-edge knowledge. The reason. or licensed technology have yet to create the requisite initial domestic technological culture and the domestic capacity for technological autonomy that would permit them to capture the benefit of tool and machine diffusion through learning and spread effects at the point of production (James. Thirlwall (1994). the greater the scope for a poor country to absorb existing technology and to catch up with richer countries as well as skipping over stages of domestic technological development. or either their rates of economic growth and development have lagged behind other economies which have not followed this strategy. thus affecting the process of economic growth (Well. it may be inappropriate because world technology is inappropriate. Well. productivity and per capita income on the one hand and the level of productivity in the advanced countries on the other. 2005). or because an inappropriate subset is available to the country.Chapter two: Economic development growth. 2005). and yet they still have failed to become more developed. was that many LDC economies to which Transnational Corporations (TNCs) have brought. as James (1999) stated.

Nafziger (2006) argued that developing economies do not have a mobile and highly educated labour force. including that obtained from purchasers 31 . 1994). direct foreign investment. the purchase of technology licenses for domestic production of new products or the use of new processes. the use of non-proprietary technology.Chapter two: Economic development or because an inappropriate selection is made. local ownership of industry. a favourable climate for enterprise. commercial farmers. or a high saving rate. Meier and Rauch (2005) stated that these alternatives are: the purchase of new equipment. processing and adopting foreign-produced technological knowledge to local conditions and secondly recognising the potential and dangers of its own discoveries when applied to the domestic economy (James. or for some combination of those three reasons (Meier and Rauch. heavy reliance on direct taxes for revenue. large numbers of responsive entrepreneurs. Neither do they have a high level of technical knowledge. a well-developed capital market. 2005). and the speed of progress itself. a large number of export commodities. will vary from country to country according to its stage of development and a whole complex of social and economic forces (Thirlwall. The relative importance of different factors contributing to progress. The successful introduction of technology into a domestic production process in any country requires a domestic scientific establishment capable first of understanding. an average income substantially above subsistence. Therefore firms in developing countries have to think of adopting one or more of several alternatives for obtaining new technology that may yield a higher level of TFP (Total Factor Productivity). 1999).

selling. and modification. 2. adoption. Countries at different levels of technical learning use the same technology at widely varying levels of efficiency. The G-8 2000 report stated that ICT is fast becoming a vital engine of growth for the world economy. Technical knowledge is acquired only at a cost and is almost always incomplete. as blueprints. 2003). A recent study by the 32 . Less-developed areas can almost never acquire technical knowledge in its entirety. domestic research and development and efforts in reverse engineering. Learning and acquiring technology does not result automatically from buying. the acquisition of knowledge from returning nationals who have been educated or have worked in industrial countries and from nationals who remain in industrial countries. The LCD firms and governments obtain technical knowledge through transfer from abroad as well as internal innovation. in the late 1990s the US economy was able to grow faster than at any time. instructions. This combination of strong economic growth and low inflation has been linked to the diffusion of new ICT (UNCTAD. As stated in UNCTAD (2003).7 Economic Development and ICT It is now widely accepted by policy makers. 2006). enterprises and society at large that ICT is at the centre of an economic and social transformation that is affecting all countries. ICT and globalisation have combined to create a new economic and social landscape. producing. and using but requires an active search to evaluate current routines for possible changes (Nafziger.Chapter two: Economic development of exports. and technical assistance fail to include technology’s implicit steps.

new markets will be accessed and new employment opportunities created. All of this will result in the generation of wealth and sustainable economic growth (UNCTAD. The contribution of ICT capital to output and labour productivity growth has been significant and rising in relative terms. such as new strategies.Chapter two: Economic development Organisation for Economic Cooperation and Development (OECD) (OECD. (1998) believe that ICT offers great benefits when ICT investment is combined with other organisational assets. Through the application of ICT firms will become more competitive. Hammond (2001) argued that advances in information and communication technology did more than almost anything else to drive the last decade’s economic boom and the integration of markets around the planet. new business processes. The result was fairly conclusive evidence that suggested that investment in ICT made a significant contribution to economic growth in a number of countries and also had a substantial positive impact on economic performance in other countries. as well as the impact of ICT-using and -producing sectors compared with that of non-ICT sectors on economic growth and labour productivity.. 2003) analysed the contribution of ICT to economic growth. 2003). The money spent on the digital infrastructure that supports these burgeoning new services from the Internet servers to fibre-optic networks has itself become a major engine of economic growth. 33 . There is now growing agreement about the positive contribution of ICT to productivity growth. Hawkins et al. Chan and Lee (2001) add to the debate that the impact of investment in ICT on economic growth is commonly regarded as a main driver of the new economy. new organisational structures and better worker skills.

and “problem solving” skills. in addition to establishing a well-regulated telecommunications market. lack of payment systems that can support online transactions. he emphasises this is not enough. In many cases. low literacy rates. This. 2002) contends: 34 . With ICT established. 2003). many researchers were concerned about the possibility of developing countries catching up and gaining new solutions for rapid development. analytical.Chapter two: Economic development Even so. Developing countries need to take into consideration that building telecommunications infrastructure is costly. Director of Columbia University’s Earth Institute as cited in the OECD report (OECD. Network externalities are fully exploited only when those using ICT communicate among themselves effectively. Sachs (2006). Edwards (2001) adds that in order for ICT investment to be fully effective. rapidly and efficiently. the majority of developing countries face limitations on the development of their economy stemming largely from low income levels. This requires a large enough number of people and organisations to make the investment and become connected to the network. This means that. requires that users share similar levels of technical. it has to take advantage of network externalities. But. and cultural resistance to online trade. they also need to put in place policies to ensure an appropriate investment climate for foreign service providers (UNCTAD. in turn. countries will need inflows of foreign direct investment (FDI) to improve domestic infrastructure.

g. 1994). firm-level (as opposed to government-level) evidence confirms that ICT can have a strong impact on labour productivity. but it is doing nothing for the 19 out of 20 people who still lack access. The report states that ICT. 1998). digital subscriber line (DSL) technologies and satellite technologies. First. technological innovations in the 1990s. 35 . (Thirlwall. The Internet may be changing everything for those who use it. and probably most important.. e. about 50 percent with at least 2 percent of GDP being high-tech exports are technological adopters.. convergence of the ICT sectors accelerated in 1994-95 with the emergence of the Internet’s key infrastructure applications. (1999). greatly increased the volume and capacity of communications. This has helped to increase competition. the World Wide Web and the browser.Chapter two: Economic development “Today’s world is divided not by ideology but by technology” The report explains that 15 percent of the world’s population are technological innovators. At relatively low cost. 2001). highcapacity and high-speed hard disk drives. Third. and the Internet in particular. which greatly expanded the potential of ICT. According to Hawkins et al. some macroeconomic and microeconomic evidence from the United States suggests that the role of ICT may have evolved and affected multi-factor productivity as well for three main reasons. However. Second. these technologies linked the existing capital stock of computers and communications systems in an open network that significantly increased their utility (Hawkins et al. have created a bigger gap between countries (Hammond. reduce costs and enhance innovation. fibre optics. The rest of the world is technologically excluded. the 1990s saw various regulatory reforms which led to further liberalisation of the telecommunication sector.

A government should facilitate such investments by making policies favourable to foreign investments and inviting many foreign companies to invest in the IT field.1 Economic development model based on IT Source: Kodakanchi et al. They argued that faster rates of economic growth can be achieved using IT as the driving factor in the economic policies of the world-wide economies. (2006) explained that many multinational companies have recently been investing their major capital in the IT field. especially in countries like India..1 below.. developing countries do not have enough infrastructures to support the development of IT. However. But most of all a general awareness among the peoples of a nation regarding the importance of IT is crucial.. 2006 Higher productivity Large foreign investment Government policies supporting IT Social awareness of IT importance Information technology Faster economic growth Investment Kodakanchi et al. Figure 2. Kodakanchi et al. Most commonly some of the major concerns to the advent of IT in such countries are the inability to invest in the IT field due to poor financial infrastructure and inadequate human power with the knowledge of IT. (2006) summarised the above discussion by introducing an economic development model based on IT as shown in Figure 2.Chapter two: Economic development Kodakanchi et al. (2006) stated that the knowledge of IT should be enforced at the educational institutes and various other steps can be taken by the governments to nourish 36 ..

Kodakanchi et al. Libyan socialism was doctrinal. However. a trinity of freedom. The aim of the state was to realize socialism and to liberate the national economy from foreign dependency (Wanees and Karlberg. Libya was one of the poorest countries in the world. and 75 percent of government revenue. After the revolution in 1969. socialism. 2002). to a far more prosperous one. Neither have they raised many other aspects that deal with people’s willingness to adopt such technology and the effect of international markets and globalisation of that adoption. about 95 percent of foreign exchange earnings. 2.8. substantial qualities of oil had been discovered and greatly supported the country's social and economic development (Terterov and Wallace.Chapter two: Economic development the growth of IT awareness among the people. which accounts for over 50 percent of GDP. Consistent with Arab. the discovery of oil in 1959 has transformed Libya from a poor nation at the time of its independence. and unity. (2006) have not raised the important issues of culture and customs in the adoption of ICT in most developing countries..8 Economic Overview of Libya 2. 37 . the 1969 constitutional declaration vested sovereignty in the people. ranking 12th among petroleum producers. Therefore.net (2002). 2007). which employed more than 70 percent of the labour force and contributed about 30 percent of the GDP. depicting socialism as the solution to the economic problems of humankind. Before the discovery of oil and gas. A socialist approach was adopted in Libya after Colonel Qadhafi’s revolution. by 1961. as opposed to pragmatic. 1999). and highly nationalistic in a region where socialism and nationalism often have been found together (Russell and Mustafa. the economy was based mainly on agriculture.1 Economy of the revolution: When Libya gained its independence in 1951. However. Libya's economy is heavily dependent on the oil sector.

which were not viewed as inherently exploitative (Hochman. Libya took some steps towards liberalisation with greater scope allowed to private enterprise.8. all private property rights were eliminated in March 1978 (Anderson. 2006). In the most radical of the measures. 1999). private investment and ownership were encouraged in the agricultural sector. The last phase of the socialist period was characterised by an intensive effort to build industrial capacity targeting diversified processes. In September 1992. In 1988. The only type of private sector activity that the government did not actively seek to eliminate was small service firms (mostly self employed). 2005). the public sector in Libya dominated activities. the substantial oil revenues gave Libya one of the highest per capita GDPs (US$6. was abolished. small scale industries and agricultural business. Now with a relatively small population. retail and wholesale.800 in 2005) in Africa (Country Review. and worsened in the 1990s as a result of United Nations-imposed economic 38 .2 The new economy approach Economic conditions in Libya started to deteriorate in the mid-1980s with the fall of world oil prices. 2004). However. Libya has 100 billion barrels of proved oil reserves and around 40 trillion cubic feet of gas reserves. The cost of recovering the oil is low and the country is well located for exporting to Europe (National Oil Corporation. The central bank's credit policy was supporting the government's policy to minimize the effect of private business by limiting credit availabilities to the private sector and directed it instead to the state entities. a privatization law was passed. most private trading. but this initiative had no impact on the structure of the economy’s revenues and caused a serious decline in the economic activity (The economist. 2.Chapter two: Economic development After the socialist approach was implemented. 2006). In later years.

5 percent. growth in 2005 was mainly driven by the non-oil sector growth. boosted by increased government spending (The Economist. 2004). According to The Economist (2004). Libya has decided to undertake comprehensive structural reforms and accelerate its transition to a market economy.3 percent in 2002. which increased from 4. They expressed strong interest in these findings and. 2006). Furthermore. 2004). with three-quarters of employment still in the public sector and private investment accounting for only 2 percent of GDP. and heavy dependence on oil (Country Review. will take a leading role in assisting Libya to reform the economy.Chapter two: Economic development sanctions. the country still faces the formidable challenge of overcoming the long legacy of centralised economic management. together with World Bank. a significant scaling down of the dominant role of the public sector. in 2004. 2006). macroeconomic performance remained relatively strong with real GDP registering a growth of 3. mainly driven by higher oil prices and increased growth in the non-oil sector with strong performance in construction. in 2003 GDP grew by 9. a sharp increase from 3. reflecting substantial increase in oil production and oil export revenues (The Economist. excessive reliance on the public sector.6 percent. utilities and mining. However. economic performance was satisfactory with real GDP growing 4. Libya’s economy remains largely state-controlled and undiversified.6 percent as a result of continued increase in government expenditure (Country Review. Contrary to previous years however.1 percent. However. Since the lifting of international sanctions in 2003 and 2004. In 2005. and the development of the private sector. 39 .1 percent in 2004 to 4. The International Monetary Fund (2005) stated that higher growth rates and diversification of the Libyan economy could only be achieved through deregulation.

organic farms and the restoration of 40 . focusing on energy. The LEDB intends to diversify the economy away from oil by promoting private business and entrepreneurship (Reed. allowing FDI in some sectors. The Monitor Group has poured over the Libyan economy and mapped out a strategy in a report for the next decade. This encompasses a national park.com. 2007b). He came to an agreement with Professor Michael Porter (Harvard business school professor and the founder of Monitor Group). Qaddafi's son. the removal of customs duty exemptions enjoyed by public enterprises. 2007). The report resulted in the establishment of the Libyan Economic Development Board (LEDB). 2007b). To further integrate itself into the international society. The LEDB's mandate is to clear away some of the obstacles to successful private businesses and thus diversify the Libyan economy away from the state-controlled energy sector (libyaninvestmnet. and construction (Reed. 2006). eco-friendly hotels. Libya has taken measures in economic and structural reforms including trade liberalisation. 2007). He played an important role to bring the long-isolated country into the world economy (Reed.Chapter two: Economic development Libya is trying to attract international investors and develop non-oil businesses to drive towards a sustainable economy. tourism. to develop methods to support Libya's private sector (Reed. Additionally. and the reduction in import tariff rates (Country review. 2007). In fact Libya's relationship with the international community has improved. Saif al-Islam. trade. It can be argued that. was the driver of such changes. the Emerging Markets Monitor report (2007) indicated that Libya has unveiled a plan to create a ‘Green Mountain Sustainable Development Area’.

excessively focused on economic development without connection to the capabilities of those institutions to expedite economic development of citizens. Asia. theories and patterns of structural change. This has led to a literature that is. However.9 Summary The study of economic development is one of the newest. the global disparities in access to the Internet and other ICTs have led to a ‘digital divide’ between wealthy and poor nations. Existing attempts to assess national development are still suffering from conceptual and measurement challenges. most exciting. 2. and most challenging branches of the economics and political economy. and free market counter-revolution. It was 41 . political and institutional mechanisms. Measuring economic development is a difficult process. The emergence of a fifth approach (new or endogenous theory) has been witnessed. in general. The linear stage of growth which includes Rostow’s Stages of Development. and Latin America. the international dependence revolution and new classical. The post-World-War II literature on economic development has been dominated by four major and sometimes competing strands of thought. to bring rapid and large scale improvements in the standard of living for people of Africa. both public and private.Chapter two: Economic development archaeological sites in the mountainous region of Djebal Al-Akhdhar and a drive towards attracting FDI into Libya and building up the tourist industry. Economic development deals with social.

Kodakanchi et al. some of the major concerns with the advent of IT in such countries are the inability to 42 . investment. They argued that faster rates of economic growth can be achieved using IT as the driving factor in the economic policies of the world-wide economies.. processing and adopting foreign-produced technological knowledge to local conditions and secondly recognising the potential and dangers of its own discoveries when applied to the domestic economy. and foreign aid were all that was necessary to enable Third World nations to proceed along an economic growth path that historically had been followed by the more developed countries. However. Technology adoption is not something that just happens to economies. The successful introduction of technology into domestic production processes in any country requires a domestic scientific establishment capable first of understanding. it is a process that countries need to consciously and actively promote and nurture. the more rapid will be the pace of economic growth. developing countries do not have appropriate infrastructure to support the development of IT. The more rapidly a technology is able to be adopted to work in an economy. Most commonly. developing countries may face challenges in adopting technologies because of the shortage of economic drivers such as a mobile and highly educated labour force and a favourable climate for enterprise.Chapter two: Economic development primarily an economic theory of development in which the right quantity and mixture of savings. (2006) introduced an economic development model based on IT. However.

43 .Chapter two: Economic development invest in the IT field due to poor financial infrastructure and inadequate human power having a knowledge of IT.

Chapter three: E-Commerce 44 .

Chapter three: E-Commerce Chapter three E-commerce 45 .

................................2... 74 3...............................................................................................................................................1 Payment in developing countries............................ 68 3....................................... 47 3......................................................................................................................................2 Background ........... 47 3.................................6 Payment Methods..............................................1 Use of the Internet .....8 E-commerce challenges..................................................................................Chapter three: E-Commerce 3..................................... 53 3........9 Factors Influencing E-commerce Adoption .............................................3 E-commerce in Libya ..................... 47 3...........1 Introduction..10 Summary..................................................................................................... 54 3........5..........................................2.......................... 81 46 ................................................................................... 77 3.........7 Regulation and legislation .................................................................2.3 E-commerce ........................................ 48 3.......2 Internet in developing countries .........4.................... 62 3........................................................................................................................................2 E-commerce in developing countries ..........................................3............... 65 3...............................................................3..................................................................................1 E-Government in developing countries ........................................................ 71 3.. 60 3....................................................................... 69 3................................................1 Mobile commerce in developing countries .............................................................................................................................................................................................................................. 50 3.............................1 E-commerce categories ...................................................6............................................................................................................................................................................................................... 73 3.3 Internet in Libya..4 E-government .........................................................................3.............................................. 66 3........................................5 M-commerce........... 57 3...................

especially after the recent introduction of broadband. Matrix Information and Directory Services (MIDS) (1999) reported that there were 102 million people accessing the Internet world- 47 . E-commerce has become an important channel throughout the Internet community. 2008).Chapter three: E-Commerce 3. therefore the researcher critically evaluates some of the issues that Libya is facing while adopting e-commerce.1 Introduction This chapter discusses e-commerce in general and e-commerce in developing countries in particular giving the example of Libya. Developing countries have a long way to go in order to catch up with the developed countries.2 Background In the developed world. Additionally. 3.2. such as Payment systems and e-commerce regulation and legislation. the chapter summarizes internal and external factors that may affect e-commerce adoption in developing countries 3. The chapter also highlights the real situation of e-commerce-related issues in developing countries. the Internet has recently become a household domestic device and its uses are becoming increasingly widespread. which has greatly facilitated easy and fast access to the Internet. The Internet has become immensely popular and a major channel for business.1 Use of the Internet Internet technology has developed into a communication channel so large and powerful that it cannot be ignored (Curtis and Cobham.

developing countries had 32 per cent of the world’s Internet users.700 459.244.7 % 18.510.1 History of Internet users Source: www. 2004). latest data % Population (penetration Usage % of World Usage growth 2000-2007 874.574. 2007 Population (2007) Est.390 1. 2007).Internetworldstats.2.2 % 18.4 % 41.2 Internet in developing countries Developing countries continue to experience faster growth in the number of Internet users.5 % 100.443 6.com.686 193.7 % 17. representing a close-to 100 per cent increase in numbers of people accessing the Internet in just a year and a half (Skok.606.3 % 70.9 % 244.7 % Africa Asia Europe Middle East North America Latin America Oceania World total 933.709 19.9 % 27.601 4.6 % 302.1.500 234.468.7 % 12.727 334. up from 28 per cent in 2001. This number had increased from the estimate of 57 million in January 1997. If current trends continue. The number of Internet users around the world surpassed 340 million in 2002 (Tan and Ouyang. The 2007 estimates are shown in Table 3.8 % 55.2 % 20.9 % 3.9% 9.200 million worldwide by the end of 2007 (Internet World State.613 33.864 115. 2003) and is estimated to reach over 1.) Internet Usage.039. Internet users in developing countries could soon constitute 50 per cent of the world total.2 % 540. At the end of 2002.449. 48 .448.5 % 920.417 43.624.538.2% 2.995.Chapter three: E-Commerce wide.018 556.666.7 % 149.627 34.759.5 % 36.825 337.452.624 809.527. Reaching 591 million people at the end of 2002 (UNCTAD.878.0 % 221.2 % 117.0 % 3. 2000).3 % 1.712.788. Table 3.292 3.476.

Chapter three: E-Commerce However. One could argue that one of the crucial issues relating to the poor use of the Internet in developing countries is the limitation of International bandwidth. in the same year the proportion between the numbers of Internet hosts per 10. and they have access to little locally-hosted Internet content (UNCTAD. 49 . a large part of Internet traffic in developing countries (between 70 and 80 percent by most estimates) tends to be international (Kamel. 2006).4 times less than a North American one (UNCTAD. 2003). it is in the concentration of Internet hosts for businesses relative to populations that the difference between the developed and the developing world is most dramatic. the average African Internet user still enjoys about 20 times less capacity than the average European user.000 people living in those two regions was 984 to 1. Over the last three years. In other words. 2003). and 8. given the relative scarcity of locally-generated content. the relatively few people who use the Internet in developing countries compete among themselves for access to a proportionally much smaller number of computers connected to the Internet.000 people was 53 times larger in North America than in Africa. While in 2002 the number of Internet users per 10. International bandwidth availability is especially important for developing countries because.

2006. 2007 3. Doing business and investment in Libya.1 Internet Usage 2007 Source: Internetworldstats. LTT connected to Canada through a satellite connection with a bandwidth of 5 MB and 50 . It is anticipated that Libya will see a similar growth in cyber technology as seen in other NorthAfrican markets (The Information Department of the Great Gamahiria. Most companies now have accounts. with the emergence of Internet cafes. and private access from home is becoming available. which have become one of the favourite pastimes of young Libyans.the only authorised Internet Service Provider in the country. Most of Internet services in the country are delivered by the Libya Telecom and Technology Company (LTT) .com. 2005).2.Chapter three: E-Commerce Figure 3.3 Internet in Libya Internet access in Libya is becoming increasingly more popular.

3.Chapter three: E-Commerce also connected to Italy by a fibre optic cable with a capacity of 150 MB and a bandwidth of 45 MB (The Information Department of the Great Jamahiriya. but in some small towns. As an 51 . Zawia. Houn. However. The charge for dial-up and ADSL services in Libya are high compared to other service providers. Sabha. the cost of Internet connection is falling dramatically for all services along with providing better quality and higher capacity. 2006).000 2001 20. Zletin. Accessing the Internet through a dial-up connection is considered to be one of the cheapest and most popular means of connecting to the Internet (Young. In Tripoli the dial-up connection is good with rates of about 33 kbps. as summarised in Table 5. LTT. and Biniwaleed). 2005. mainly humidity and cable disconnection. 2006). Table 4 shows the number of Internet users between 1999 and 2001.2 Usage of Internet in Libya Year Users 1999 7. Benghazi.000 Another service provided in the country is Asymmetric Digital Subscriber Line (ADSL). the poor connection of landline and ICT infrastructure prevents users from using the Internet (Doing business and Investment in Libya. 2006. Large cities have adequate dial-up connection status. the number of subscribers to this service in Libya in 2006 was around 55.000 according to LTT internal documents. Khoms.000 2000 10. Musratah. but end users have to endure some problems due to the line conditions. This service is provided through access servers spread wide throughout most of Libya's main cities (Tripoli. The Information Department of the Great Jamahiriya. Surt. Table 3. 1999).

600 85.000 110.3 Charge of Dial-up and ADSL Source: LTT.4 Libyan Dinar (L.000 4M 260.D) (£0.300 60.200 13.4 Leased Line Capacity and price.200 12.0 1.700 112. the dial-up cost is 0.300 134.000 55. 2006).2) per hour in 2006 compared to 4 L.000 55.4 50 50 Furthermore.D (£75). Leased-line services are available at different speeds ranging from 256 kbps up to 8Mbps see Table 3.600 85.5 0.300 134.000 13. Source: LTT.700 112.7 0.800 1m 112.000 8M 200.600 85.Chapter three: E-Commerce example of the above.300 134. Table 3. The LTT documents argued that using ATM could enable organisations to use Voice and Video conferencing. The charge for ADSL in 2006 was 50 L.D (£2) in 1999 (LTT.7 0.600 16.000 58800 25650 25650 29000 29000 29000 29000 - 256 kb 55. LTT internal documents acknowledge that the service provided could be delivered using xDSL or ATM access.700 32.D (£25) per month along with a one-time installation fee of 150 L.000 512 kb 85.400 2M 134. a leased-line service is also available in the country provided by LTT Company. 2006 Year 1999 2000 2001 2002 2003 2004 2005 2006 Leased line 64 kbs 128 kbs 45.7 0.0 2.000 52 .4 Table 3.000 9.700 112. 2006 Year 1999 2000 2001 2002 2003 2004 2005 2006 Dial-up (L.D/ Hour) ADSL (L.7 0.D/ Month) 4.000 55.

However. Two-way (receiving and sending) service requires a special usage permit. With the immense networking and telecommunications capabilities of e-commerce.D (£4.Chapter three: E-Commerce The cost of leased-line.500) in 2002 as shown in Table 3. government and educational institutions. 2003). 3.3 E-commerce overview E-commerce is the concept of conducting trade and retail business online through the use of secure websites. Wireless Networking Services are available in the country from LTT.D (£27. In addition. DVB-RCS. e. Libya’s biggest demand is for one-way (receiving) services. E-commerce technologies allow for instant access to more data and opportunities than ever before because they extend across the globe and reach people in almost every nation. 2006). Oil companies need it for their oil fields that are located in the desert to provide connectivity to their network. 9000 L. a broadband satellite solution. as with other costs. and Internet Service Providers (ISPs). (The Information Department of the Great Jamahiriya. Only some government companies have the permit to use two-way services. 2006. is available in the country provided by many companies offering one-way and two-way connection.500) in 2006 for 265 kb reduced from 55. Adding to above.g. It constitutes the exchange of products and services between businesses. groups and individuals (Davis. has fallen dramatically. An LTT internal document stated that highly secure wireless broadband-products are deployed in Libya by public and private enterprises. the only authorised company to provide the service is LTT. most companies can be very profitable 53 .000 L.4. LTT.

1 E-commerce categories There are many ways in which e-commerce transactions can be classified. or 93. According to 54 . 2000). including immediate access to unlimited information. 1999. business to business (B2B) e-commerce. it grew from about $120 billion in 2002 to around $200 billion in 2003 and $300 billion by 2004. annual B2B online sales in the United States amounted to $995 billion.3 percent of all United State e-commerce. There are three main issues within e-commerce. Lawrence. One is by looking at the nature of the participants in the e-commerce transaction. The ability to promote and sell products and services online allows even the smallest firms to profit with very little capital or overhead (Jasper. 3. upgrading of daily business activities due to computerisation technology and the opportunities provided by e-commerce that allow for personal or business involvement through the Internet (Young. the future of international business for all personal or commercial investment companies involves e-commerce and all it has to offer. In the Asia-Pacific region. 2000. consumer to consumer (C2C) e-commerce and Government to business/consumer (G2B/C) e-commerce. The major ecommerce categories are business-to-consumer (B2C) e-commerce. Private-sector estimates of the value of B2B trade in the European Union put it at between nearly $185 billion and $200 billion for the year 2002.3. With the latest computerisation and IT Internet technology. 2001). UNCTAD (2003) argues that in 2001.Chapter three: E-Commerce ventures. Mujahid.

African B2B e-commerce in 2002 was expected to amount to $0.5 trillion market.9 billion in 2003. The government market is strikingly similar to B2B. The two main crucial driving forces behind the new economy are the Internet and e-commerce (Wong and Seok Ling. 2001). with 8. eBay and Onsale. the leader in online consumer auctions hosted 332 million listings. and the growing dominance of technology. The North American online retail market was anticipated to grow 45 percent in 2001 to £65 billion for B2C.org and the Boston Consulting Group (cited in Patton. 2003.0 billion dollars of goods trading on the site.5 billion in 2002 and $0.Chapter three: E-Commerce UNCTAD (2003). the shift towards an economy based on knowledge and information. 2003).com) have already found interesting applications in the B2B space as well. the implication for tax payers as well as market entrants will be enormous in this $1. E-commerce forms part of a broader process of social change. according to a joint study conducted by the industry group Shop. In the second quarter of 2004. Not surprisingly. 2001). characterised by the globalisation of markets. In order to allow a smooth 55 . Some of the technologies developed by pioneers in this medium (e. it has become a major pre-occupation of policy makers and business over the last few years (Davis. E-commerce has the potential to radically alter existing economic and social structures and arrangements. Laudon and Traver. 2003). with South Africa accounting for 80 to 85 percent of these amounts (UNCTAD.g. As Furth (2001) says: if the 20 percent cost saving claimed by B2B proponents can replicated in B2G. eBay.

Chapter three: E-Commerce

transition to e-commerce, investments are required in the social infrastructure and skills to enable people to use the technology in a way that is compatible with the local circumstances, cultures and abilities of users in developing countries (Straub, 2003).

The Internet has also been at the heart of a further deepening of ICT investment, by making possible a sharp increase in the quality and functionality of existing ICT equipment. It creates an environment that substantially lowers the entry barriers for e-commerce, in part because it adheres to non-proprietary standards based on the existing communications infrastructure. It has been argued in the OECD report (2003) that earlier forms of ecommerce among firms required established relationships, expensive and complex custom software, and dedicated communication links and, in many cases, strictly compatible equipment.

Additionally, Hawkins et al., (1998) argued that e-commerce provides extra benefit to the agricultural sector by providing better information about market prices and has fostered the emergence of new online commodity markets. In construction, it reduces the need for blueprints and allows seamless communications between subcontractors. In manufacturing, it generates new efficiencies by reducing procurement costs and improving supply chain management. Its role in the services sector is linked to qualitative aspects of products, such as convenience and customisation, thereby reducing costs and delays and increasing reliability (Hawkins, et al., 1998)

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3.3.2 E-commerce in developing countries
A significant amount of the Third World is already partially developed and a sustainable amount of the population has a demographic profile similar to that of the west (Goldstein and O’Connor, 2000). The Third World is also a great reservoir of untapped talent, which if helped, would flourish rapidly, joining and contributing to the developed world’s economy (UNCTAD, 2003). The potential of e-commerce applications to enable access to global markets and to reduce barriers to market entry is a theme which is heavily emphasised in the burgeoning literature on the “promise” of e-commerce for developing countries (WTO 2001; OECD 1999; Goldstein and O’Connor 2000; Mann 2000; UNCTAD 2000, 2001).

The WTO (2001) claimed that e-commerce would facilitate low cost access to international bidding and supply processes for developing country firms, and to market information such as import restrictions, customs’ regulations, and potential demand. Several authors have mentioned the potential of e-commerce for expanding the markets of developing countries’ firms, either through online intermediaries or directly through the use of corporate websites (Choi et al., 1997; WTO, 2001; OECD, 1998a; Panagariya, 2000; WIPO, 2000; UNCTAD, 2001). According to the WIPO (2000), e-commerce provides developing country producers with opportunities for accessing new international markets at low cost and minimal capital investment, for improving competitiveness and customer services, and for reducing transaction cost and overheads.

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It is generally believed that e-commerce enables developing country producers to overcome traditional limitations associated with restricted access to information, high market-entry costs, and isolation from potential markets (April and Cradock, 2000; Cohen et al., 2000; Maitland, 2001). It also is expected to provide opportunities for producer firms in developing countries to enhance their international profile and to develop direct one-to-one trading relationships with international buyers and sellers. It can also expedite the ability of developing country suppliers to obtain information about buyer requirements in industrialised countries (Daniel, 2002).

The use of computers and the Internet for business are not widely understood in many developing countries, let alone e-commerce. Being part of global e-commerce processes requires knowledge of many complex systems including online promotion, international payments, and shipping that are beyond the current limited capacity of most businesses (Cohen et al., 2000). Moreover, during the ‘dot-com’ bubble, expectations of e-commerce were raised unrealistically high by reports in the mass media and, together with the lack of success of early adopters; many entrepreneurs are now sceptical of its relevance to developing countries (Pastore, 2001).

B2B e-commerce offers two important advantages for firms in developing countries. First, e-commerce-related transaction costs are less sensitive to distance than traditional marketing channels, so access to global markets is made easier. Second, by amplifying and making market channels more efficient, B2B e-commerce should enable developing

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country firms to retain a larger share of the final consumer-price of products (Humphrey, 2002).

Since the late 1990s, an increasing number of developing countries have followed the example of developed countries and launched their own national ICT programmes and strategies. These cover a broad range of policy areas, such as awareness raising, infrastructure building, telecommunications deregulation, education and labour-force training, changes in legislation, and e-government (UNCTAD, 2003). The report stated that developing countries may be better to focus on shared-access models than on connecting all households, which would require large amounts of funding. For example, the use of ICT and the Internet can be broadened by setting up public access points or facilitating the provision of free Internet access in all public schools, universities and other public locations such as libraries, and by establishing tele-centres throughout the country (UNCTAD, 2003).

Therefore, enhancing awareness and public understanding about the benefits of ICT is often an important starting point in a developing country’s policy planning. Other priority areas for developing countries are basic access to ICT, low-cost hardware and software, and the use of local-language websites. Furthermore, in many developing countries a lack of local Internet content leads most people to purchase online from foreign sites (mainly in developed countries) rather than local or even regional sites (World Bank, 2004; UNCTAD, 2003).

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E-commerce is still in its infancy in many developing countries. Developing countries need to take into consideration that building telecommunications infrastructure is costly. In many cases, countries will need inflows of FDI to improve domestic infrastructure. This means that, in addition to establishing a well-regulated telecommunications market, they need to put in place policies to ensure an appropriate investment climate for Foreign Service providers (UNCTAD, 2003). Moodley et al., (2002) conducted an in-depth quantitative and qualitative analysis of the use of B2B e-commerce by manufacturing firms in South Africa. The study was based on 120 firm-level interviews and 31 interviews with industry experts. The evidence indicates that the incidence of use is fairly low. Although 87 percent of the firms had access to the Internet, only 49 percent had a corporate site and only 22 percent were using the Internet for order taking.

3.3.3 E-commerce in Libya
E-commerce should increase the efficiency of Libya’s economy to make their products higher quality and their customer-service more efficient. Additionally, it should also create artificial barriers that the Libyan society will have to find ways to solve by adjusting their business practices to accommodate them. E-government initiatives should enhance the effectiveness and efficiency of the Libyan government and improve its relationship with the public and private sectors of the local economy. E-commerce is rapidly changing the foundation of the Libyan government policies and improving their online communication strategies for expanding their economy. According to Business Middle East (2002), rising demand in fixed-line, mobile and Internet service, Libya has a long way to go to catch up with its poorer neighbours like Egypt and

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Tunisia. The Libyan government owns and operates both the fixed-line and mobile network systems. The postal system is also nationalised with post-office boxes in all the large towns. According to The General People’s Committee for Tourism (2006) international postal services to Libya can be slow. The average time for airmail is around 7 to 12 days. Surface mail can take considerably longer. There is no guarantee that mail will be delivered, therefore using a good courier service for delivery for business correspondence is recommended (The General People Committee for Tourism, 2006; eBiz Libya, 2007). The country has only around 605,000 fixed lines for a population of 6.3 million, and only 40,000 mobile users (a penetration rate of less than 1 percent) and 10000 Internet service subscribers. However Libya has developed significantly, as demonstrated in Table 3.5, the percentage of people having landlines in 1995 was 5.9 and it had doubled in 2002 by almost 10 percent. The same issue applies to mobile technology; the Libyanna Mobile Technology Company argued that the subscriber numbers to its service exceeded one million, where dial-up subscribers according to LTT internal documentation reached 55,000 in 2006. Generally growth and development are slow, but not because of any lack of demand. Internet cafés are spreading rapidly, with more than 50 in Tripoli alone. Table 3.5 Telephone lines in Libya, Source: UNDP, 2000

Year Telephone lines (per 100 people)
1959 1964 1969 1974 1980 1995 0.7 1.1 1.5 2.4 5.9

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Internet users are mainly young people and teenagers who surf the Internet mostly for leisure and entertainment rather than shopping around or hunting for bargains. Several factors could be summarised as a result which are:  Consumers are not yet heavily involved in using the Internet and become ecommerce customers.     E-commerce in Libya is still in its infancy stages of development. Traditional trade infrastructure is better established than e-commerce infrastructure. E-commerce is complementary to traditional trade activities. E-commerce is only a threat to traders who do not offer good services to their customers (Hamed, 2004).

Furthermore, the announcement of the lifting of Custom tariffs on more than 3,500 imported commodities could result is reducing the cost of products which will reduce the threat of e-commerce effects on traditional businesses. According to the Economist Intelligence Unit Limited (2005), the average tariff rate was almost 22 per cent, but this disguised an extremely complex system of tariffs, ranging from zero to 425 per cent. The latest move will undoubtedly contribute to lower prices, and help curb bureaucracy, reduce smuggling and increase trade volumes.

3.4 E-government
Since the mid-1990s governments around the world have been executing major initiatives in order to tap the vast potential of the Internet for the distinct purpose of improving and

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perfecting the government process. Like the personal computer, the Internet has become an indispensable tool in the day-to-day administration of government (cdt.org, 2006). Egovernment is the birth of a new market and the advert of a new form of government that is a powerful force in the Internet economy, bringing together citizens and businesses in a network of information, knowledge, and commerce. It also enables government to be more transparent to citizens and businesses by providing access to more of the information generated by government (UNCTAD, 2007; Laudon and Laudon, 2006). According to Daniel (2002), e-Procurement is among the ُ -government services that will allow E transparency in the bidding process for projects and supply and give opportunities to smaller businesses, which otherwise are not able to bid on big government procurement projects. Also, once the e-government strategy of a country has been formulated, agencies, bureaucracies and public services will be aligned towards promoting those sectors which have been pinpointed for growth. Additionally, a working group (2002) stated that there are many possible reasons and goals for e-government which could be categorised as:       Improving services to citizens; Improving the productivity (and efficiency) of government agencies; Strengthening the legal system and law enforcement; Promoting priority economic sectors; Improving the quality of life for disadvantaged communities; and Strengthening good governance and broadening public participation

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as without these technologies a country’s capacity to sustain online service delivery is nonexistent. Several proven indicators. comparative indicators may not always be precise. These services may utilize some of the components of G2C and G2B services but generally require more direct access to databases and applications (cdt. however.org. The government market is strikingly similar to B2B. perfect and promote an effective e-government program and can be used as dependable benchmarks. give only a partial account of a country’s overall e-government environment (cdt. There are several key factors that define the core areas of an enabling e-government environment. E-government services are designed to increase the efficient flow of information between government institutions and businesses. Analysing website content.org. Government-to-consumer business has done well. goals and policies that encompass e-government vary considerably among practitioners and users. paying for a speeding ticket and a renewing driver’s licence online have paid dividends to governments agencies as well as customers (Awad. online services and official information. 2006). access patterns. Yet because the visions.Chapter three: E-Commerce Federal and state government business is an institution in and of itself. 2003). 2006. Internet hosts. 2004). For example. sustain. UNCTAD. Telecommunication indicators like the numbers of PCs. and telephone lines are indispensable. do exist that are representative of a country’s capacity to launch. Egovernment can serve a variety of different ends: better delivery of government services to 64 . E-commerce has emerged as governments look at moving procurement online. It may include information exchange between government bodies of different nations.

Chapter three: E-Commerce

citizens, improved interactions with business and industry, citizen empowerment through access to information, or more efficient government management. The resulting benefits can be less corruption, increased transparency, greater convenience, revenue growth, and/or cost reductions.

3.4.1 E-Government in developing countries
The government context for e-commerce affects businesses in three ways. First, in most countries, the government is one of the largest buyers of goods and services. Many governments also make sure they buy a share of their goods and services from domestic Small-to-Medium Enterprises (SMEs). Second, businesses turn to the government for a wide variety of services, from customs clearances to business licenses. Today the length of time needed to obtain these services and, in some cases, the lack of transparency in the process can and often does thwart SMEs efforts to compete internationally. To the extent that governments in developing countries can improve the efficiency and transparency of these business services, the better its SMEs will be able to compete internationally (Payne, 2002; Dada, 2006).

The UNCTAD (2003) report, recommends that governments in both developed and developing countries play an important role in promoting and facilitating the development of the information society and economy. Above all, governments should lead by example by adopting e-government practices. Experiences show that in many developed countries that have enjoyed fast growth in ICT, government has been closely involved in promoting ICT development. Governments play an important role as leaders, especially at the earliest

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stages, by providing vision, raising awareness and making ICT development a national priority (UNCTAD, 2003).

3.5 M-commerce
E-commerce is considered to be the buying and selling of information, products, and services via computer networks. Thus, a primary distinction between M-commerce and ecommerce lies in the differences between transactions and access. E-commerce is oriented toward supporting and realising transactions. However, the wireless protocol originally designed to facilitate mobile commerce transactions, Wireless Application Protocol (WAP), has not fulfilled its technological promise, so the most distinctive feature of M-commerce that has emerged in many of the larger mobile markets is the facilitation of enhanced information network access (Laoudon and Traver, 2003). M-commerce has two major characteristics that differentiate it from other forms of e-commerce. M-commerce is based on the fact that users carry a cell phone or other mobile device everywhere they go so that with M-commerce people can be reached at any time (Turban and King, 2003).

There are a variety of Internet-like applications available for today’s mobile phones. WAP commercially launched by many operators in 2000 and allows mobile phones to browse the Internet. WAP technology provides an effective solution for accessing the web in the short term and realising Mobile Websites (MEB) in the long term. Through the use of WAP devices, such as WAP phones, people can keep in touch with the Internet world anywhere and any time. It is expected that this will lead to the development of many innovative M-

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Commerce services. Users access websites specially adapted to fit the screen size of a mobile phone (Chan and Lee, 2001; Effy, 2002; Minges, 2007).

M-commerce should be recognised as a unique business opportunity with its own unique characteristics and functions, not just an extension of an organisation's Internet-based ecommerce channel (Minges, 2007). Most wireless companies will be charging their customers an extra fee for data-time instead of air-time, which means that users can have a dedicated connection to the Internet with cell phone and only be charged when data are sent. This allows a business people to stay online with their wireless devices connected to their payment terminals at all times, and only be charged when they key in a transaction (Effy, 2002).

Mobile finance applications are likely to be one of the most important components of Mcommerce. These applications include mobile banking, bill payment services, M-brokerage services, mobile money transfers, and mobile micro payment. These services could turn a mobile device into a business tool, replacing banks, ATMs, and credit cards by letting a user conduct financial transactions with a mobile device (Turban and King, 2003). Wireless payment systems transform mobile phones into secure, self-contained purchasing tools capable of instantly authorising payments over the cellular network for goods and services consumed. In addition, micro-payment, which is electronic payment for small-purchase amounts, can be implemented in a variety of ways. One way is that the user could make a call to a certain number where per-minute charges equal the cost of the vending item; this method transfers money from the user’s telephone bill to the vending provider’s account.

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Another way to perform micro-payment is by using prepaid cards purchased from a service provider, bank, or credit card company. Attaching a smart card with prepaid money on it to a mobile device is another option. Furthermore, in addition to paying bills with cheques or through online banking, one can pay bills, such as MasterCard or utility bill, directly from a cell phone. This can be done via bank, a credit card, or a prepaid arrangement (Chan and Lee, 2001; Effy, 2002).

3.5.1 Mobile commerce in developing countries
M-commerce might be the solution for developing countries to overcome ICT and broadband problems that because the use of wireless device enables the user to receive information and conduct transactions anywhere, at anytime (Chan and Lee, 2001). Wi-Fi (Wireless Fidelity) “hot spots” (places where Wi-Fi enabled computers can connect to the Internet) are proliferating in airports, railway stations, hotels, cafes and other public spaces, mainly in the United States and Western Europe. Besides its applications for private users, the technology can be useful for people who work on the move and need to connect to their offices. In industries such as manufacturing, logistics and retailing, and thanks to electronic “tags” that can be attached to products or components and beam information about their location or functioning, Wi-Fi can be used to manage various aspects of production and distribution (King, et al., 2006).

While Wi-Fi technology clearly offers significant benefits to Internet users and strong growth in its use can safely be anticipated, specific business models for its commercial

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exploitation are only starting to be developed. For developing countries, Wi-Fi technologies represent an opportunity to provide low-cost broadband access that is relatively simple to deploy, at least in urban areas. In the words of Kofi Annan, one time Secretary-General of the United Nations, “We need to think of ways to bring wireless fidelity applications to the developing world, so as to make use of unlicensed radio spectrum to deliver cheap and fast Internet access”. (UNCTAD, 2003, P35).

3.6 Payment Methods
Payment systems constitute part of the basic structure of a country’s economy and financial markets (Dajankov, et al., 2003). Electronics and information technologies are rapidly changing the banking and financial services industry. Online banking and electronic payment systems are new, and the development and diffusion of these technologies by financial institutions is expected to result in a more efficient banking system (Awad, 2004). This technology offers institutions alternative and better delivery channels through which banking products and services can be provided to consumers (Panopoulou, 2001). The business of banking has been dramatically altered over the past twenty years, as exemplified by the rise of wholesale banking, multinational banking, Euro-banking, international banking facilities, multiple currency loans, collateralised mortgages, interest rate and currency options and swaps, and financial futures. Credit cards, debit cards, automated teller machines, cash management accounts, electronic fund transfers, point of sale terminals are also part of this world-wide process of change which began in the 1960s,

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has been sustained over two decades, and continues to re-shape the nature of banking and financial markets (Panopoulou, 2001).

Very important long-term technical changes are beginning to affect the payment systems, especially the continuing decline in computing costs and the physical size of powerful computer chips, along with the associated spread of powerful telecommunications technologies. The widespread availability and acceptability of computers both at home and in the offices has accelerated the process. At the same time, the cost of communications has been falling dramatically, broadly opening up markets world-wide. These trends have a marked impact on the payment systems and they offer potentially significant avenues for improvement of the efficiency of existing arrangements and for the creation of new payment mechanisms (Chaffy, 2002).

Historically, payment system transactions were exclusively provided by the banks. However, the dominance of small payment systems by the banking industry is being challenged by a nascent industry reacting to consumer demands. Today many non-bank entities provide these services. In fact, the competition for the provision of payment system mechanisms has turned monetary value transfer into a commodity. The banking industry has trailed other industries in developing and offering electronic money payment systems for small-value transactions (Sifers, 1997). The Internet opportunities have attracted a wide range of players, from big and established organisations such as MasterCard, Visa, Microsoft, and the major banks, to newcomers such as Digi-Cash, Cyber-Cash and First Virtual (O’Mahony et al., 1997; Awad, 2004).

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Electronic payment systems developed for transferring bank payments between the banks are becoming increasingly common in all industrialised countries. They speed up payments transfer and improve the quality of payment transmission. Compared with traditional methods of transmitting payments, the new systems involve significant economies of scale and rationalisation gains. It would hardly be possible to increase the volume and value of payments at the present pace without corresponding advances in payment technology. At the same time, the implementation of new payment systems is helping to enhance the planning and monitoring of bank liquidity. As the systems require large investments, they also call for co-operation between banks and participation by the central bank (Llewellyn, 1999). In case of payment systems, the banking sector has succeeded well by coming up to expectations set by the fast developing market needs and other areas of society. Globalisation and faster communication have caused some changes in payment methods. Credit cards and travel cheques, as well as Internet payments, have been some solutions from the banking side to secure its position in financial markets in previous years (Saarinen, 2000; Panopoulou, 2001).

3.6.1 Payment in developing countries
Only the upper classes in developing countries use credit and debit cards to pay for their shopping as a way of showing their class (UNCTAD, 2003). Similarly in the some other parts of the world, especially in Asia and Latin America, credit cards are not a widespread common feature in society (Ocampo, 2001). Therefore, to expect many sales on the Internet

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would be disappointing for a Western company that hopes to do tremendous business on the Internet in a foreign country that does not use credit card as payment method (Pons et al., 2003).

According to Humphrey et al., (2003), in developing countries, the underdeveloped electronic payments system is a serious impediment to the growth of e-commerce. In these countries, entrepreneurs are not able to accept credit card payments over the Internet due to legal and business concerns. The primary issue is transaction security. The absence or inadequacy of legal infrastructures governing the operation of e-payments is also a concern. Hence, banks with e-banking operations employ service agreements between themselves and their clients (Humphrey et al., 2003). Innovations affecting consumers include credit and debit cards, automated teller machines (ATMs), stored value cards, and e-banking. Innovations enabling online commerce are e-cash, e-checks, smart cards, and encrypted credit cards. These payment methods are not popular in developing countries. They are employed by a few large companies in specific secured channels on a transaction basis. Innovations affecting companies pertain to payment mechanisms that banks provide for their clients, including inter-bank transfers through automated clearing houses allowing payment by direct deposit (Andam, 2003). The payment schemes available for online transactions in developing countries are cash-on-delivery; many online transactions only involve submitting purchase orders online. Payment is by cash upon the delivery of the physical goods and bank transfer payments; after ordering goods online, payment is made by depositing cash into the bank account of the company from which the goods were ordered (Andam, 2003; Awad, 2004).

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Since people cannot make copies of material available on their own and sell them without the permission and copyright agreement in retail outlets. Governments have been involved primarily in finding ways to put some regulation into the security issues of the Internet.Chapter three: E-Commerce 3. Much of the concern to date on the civil side has resolved around threat to privacy. there are concern about the security of network systems and unauthorised access and denial of service attacks. intellectual property rights. 2000). On the criminal side. allowing pornography. and concern about publishing hate speech and online talking (Beynon-Davies. concerns about the availability of indecent. copyright laws are carried over to e-commerce products and sales. 2000. and other illegal actions to create security and legal issues that may never have total solutions (Davis. there will be many changes in the online marketplace for information goods. However. Even though. they should not be able to do that with videos.7 Regulation and legislation One of the most controversial sides to the increase of e-commerce on the Internet is that there is no regulation of goods. 2003). Recently. 2001). piracy of products. 2002. 73 . the prospect of universal defamation and the implication for national tax collection. obscene and racist content. concerns about the use of computer technologies for traditional property offences such as theft. Reed. movies and books or other products sold online through e-commerce (Vernon. many United Staes congressmen and other political officials have increased their concern over the amount of unsolicited products like pornography that are constantly being sent to global emails through direct marketing (Fredricks. and fraud. Akdeniz. 2004).

Much has already been done in the non electronic environment to protect individuals against organisations holding information on them.Chapter three: E-Commerce regulation and prevention of these problems is very difficult for individual governments to do. America Online and Microsoft. 3. such as AltaVista. 2001). The same rights that apply to the real business world must also apply to the virtual and digital world of e-commerce. fulfilment process integrity etc. 2004). the Internet can be easily characterised as an FDI (Foreign Direct Investment) tool. Also. credit card security. Companies apply different strategies of how to enter a 74 . are operating under the TRUSTe seal (they call it a “trustmark”) which appears at the bottom of an e-tailers website. The Internet may make it necessary for world governments to regulate its usage and protect the rights of manufacturers whose products have been pirated and sold for profit (Brinson et al. organisations and governments have within their own environment. (truste. full of vital and sometimes top secret information that companies. 2006).org. Currently many organisations. the most notable of these being the ‘Data Protection Act 1998’ which deals with what information can be held by an organisation on an individual (Turban et al.8 E-commerce challenges The Internet does not only deal with money. by using a combination of cryptographic techniques and laws guaranteeing that unauthorised copies of digital products cannot be made. 2001. but also with large databases. 2002)... Its members hope that customers will use the TRUSTe seal as an assurance of their privacy policy. Reed. The ease of transactions on the Internet would then force major changes (Fredricks.

communication channels. There are different kinds of hardware and software tools that can be used for different business applications. the firm must choose the right set of technologies for its IT 75 . Such firms gain competitive advantage by exploiting new resource. in order to co-ordinate their online transactions and business activities as well as the potential linkage with other firms within its industry. 2002). Companies do that in order to create a competitive advantage over other companies. the country’s infrastructure. low labour-costs. Laudon and Traver. changes in their business culture and follow different procedures for managing their employees. These challenges can influence at a microeconomic and macroeconomic environment level.Chapter three: E-Commerce foreign market. etc. not only for the firms. Therefore. they need to create a new structure for information systems. All E-businesses. E-commerce and e-business require a complete change of the business structure. Also. legislation. expand their operations and become multinationals. IT infrastructure has the power to connect the firm with infrastructures of other organisations while bringing down barriers and creating a new ‘business global village’ (Chaffy. 2003). Firms going digital need to consider restructuring their entire business or even creating a new one. networked processing functions and most importantly. They need to implement new management processes. digital firms have to select the most suitable Internet technology that is compatible with their business processes and data structures. but for governments as well. they will need to change their entire business strategy (Chaffy. However. The revolution of e-commerce brings along some challenges. 2002. need to build a very strong IT infrastructure. cheap raw materials.

This requires the reconstruction of information architectures and IT infrastructures. applications and hardware.  Connectivity and application integration: A company needs to upgrade its IT infrastructure in order to have compatible networks and standards and eliminate connectivity problems.  Loss of management control: The end users are becoming more independent.  Hidden costs of enterprise computing: Some unexpected costs and expected savings that did not occur are generating problems..  Organisational change requirements: The old organisation structure has to be changed to be compatible with the new IT infrastructure in order to be more effective and uniform. technology is constantly upgrading and introduces new systems. 76 . storing and handle software. capable of collecting.Chapter three: E-Commerce infrastructure (Laudon and Laudon . Moreover. A company has to keep up with the technology pace in order to create well functioning business processes among customers and suppliers via the Internet. This occurs due to the lack of a single. 2002). (2004) there are five basic problems that stand in the way of implementing these new changes. These costs are generated from hardware and software installations. maintenance costs. central point where the need of management can occur. According to Mitchell et al. labour costs etc.

Therefore. 3. 2001). reliability.9 Factors Influencing E-commerce Adoption Radaideh and Salim (2004) introduced factors of e-commerce adoption decision in a case of developing countries as shown in Figure 3. This is done to primarily take advantage of lower labour and raw material costs (Brinson et al.Chapter three: E-Commerce  Scalability. governments should support the creation of a legal framework for doing business on the Internet (United States Government. and allow e-commerce to grow up in an environment driven by markets. They argue that there are critical factors affecting the adoption of e-commerce by firms which are classified into two main 77 . and security: The increased load of data transactions and storage as well as the traffic of applications such as audio. extensive regulation and censorship. Governments must bring down the different barriers that impact on ecommerce. All the skilled workers that are living in countries that cannot comply with the salary and technology requirements will migrate to more developed countries that can easily accommodate their needs and demands (United States Government.2 below. 2004).. e-commerce will open the market for highly skilled workers. From the expansion of e-commerce this demand will increase and it will significantly change the labour market. such as taxation. streaming video and graphics. Additionally. Also. drive managers to develop strategies to manage those issues. 2004).

2006). 2006). data conversion. hardware and software compatibility. Graham and Cobham (2006) argued that financial readiness is reflected by the top management’s willingness to fund an e-commerce adoption project. Another concern of the top management is the losses of productivity due to abuse by IT staff readiness factor category refer to the IT and e-commerce literacy level inside the firm. internal and external factors. 78 . This category includes information and networking security. Internal factors are IT readiness which refers to the level of IT usage within the firm. Internal factors are within the firm and external factors are environmental in nature. system interrelation.Chapter three: E-Commerce categories. adequacy of the firm’s IT infrastructure and migration from legacy system (Graham and Cobham. The major cost of e-commerce adoption is the cost of educating and training management and employees to use e-commerce (Graham and Cobham. The second internal factor category refers to the firm’s financial readiness.

79 . 1999. The firm’s internal culture refers to the collaboration level and style among the different managerial levels and team spirit and dedication to the business processes. Graham and Cobham (2006) state that this category represents the extent to which the top management recognises the importance of e-commerce adoption. 1999. Large firms have more resources and infrastructure to facilitate implementation of e-commerce adoption projects. Thong. 2003). Firm size is one of the main reasons for not adopting e-commerce. 2004 Internal factors IT readiness Financial readiness Staff readiness Management support Firm strategy Firm culture Firm size Anticipated benefits E-commerce adoption External factors Global completion Local completion Customer pressure Trust & Culture Law & regulations IT infrastructure Industry Nature Government Nature Management support is another important internal factor category. Tabor.2 Factors relating to E-commerce adoption decision by a firm Source: Radaideh and Salim. The recognition is reflected in the support and leadership of top management executives in e-commerce adoption process (Grover.Chapter three: E-Commerce Figure 3. Godenhielm. 1993. The anticipated financial and managerial benefits are important factors affecting the adoption decision.

Policies and regulations are also important factors at the local and global stages. (2003) argues that government needs to build knowledge and set standards. The first two categories include pressure exerted by competitors on a firm. The nature of government is among the most important factor groups affecting e-commerce adoption. for example IT readiness depends on the external and internal factors together and can not benefit the organisation if one is used without the other. Radaideh and Salim (2004) explained the main factors affecting e-commerce adoption in developing countries but did not develop a solution for e-commerce adoption. Furthermore. Allen (2000) emphasised the importance of trust in maintaining productive adoption of e-commerce. 80 . The competition leads to environmental uncertainty and increases the need and rate of adoption. Culture has been considered as a critical factor affecting e-commerce adoption (Ranganathan.Chapter three: E-Commerce There are several external factor categories to be considered. They stated that the industry to which the firm belongs affects the adoption decision. Another matter to be addressed is that they separated the external and internal factors as different issues where in reality these two factors are interrelated. customer pressure on firms to adopt e-commerce is also considered an important category. Tabor (2003) argues that competitive intensity increases the need for e-commerce adoption by firms. 2003). Ranganathan.

In order to allow a smooth transition to e-commerce. yet they have failed to adopt it successfully. characterised by the globalisation of markets. infrastructure building. education and labour force training. changes in legislation. It also enables producers to overcome traditional limitations associated with restricted access to information. An increasing number of developing countries have followed the example of developed countries and launched their own national ICT programmes and strategies.Chapter three: E-Commerce 3. telecommunications deregulation. and the growing dominance of technology. These cover a broad range of policy areas. Being part of global e-commerce processes requires knowledge of many complex systems including online promotion. E-commerce provides developing country producers with opportunities for accessing new international markets at low cost and minimal capital investment. and isolation from potential markets. cultures and abilities of users in developing countries. for improving competitiveness and customer services.10 Summary E-commerce forms part of a broader process of social change. and for reducing transaction costs and overheads. international payments and shipping that are beyond the current limited capacity of most businesses. high market-entry costs. investments are required in the social infrastructure and skills to allow the use of the technology in a way that is compatible with the local circumstances. and e-government. Developing countries need to take into consideration that building telecommunications infrastructure is costly. 81 . such as awareness raising. the shift towards an economy based on knowledge and information.

However. Payment systems and regulations for e-commerce are important issues in developing countries. International postal services to Libya can be slow and there is no guarantee of delivery. the cost of Internet connection is falling dramatically. The charge of the service in Libya is high compared to other service providers. Internet users are mainly young people and teenagers who surf the Internet mostly for leisure and entertainment.3 million has only around 605. The country with a population of 6. Even though. only economically advantaged people use credit and debit cards to pay for their shopping as a way of showing their class.000 fixed lines. The postal system is also nationalised. 82 . Also. e-commerce is rapidly changing the foundation of the Libyan government policies and improving their online communication strategies for expanding their economy. Most of the Internet services in the country are delivered by the Libya Telecom and Technology Company (LTT) the only authorised Internet service provider in the country. The government owns and operates both the fixed line and mobile network systems. Libya has a long way to go to catch up with its poorer neighbours like Egypt and Tunisia.000 dial-up subscribers in 2006. To expect many sales on the Internet would be disappointing for a Western company that hoped to do tremendous business on the Internet in a foreign country that does not use credit cards as a payment method. one million mobile users. 55.Chapter three: E-Commerce For Libya. cards and electronic payments had not been introduced at the time of writing this thesis. In Libya. Payment is by cash upon the delivery of the physical goods and bank transfer payments. The payment schemes available for online transactions in developing countries are cash-on-delivery. many online transactions only involve submitting purchase orders online.

Chapter three: E-Commerce there is no transitional regulation of goods. 83 . allowing pornography. piracy of products. and other illegal actions to create security and legal issues that may never have total solutions.

Chapter four: Toward a theoretical framework 84 .

Chapter four: Toward a theoretical framework Chapter four Towards a theoretical framework for e-commerce Drivers and Barriers 85 .

...............................................2....................................1 Cost .................... 104 4.......................................................4 Infrastructure ................................. 92 4............................... 101 4................................................................................................................................................2...............2 Drivers and Barriers .8 Competition.....................................................................3 The E-commerce Drivers and Barriers Model (1) .............................2.Chapter four: Toward a theoretical framework 4..6 Government..2..........................3 Legislation and Regulation....................................................................................................................................... 99 4..............2............................... 87 4......................2.......................................................................................................................2 Payment Systems ....................2.....................................2.......................................9 Traditional business ......................... 90 4......... 87 4.........................................................................................................................................................................................5 Culture and Religion ................ 107 86 ... 96 4..............5 Summary................10 Economic Activities .................................................................................................................................................................................................................................... 102 4......................1 Introduction........................ 97 4.2.................................... 100 4................................................................................................................................................................ 93 4................................................................................................... 95 4.......7 Employment ..................2..............

Ecommerce is expanding rapidly and has facilitated changes by significantly reducing the costs of outsourcing and co-operation with external entities.Chapter four: Toward a theoretical framework 4. Using the Internet to lower communication costs and reduce time-to-market for goods and services exports makes it a very valuable medium for firms engaged in international trade. three and four) and developing a theoretical framework to conceptualise e-commerce drivers and barriers. It 87 .1 Introduction E-commerce forms part of a broader process of social change. The ability of ecommerce to deliver information of almost any sort in digital format at low cost offers significant efficiencies that firms can pass on to customers in the form of lower prices. benefits and barriers of e-commerce taking extracts from the literature review chapters (chapters two.g. characterised by the globalisation of markets. fostering greater networking in the economy and making faster diffusion of knowledge and ideas possible. Ecommerce is a key technology for speeding up the innovation process. geographical location and differing time zones. This chapter examines the drivers. the shift towards an economy based on knowledge and information. that the Internet has the ability to lower some of the entry barriers to global trading. E-commerce has helped to break down the natural monopoly characteristic of services such as telecommunications. 4. and the growing dominance of technology in everyday life. New Economy (2002) argues that e-commerce has played an important role in making science more efficient and linking it more closely to business.2 Drivers and Barriers It has been argued in chapter three. reducing time scales. e.

1999. In construction. In manufacturing. One could argue that e-commerce drivers vary from one country to another. Art-am. 2001). Some drivers that are seen in some developed countries are not yet evident in many developing countries and in some cases those drivers in a developed country could be barriers in other countries. 2003) Given that the underlying technology of the Internet is inherently global. 2001. There are a number of barriers to the adoption e-commerce 88 . thereby reducing costs and delays and increasing reliability (Gallagher. Mehrtens et al. 1987) and encourage firms to find the best producers regardless of location (Davidow and Malone. Its role in the services sector is linked to qualitative aspects of products. Wigand. 1996. 1992. In agriculture. accessible and based on open standards. The ‘optimists’ argue that the impact of reducing co-ordination costs will significantly influence global trading relationships (Malone et al. Chan and Lee. OECD. 2001.Chapter four: Toward a theoretical framework can also help manage supply chains for goods and services in cross-border trade. Kendall et al. the Internet is providing better information about market prices and has fostered the emergence of new online commodity markets.. cutting overheads associated with marketing. it reduces the need for blueprints and allows seamless communications between subcontractors. such as convenience and customisation.. it is generating new efficiencies by reducing procurement costs and improving supply chain management. transport and distribution. e-commerce applications are optimistically being promoted in the developing world as relatively cheap to set up and operate and flexible to configure (Kalakota and Drew.. Some additional drivers were realised for the first time in this research according to the researcher’s best knowledge. 2002. 1997).

While computer prices have fallen dramatically over the last decade. they are still too expensive in developing countries (UNDP. one of the traditional barriers cited by many organisations to the growth of e-commerce is the relatively high telephone charges for Internet access. often focusing on production management. operating. Add to this the human capital cost of installing. the tariffs payable and the cost of connection. Users in developing countries are likely to be engaged in making improvements to their operations. both in the initiation of e-commerce projects and in the allocation of targeted budgets. Reed (1999) argued that broad-level support for the technology is lacking. There are further barriers specifically related to developing countries. such as hardware and web-design. product development and marketing rather then paying attention to e-commerce and e-business strategies. Furthermore. Also. the transport facilities are poor. 2003). cost and taxation or even in some circumstances. Moreover. and secure payment facilities non-existent in many countries (Straub. too much business for a company to cope with. training and support and the costs often become beyond the means of many enterprises in developing countries. 2003). many Internet users in developing countries do not speak or write 89 . but these technologies are still in very scarce supply in many developing countries. Internet access is still very costly . financing and accounting. Other costs. Accessing the Web is possible only when telephone lines and computers are available. maintaining.both in absolute terms and relative to per-capita income in most developing countries. In addition to this problem. skilled personnel are often lacking. Additionally. remain beyond the reach of many people’s ability to pay for the service.Chapter four: Toward a theoretical framework such as security.

1998) are other cost reductions resulting from e-commerce adoption. However. infrastructure. This is analysed and discussed in the e-commerce chapters. 4. 1998) and reducing the cost of customer service and after-sales service (Hawkins et al.. 2001) and providing the opportunities to sellers and producers to demonstrate their products online without a need to have an actual shop (Kehoe. E-commerce could help to lower the cost of communication.Chapter four: Toward a theoretical framework good English as well as displaying poor English on web-sites or in emails. 1999). Slow responses generally have the effect of pushing away potential customers (The Asian Foundation Report.2. buying and procurement cost (WTO. competition. knowledge of e-commerce. government. Reducing selling. It also gives the ability to deliver information of almost any sort in digital format at low cost and helps to reduce the cost of managing supply chains for goods and services in cross-border trade (Gallagher. 2002). traditional business. 2002). economic activities. employment. the implementation and maintenance cost could be 90 . It is an important factor for the world’s e-commerce in general and for developing countries in particular. time-to-market for goods and services exports (Chaffey. culture and religion. time and information. Using the Internet is a valuable medium for firms and governments engaged in international trade to reduce and lower costs. These issues are cost. payment systems. There are many issues that could count as drivers and barriers to e-commerce and economic development at the same time.1 Cost Cost is one of the main drivers of e-commerce and Internet activities. legislation and regulation.

1: Cost issues in the literature Item Reduces costs Reduce communication cost Deliver information in digital format Reduce the cost of supply chains Reducing selling cost Reduce buying cost Providing opportunities to sell Reducing the cost of customer service and after-sales service Implementation cost Maintenance cost shipping costs Cost in term of hardware and software Cost of Internet connection and telephone charge Cost of implementing ICT infrastructure Delivery infrastructure Increase saving 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 No Drivers and barriers Driver Driver Driver Driver Driver Driver Driver Driver Barrier Barrier Barrier Barrier Barrier Barrier Barrier Driver 91 . Furthermore. 2001). Additionally.1 summarises the cost issues that were mentioned in the literature.Chapter four: Toward a theoretical framework argued to be a barrier to e-commerce. For example. shipping costs can increase the cost of many products purchased via e-commerce and add substantially to the final price. cost in term of hardware and software remains out of reach in cost terms for many people and organisations in developing countries (Straub. the cost of Internet connection and telephone charges in developing countries is moderately high compared to developed countries (UNCTAD. Additionally. 2003). Table 4. 2003). Table 4. the cost of implementing ICT infrastructure and delivery infrastructure in a country could be high (Hammond.

could be drivers or barriers. For ecommerce to be used successfully in a country. (2003) argued that payment systems constitute part of the basic structure of a country’s economy and financial markets. 2003). 1999).2.. et al.. Djankov et al. 1995). ATMs offer a more cost-effective means of delivering these routine functions and frees branch personnel for selling extra services. 1999) which needs government involvement. as some other factors. transfers and improves the quality of payment transmission (Lipis et al. Having a payment system will encourage people to do business all over the world and speed up transactions and other banking activities as well as providing new opportunities to businesses to provide online services. adopting such a system requires large investments that many developing countries will not be able to provide. electronic payment has to be installed and ready. It speeds up payments. Payment systems. social and technical factors need to be 92 . It adds value for consumers through its ability to increase time and place convenience for the routine banking functions of obtaining cash and making deposits (Llewellyn. (Lipis et al. It also calls for cooperation between banks and participation by the central bank (Llewellyn. 1985) and offers institutions alternative and better delivery channels through which banking products and services can be provided to consumers. the new systems involve significant economies of scale and rationalisation gains (Llewellyn.Chapter four: Toward a theoretical framework 4.2 Payment Systems Payment systems are another main factor for e-commerce adoption and economic development.. 1999) and are helping to enhance the planning and monitoring of bank liquidity (Djankov . Additionally.. a network of ATMs offers a new method in daily banking affairs. Additionally. On the other hand. Compared with traditional methods of transmitting payments.

Payment in developing countries is cash or cheques 1 2 3 4 5 6 7 8 9 No Driver or barrier Driver Driver Driver Driver Driver Barrier Barrier Barrier Barrier 10 11 12 Barrier Barrier Barrier 4. It was been argued that e-commerce needs legislations and regulation to control of the flow of business over the 93 . Today. 1999). Table 4.Chapter four: Toward a theoretical framework considered while adopting such technology (Utterback. 1994). Other issues such as securing payment systems in a country would need significant investment. In the world of banking. interesting new technology in the form of automatic services is strongly limited.2. so long as the old familiar services are easily available (Llewellyn.2 summarises payment issues that were mentioned in the literature. E-payment has to be installed and ready.2: Payment issues in the literature Item Payment system will encourage people to do business Payment system will speed up transactions and other banking activities Payment system provides new opportunities for online services. Table 4. Adopting payment system requires large investments Payment system needs co-operation between banks and participation by the central bank Social and technical factors need to be considered while adopting Payment system In the world of banking interest new technology in form of automatic services is strongly limited so long as the old familiar services are easily available Electronic payment activities are carried out by other companies which will result in higher charges Securing payment systems in a country would need significant investment.3 Legislation and Regulation Legislation and regulation are barriers and drivers to e-commerce. many electronic payment activities are carried out by other companies other then banks which will result in higher charges in developing countries if no competition exists. Payment systems constitute part of the basic structure of a country’s economy For E-commerce to be used.

Piracy of products is also a major problem. Lack of regulation leads to pornography sales 1 2 3 4 5 No Drivers and barriers Driver Barrier Barrier Barrier Barrier 94 .3 summarises the legislation and regulation issues that were mentioned in the literature.3: Legislation and regulation issues in the literature Item Needs legislations and regulation to control the flow of business Goods and commodities can be bought and sold illegally online. 2004). allowing pornography. since many major corporations have had their computer mainframes broken into by hackers (Vernon. 2004). Piracy of products The absence of legislation leads to difficulty in finding a total solution. There is a large number of goods and commodities that can be bought and sold illegally online. Table 4. However. 2000). In addition. Hamed. The absence of legislation and regulation has led to difficulty in finding a total solution. Ecommerce regulation could conflict with other legislation and regulation in a country. 2001). the full range of pirated software available in the market at low or no cost requires copyright and other issues to be considered (Fredricks. piracy of products. One of the most controversial aspects of the increase of e-commerce on the Internet is that there is no regulation of goods. regulation and prevention of these problems is very difficult for individual governments. and other illegal activities to create security and legal issues that may never have total solutions (Mark 2003. The regulation of e-commerce will build customer’s trust and show the possible way forward to deal with technology and international suppliers and customers. online viruses are also becoming a serious matter that is under scrutiny.Chapter four: Toward a theoretical framework Internet (Awad. Table 4. Furthermore.

infrastructure costs are significant and need new strategies. FDI will result in moving regulation and control of a country’s infrastructure from the government to 95 . and fraud. international companies could establish branches and warehouses in Libya to provide services and products not only to Libya but to the whole of Africa. If the infrastructure is in a poor condition then the expectation to see an improvement in the e-commerce adoption is significantly low.Chapter four: Toward a theoretical framework Online viruses becoming a serious matter The regulation of e-commerce will build customer trust Regulation and prevention is very difficult for individual governments. Additionally. Concern regarding publishing inflammatory speech and online racial hatred 6 7 8 9 10 11 12 Barrier Driver Barrier Barrier Barrier Barrier Barrier 4. the potential for e-commerce is low because of the control of networks by monopolies or dominant firms in many developing countries (Thorbjornsen & Decamps. However. planning and management which will drive many developing countries to seek FDI and other assistance from wealthier nations. postal infrastructure and any other infrastructure needed in a country to support e-commerce.2. Arab countries and other Mediterranean countries. E-commerce regulation could conflict with other legislation and regulation in a country. 1997).4 Infrastructure Infrastructure refers to ICT infrastructure. These monopoly companies limit competition by blocking lower prices and improvement the quality of the services. Concern about the security of network systems Concerns about the use of computer technologies for traditional property offences such as theft. The infrastructure of a country could be a main driver to attract international companies and foreign direct investors to do business in that particular country. For example.

g. Culture is the ‘broadcast’ factor in consumer behaviour because it shapes basic human values. e.4 summarises the infrastructure issues that were mentioned in the literature. Table 4.4: Infrastructure issues in the literature Item If the infrastructure is in a poor condition then the expectation to see an improvement in the e-commerce adoption is significantly low. For example. the government of a country may have other strategic projects to be finished before beginning new projects. and their purchase should be left to 96 . For wealthier developing countries such as Libya.5 Culture and Religion If e-commerce conflicts with a country’s culture and religion then certain barriers may be created. wants. perceptions and behaviours (Kotler. and hence intervention by the system to ban their sale might be perceived by some as a barrier. Infrastructure cost is significant Infrastructure needs new strategies. 2003).Chapter four: Toward a theoretical framework the international investors. traditions and values (Laudon and Traver.2. selling alcohol in a Muslim country or offering credit-card services with interest rate could possibly result in driving people away from using that part of technology. The potential for e-commerce is law because of the control of networks by monopolies or dominant firms in many developing countries The Infrastructure of a country could be a main driver to attract international companies and foreign direct investors to do business in that particular country. There are many items on sale which contain materials which are obscene or offensive to a country’s traditions and values. Table 4. 2000). intervention to ban the sale of certain items that violate such culture. planning and management No 1 Drivers and barriers Barrier 2 Barrier 3 4 5 Driver Barrier Driver 4.

Therefore.g. Such action could be seen as being in keeping with culture.5 summarises the culture and religion issues that were mentioned in the literature. 2005).5: Culture and religion issues in the literature Item E-Commerce conflicts with culture and religion Intervention to ban the sale of certain items that violate culture offering credit card services with interest rate Children protection Religion issues E-Commerce helps to maintain culture Change in business culture No 1 2 3 4 5 6 7 Drivers and barriers Barrier Barrier Barrier Barrier Barrier Driver Driver 4. ecommerce could help in providing paid work from home for the women. Table 4.6 Government Governments always play an important role in economic development (Todaro. governments should think carefully about e-commerce 97 . Table 4. tradition and values. in Arab countries such as Libya where women are not encouraged to work with men. and certain barriers to get access to them should be in place to protect young people and children from moral corruption. 1999). e.2.Chapter four: Toward a theoretical framework individuals. There is some consensus that such materials should not be sold online. Culture and religion could be a driver for e-commerce. Governments are usually the main customer of small businesses and will support all investments and improvements in a country’s infrastructure as well as being responsible for setting legislation and regulation for trade and securing the sustainability of economic growth (Well.

E-government is a significant factor for e-commerce as it delivers services to businesses and the public.6 98 . promoting priority economic sectors. However. other government departments and companies with significant advantages and efficiency. therefore countries which have adopted the communist and socialist approaches should be aware that e-commerce may change the economic approach adopted into capitalism. Additionally. summarises the government issues that were mentioned in the literature. strengthening the legal system and law enforcement. eprocurement (one of the e-government services) and an online supplier exchange are among the services included in G2G and G2B services. governments tend to support monopoly organisations and limit the opportunities for private companies which could affect the adoption of e-commerce. improving the productivity and efficiency of government agencies. Also. Thus local private companies would not have the support and experience to compete with large international organisations.Chapter four: Toward a theoretical framework adoption and put strategies for the adoption in place before hand. Thus e-government strategies would provide citizens. Table 4. e-commerce could affect any economy and its activities. Additionally. improving the quality of life for disadvantaged communities. and strengthening good governance and broadening public participation. there are many possible reasons and goals for e-government. agencies. Ecommerce will work with capitalism and globalisation. According to Daniel (2002). bureaucracies and public services may be aligned towards promoting those sectors which have been pinpointed for growth. once the e-government strategy of a country has been formulated. such as improving services to citizens. This allows transparency in the bidding process and gives opportunities to smaller businesses which otherwise are not able to bid on big government procurement projects.

(1998) argued that ICT seems to offer the greatest benefits when ICT investment is combined with other organisational assets. Improving the quality of life for disadvantaged communities. new business processes. E-government will create new jobs for other private and public organization E-government improving services to citizens. No 1 2 3 4 5 6 7 8 9 10 11 12 Drivers and barriers Driver Driver Driver Driver Driver Driver Driver Driver Driver Driver Driver Barrier 4. 2003). Improving the productivity and efficiency of government agencies. Hawkins. Strengthening the legal system and law enforcement. et al. adopting e-commerce technology may result in creating new job opportunities and encourage employment education and gaining new skills (UNCTAD.7 Employment Employment is an important factor in any economy.6: Government issues in the literature Item Governments always play an important role in economic development The government is usually the main customer of small businesses Government will support all investments and improvements in a country’s infrastructure Government is responsible for setting legislation and regulation for trade Government should think carefully about e-commerce adoption E-government strategies would provide significant advantages and efficiency. 99 . new organisational structures and better worker’s skills.. such as new strategies.Chapter four: Toward a theoretical framework Table 4.2. It has been argued that e-commerce may result in job cuts. However. Governments tend to support monopoly organisations and limit the opportunities for private companies which could effect the adoption of e-commerce.

consumers will be able to search among thousands of merchants for the lowest prices. These businesses could go elsewhere or cease to exist. On the other hand competition could destroy small local businesses. In either case this will affect economic activities. 1998). thereby increasing the downward pressure on prices and leading to a shift in market power from producer to consumer (Hawkins. 1999). Table 4. Table 4.8 summarised the competition issues that were mentioned in the literature.7: Employment issues in the literature Item Employment is an important factor in any 1 economy.. lower production costs will encourage the entry of new businesses and thus increase competition and pressure to pass lower costs on to consumers as lower prices.2. et al.8 Competition Competition could drive the economic development of a country by providing cheaper products and services which could result in many savings that could be reinvested in the economy and speeding up economic development (Todaro. According to Hagel and Armstrong (1997). 100 . such as taxation and employment.7 summarises the employment issues that were mentioned in the literature. E-commerce may result in creating new job opportunities and encourage employment 3 education and gaining new skills No Drivers and barriers Driver Barrier Driver 4. In addition. Therefore for a country to maximise the benefit of e-commerce adoption training and education should take place before-adoption. 2 E-commerce may result in job cuts.Chapter four: Toward a theoretical framework He argued that the contribution of ICT capital to output and labour productivity growth has been significant and rising in relative terms. Table 4.

2. 101 .9 summarises the traditional business issues that were mentioned in the literature. Traditional businesses and e-commerce businesses could work together.Chapter four: Toward a theoretical framework Table 4. Consumers should be able to search among thousands of merchants for the lowest prices. A failure to involve traditional businesses could work against e-commerce adoption and against economic development. thereby increasing the downward pressure on prices and leading to a shift 3 in market power from producer to consumer Competition could destroy small local businesses. Driver Driver Barrier 4. In either case this will affect economic activities such 4 as taxation and employment. These businesses could go elsewhere or cease to exist.9 Traditional business Traditional businesses in most developing countries were established long before ecommerce. These companies are the main economic contributors in the economy. Therefore government and companies have to work together in monitoring technological and strategic development in the use of e-commerce in order for these companies to maintain their place in international competition and restructure their organisations. Table 4.8: Competition issuers in the literature Item No Drivers and barriers Driver Competition could drive the economic development of 1 a country by providing cheaper products and services Lower production costs should encourage the entry of new businesses and thus increase competition and pressure to pass lower costs on to consumers as lower 2 prices.

Chapter four: Toward a theoretical framework Table 4.9: Traditional business issues in the literature Item Traditional businesses in developing countries were established long before e-commerce. Traditional companies are the main economic contributors in the economy. the Internet allows online businesses to gain new customers from traditional businesses.10 Economic Activities Gurstein (2000) argued that a free market and the cost of adopting e-commerce technology could result in delays to e-economic development.2.g. Additionally. Second. A failure to involve traditional businesses would work against e-commerce adoption and against economic development. Kenny (2002) argues that government returns (e. 1 2 No Drivers and barriers Barrier Barrier 3 Barrier 4 5 Barrier Driver 4. He also suggested that a result of adopting e-commerce technology could be the shift of economic activities away from marginal or disadvantaged regions towards advantaged regions. First. and 102 . Government and companies have to work together in monitoring technological and strategic development in the use of e-commerce in order for these companies to maintain their place in international competition and restructure their organisations. Traditional businesses and e-commerce businesses could work together. taxation) might be even lower than company-level returns because of two negative externalities linked to e-commerce sites. the range of goods available on the Internet is very large and cannot be matched by any one supplier let alone smaller local suppliers thus putting these local enterprises at a significant disadvantage in certain sectors. The success of e-commerce can be at the expense of local enterprises in direct competition with international suppliers. Furthermore.

Table 4. 1999). Therefore a government should encourage the use of a country’s resources to provide cheaper prices than anywhere else in the world.10: Economic activities issues in the literature Item The cost of adopting e-commerce technology could result in delays to e-economic development. For countries such as Libya who are importing more than exporting. Internet investment involves defending market share. No 1 2 Drivers and barriers Barrier Barrier 3 Barrier 4 Barrier 5 6 7 Barrier Barrier Barrier 103 . On the other hand the adoption of e-commerce will result in a significant reduction of costs and providing a variety of products from all over the world. Companies with less access to the new technologies. e-commerce could develop the economic activities and allow users to enjoy the reduction of costs which could be reinvested in the economy and help development (Todaro. The success of e-commerce can be at the expense of local enterprises in direct competition with international suppliers. Adopting e-commerce technology could shift economic activities away from marginal or disadvantage regions towards advantaged regions.10 summarises the economic activities issues that were mentioned in the literature Table 4. Government returns (e. Internet investment involves defending market share. taxation) might be even lower than company-level returns The Internet allows online businesses to gain new customers from traditional businesses. so that social returns to this investment are lower than private returns. The range of goods available on the Internet is very large and cannot be matched by any one supplier let alone smaller local suppliers thus putting these local enterprises at a significant disadvantage in certain sectors.g.Chapter four: Toward a theoretical framework perhaps of greater concern to developing countries’ companies with less access to the new technologies.

E-commerce could develop the economic activities and allow users to enjoy the reduction of costs which could be reinvested in the economy and help development 8 9 10 Driver Driver Driver 12 Driver 4. from the literature reviewed. such action may result in destroying the local companies who are not able to compete with large and multinational corporations. etc) can be a driver or a barrier for a country’s economy. E-commerce issues (e. removing international trade barriers can be consider as a driver for e-commerce. If the issue is a barrier for e-commerce in general or in a particular country then the issue should be located in the barrier section. And the issue will be located in the drivers if it is a driver for ecommerce. there are many drivers and barriers for ecommerce.g.Chapter four: Toward a theoretical framework so that social returns to this investment are lower than private returns. however. cost. Government should encourage the use of a country’s resources to provide cheaper prices than anywhere else in the world. The e-commerce Drivers and Barriers Model lists all major e-commerce issues. payment. all the discussed issues can be drivers 104 . Adoption of e-commerce will result in a significant reduction of costs E-commerce will provide a variety of products from all over the world. For example.3 The E-commerce Drivers and Barriers Model (1) From the above discussion. Therefore. However. each and every issue has to be adopted to work nicely with a country in order to contribute positively in the development of the economy. one section for barriers and another section for drivers. one could argue that. It is divided into two sections.

Chapter four: Toward a theoretical framework and/or barriers for e-commerce in developing countries.1 E-Commerce drivers and barriers (1) Barriers Drivers Cost Payment system Legislation & Regulation Culture & Religion Government Employment Competition Traditional business Economic activities Infrastructure 105 . This tentative model is novel and has already been published (Hamed.1). the researcher has located all issues in the middle of the model (see Figure 4. therefore. 2009) Figure 4. 2008a. 2008b.

etc. For example. the amount will affect the spending of that country and probably minimise other development spends because of this infrastructure project. In a country such as Libya. salaries they pay for the local workers to deliver business. this amount will have to come from the government of that country or by FDIs. this model consists of two parts. On the other hand. It is used as a map for the research and a 106 . the reduction of cost which will be achieved by the adoption of e-commerce can be a driver for that country. Therefore. The research will present a modified version of the Drivers and Barriers Model at the end of the Chapter Six. Tables in this chapter give detailed information of each issue. On the other hand. then that issue will effect the adoption of e-commerce. If an issue is listed as a barrier for a particular country. social and political issues. E-Commerce adoption is complicated. then the issue can help the adoption of technology in that country. A country can be advanced in its level of cost management which can be a benefit for e-commerce adoption. many issues mentioned in the literature can be found. These issues are listed in this model and will be investigated in this research. its adoption involves economic.Chapter four: Toward a theoretical framework The Drivers and Barriers Model is designed to help the reader to understand the drivers and barriers issues in a country. other issues can be dis-benefit for them such as employment. The model was mainly designed to list the drivers and barriers and it is not in any way an attempt to calculate the effect of the issue on the economy. the cost infrastructure in a developing country will cost an amount of money. barriers and drivers. In each case. However. However. That will put cost as a barrier for that country. and therefore the issues mentioned in this chapter will be different from one country to another. this model is not aiming to provide any quantitative assessments. if the issue is listed as a driver.

Each of these issues can have its effect on a country’s economy. traditional business.Chapter four: Toward a theoretical framework guide for examining the main drivers and barriers issues. Arrows on the model explain that the issue can move from one side to the other. employment. economic activities. its government has to make sure that it has dealt with all barriers and benefits of the drivers of each issue. 4. knowledge of ecommerce. competition. payment. These issues will be examined in Libya and discussed in the next chapter. infrastructure and security. For the country to guarantee a success of e-commerce adoption. legislation and regulation. government. These issues are cost. 107 .5 Summary There are many e-commerce issues that can count as drivers or barriers in a country. culture and religion.

Chapter five: Research methods 108 .

Chapter five: Research methods Chapter five Research methods 109 .

..................9 Summary........... 142 5....................................................................................6...............................................................................................................................................................................................................................................................................................1 Introduction............................... 141 5....................................................1 Qualitative and Quantitative Methods ....................................Chapter five: Research methods 5......................5 Secondary Data .6................................................... 139 5.................................................. 115 5.......6 Primary Data .........2 Quantitative Data Analysis....................................3............................................................................3 Research Design ...............................................7..................................................................................................................4 The Adopted Research Methodology ......................... 133 5................ 112 5..................2 Questionnaire ...............................................................................................8 Ethical Considerations...........................................................................2 Research Purpose............................................................... 123 5........................................1 Qualitative Data Analysis..................................................................1 Interview ............................ 143 110 ...........................................................7................................................................ 138 5.......... 117 5........................................................ 113 5..................................................... 119 5......7 Method of Data Analysis ............ 124 5.................................................................................................................... 111 5.........

The research process is described in terms of a critical analysis of relevant research approaches. The research design and methods are described aligned to the research aims and objectives. The purpose behind this research was to ascertain the effect of using e-commerce in the economic development of developing countries such as Libya.Chapter five: Research methods 5. and the interview and questionnaire approaches are clarified.1 Introduction This chapter describes the research methodology employed in this research study. The generation of data and information relating to the research topic is explained and rationalised according to the research aim and objectives. A multi-method paradigm was selected to observe social reality and to develop knowledge through the testing of the data generated. 111 . Excel) to store and organise the data gathered. where very few or no earlier studies have been conducted. This chapter also defines the interview sample and data analysis which involved the use of computerized software packages (NVivo7. Primary and secondary data collection methods were explored.

as a continuation of descriptive research. rather then testing or confirming hypothesis. (2003) described the research purpose as being exploratory. goes beyond merely describing the characteristics.Chapter five: Research methods 5. descriptive.2 Research Purpose Literature evidences the many approaches appropriate for research studies. Robson (2002) states that the objective of descriptive research is to portray an accurate profile of person. according to Collis and Hussey (2003). a piece of exploratory research. Collis and Hussey (2003) explained that exploratory research is conducted into a research problem or issue when there are very few or no earlier studies to which information can be referred. to analysing and explaining why or how it is 112 . is often quantitative using statistical techniques that go further in examining a problem than exploratory research. Analytical or explanatory research. The data collected. events. is to look for patterns. ideas or hypotheses. (2003) argued that this may either be an extension of. or a forerunner to. or situations. He suggests that it is necessary to have a clear picture of the phenomena on which the researcher wishes to collect data prior to the collection of the data. analytical or predictive... Robson (2002) defined exploratory research as a valuable means of finding out what is happening to seek new insights. according to Collis and Hussey (2003). to ask questions and to assess phenomena in a new light. Saunders et al. (2003) described descriptive research as phenomena because it is used to identify and obtain information on the characteristics of a particular problem or issue. Saunders et al. The aim of this type of study. however Saunders et al..

Predictive research attempts to generalise from the analysis by predicting certain phenomena on the basis of hypothesised. the findings may be significant to other developing countries with a similar e-commerce situation (Collis and Hussey. E-commerce in Libya is still in its early stages as. 2003). 2003).. there are no earlier studies in this area. Thus the situation to a problem in a particular study will be applicable to similar problems elsewhere. As a consequence. 1993). 2003). The emphasis here is on studying a situation or a problem in order to explain the relationship between variables (Saunders et al. In other words. 5. robust solution based on a clear understanding of the relevant causes (Collis and Hussey. to the researcher’s best knowledge...Chapter five: Research methods happening (Collis and Hussey. steps the country should take to adopt such technology (Saunders et al. if the predictive research can provide a valid. The latter establishes an explanation for what is happening in a particular situation.3 Research Design The literature identifies a number of interpretations of research design. Set out below are the most significant and recognised views. (2003) referred to this stage as the general plan that determines how a researcher will attempt to achieve the research aim. the research design is the plan or strategy adopted for linking the theoretical research problem to relevant and 113 . Predictive research goes even further than explanatory research. Saunders et al. whereas the former forecasts the likelihood of a similar situation occurring elsewhere. 2003). general relationships. Research design is the science of planning procedures for conducting studies so as to get the most valid findings (Vogt. Therefore a study would investigate the e-commerce situation in Libya and explore what. 2003). if any.

the deductive method is referred to as moving from the general to the particular (Johnson and Christensen. Inductive research is a study in which theory is developed from the observation of empirical reality. it is argued that researchers often fail to give adequate attention to research design issues. Thus. For this reason. 2004). Deductive research is a study in which a conceptual and theoretical structure is developed and then tested by empirical observation. There are two significant research methods that need to be distinguished. what sub-groups it must contain. possibly because of their inability to identify design as their first. thus general inferences are induced from particular instances. (2003) suggest that the first step in research design is to identify a research problem or issue. step in developing a research proposal (Hakim. the deductive method and the inductive method. and the logic behind it. 1987). which will make it possible and valid to draw more general conclusions from it (P 212). the research design should tell how the sample will be drawn. what comparisons need to be measured. thus particular instances are deduced from general inferences. and how these measures will be related to external events. In a similar vein Oppenheim (1992) defines research design as: The basic plan or strategy of the research. which is the 114 . However. Research design is concerned with enabling a problem to be researchable by setting up a study in a way that will produce specific answers to specific questions. Collis and Hussey. or as their most important.Chapter five: Research methods practicable empirical research that is conducted to achieve the research aim. Researchers need to assess their specific research design before they start their research. Identifying the research problem is always an exploratory and iterative phase in the research.

3.1 Qualitative and Quantitative Methods The literature demonstrates the diversity of methodologies and research instruments available that can help with the generation of data and information relating to particular research topics. simulations. The quantitative approach may be defined as an interdisciplinary field that uses a multimethod approach to research. 1998. Since it involves moving from individual observation to statement of general patterns or laws. it moves from assumptions to a conclusion.Chapter five: Research methods reverse of the deductive method. 2003). 2003). Johnson and Christensen (2004) argue that the quantitative research approach focuses on the deductive component of the scientific method by focusing generally on hypothesis testing and theory testing. 5. Quantitative data are not usually 115 . It refers to the understanding of human experience using numbers and statistics. correlation studies by surveys and standardised observational protocols. whereas induction is based on empirical evidence. More specifically Ghauri and Gronhaug (2002) argue that the deductive approach as a method is based on logic. They further explain the difference between these two approaches. Induction on the other hand does the opposite. Deduction is drawing the conclusion out of logical steps and reasons regardless whether it is true in reality or not. Patton (1990) indicated that the first undertaking is to decide which approach best identifies most appropriate solutions from which to draw suitable conclusions relating to the issues under investigation. experiments. it is referred to as moving from the specific to general (Collis and Hussey. supportive materials (Janesick. examples. Corbetta.

1999). emphasising the meanings. however. 1999). Thomas. on the other hand. Corbetta (2003) has identified different issues between the qualitative and quantitative research in the nature of data. 2004). the competing paradigms of quantitative and qualitative research become almost working partners in some social research. This can be compared to qualitative research that Creswell (1994) argued is an inquiry process of understanding a social or human problem. Corbetta (2003) demonstrated that qualitative research is open and interactive and observation precedes theory whereas quantitative research is structured and theory precedes observation. experiences. Naoum. More recently. The differences between qualitative and quantitative research have been explained by number of authors (Maxwell. sensate features of the world (Bouma and Atkinson. but hard and reliable. and conducted in a natural setting. The exact mixture that is considered appropriate will depend on the research questions and the situational and practical issues facing a researcher (Johnson and Christensen. objective and standardized. reporting detailed views of informants. Thus this research study aims to collect multiple sets of data using 116 . 2003). they measure tangible.Chapter five: Research methods abstract. and so on (Naoum. holistic picture formed with words. He argued that. Many researchers advocate a pragmatic position as it is recognised that both quantitative and qualitative research are very important and can often be mixed in single research studies (Patton. 2003. 1999). Qualitative research is described as ‘subjective’ in nature. 1990. Naoum. in qualitative research the data it is soft. 1999. countable. description. based on building a complex. rich and deep. in quantitative research the data it is hard. Corbetta. 1998.

The selection of the most suitable research method depends largely on the intention of the research objectives and the type of data needed for the research. The main aim of using a mixed method is to improve the reliability and validity of the research outcomes. 2003).4 The Adopted Research Methodology There is neither a fast rule to selecting research methods nor best research method as the use of each research method depends on the form of research question. 2002). a wide range of research techniques was adopted to achieve the research aim and objectives. 1989.Chapter five: Research methods different research methods in such a way that the resulting mixture or combination has complementary strengths and non-overlapping weaknesses (Brewer and Hunter. For this research study a mixed research approach was adopted to achieve the study’s aim and objectives and to maximise the benefit of both methods. Due to the broad scope of this study and the commercial context of the research. Johnson and Turner. whereby theories can be developed qualitatively and tested quantitatively or vice versa. A mixed approach is a process of using more than one form of research method to test a hypothesis (Thomas.. 2006) and very effective (Saunders et al. 2003). 2003). However due to the context of the research study this approach offers researchers a great deal of flexibility. the research objectives and contextual situation (Yin. Combining both quantitative and qualitative research methods has proven to be more powerful than a single approach (Stewart and Cash. From a qualitative stand point the research conducted semi-structured interviews and a closed questionnaire from a 117 . 5.

the researcher used a mixed qualitative and quantitative approach.6 and 5. In other words. Secondary sources include books. 2003). 118 . journals. Saunders et al. reports. a qualitative research study and a quantitative research study were conducted either concurrently or sequentially.Chapter five: Research methods quantitative aspect. The outcome of objective 5 was the plan of action for e-commerce adoption which is demonstrated in Chapter seven. This objective was achieved by collecting secondary data (from books.7. 1997. Table 5. observation and interviews. Both of these methods require data collection involving primary and secondary data collection methods. journals. Primary sources include questionnaires. for developing the implementation plan for e-commerce (objective 5). government publications and survey.1 summarises the research methods used in this study along with each objective. It explains the technique(s) used for collecting the information and the activities the researcher undertook and shows the outcome of each activity. All sources are examined more fully in Sections 5. CDs and websites) and primary data (from interviews and questionnaire). world statistics and so on (Chisnall. For example..

Reports. Journals. Reports. website Books. questionnaire Books. Develop theoretical framework Mixed approach Secondary data Chapter four 4. questionnaire Outcomes Chapter two 2. interview. Journals.6.2). Investigate drivers and barriers in Libya Develop implementation plan for E-Commerce Mixed approach Mixed approach Primary data Secondary/ primary data Chapter six Chapter seven 5. website Books. CDs. website. Journals. Develop model to assist ECommerce Mixed approach Secondary/ primary data Chapter seven The interview and questionnaire questions were linked directly to the theoretical framework developed in chapter four (more details on questionnaire and interview design can be seen in 5. website Interview. website. Journals. Journals. Review economic development literature Research method Mixed approach Techniques Secondary data Activities Books.1 research method techniques and outcomes Aim and objectives 1. interview.Chapter five: Research methods Table 5. CDs. Reports. Reports. 119 .6. Reports. CDs. 6. CDs.1 and 5. CDs. Questionnair e Books. Review e-commerce literature Mixed approach Secondary data Chapter three 3.

2) the mark ● will be found under the columns headed ‘Knowledge’ and ‘Traditional business’ issues. in the same table (table 5. what is the advantages / reasons of implementing e-commerce? What is the main befit to your business? ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● 120 security ● ● ● ● culture cost .Chapter five: Research methods Tables 5. Interviewees were asked the question ‘do you know the term e-commerce?’ The idea behind this question is to demonstrate the interviewee’s understanding of the term e-commerce and to ascertain whether local businesses are aware of the threat of e-commerce. Questionnaire questions linked to e-commerce issues can be found in table 10.5).2 .2 all interview issues and questions are listed. Therefore. Interview questions linked to E-Commerce issues infrastructure Trad-business ● ● ● employment government competition Knowledge legislations economic payment ● ● ● ● Interview questions Do you know the term ecommerce? Does your company have a strategy for electronic commerce? Which communication do you use? Does your business engaged in electronic commerce ? If you implementing ecommerce. Table 5. The same method applies for all questionnaire and interview question.13 (appendices 10.13 list all questions and link them with the theoretical framework.2 and 10. For example in table 5.

is it likely to become important in 2-3 years? How many products and services does your business offer? How do you deliver your products and services to consumer/client What type of payment do you accept Do you update your web if you have one. or does the third party doing for you? What is the barriers of ecommerce in Libya What is the drivers of ecommerce in Libya What is the threat to the traditional commerce What are the pioneers to ecommerce in Libya Any other comments ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● 5. government departments 121 .Chapter five: Research methods If you are not implementing e-commerce. For example.. what is the disadvantages/reason of not implementing? Why you are not involved? If you don’t have a clear strategy for e-commerce at present. (2003). (2003) stated that few researchers consider the possibility of re-analysing data that have already been collected for some other purpose. Saunders et al.5 Secondary Data According to Saunders et al.. secondary data is information that has been previously gathered for some purpose other than the current research project. He explained that secondary data includes both raw data and unpublished summaries.

(2003) pointed out there are disadvantages to secondary data collection. information is frequently circulated from other sources. Malhotra (2004) and Wilson (2003) argued that the main advantages of using secondary data are the cost and time economies they offer the researcher. The collection of secondary data enables researchers to interpret primary data with more insight that might lead to other discoveries. he added that many companies do not make full enough use of the information that it regularly generates.Chapter five: Research methods undertake surveys and publish official statistics covering social. As regards internal secondary data. External sources of data include statistics and reports issued by governments. such as trade directories to provide further information. However. 122 . Saunders et al. Additionally. for example online services and CDROMs provide practically instant access to sophisticated information from across the world. Data collected may not match the needs of the phenomena under investigation and there may be difficulty in obtaining or collecting relevant data that is specifically related to issues involved. trade associations. demographic and economic topics. Chisnall (1997) further states that electronic access to data has revolutionised secondary sourcing. There are two types of secondary data: internal and external. and other reputable organisations. and provide a source of comparative data to check on the reliability of data gathered from primary research.. Chisnall (1997) maintained that the answers to many problems lie within organisational documents.

Secondary research enabled the researcher to compare the already existing theories and views on e-commerce. For this reason journals and e-journals were used to gain knowledge of the current views and developments. such as opinions and attitudes. Further research was conducted through Internet access for up-to-date information. As the subject area was one of the e-commerce. technology. interviews and questionnaires. These may include observation.Chapter five: Research methods For this research study secondary research represented a critical review of existing literature on the subject area. Ghauri and Gronhaug (2002) maintained that a significant advantage of primary data being collected is that it enables a focus on the specific requirements of the research. and place these in relation to the content of the interviews and questionnaires. For example through questions requiring particular responses. conversation and discourse relative to a specific research study. questions should be answered by the chosen sample of people who are actually 123 .6 Primary Data According to Collis and Hussey (2003) original or primary data can be obtained and collected through a variety of ways. and economic development the researcher recognised the need to look at the most recent literature available. Through analysis of the acquired literature. Textbooks from libraries were used for this purpose. or observed behaviours. The researcher acknowledged that consideration must be given to ascertaining the validity and source of knowledge. Bell (2001) states that secondary research assists the researcher in developing questions to be answered as part of a project. the researcher was able to develop particular questions where clarification would be required and through which answers would be sought through primary research. 5.

other authors (Corbetta. (2002) described interviews and questionnaires as effective tools to gather opinions.1 Interview There are several advantages of using the interview approach. However. Such research methods are discussed next.6. 2004). the chosen sample of people will reflect Internet users. Additionally. It is often the case that more time is needed than was expected. 2004) have mentioned some disadvantages of primary data. and the difficulty of access in terms of finding a target group who are willing to cooperate. Yin. The chances of obtaining data from a target group are likely to be very low in most cases. they generate real reaction and/or cause-and-effect relationships. Malhotra. A third advantage is that the interviewer can follow up on incomplete or unclear 124 . Such as the time required for collecting the data. 2003. the response rate may be lower than anticipated (Collis and Hussey. One advantage is that interviews are flexible. the interviewer can adapt the situation to each subject. It is important that the researcher selects suitable methods and procedures for data analysis to avoid risking the reliability and applicability of the research. attitudes and descriptions. Ghauri and Gronhaug. Another advantage is the interview may also result in more accurate and honest responses since the interviewer can explain and clarify both the purpose of the research and individual questions.Chapter five: Research methods involved in the issue that the researcher is working on. 2003. They are totally dependent on the willingness and ability of the respondents. For this research study. 5. especially if there are issues of high sensitivity.

Highly-scheduled structured interviews are the easiest to conduct. to the open or non-directed interview (Whipp. These approaches are discussed below. People are often more confident of their speaking ability than their writing ability (Burns. Most people will agree to be interviewed. All questions and answer options are stated in identical words to each interviewee who then picks answers from those provided. Stewart and Cash (2006) suggests that an unstructured interview is most appropriate when the information area is extremely broad. tabulate. The highly-scheduled structured interview is the most thoroughly planned and structured. Formats of interviews vary. Three styles of conducting interviews that were considered are: un-structured interviews. from the highly-structured type where questions are presented and asked in a fixed form and sequence. Gillham. Unstructured interviews are a form of interview that uses ‘open-ended’ or ‘open’ questions so that the researcher can see in what direction the interviewees take things in their response (Naoum. 2005). Saunders et al. record. This means that an unstructured interview gives the interviewer unlimited freedom to probe into answers and to adapt to different interviewees and situations. and 125 . Miller and Brewer. There is no straying from the schedule by either party. 2003. 2003). 2000). 1998. A further advantage is high response rate.Chapter five: Research methods responses by asking additional probing questions (Robson.. However unstructured interviews require considerable interviewer skill and are difficult to replicate from one interview to another. semi-structured interviews and structured interviews. 2002. 1999).

or question answer options (Stewart and Cash. A researcher develops a list of themes and questions to be covered. Semistructured interviews. 1999). A semi-structured interview is more formal than an unstructured interview in that there are a number of specific topics around which to build the interview (Naoum. however respondents have no chance to explain. amplify. Interviews were conducted to gather valid and reliable data that are relevant to research questions and objectives. 2006). qualify.  They are focused on the respondents’ experience regarding the situations under study. They proceed on the basis of an interview guide specifying topics related to the research hypothesis.   They refer to situations that have been analysed prior to the interview.Chapter five: Research methods replicate. Thus a researcher may omit some questions in particular 126 . although this may vary from interview to interview. as Merton and Kendal (1946) named them. or focused interviews.. have four distinguishing characteristics:  They take place with respondents known to have been involved in a particular experience. 2003) was employed. In this study a semi-structured interview approach that consisted of both structured and unstructured techniques (Saunders et al.

The researcher prepared fifteen questions on e-commerce and economic development. interviewees were encouraged to add their opinions on other issues that were not related to their core responsibilities. Robson (2000) summarised the process as: The interviewer has worked out in advance the main areas he/she wishes to cover. For example. So.6.1 Interview Recording and Transcription Note-taking increases the interviewer’s attention to what is being said. 2006). Note-taking may hamper the flow of information because interviewees may become fearful or curious about 127 . if an interviewee starts to cover a new area in response to a question. 5. but is free to vary the exact wording of questions as well as their ordering. The interviewer can rarely take notes fast enough to record exactly what was said. during the interview with the Economic Ministry Under-secretary. follow-up questions were focused on the specific contexts of individual interviewees.1. there also can be difficulties concentrating on questions and answers. Any missing topics are returned to at the end of the interview (p90). the researcher focused more on the effect of e-commerce in Libya’s economic activities rather than paying attention to the payment system or other technical issues that are not the economic ministry’s responsibilities. because of the different backgrounds of the interviewees. which is encountered in relation to the research topic. then the interviewer keeps the flow going by asking relevant questions from his/her list of topics.Chapter five: Research methods interviews. Taking notes reduces concerns the interviewer may have about any technical problems with recording equipment at a critical moment (Stewart and Cash. These questions were presented to all interviewees. However. However. given the specific organisational context. However note-taking has some disadvantages.

undeniable records that threaten many people with unknown future consequences.Chapter five: Research methods what the interviewer is writing (Saunders et al. 2003. The researcher has used a combination of tape recording and note-taking to maximise the validity of data collection and minimise the weaknesses of both methods. A digital audio recorder was used through all interviews and note-taking was used to collect observable and nonverbal information. However. tapes provide permanent. Stewart and Cash. 5.6. 2006). 2006).2 Interview Sample Although the research question and objectives are about e-commerce and economic development in Libya. To overcome this problem a 128 . It also takes a great deal of time to review a lengthy tape to locate facts. 2003). the recording of interviews provides a permanent record and also allows the interviewer to concentrate on the interview. Additionally. difficulties were experienced in terms of time and cost due to the duality of the research activities between Libya and the UK. reactions. This enables the interviewer and interviewee to relax and focus on what is being said and implied. and ideal quotes while it may take only seconds to locate the same material in written notes (Stewart and Cash. Furthermore a tape recorder may pick up answers that were inaudible at the time (Robson. The interviewer experienced none of the problems mentioned above because the researcher checked the tape recorder before each interview and a mobile phone with a recording facility was used along with the tape recorder..1. Such problems did not occur during this research because the researcher paid attention more to the interviewees’ comments and relied more on the tape recording.

Therefore the researcher approached the responsible authority for each issue and requested permission for the interview. the researcher was able to identify a number of issues that are drivers and barriers for e-commerce (see Section 4.2). The Economic Ministry has also been asked by the Libyan government to be responsible for designing and putting in place the regulation for e-commerce and its activities in order to avoid and/or control shifting economic activities outside Libya’s economy. A two-hour interview with the Economic Ministry Undersecretary was undertaken. The key decision-makers for e-commerce in Libya were identified. By reviewing literature. The bank is responsible for all payment activities and controlling bank interest rates and money transfers including 129 .Chapter five: Research methods sample of Libyan managers. Each interviewee’s position. A major advantage to be obtained from this sample is that the participants are key decision-makers in e-commerce from different areas of the government and commerce. and this is considered as one of the limitations. The researcher reviewed the literature of e-commerce and economic development in order to be able to make such identifications. and the reason why they were interviewed are listed below:  Economic Ministry: The Economic Ministry is the responsible government body for controlling all economic activities in Libya. The number of the sample is relatively small (15 interviewees). decision-makers and employees with different work experiences acted as representatives of the Libyan context.  Central Bank of Libya: Central Bank of the Libya is the highest authority for banking and payment systems in the country. organisation.

 Libyan Postal and Telecommunication Company (LPTC): The Libyan Postal and Telecommunication Company is the only telecommunications infrastructure company in the country.Chapter five: Research methods international payments. Libyan domain names (LY) registration and database centre for government bodies. The company provides Internet connections. The bank has launched a National Payment System which is aiming to provide an electronic payment system to all banks operating in Libya as well as providing a point-of-sale system for businesses and organisations. The interviewee was suggested by the Central Bank of Libya and claimed to be the most suitable person to discuss and provide details of the project. LPTC is the only responsible organisation for ICT infrastructure in the country. hosting. An interview was held with a department-manager.  Libyan Telecommunication Technology (LTT): 100 percent of LTT shares are owned by the LPTC. An interview was held with the Chairman of the Automation Committee. The interviewee was appointed by the company to be the most suitable person to provide information about the company and its services.  Libyanna: Libyanna is 100 percent owned by LPTC. An interview was held with a National Payment System technical department manager. The interviewee is responsible for automating the LPTC services and improving the country’s telecommunications infrastructure. Libyanna is the only company that provides Internet 130 . It is one of the two mobile phone companies in Libya. the company is responsible for all fixed-line operation in the country as well as postal services. It is the only authorised Internet service provider in the country.

An interview was held with the operations department manager. the interviewee was introduced by the company’s management board and claimed to be the most suitable person to provide information about the organisation. technical. Libyan Commercial Bank is the oldest operating bank in Libya. 131 . for example:  An interview was held with the Chairman of BA Group.  Libyan Commercial Bank. Internet cafés are the main places for using the Internet in Libya. it is one of the banks that the Central Bank of Libya is aiming to link within the National Payment System. An interview was held with a department manager.  Interviews were held with three different Internet café managers. Also.Chapter five: Research methods connection over a mobile phone network in the country. the bank provides banking services to private and public organisations. The company uses the Internet in its day to day business. constructions and financial services in Libya. The researcher interviewed people from different backgrounds and at different managerial levels. The interviewee was introduced by the bank and claimed to be the most suitable person to provide information about the bank activities and its involvement with the National Payment System. BA Group is a group of four companies providing services in oil. Other interviews were held within the private sector in order to understand the real situation regarding Internet use in the country and in their organisations.

financial and oil companies Concord investment Oil and construction company Al Wesam Internet Café Al Reiad Internet Café Al-Mukhtar Internet Café Oil Company 132 . Central Bank of Libya. Libyan government company Libyan telecommunication technology. a group of companies in construction. The company is a branch of an international company and provides services in the oil sector in Libya. Table 5. the companies provide tourism services to nonLibyan tourists.  A project manager in a non-Libyan oil company.3: List of organisation interviewed Name of the organisation MOC OPTC LTT LIB LCB CBL BA CI OCC AW AR AL OC Ministry of Economy.3 lists all interviewees and contains each organisation’s name.Chapter five: Research methods  Managers of Tourism Companies. The company is a branch of an international company and provides financial services over the Internet to its clients. Libyan government company Libyan Commercial bank. BA Group. The abbreviations used as follows: Table 5.  A Business Development Manager of a financial company. Libyan government company Libyanna Mobile company. Libyan government Organisation of postal and telecommunication company.

beliefs. personality. The length of interviews varied according to availability and content but generally they were of one hour’s duration. 2001).6.Chapter five: Research methods Interviews were held in person rather than by telephone. open-ended questions have a much less biased influence on response than close questions (Malhotra. 2004). Moreover. The format of the questions involved in the interviews were open-ended. to obtain more detailed answers. In other words. Researchers use questionnaires so that they can obtain information about the thoughts. values. attitudes. since they allowed for the opportunity to explore. allowing more flexibility for both interviewer and interviewees as well as for better observation of the body language for certain expressions and attitudes. the researcher attempts to measure many different kinds of characteristic using questionnaires (Bell. Permission was obtained for using tape-recording devices before the interviews took place. 133 . 2004). Interviewees were given a brief outline and explanation of the research and its purpose. perceptions. feelings. Interviewees gave informed consent. 5. All interviewees were assured of the anonymity and confidentiality of the data gathered. freedom and spontaneity of answers. In this way interviewees sensed their importance for the purposes of the study and this helped to achieve more interaction. and behavioural intentions of research participants (Johnson and Christensen.2 Questionnaire A questionnaire is a self-reporting data collection instrument that each research respondent fills out as part of a research study.

a larger sample can be involved. and they are less costly. the researcher has adopted a questionnaire comprising closed questions. difficult to answer. it normally does not require a highly-skilled researcher to administer it. and quantification is straight forward. rating scales and a variety of other research methods. Disadvantages of closed questions are the loss of spontaneity and expansiveness (Oppenheim. they require no writing. 2002). chosen after considerable pilot testing. in order to overcome some of the disadvantages.. and the answers have to be recorded in full.or free. For example they are less time-consuming. Collis and Hussey (2003) emphasised a number of advantages that can be obtained by utilising a questionnaire compared to interviews for collecting primary data. Closed questions are easier and quicker to answer. Oppenheim (2001) stated that a closed question is one in which the respondents are offered a choice of alternative replies. Open.Chapter five: Research methods Collis and Hussey (2003) stated that a questionnaire is a list of carefully structured questions. unlike interviewing. attitudinal scales. In this study. Most questions are either open or closed. Saunders et al. This often means that more questions can be asked within a given length of time and that more can be accomplished with a given sum of money.response questions are not followed by any kind of choice. the questionnaire format has allowed candidates to add their views and opinions if these were not listed in the questionnaire questions. Other 134 . projective techniques. Robson. Oppenheim (2001) added that a questionnaire may also contain check lists. They may be asked to tick or underline their chosen answer(s) in a written questionnaire. Free-response questions are often easy to ask. However. 2001. (2003) argued that if a questionnaire is correctly worded. and still more difficult to analyse. with a view to eliciting reliable responses from a chosen sample.

(2003) attributed the validity and reliability of data collected to the rate of response. to the design of the questionnaire. 2003. pilot testing and then implementing the questionnaire (Wilson. 2002). In other words if the questions are likely to be understood differently by different respondents it could be argued that a questionnaire has failed to collect primary data required for the research. 2003. Questionnaire design should not be taken lightly. its structure and the rigour of the pilot testing. 2003). Saunders et al. incomplete data and may result in research moneys being wasted (Wilson.1 Questionnaire Design Saunders et al. or scientific principles that guarantee a perfect and ideal questionnaire. a questionnaire is completely dependent on the respondents’ responses (Ghauri and Gronhaug. P173). The reason could be that it is a set of specific questions. as improper design can lead to inaccurate information.2. 5. However. In addition. mostly with limited answers.. Malhotra (2004) argued that the great weakness of questionnaire design is lack of theory. Also answers may not provide suitable responses that reflect the research focus. selection of an appropriate format and design layout.Chapter five: Research methods advantages put forward by Babbie (2001) suggested that using questionnaires allows the production of descriptive statistics that are representative of the whole study population.. The questionnaire design adopted consisted of a number of steps starting with defining the research objectives. it facilitated replications and comparative studies.6. 135 . because there are no specific or strict steps to follow for designing a questionnaire.

one section includes all Internet technical issues.2. Saunders et al. piloting offers a good assessment for some important issues the researcher may be concerned about such as level of difficulty. The questionnaire was designed and distributed after the interviews and observations took place. and also to ascertain that the right data was being collected. These were compared to the issues discussed in the literature review. from the researcher’s point of view closed questions were easy to process and analyse. category questions. Additionally. Moreover. (2003) and included list questions. 2004. closed questions.2 Pilot Testing A pilot test of the research questionnaire was conducted in order to refine it and clarify that respondents had no problems answering the questions. the researcher then designed the questionnaire. 5. scale questions and open-ended questions with sufficient space for respondents to add additional data.Chapter five: Research methods The design format adopted involved open and closed questions using simple language that enabled the questionnaire to be completed in a short time. Once these issues were investigated and explored. The questionnaire was designed in sub-sections to be easy for answering. 2002. Ghauri and Gronhaug. 2003).. For example.6. willingness to answer sensitive questions and the time it takes to answer all questions (Brace.. another covers e-commerce issues. Questions were designed according to the types suggested by Saunders et al. Analysis of the interview data and observation issues identified the main issues. 136 .

Saunders et al.. (2003) identified several factors that should be taken into consideration in order to get the best results. (2003) referred to a number of methods of questionnaire distribution. Additionally. and to confirm the data collected was appropriate to the research questions. Saunders et al. This pilot test resulted in many important positive points and comments which led to the revision of the questionnaire.. which may be adopted in a research study. telephone questionnaire and personal delivery and collection questionnaire or some times called face-to-face questionnaire. For example the questionnaires were restructured into categories in line with the research objectives. in both Arabic and English. For this research study the researcher adopted face-to-face questionnaire because it guaranteed the highest rate of response (83.6.. postal questionnaire. 5. This stage is called `questionnaire administration` the main purpose of which is to guarantee the greatest number of respondents.2. in other words to maximise the response rate.3 Questionnaire Administration and Survey Sample Saunders et al. The aim was to double check the issues discussed above had been addressed. 2003).Chapter five: Research methods The questionnaire was piloted among a small but similar group of the respondents. two questions were rephrased for greater clarity and to remove ambiguity. (2003) explained that after a questionnaire is designed and pilot tested it is ready to be used for data collection by distributing it among the target sample when problems of access should be taken into consideration. online questionnaire. A population is a set of persons or objectives that possess at 137 .3 percent response rate in this research) (Collis and Hussey.

2003). 1994). to answer research problems or questions. self-employed and others). The literature acknowledged that the research approach referred to the systematic. This research targeted a sample of one hundred and fifty respondents. the methods of data analysis involved both quantitative and qualitative approaches. 2007). However. Collies and Hussey. Then the researcher approached the Internet Café managers to seek permission to do the questionnaire. most of the questionnaire respondents were students because Libya’s younger generation account for 50 to 60 percent of the total population (Country Review. In this study. this approach involved collecting and 138 . For analysing the quantitative data. therefore. These candidates were Internet users from different backgrounds (managers. employees. Each questionnaire respondent spent between 15 to 20 minutes completing the questionnaire with the researcher on hand to answer queries. First the researcher selected Internet cafés from a list. as expected. three Internet cafes were selected from 25 Internet cafés listed. 2002. Neuman (1997) argued that a population is an abstract concept because one can never truly freeze a population to measure it.Chapter five: Research methods least one common characteristic (Bailey. Data need to be analysed to achieve the research results (Ghauri and Gronhaug. Once the permission was given the researcher visited the cafés a number of times such that users of the Internet Cafés could complete the questionnaire in the researcher’s presence. focused and orderly collection of data for the purpose of obtaining information from them.7 Method of Data Analysis The data analysis method depends on whether the data collected is quantitative or qualitative. The respondents were selected randomly from Internet Cafés across Tripoli. 5.

a qualitative software package. 2006). 2006). documents and transcripts and helps to manage and analyse data gathered (Berger. It is suitable for dealing with large volumes of non-numerical data such as interviews. QSR NVivo 7).Chapter five: Research methods analysing numerical data and applying statistical tests. Analysis of the qualitative data involved transcription of audio-taped interviews as recommended (Johnson and Christensen.1 Qualitative Data Analysis According to Marshall and Rossman (1989) Qualitative data analysis is a search for general statements about relationships among categories of data. However.7. On the other hand it would be wrong for qualitative research to allow the available software to drive the general research strategy (Berger. was used to segment. The analysis of the two methods is explained below 5. which concentrates on measuring phenomena using computerised quantitative software. such as Microsoft Excel. At the core of the process of qualitative data analysis is the decision to analyse data manually or with the aid of a software computer package (e. NVivo. code and develop categories of the data analysed (Berger. the qualitative approach is more subjective in nature and focuses on interpreting and examining perceptions and behaviours in order to gain a deeper understanding of social and human activities. 2004). (P112) Coffy and Atkinson (1996) mentioned that there are a variety of suitable analytical approaches to qualitative research and many of them can be aided with computer software.g. Myers (1997) 139 . 2006). NVivo was selected to collate the range of qualitative data collected.

and which ideas are important and the most appropriate mode of representation. whilst facilitating editing activities without disturbing or invalidating existing coding and linking (Berger. methods used and type of data that the research is generating. and as such may push analysis in one direction with the result that some aspects of analysis might be a product of the technology used. facilitating iterative enquiries and help with sampling. Advantages included speed of handling the large volumes of data. The important issue is that the software can not perform data analysis. Additionally. For example. and the researcher was aware that they also have the potential to restrict and constrain the handling of different data types through their coding. coding and categorising of data. NVivo enables the researcher to return to. the researcher will define what analytical issues are to be explored. retrieve and maintain the contextual integrity of the data. Its rationale can be extended to the mapping of the software facilities and characteristics against the research approach. Additionally software management tools are able to provide speed and flexibility. but it is the researcher who must apply a development strategy to formulate the analysis. 2006).Chapter five: Research methods emphasises that qualitative analysis software packages are useful for organising the indexing. 2002). 2006). Thus it offers both loose and creative structures that are unaffected 140 . and linking processes (Berger. An early criticism of such software management methods suggests that they can be influenced by grounded theory. However. this is driven by the researcher. the sophistication of Nvivo software means that it is not connected to any one analytical approach (Richard. Seale (2000) pointed out there are advantages and disadvantages of using software packages in qualitative analysis.

All interview data were imported into the NVivo software after it had been translated from Arabic into English and transcribed. type of connection. 5. percentages.Chapter five: Research methods by editing the research to apply perceptions.g. In this way the use of tables and diagrams was effective to present this data in the most appropriate way such as presenting the data in numerical form e. law. etc. a second level of nodes was created according to the subquestions that were asked in the interview. a free node called ‘Ecommerce drivers’ was created from number of different free nodes (payment. 141 . For example for a question ‘Do you use E-Commerce in your organisation?’ a free node called ‘E-Commerce use’ was created. probably because their standardization makes the collection and analysis of data more efficient (especially when using dedicated software tools) and because the subsequent possibility to conduct statistical analyses on large samples allows conclusions to be drawn with a well defined level of certainty and confidence. The researcher used a free node technique to analyse the qualitative data of the research. As the researcher used a semi-structured interview. For example. The researcher used Excel spreadsheets for this research project to present and analyse the data gathered from the questionnaires. A third level of node was created in association of two issues that were collected in the interview.2 Quantitative Data Analysis Quantitative analysis methods for the questionnaire data are largely widespread. interpretations and theory development appropriate to the research study.7.

confidentiality. the researcher moved into another question. once the interviewee persisted in not answering. 2002. The task a researcher faces in this stage is to convince participants to answer as many as possible of the questions or interview’s questions willingly. et al. For example. the privacy of participants. participants’ reaction and the effect of the way in which researchers use. Additionally. a participant must not be forced or led to what she or he considers as embarrassing answer which could harm a respondent as a result of revealing the information (The researcher took into consideration the above discussed issues). (2003) stated that privacy may be seen as the cornerstone of the ethical issues that confront those who undertake research. or are related to. 2003). and at the same time respecting her or his refusal to answer (Ghauri and Gronhaug.8 Ethical Considerations Research ethics refers to the appropriateness of research behaviour in relation to the rights of those who become the subject of research work or are affected by the work. all interviewees were given the opportunity to not answer any question that they felt uncomfortable with. if the interviewee avoided answering a question. In this case there will be a relationship between a researcher and respondents.Chapter five: Research methods 5.. This is especially relevant with qualitative research rather than quantitative research of primary data collection. Participants 142 . That is. Consent.. which involve questionnaires and interviews as collection methods. the researcher would ask the question in a different format. Ethical issues are likely to appear in all the research stages and more particularly appear in the first stages of the research. Saunders. In this study the major ethical issue the researcher has dealt with in relation to participants is privacy. analyse and report data may all have the capacity to. Saunders et al.

thus. In the data analysis and reporting results stage. The chosen sample was defined and the interview and questionnaire techniques have been described.9 Summary This chapter has set out and described the research purpose design and approach. Transparency has been considered as a significant factor which may affect the validity of data collected from participants. The software analysis tools have been examined and justified and consideration has been given to ethical issues. the research purpose and objectives were clearly explained to the participants enabling them to make their decisions whether they do or do not want to participate. It has detailed the multi-approach of qualitative and quantitative research and describes the presentation of the data analysed. The participants’ right of privacy and right to refuse to answer certain questions were respected. 143 . 5.Chapter five: Research methods asked for their names not to be on any published materials but to use their job positions instead. and the analytical techniques adopted. anonymity and confidentiality are maintained to gain the participants’ satisfaction regarding their privacy rights.

Chapter six: Findings 144 .

Chapter six: Findings Chapter Six Findings 145 .

............4 Benefits of e-commerce to Libya......................................2 Cost .......................................... 222 146 ...........2........................2.....................................................................................................6........................................................5 Employment .............................. 194 6...................2...2.............................................................................................................................2...................................................................................................................................................................................... 187 6....................... 217 6.......................................................................................................................................................................................................................................................................9 Payment.................................................................................10 Traditional business ..................................................................7 Infrastructure ...............................................................................................................................................................................................................................................................................6 Summary............................2 E-commerce drivers and barriers.........8 Legislation.........................2...........Chapter six: Findings 6...............................2............4 Economic development ................................ 171 6.............................................................................................................................. 147 6........................................................................... 181 6.............................................2......................... Government.....1 Competition.................5 Other Comments ..........................................................................2... 164 6. 219 6... 147 6...................................................3 Culture...................................2.... 156 6........................................................................................ 222 6........................................ 176 6....... 212 6......11 Knowledge ...........................1 Introduction.2............................................................. 200 6.... 220 6......................................... 148 6....12 Security .............3 Pioneer Initiatives .........................................2.................................................................... 207 6...........................

All agreed there many barriers to e-commerce in Libya and all argued that it was time for the government to get involved and to help to set up the requisite infrastructure.2 E-commerce drivers and barriers There are certain barriers and drivers to e-commerce in Libya. culture and economic development effect were argued.3 percent.1 Introduction This chapter presents the findings of the study conducted in Libya to establish the requirements of e-commerce adoption in the country. On the other hand cost and economic development were claimed as the main drivers for e-commerce. 6. such as legislation. Interviewees were asked about e-commerce barriers. In this section each issue of e-commerce driver and barrier will be 147 . 46 percent were university students. These questionnaire results are summarised in appendices 10. Other barriers. One hundred and fifty responses to the questionnaire were received.Chapter six: Findings 6. Interviewees covered all Internet and economic development areas including decision makers. a response rate of 83. 54 percent of the respondents were either self-employed or employees in different sized organisations. Internet users and service providers in the country.3 Questionnaire respondents were from different backgrounds holding different positions in their organisations.

In relation to this study.1 Competition as a driver for economic development The literature argues that competition could drive the economic development of a country by providing cheaper products and services. The findings of this study confirm the above statement.Chapter six: Findings discussed individually to provide a deeper understanding of the real situation of ecommerce in the country and its effect on the national economy. However. and in Libya in particular. it could help developing the Libyan economy. 6.2. may sharpen competition. even in Libyan markets. He stated: It is probably right that e-commerce in developing countries will sharpen the competition. he argued that competition will have a positive effect on the country’s economy. 6. the researcher compares the issues mentioned in the literature review with the findings of this research study as it is listed below. but we don’t always look at it from this point of view.2. All interviewees agreed that competition will have a positive effect on the country’s economy The undersecretary of MOC argued that e-commerce in developing countries. He stated: 148 .1 Competition Competition can be considered as a driver and barrier for e-commerce in Libya.1. He explained that e-commerce may help Libyan consumers to save money by comparing different prices in the market.

the IT manager of CBL argued that the national payment system will create the opportunity for banks and companies to support business online nationally and internationally as well as giving the Libyan banks the opportunity to compete with international banks.g. travel. many people will shift there activity into e-commerce. This will create competition between traditional businesses and Internet businesses. customs etc. He argued that an alternative payment system (see Section 6.9) will create competition between those businesses adopting alternative payment systems and traditional businesses.. commission. The operations manager of LCB argued that the absence of electronic payment systems minimises the competition between banks and drives banks in Libya to deal with only one international bank for all their international activities. The marketing manager of LTT confirms the same statements of OPTC chairman. An example of e-payment system will help many people to get cheaper and faster products over the net if they can use e-payment systems instead of cash. The marketing manager of LIB argued that Internet service providers in Libya are complementing each other rather than competing against each other.Chapter six: Findings As a consumer in Libya rather than paying x billions for importing something from outside which already has many added up cost e. He stated: With the popularity of Internet websites and increasing numbers of Internet users. that amount could be reduced by using e-commerce and cut the cost.2. 149 . However. which may be the reason for not seeing a comprehensive reduction in the charges for Internet connection. The chairman of OPTC argued that businesses in Libyan markets will have to shift their activities into the web in order to survive.

the Internet café manager of AR argued that the absence of competition between Internet service providers kept the Internet connection charge high. He stated: I don’t know the exact price in my mind but using VOIP could reduce the cost of making the same phone call using fixed line by 90 percent The chairman of BA Group added that e-commerce will create competition between traditional and electronic businesses especially for buying products and availability of different type of products. from small to large companies. according to the BA Chairman. Such competition does result in reduction on telephone charges. are known for their low price and good quality which will result in increasing the business activities in this field. and stronger between electronic and traditional business. for example. Additionally. you have the opportunity to compare prices for different products or even for the same products. Secondly.Chapter six: Findings Competition between telephone service providers in Libya already exists. 150 . Libya’s agricultural products will be exposed to the international market. He stated: You can see offers on something. Additionally. this huge amount of competitors selling same thing you won’t be able to find it in a traditional trade or offline trade. and as we all know Internet prices are much lower than the high street prices. These products. He also added that by adopting e-commerce. the Internet café manager argued that e-commerce will help the development of the economy by introducing new companies and will force the traditional ones to change their way of doing business. the competition between traditional telephone services and voice-over-internet-protocol (VOIP). he claimed. He argued that competition is strong between electronic businesses.

Additionally. He gave an example of receiving payment in cash. I saw an agent advertising a Haje trip for 625 L.Chapter six: Findings 6. Also. who agued that e-commerce will create more competition and the Internet will drive many travel agencies to close. having things done electronically would help to speed up doing the job and having things on the system right away the moment they have been entered.2. He stated: As an example. The IT manager of CBL argued that the national payment system will 151 . I was by the central bank of Libya in Benghazi. he argued that reduction on customs and taxation resulted in increasing competition between traditional traders and electronic traders. The same opportunity for new services and businesses will be offered to the commercial banks in Libya. I will go to the travel company itself and reduce the price.1. He gave an example by stating: Last night.D.2 Lower production cost will encourage the entry of new business Lower production costs will encourage the entry of new businesses and thus increase competition and pressure to pass lower costs on to consumers as lower prices. security is costing us a huge amount of money. This was confirmed by the undersecretary of MOC. In the future. The chairman of OPTC argued that e-commerce will speed up the way of doing business in his organisation and it will reduce cost. rather than the manual way that we are doing now. because the cashiers deal only in cash. by using the Internet I wouldn’t see these agents.

Such actions. The undersecretary of MOC agreed that people will buy direct from the source rather than go to a physical shop. will drive local suppliers and producers to provide better services and quality to face the competition. The BA group chairman confirmed this view of the 152 . He stated: This system aims to develop technologies and techniques for banking activities of national banks in a way that qualify them to benefit mostly from the huge technologies provided by the project of National Payment System.Chapter six: Findings provide these banks with opportunities to provide services and improve their services quality. and to strengthen the competitiveness with international banks.3 E-commerce will shift market power from producer to consumers Consumers will be able to search among thousands of merchants for lower prices. The Chairman of BA Group agreed that Libyan consumers will save money and gain better services by using ecommerce. BA Chairman and LCB operation manager) that the Internet gives the opportunities of searching among large numbers of stores and providers to gain the best price offered. the feeling was the same as others. For private businesses. he argued. The same view was agreed by a number of interviewees (AW Internet Café manager.2. AR Internet Café manager. The wide variety of Internet websites provides consumers with the opportunity to buy when and where they please. thereby increasing the downward pressure on prices which will lead to a shift in market power from producer to consumer.1. 6.

1. they will have to compete and provide better services for lower prices. He argued that the markets will not be affected much by e-commerce stating that 153 . therefore they will be looking to buy from the source of the services rather than local agencies.2. Also. However. he explained that people are looking to save money. arguing that the Internet gives users the opportunity to choose and compare what they want to buy.4 The effect of competition on small businesses Competition could destroy small local businesses. The undersecretary of MOC argued that the introduction of e-commerce will affect Libyan local businesses. In either case this will affect economic activities such as taxation and employment. The LCB operations manager argued that competition between electronic business and traditional business may result in the disappearance of the traditional businesses from the market. He advocates that if local suppliers are going to survive.Chapter six: Findings MOC undersecretary. the chairman of the BA Group claimed that Libyan markets are consumer markets. he mentioned that using the Internet will drive many businesses such as travel agencies to close. These businesses could go elsewhere or cease to exist. Such issues can be seen in Libya. He said: E-Commerce gives me the opportunities of choosing your product or services from huge varieties of selections rather than the typical way of choosing using the traditional way. 6. He argued that international companies know about e-commerce and its related issues whereas Libyan businesses are still in the early stages of e-commerce knowledge.

154 . He stated that: The ministry was afraid that e-commerce in developing countries will effect competition. Additionally. The undersecretary agreed that competition in the commercial market will get sharper. the chairman of the BA Group argued that products in the market are either external or internal. This will enable them to save money and reduce the cost of buying which will create competition. the undersecretary of MOC argued that competition in the commercial market already exists. He explained that e-commerce may affect traditional businesses but will benefit consumers. He explained that many of the consumers would just go to the source and buy what they are looking for at a competitive price. Stating that: Many of the products in the market are imported from outside and if we take out agricultural products then we could say yes e-commerce would pose some threat to traditional commerce.Chapter six: Findings enabling e-commerce services would benefit the consumer by being able to buy the same product at reduced prices. Additionally. He further added that agricultural products will not be affected by e-commerce because of the already low prices and high quality of these products. This didn’t happen in many countries and this fear has dissipated. He stated that Libyan producers are always complaining that many international products have entered the country through Libyan importers or traders.

It is been stated by the undersecretary of MOC that Libyan producers are complaining that many international products have entered the market via Libyan importers and traders. the chairman of OPTC and the marketing manager of LTT argued that competition from e-commerce will not occur until the country’s infrastructure is ready. He stated that: A higher proportion of Internet users in the country are teenagers. studies have taken place related to the subject of ecommerce. So there is no threat in a short term. i. if any.Chapter six: Findings 6. competition is a result of the economic development cycle rather than e-commerce alone. where few. this study clarifies that competition in the commercial market already exists. Additionally. Most middle-aged and older people still prefer using a traditional way of doing business.1. Middle-aged and older people don’t really bother to learn any new technology because of the time-consuming and difficulty of catching up. 155 .2..5 Other issues In the case of Libya. before the introduction of e-commerce.e. Therefore. He stated that competition from e-commerce has not occurred in many developing countries. Most of it is done face-to-face. Another reason mentioned by the business development manager of CI is that most Internet users are young which will delay the arrival of competition in the country.

1 below summarises the above competition issues and introduces three new issues. The lack of e-commerce infrastructure in Libya has New delayed the effect of e-commerce competition Older and middle age people in Libya prefer using the traditional method of business which reduces New competition in the market Competition is a result of the economic development New cycle and not e-commerce Driver Driver Barrier Barrier Driver Driver 6.2.1 E-commerce reduces costs All interviewees stated that cost is a major issue for e-commerce.2. The undersecretary of the MOC claimed that the introduction of credit cards in the country will encourage people to 156 .2.2 Cost 6.1: Competition issues in Libya Item No Driver or barrier Driver Competition could drive the economic development of a country by providing cheaper products and services 1 Lower production costs will encourage the entry of new businesses and thus increase competition and pressure to pass lower costs on to consumers as lower 2 prices. Consumers will be able to search among thousands of merchants for the lowest prices.Chapter six: Findings Table 6. thereby increasing the downward pressure on prices and leading to a shift in 3 market power from producer to consumer Competition could destroy small local businesses. In either case this will affect economic activities such 4 as taxation and employment. These businesses could go elsewhere or cease to exist. Table 6.

he argued that the company provides some services online such as consultation. Clarifying that before using the Internet as a service platform the company used to spend a large amount of money travelling to visit clients. Additionally. the company usually sent a consultant to the client’s office to resolve problems but using the Internet he stated the company could provide better services as the company consultants could work together on one project without leaving the office.Chapter six: Findings use e-commerce. auditing and book-keeping. according to the chairman of BA. He stated that: 157 . He summarised: If everybody started using e-commerce. The committee chairman of OPTC agreed that e-commerce will save money for his organisations and will speed up the way of doing business. if we can use it in the appropriate way. Giving an example in the accounting field. and time and money will be saved. he explained that using a traditional method. Without ecommerce he said the company will not have the opportunity to provide these services to customers from different countries. The operations manager of CBL argued that e-commerce reduces the cost of operations. Almost everything in business can be done via the Internet especially in our fields. He explained that ecommerce benefits his organisation in many different ways stating that benefits differ from one field to another. He also claimed that competition between service providers will drive down costs. e-commerce results in reducing general expenses especially for private companies as well as giving buyers a variety of product selections. E-commerce is a great tool. our quality of life will improve. benefiting consumers. Another example given was the consultation field.

sending all documentation by email to our Athens branch.2. email and VOIP reduce communication costs. whereas the general manager of OCC stated that most of his organisation’s business activities take place on the Internet. making it easer to communicate with 158 . Most of the negotiation takes place over the Internet. Other interviewees such as the Business development manager of CI argued that ecommerce and the Internet helped the company to reduce the cost of communications and employment. When we get a contract we usually contact our supplier and sub-contractor by email. a reduction of connection costs has to be implemented. get information back with project requirements and price estimations and then finally submit our proposals. where only 8 percent strongly disagreed with the statement. This brings in more customers. He argued: For our business.2. e-commerce reduces the cost of employment as many customers can complete transactions online. The BA Group chairman argued that his organisation managed to save up to 90 percent of communication costs by using VOIP. our next step is to start thinking of adopting an electronic banking system for our customers that will reduce costs and staff headcount. Additionally 31 percent of the candidates stated that in order for the Internet to be successful in Libya. He stated: We usually do our market research on a particular project.2 E-commerce reduces communication cost According to the Chairman of the BA Group and the general manager of OCC.Chapter six: Findings As soon as the project is finished. Thirty three percent of the questionnaire respondents strongly agreed that e-commerce helps to reduce costs. reduces the cost of printing and communication. 6. especially the VIP self-trading system.

2. Similarly.Chapter six: Findings customers. The Chairman of BA and the Internet café manager claim that e-commerce reduces the trading cost for importers and reduces selling cost. Cost reduction is the main driver for e-commerce. He argued the company has to make sure that such expenses are covered in order to reduce the price. AR) stated that the cost of PCs. Giving an example of Electricity Company. when they can do it electronically and avoid people wasting their time in queuing as well as destroying the employee’s life by doing nothing but collecting money? 6. hosting and domain names is also a barrier for ecommerce in Libya. the operations manager argued that implementing the payment system in Libya has cost the Central Bank of Libya 40 million Dinar.2. The LTT marketing manager argued that the high charge of Internet connection was due to the cost of implementing ATM technology in the server of LTT.5 E-commerce implementation cost The cost of implementation is one of the major e-commerce barriers.2. 159 .2. two Internet café managers (AW. Additionally.2. network.4 E-commerce reduces cost of customer service and after-sales service The marketing manager of LIB argued that e-commerce helps in reducing the cost of customer services. he stated: Why does the electricity company have to employ someone whose entire job is standing at a cashier window collecting money. and finally reducing marketing costs. 6.3 E-commerce reduces selling costs Reducing selling costs is one of the main drivers of e-commerce.2. 6.

Others argued that the Internet does not cover the whole area of the country . The undersecretary of MOC explained: E-commerce is dependent on the telecommunication infrastructure. In addition to above. The general manager of OCC and the undersecretary of MOC maintain that the misunderstanding of e-commerce and the poor communication infrastructure with a high cost of Internet connection are a barrier for e-commerce use. £25 for ADSL services of 64kb and at least £350 a mouth for 512kb using satellite technology.2.4).Chapter six: Findings 6. AR. the MOC undersecretary claimed that 25 percent of Libya’s citizens have PCs in their homes.2.7 Cost of Internet connection and telephone charges ‘The cost of Internet connection is high and needs to be reduced’ this statement was argued by all interviewees. Additionally. and OCC). and has to take e-commerce issues very seriously if they want to develop and catch up quickly. However. Access to the Internet according to some interviewees (OC. the Libyan government has taken action to overcome such barriers. our land lines still lack good infrastructure as well as high charges for connecting to the Internet and making phone calls. a charge of £3500 has to be added for installation (AW. 6. for example by providing One Laptop Per Child (see Section 6. according to three managers. AR) cost around £250 a month for a peed of 128kb.11) and reducing the customs duty on electrical equipment (see Section 6.it is only available in cities.6 Cost of hardware and software The cost of hardware and software remains out of the reach of many people. The general manager added: The main barrier is the infrastructure.2. Another 160 .2. The government has to pay attention to infrastructure.2.2.

it all depends on the infrastructure. we have put the price higher in order to reduce the demand. with time the price will be decreased gradually. Justifying the high charges. the marketing manager of LTT stated that ADSL needs ATM technology in landline digital servers. As he stated: Economy rules supply and demand. He admitted that the prices are slightly high compared to other Internet providers such as LTT. some times exceeding 70 percent.D (£4500) a year was reduced from 55000 L. He argued that 256kb service which cost now 9000 L. Reduction in costs is our priority. Prices remain high in order to cope with the high demand. In agreement with LTT marketing manager. the manager of AR stated that the cost of connecting to the Internet has fallen gradually through the years citing the reduction of Internet charge per hour from £6 to 50p. 161 .Chapter six: Findings manager (OCC) explained that his company pays around £750 a month for 1mb as well as £75 a month a cable rental using a lease-line technology. we have reduced the price by huge percentages. and that recently this service has been put in place. The marketing manager (LIB) stated that Internet mobile technology costs 1 Sterling penny for 1kb. arguing that the reason was the service is aimed a businessmen who want to access their email on the move.D (£27500) a year admitting that the price of Internet connection is extremity high compared with other international ISPs explaining the reason of that: New technology costs a large amount of money to put in place.

The LIB Marketing manager stated that people are looking to save money and they adopt the e-commerce to do so. Delivery infrastructure (postal services) does not exist in Libya. the country was still in the negotiation process with international companies and the amount of investment by then was not an issue. at the time this research was taking place. Therefore. the BA Chairman argued that the main driver of e-commerce is saving money. 162 . For example. international companies cannot deliver physical products to customer’s premises.2. the need for such infrastructure is still not the priority in the country so there are no e-commerce activities in the country for the time being.2.4). He argued that consumers can buy from the Internet at competitive prices and save money which can be re-invested in the economy (see Section 6.2. Additionally.Chapter six: Findings 6.8 E-commerce Increases saving Interviewees argued that e-commerce helps consumers to increase their savings by purchasing at lower prices from the competing providers. however. However. There are some issues related to cost that were mentioned in the literature review but have yet to been seen in Libya. Libya is building an ICT infrastructure. But in the near future the issue will be a necessity for business environments. the cost of implementing ICT infrastructure is still not yet an issue in the country.

The operation manager argued that: The central bank of Libya is sending employees from all Libyan public banks outside the country for training from time to time to learn English and get some training in banking electronic systems.2. As an example. When the system is in place and working.2 lists issues that were mentioned in the research findings. Table 6.Chapter six: Findings 6. He argued: It is even more important that it will help banks to complete their transaction quickly and easily. to clear a cheque to your account from someone else in a different bank will take from a week up to 40 days for the time being. Table 6. This will save time and money. He added that e-commerce reduces the cost of transactions in the banking system rather then the traditional methods.2: Cost issues in Libya Item Reduces costs Reduce communication cost Deliver information in digital format Reduce the cost of supply chains Reducing selling cost Reduce buying cost Providing opportunities to sell Reducing the cost of customer service and after-sales service Implementation cost Maintenance cost Shipping costs Cost in term of hardware and software Cost of Internet connection and telephone charge Cost of implementing ICT infrastructure 1 2 3 4 5 6 7 8 9 10 11 12 13 14 No Drivers and barriers Driver Driver Driver Driver Driver Driver Driver (Not yet) Driver Barrier (Not yet) Barrier (Not yet) Barrier (Not yet) Barrier Barrier Barrier 163 .9 Other new issues The Internet café manager of AW and the operations manager of LCB argued that implementing e-commerce will create a training need for the use of new systems and hence a cost. Other workshops and training courses are taking place inside the country. that type of transaction will take seconds.2.

He stated: Persuading people to adopt and accept electronic payment will be a barrier. he explained that e-commerce is still in its early stages and therefore resistance is not yet apparent.2. The undersecretary of MOC argued that Libyans are resistant to culture change. 6. He explained that job changes are not accepted by many Libyans.2. Additionally.1 E-commerce conflict with culture and religion The marketing manager of LIB argued that e-commerce gives citizens the freedom to express different opinions and thought. personal cheques are not accepted in many places.3 Culture Interviewees were asked if culture can affect the adoption of e-commerce. which can be seen as a barrier for e-commerce adoption in a Muslim country such as Libya. How can we expect them just to accept e-commerce easily? The LCB operating manager argued that people will not accept new technology easily which will affect the adoption of e-commerce. The chairman of OPTC claimed that culture can be a barrier for adopting a new system. people still don’t have a culture of writing a cheque. However. the marketing manager of LTT emphasised that Libyans who do not have payment cards will resist the adoption of e-commerce He explained: 164 .Chapter six: Findings Delivery infrastructure Increase saving Cost for training in using the new system E-commerce reduce the cost of banks transactions 15 16 New New Barrier (Not yet) Driver Barrier Driver 6.3. Everyone has to have cash. He stated that Libyans generally benefit from ‘an easy life’ as a result of government policies.

g. He argued that Libyans are change adopters.2. giving as an example the move from living in tents towards living in high buildings and towers. e. However. and according to the chairman of BA.2 Intervention to ban the sale of certain items that violate culture The manager of AR said that Libyan culture. culture will not be a barrier for ecommerce adoption Libya. traditions and values may intervene against this type of economy and create certain barriers. 165 . traditions and values. He argued: People like change and new methods of living their lives which could count as a driver.Chapter six: Findings People who have the opportunity to travel abroad and use the internet and manage to get credit or debit cards know what e-commerce and Internet are about. 6. He then mentioned that e-commerce could bring the right structure and help drive economic development. He explained that e-commerce brings a new way of doing business and shopping. But those who haven’t had the chance to go abroad know nothing about e-commerce and will face difficulty in getting into the new technology.3. selling certain goods and products that conflict with such culture. The marketing manager of LTT argued that people will fight not to adopt e-commerce if they believe that their culture will be affected. and will not accept easily the changes in their lives.

there were no comments on child protection and related issues. The marketing manager of LIB emphasised that paying interest on credit cards is not allowed in the Islamic religion. People will start trading if they have the opportunity. the Central of Bank of Libya has announced the introduction of payment cards in Libya. The undersecretary of MOC claimed that the younger generation will grow up using the Internet and e-commerce. such issues will arise in the future. However. The undersecretary of MOC argued people will not wait for legislation to use the cards. 6.2.3 Offering credit card services with interest rate Credit cards are expected to become common in Libya. especially because the majority of Internet users in the country are teenagers.3.4 Child protection The Internet and e-commerce are still in the early stages. However. therefore. interviewees’ opinion on the adoption of the credit cards varies. They are waiting for the moment cards are issued and ready to use. the IT manager of CBL explained that the National Payment System will enable businessmen and companies to accept payments electronically.2.Chapter six: Findings 6. 166 . However.3. they won’t wait for legislation. he explained: We are expecting the spread of credit cards in Libya by next year according to the plan of Central Bank of Libya.

The same comments were made by the operation manager of LCB who argued that the Central Bank of Libya 167 . He stated: E-commerce will be a good thing with convenience and the ease of use. The undersecretary of MOC argued that the uptake of credit cards will drive many businesses to change their culture and business models. the Internet will be a very useful tool for them.Chapter six: Findings 6. 6.6 Change in business culture Seven interviewees agreed that e-commerce will change the business culture. giving an example of the convenience of e-commerce to Libyan women.2. The marketing manager of LIB and LTT explained that e-commerce will change the way of living.3. speed up the way doing business and save time in social life.2. Additionally. He explained: For Libyan women who are not usually allowed to go outside of their house according to the customs and tradition or who are busy with house-keeping and have no time to go shopping. Such a culture exists in most Arab countries where women are not encouraged to work or be involved in any way with men who are not related to them. he argued that it should benefit men as well in that they do not have to wait for their wives while they do the shopping. changing business culture will be good for the business and customers. The OPTC chairman explained that his organisation is already changing its business culture by introducing new electronic services.3.5 E-commerce helps to maintain culture The Internet café manager of AW argued that e-commerce could help to keep the culture and customs of a country.

Chapter six: Findings will help other banks to change their traditional business methods. 53 percent of respondents indicated that they already have a website. Evidence of business culture changes were confirmed by the chairman of the BA group and the general manager of OCC. He also mentioned that Internet banking will be the next step for Libyan banks after the adoption of the National Payment System. which suggests that the Internet is already having an effect on people’s lives.3 below indicates that many Libyan organisations and users have already started using the Internet for e-mail purposes. and believed that e-commerce can provide organisations with more advantages. Table 6. Both organisations are using e-mail and VOIP for their communications and business activities.3: Benefits of e-commerce Strongl y agree Internal e-commerce speeds communications Make organization more effective E-mail is useful for communication E-commerce provide efficiency Increase storage methods Lower cost Retained/gained customers Better relationship with partners Less paper handling Better control over information Reduction of admin tasks 53 25 55 53 54 49 48 42 49 54 36 Agree Not sure 31 48 30 32 25 37 39 37 43 49 55 Disagre e 13 13 13 13 17 18 7 17 3 17 13 Strongly disagree 12 19 18 11 19 13 5 19 7 7 6 32 37 19 13 24 17 19 19 1 20 25 Additionally. Table 6. Thus it would appear 168 . For example 85 participants believe that e-commerce speeds communications and at least 74 of the respondents argued that E-Mail was useful for communication.

Another issue was mentioned by the MOC undersecretary and five other interviewees: education and reduction on customs duties on imported electronic equipment may help to change the culture of Libya’s citizens. However. Others argued (OPTC. He stated: Some people don’t really believe they can trust websites. one interviewee (LIB operation manager) stated that e-commerce in Libya is still in its infancy in terms of knowing its disadvantages. BA): If we don’t move quickly. they explained that changes in business culture will create money and help the country’s economy.7 Other issues Another issue mentioned was the mistrust of service providers. He argued that time is needed to clarify the disadvantages in the country. The problem is that it will be difficult to convince people that something is real or not through website advertising. people will feel scared to use the Internet and some of them may never use IT.3.Chapter six: Findings that e-commerce may not conflict with the culture of the country. Additionally. it is difficult to know what the full effect of e-commerce will be on Libya’s culture at this stage. the marketing manager of LTT stated that mistrust that has built up over the years has affected users. He argued that it is extremely difficult to change people’s beliefs and reaction against the Internet and its lack of ability to keep information and payment details private. 6.2. However. referring to the saving from 169 .

Additionally. He said: If we provide incentives for people to use electronic payment and they are encouraged to use it for the first time.4 Table 6. all issues mentioned in the literature review were confirmed in the research findings. once it’s used and accepted people will get used to it.4: Culture issues in Libya Item E-Commerce conflicts with culture and religion Intervention to ban the sale of certain items that violate culture Offering credit-card services with interest rate Child protection Religion issues E-commerce helps to maintain culture Change in business culture E-commerce maintains Arab culture for women Mistrust of website is a barrier for culture change Training and education can change the culture regards e-commerce For culture change.Chapter six: Findings using the e-commerce. I think adopting things now is important. The OPTC argued that people need to be encouraged to use e-commerce for the first time. there should be a nationwide strategy to push new technology. a number of new issues were mentioned. then they might realise the benefits. The previous and new issues are listed in Table 6. The OPTC chairman stated that reducing costs can help people to change the culture. people may need to be forced to use the technology No 1 2 3 4 5 6 7 New New New New Drivers and barriers Barrier Barrier Barrier Barrier Barrier Driver Driver Driver Barrier Driver Driver 170 . In a summary.

He added: We have no choice but to adopt e-commerce. These costs could be reduced significantly by using e-commerce. we can see the successful trail in Tunisia. For tourism as an example. LIB. OPTC. All interviewees were asked if e-commerce will effect the development of the economy. 171 . Believing that e-commerce would help the country to advertise its attractions and help to develop the tourism industry. such as the Mesrata FreeZone. commission. The undersecretary of MOC agreed that e-commerce will increase competition. which already has many added cost e. customs etc. travel. The undersecretary of MOC argued: I don’t think e-commerce would have any bad effect on the Libyan market. but he also argued that competition will help to develop the economy. we can expect to see a significant increase in business.g. LCB and CBL) agreed that ecommerce will help developing the economy. BA. travel agents could advertise Libyan historical places using flash technology that will definitely bring more business to the whole country.Chapter six: Findings 6. as a consumer in Libya rather then paying x billions for importing something from outside. E-commerce could help developing the Libyan economy. he said: Many people don’t know what Libya has to offer. OCC. If we put things on the web and provide services over the Internet. He ended saying: If we start providing services in Libya using e-commerce we would help developing our economy and be in a better economic position. AW.2. He explained the importance of Libya’s location and tourists’ attractions in the country.4 Economic development e-commerce will have a significant effect on developing the economy of Libya. LTT. Most interviewees (MOC.

6. The same comments were supported by the IT manager of CBL. not one of the interviewees mentioned the delays of economic development of e-commerce.4. He explained that there is no connection between the bank branches.2. However. The infrastructure of Libya is still in the early stages of development. He said: I have no doubt about the power of e-commerce on economic development.4. The reason may very well be the good financial situation in Libya and its surplus of oil. 6. Additionally the chairman of BA argued that if the technological infrastructure is improved and used as an economic tool then ecommerce will make a big difference in the economy. The operation manager of LCB argued that developing the infrastructure of Libya will delay the adoption of the banking system. Such 172 .Chapter six: Findings He argued that if tourism companies and government ministries introduce these attractions to the world electronically in professional form then that on its own will be enough to help develop the economy.2.2 E-commerce could shift economic activities away towards advanced regions It is argued in the literature that adopting e-commerce technology could shift economic activities away from marginal or disadvantaged regions towards advanced regions.1 The cost of adopting e-commerce could result in delay to economic development The cost of e-commerce adoption varies from one country to another.

6. For example.10) and many others will shift there activities onto the Internet.2. but such threats may be seen in the future. not in the short term.3 The success of e-commerce can be at the expense of local enterprises The success of e-commerce can be at the expense of enterprises in direct competition with international suppliers. e-government and the importance of human resources development to meet the likely need for information technology (IT) professionals. the undersecretary of 173 . The chairmen of the BA group said that the Libyan market is more a consuming market than a producing market. they will have to catch up with the technology. e-commerce will create no threat (see Section 6. One interviewee (the undersecretary of MOC) said that there is a need for coordination within Libya’s markets.10). The undersecretary of MOC and the Chairman of OPTC argued that e-commerce will cause many businesses in the market to fail (see section 6. He contends that there is an urgent need for coordination among African countries in order to provide a joint information infrastructure that can contribute to the development of information and its applications. He referred to the expansion in ecommerce activities which is anticipated to result in an increase in the volume of the Libya’s exports.Chapter six: Findings concerns were not expressed by the interviewees. Therefore. given the future of Libya’s distinctive position as a trade centre and a major financial market in the region for re-export. The operation manager of LCB stated that e-commerce may create threats to business in Libya.4.2. However.2. The Internet café manager of AW argued that many new e-commerce companies will be created and if traditional businesses are to survive.

2. Additionally. shipping and many other 174 .5 Adoption of e-commerce will result in reduction of costs The BA group chairman argued that reducing costs and increasing the possibility of opening new market places will help to increase production which will provide competitive advantage aiding the development of the economy. the reduction of costs in employment. The Internet café manager of AR argued that the internet market is bigger than local markets of any country and has no limit.2. By using e-commerce consumers will save money which will contribute positively to the economy of the country. the Libyan market is a consumer market.2. travel.Chapter six: Findings MOC argued that competition between Libyan and international importers and traders is already exists in Libya (see section 6. 6. The undersecretary of MOC argued that ecommerce can help consumers to save money by buying cheaper products (see Section 6.4.2.4. 6. He maintained that 70-80 percent of consumer products are imported.1). Furthermore.1). The undersecretary of MOC argued that as soon as e-commerce is available in the market many businesses will be involved and the potential of Business to Business activities will be significant. he added.4 E-commerce allows online businesses to gain traditional business customers The internet allows online businesses to gain new customers from the traditional businesses.

is because of the early stage of e-commerce adoption in Libya at the time of the study.2. He stated that there is no way back.7 Other issues The Undersecretary of MOC argued that there will be some contraction of the economy and reduction in government income (e.2. He said: You can’t clean your blood without losing some of it He meant that even if some problems appear in the beginning that will not stop the government. in order to provide a human resources which will contribute to the development of the new economy. everybody will be happy with the final result. The reason.2). interviewees could not comment on the benefits to Libya’s society or economic development. taxation) at the beginning of e-commerce adoption.2. 6.4.4. 175 . The same case applies to companies who have less access to technology and Internet market share. For example.g. Additionally. He stated that time wasted will cost the country in money and time to catch up with other countries. the IT manager of CBL mentioned that training and education are needed.Chapter six: Findings aspects will result in money saving which can be reinvested in the country’s economy (see Section 6.6 Issues not mentioned There were some issues that were mentioned in the literature review but were not in this study. it is only forward with the e-commerce issue. according to the researcher’s best knowledge. 6.

5: Economic development issues in Libya Item The cost of adopting e-commerce technology could result in delays to e-economic development. E-commerce will provide a variety of products from all over the world. so that social returns to this investment are lower than private returns. Internet investment involves defending market share. Adopting e-commerce technology could shift economic activities away from marginal or disadvantage regions towards advantaged regions. The success of e-commerce can be at the expense of local enterprises in direct competition with international suppliers. Government should encourage the use of a country resource to provide cheaper prices than anywhere else in the world.2. Table 6.5 Employment 6.Chapter six: Findings In summary.2.5.1 E-commerce may result in job cuts Employment and job losses were other barriers mentioned by interviewees. Table 6.g. One interviewee (OPTC committee chairman) argued that: 176 . taxation) might be even lower than company-level returns The Internet allows online businesses to gain new customers from traditional businesses. Companies with less access to the new technologies. Training and education are needed to create HR for Economic development No 1 2 Drivers and barriers Barrier (Driver) Barrier 3 5 6 Barrier Barrier Barrier 7 Barrier (Not seen) 8 10 New Driver (not seen) Driver Driver 6.5 lists all issues that were mentioned related to economic activities. Government returns (e.

Furthermore. The reason for giving this example was that European citizens need money to pay for rent and living expenses. the undersecretary of MOC argued that unemployment in Libya was not because there are no available jobs to applicants but is rather having the right people in the right place. The official number of employees in Libya. However. There are many studies showing the percentage of unemployment is almost the same in all decades. We are struggling with the high percentage of unemployment.000 foreign employees in Libya. He explained that the mentality of the Libyan people. whereas in Libya this pressure is absent because food. might be higher than the population.000 unemployed Libyan citizens. The marketing manager of LIB argued that: The most important driver is helping in administrative work. will not accept just any type of job or fit in any positions that become vacant in developing nations.Chapter six: Findings 188The main problem of e-commerce and e-commerce in general is its effect on employment. drink and living expenses are provided by the government at exceptionally low prices. He explained: It is because of the economic cycle. Reduction in administrative work is another driver that was mentioned. but we have 300. He explained: We have 1. 177 . according to Saif Aleslam. and that confirms e-commerce is not the reason for unemployment but the development of the economy.000. he claims that ecommerce is not to blame for unemployment. He gave as an example the opposite: Europeans and their ability to adapt a new job in a new place.

2. Additionally. improve and educate themselves to be redeployed in another position. An additional driver he pointed out was self-organisation. They are wrong. and that affects the efficiency of business and delays production. people have to leave their job just to pay some bills because they have to go to the premises of their creditors. The undersecretary of MOC argued that e-commerce will force people to learn. He argued: E-commerce will drive people to be more organised with their jobs and payments. 6.5.Chapter six: Findings He explained that this is probably due to many employees of the government still being paid even though they have left the job or may even have died! The current administration systems are so poor that they have yet to catch up.2 E-commerce may result in creating new job opportunities The belief that e-commerce can create new jobs was seen in many of the interviewees’ statements. He also explained that many low grade jobs can be eliminated by adopting new technologies. The IT manager of CBL argued that the National Payment System training programme will contribute in providing human resources that are needed for the banking sector and in creating new job opportunities. He added: Our traditional way of doing business is time consuming. the Internet Café manager of AW argued that e-commerce can provide opportunities for unemployed people. The same view was shared with the LIB marketing manager who argued: People will think that e-commerce will affect the employment rate in the country and will slow the wheel of economic development. The people who are made redundant could be redeployed in other positions and help in different ways. He gave as an example 178 .

See Figure 6.1: Reduction of administration work All respondents who currently have a website update them themselves which can be an indication of job opportunities being created by e-commerce adoption. the BA Group chairman argued that e-commerce can create new job opportunities by providing services internationally. Questionnaire respondents were asked if e-commerce will help to reduce administrative tasks.Chapter six: Findings creating websites for car sales companies. These opportunities. can be for Libyans or non-Libyans to participate in delivering international services. he explained. Thirty six participants strongly agreed.1 Figure 6. Additionally. only 6 participants strongly disagreed. 179 .

E-commerce may result in job cuts.6: Employment issues in Libya Item Employment is an important factor in any economy. All issues are listed in Table 6. Such training and education will create new job opportunities and help in developing the country’s economy. In summary.2.6 Table 6. all issues mentioned in the literature review are confirmed in these research findings. LIB marketing manager and operation manager of LCB all argued that training and education are needed for Libyan employees. The IT manager of CBL.3 Other issues It has been argued by the MOC undersecretary that the unemployment is a result of economic cycle rather then e-commerce. E-commerce may result in creating new job opportunities and encouraging employment education and gaining new skills Unemployment is a result of economic activities and not e-commerce alone Training and education are needed to create new job opportunities 1 2 3 New New No Drivers and barriers Driver Barrier Driver Driver Driver 180 .Chapter six: Findings 6. some new issues arose. MOC undersecretary.5. He explained that all studies show that the percentage of unemployment over the years is constant. However.

The undersecretary of MOC stated that the Libyan government realises the benefits of e-commerce and has made the decision for adoption. 181 . The interviewees also indicated that some barriers are created through governmental intervention. All agreed there are many barriers to e-commerce in Libya and all argued that it is time for government to get involved and help setting up the infrastructure.2. Government Interviewees were asked about e-commerce barriers.2. such as banning import and advertisement of goods and products manufactured in certain countries. He explained that the successful adoption of e-commerce in Tunisia encouraged the government to go ahead.6. Another important role that can be identified by the Central Bank of Libya’s IT is that the bank is working on increasing the benefits of the large development of information technologies and improving the environment for banking activities. or actions of other governments through creating barriers relating to copyright and patent laws. 6.6.Chapter six: Findings 6. He stated providing services using ecommerce can help the country’s economy.1 Government always plays a role in economic development Government always plays an important role in economic development.

7) and LTT is developing the internet connection in the country (see Section 6.2. On the other hand.2). OPTC is developing the ICT infrastructure (see Section 6. 182 . Further more the marketing manager of LTT stated that ADSL needs ATM technology in landline digital servers.Chapter six: Findings 6.2. However. all interviewees stated that the cost of Internet connection is high and needs to be reduced (see Section 6.7) . explaining that the telecom service company is responsible for the infrastructure.2 Government support of investments in country’s infrastructure The Libyan government is supporting all the infrastructure investment in the country using its different agencies.2.9). such as new company registration.2.6. Some argued that the Internet does not cover the whole area of the country and that it is only available in cities. the BA chairman argued that e-government adoption and payment systems implementation are the major drivers of e-commerce in the country.2. banks responsible for payments systems and the Ministries of Justice and Economy are responsible for legal issues. The undersecretary stated that e-government applications. recently this service was put in place which delays the introduction of the services to the citizens. He stated that his company’s responsibility is last on the list as a priority for using e-commerce. The MOC Undersecretary explained that the development of ecommerce legislation is underway (see Section 6. The committee chairman of OPTC argued that there is no one organisation responsible for e-commerce barriers.2.8) and the Central Bank of Libya is developing the National Payment System (see Section 6. admitting that all government organisations should work together to have the right infrastructure for e-commerce.

people 183 . The IT manager of CEL argued that this programme is part of a strategy to ensure efficiency and effectiveness of payment systems in the country.Chapter six: Findings have already been implemented and that there has been an e-government adoption policy since 1984 when the Libyan Prime Minister was thinking of using fax for all government work. We have to be up-to-date with rapidly developing technology. The undersecretary of MOC stated that the spread of credit cards across Libya is expected shortly referring to the plan of the (CBL). He explained: If the credit card system is distributed across the country then that will build a very good infrastructure for e-commerce in the country. BA and LIB) that a National Payment System is a big driver for ecommerce. As regards payment system adoption. He explained: As a company we are trying to help to develop the country’s infrastructure. He adds that CBL and other Libyan banks are implementing a programme of technological developments in banking systems. the LTT marketing manager agreed with three other interviewees (OPTC. He argued that the government is working on developing full e-government covering all government departments in order to centralise information. We believe in the rapid change of our daily life. The marketing manager of LIB explained that another payment system has been developed by the company to enable customers to pay for activities over the mobile phone network. In addition to that the operation manager of LCB stated that CBL is working on increasing the benefits from information development by improving the banking activity environment and introducing the National Payment System.

The undersecretary of MOC argued that the e-commerce law implementation is in process and should be ready by 2008. The decision was made by the Minister of Economy and Commerce to start the process of establishing a committee for this purpose. OPLC). As an example. Admitting that there are some barriers to adopting e-commerce law.2. Furthermore he said that the Economic Ministry has reduced the cost of importing technology equipment in order to encourage citizens to benefit from the cheaper new technology. we set up a plan to help people using new technology and devices and we reduced the customs rates to be only 5 percent for all electrical equipment.3 Government is responsible for setting legislation and regulation e-commerce law and regulation is one the drivers taking place in the country.Chapter six: Findings won’t have enough time to spend in dealing with many issues such as paying bills etc that is why we came up with this solution.6. he said: 184 . was the aim to provide one million portable computers to young people (One Laptop Per Child. Another driver mentioned by the undersecretary of MOC. He said: … that would help catching up and educating our kids in order not to have later on the problem of getting into technology. 6. it will be like having a radio or television. He continued: We are expecting to see a PC in each house. He stated: We are developing legislation for e-commerce. He said: What we are doing now is trying to help people to be educated.

The Internet café manager of AW argued that there is no legislation to control computer crime which encourages younger people to use pirated software (see Section 6. 6.2. The Undersecretary of MOC stated that e-commerce infrastructure of telecommunication is poor in the country (see Section 6. The Chairman of OPTC advocates that his organisation is the only organisation responsible for the landline and postal services in the country.2.4 Governments support monopoly organisations and limit the opportunities for private companies The Libyan government tends to support monopoly organisations and limit opportunities for private companies.Chapter six: Findings What matters is can we make a regulation that will satisfy both parties customers and service providers? Additionally the lack of regulation has created computer crime in Libya. Additionally.8). Libyanna and Al-Madar (The only mobile companies in the country) (see Section 6.2.7). However. 6.2.2.6. He explained that the country has to move quickly to establish the legislation. OPTC owns LTT (the only Internet services provider). 185 .7). he explained.5 Other issues The undersecretary of MOC indicated that people will not wait for government action and regulation to start using the Internet and e-commerce.6. the chairman of OPTC claimed that the government is thinking of privatising the two mobile companies in the country.

however.7 Table 6. there are some issues that were not mentioned. Improving the quality of life for disadvantaged communities. Improving the productivity and efficiency of government agencies. People are not waiting for legislation to use ecommerce and Internet Training and education is needed for decision makers No 1 2 3 4 6 7 8 9 10 11 12 13 New New Drivers and barriers Driver Driver Driver Driver Driver Driver Driver Driver Driver Driver Driver Barrier Barrier Driver 186 . All issues are all listed in Table 6.7: Government issues in Libya Item Governments always play an important role in economic development The government is usually the main customer of small businesses Government will support all investments and improvements in country’s infrastructure Government is responsible for setting legislation and regulation for trade Government should think carefully about e-commerce adoption E-government strategies would provide significant advantages and efficiency. most of the literature review issues in government were mentioned in the interviews. the Business development manager of CI and the general manager of OCC argued that the government and other private organisations should pay attention to conferences. training sessions and workshops. The reason was the early stages of e-commerce adoption in Libya.Chapter six: Findings The marketing manager of LIB. In summary. E-government will create new jobs for other private and public organization E-government improving services to citizens. Governments tend to support monopoly organisations and limit the opportunities for private companies which could effect the adoption of e-commerce. Strengthening the legal system and law enforcement.

FAX and scanners as well as DNS Directories and email servers.7 Infrastructure 6. One interviewee (the AW manager) stated that his company had no website. Most websites however are designed in-house and updated by company staff. One interviewee (the BA chairman) stated that his company had a full network installed and is running Microsoft server 2003 linking all PCs and laptops to printers.Chapter six: Findings 6. Most had at least one website (the engineering manager of OC indicated that his company has three different websites).2. Other software from different companies is used. All organisations have a network infrastructure and hardware at different levels.7.2. Other interviewees stated that some software is developed in house. They all stated that Microsoft operating systems were in use along with other Microsoft software and business applications. LTT) and the chairman of BA argued that websites are very important for businesses. Two managers (AW.1 Organisational infrastructure All interviewees were asked about the type of software and hardware used in their organisations in order for the researcher to observe the level of computer engagement in their organisation. According to one interviewee (the BA chairman). SharePoint and server. The BA chairman stated that: 187 . some accounting software such as Sage Line 50 is used by his company. Interviewees and questionnaire respondents were asked if they have a website in their organisations. such as Microsoft Office.

Moreover he said that for his business all customers were local and knew where the café was based. 6. His argument was about comparing the benefit of having website and the cost of designing and hosting. However.7. However. uploading and downloading media files. He argued that the website should be updated regularly to keep customers interested. such as weather and market watch.2 Poor infrastructure limits e-commerce adoption Additionally all interviewees agreed that infrastructure is one of the big barriers therefore the country should take the right steps to develop its communications infrastructure.Chapter six: Findings A website is a necessity for any business nowadays and it has to be seen as a business model not just an advertisement on the web. saying that such websites have to provide social networking and should host discussion rooms. the engineering manager of OC believed that a website would just give background information about the company and its services. therefore there is no need for it to be updated often.2. 188 . An LTT marketing manager said that extra services. One Internet café manager (AR) stated that having a website is worthless arguing that a website would bring no benefit to small businesses. He argued that having a website may help to reduce the cost of face-to-face communication and attract new customers. Government has to pay attention to infrastructure and has to take e-commerce issues very seriously if they want to develop and catch up quickly. he explained that having a dynamic website with free membership may provide a financial benefit. The general manager of OCC added: The main barrier is the infrastructure. are important in websites as they kept visitors coming back.

D 1500 L.Chapter six: Findings The undersecretary of MOC stated that e-commerce infrastructure of ICT was not yet ready. and insisted that the government has to pay attention to ICT infrastructure in order for e-commerce to be successful. Table 6. He claimed that the bank’s branches cannot be linked because of the poor infrastructure (see Section 6. the operation manager of LCB argued that National Payment System success is dependant on the improvement of the ICT infrastructure.10. Companies were paying one-off fees of 150 L.8: Internet connection charge Type of service Dail up ADSL (5gb) Lease Line 256kb Lease line 512kb Installation 150 L.D 1000 L. Most interviewees were connected using ADSL provided by LTT.40 L.D (£75) for installation and 50 L. He explained: E-commerce is dependent on the telecommunication infrastructure. Interviewees were asked about the Internet in their organisation and the type of communication used to connect to the Internet. our land lines still lack good infrastructure as well as high charges for connecting to the Internet and making phone calls.2. The BA Group chairman argued that the infrastructure is the main barrier for e-commerce in Libya. The same comments were made by the IT manager of CBL.D Monthly fees 0.9).D (£375) a month for 256 kilobytes (kb).D 1000 L. He argued that the network did not cover all the country’s regions.D ISPs OPTC LTT LTT LTT 189 . Some were connected using satellite technology paying around 7000 L. Additionally. The results are summarised in Table 7. All interviewees were connected to the Internet using different Internet Service Providers.D 1000 L. Others combine the use of ADSL and satellite technology to maximise the speed and reduce the cost.D 50 L.D (£3500) for installation and 750 L.D (£25) per month for 5 gigabyte (gb).

whereas the AR Internet Café manager stated that people are walking away from the Internet because of the bad connection. Other tools. 33 percent are connected using satellite technology. Figure 6.D 750 L.D Others The Business Development Manager of CI complained that the failure of connecting to the Internet that was provided by LTT was one of the main barriers to e-commerce for his business.Chapter six: Findings Satellite (256 kb) 7000 L.9 indicates which communication tools respondents used. Figure 6. such as Trade 190 . 17 percent using dial up technology provided by the general post service company where 50 percent stated that their Internet was provided by LTT. Table 6.2 also shows the type of connection used.2: Internet service providers Satellite 33% LTT 50% OPTC 17% An Internet café manager (AW) said that connecting through satellite is more convenient for many reasons. Most people use e-mail and telephone over the Internet rather more than other tools. he then explained that connection rarely fails and when it does fail. there is usually a quick response from the satellite service providers.

9: Communications tools Communication tools Electronic mail Telephone over the Internet Document image processing Automatic Data Collection E-Catalogue Electronic form Fax Electronic funds transfer Telex Video Conferencing Trade data interchange Voice mail No. E-mail does not need any sort of payment regulation to be used in the country. Table 6. 191 .Chapter six: Findings Data Interchange and voice mail. 116 98 59 42 41 36 32 25 23 18 9 7 % 23% 19% 12% 8% 8% 7% 6% 5% 5% 4% 2% 1% It is clear that e-mail is the most favoured Internet tool. 20 percent of respondents strongly agreed that they are willing to be involved in e-commerce but they cannot use it. Whereas 23 percent argued that the speed of Internet connection is the barrier. Only 7 percent are using electronic forms. Other tools. such as electronic funds transfer and video conferencing. are rarely used. are rarely used because of the poor infrastructure of e-commerce and lack of a payment system in the country. Additionally. 5 percent using electronic funds transfer and telex.

2. The OPTC chairman claimed that his organisation invested a significant amount of money to develop the ICT infrastructure and establish the two mobile companies and the Internet service providing company (see Section 6.2. But there is a restructuring and re-organising of telecom sector.4 The significant barrier for e-commerce is the control of networks by monopolies The only legal service provider in the country is owned by OPTC. They claimed that no company is allowed to provide Internet services in the country. The chairman of OPTC stated: They are owned by GPTC. All these companies will be sister companies and owned by a holding company. 192 . the operation manager of LCB stated that for establishing the National Payment System the Central Bank of Libya has to invest around 40 million Libyan dinar (see Section 6. the holding company by law still owned by the government of Libya.2).9).7. Additionally.7.2. many organisations use other service providers from different countries (see Sections 6. argued the LTT marketing manager and OPTC chairman.Chapter six: Findings 6. However. 6. as the AW Internet café manager and the OCC General Manager said.2.2.5 Infrastructure cost is significant The cost of establishing the e-commerce infrastructure is significant.8).

In a summary.7 Other issues The lack of infrastructure drives companies to break the law to get an Internet connection.Chapter six: Findings 6.7. The Internet Café manager of AW and the OCC general manager stated that their organisations are connected to the Internet using the satellite connection to overcome the infrastructure barriers in the country.2.7.6 The Infrastructure of a country could be a main driver to attract international companies The undersecretary of MOC. Table 6. Infrastructure cost is significant Infrastructure needs new strategies.10 lists all the issues. The main barrier for e-commerce is the law because of the control of networks by monopolies or dominant firms in many developing countries The infrastructure of a country could be a main driver to attract international companies and foreign direct investors to do business in that particular country.2.10: Infrastructure issues in Libya Item If the infrastructure is in a poor condition then the expectation to see an improvement in the e-commerce adoption is significantly low. planning and No 1 Drivers and barriers Barrier 2 Barrier 4 5 6 Driver Barrier Driver (Not mentioned) 193 . 6. most of the issues mentioned in the literature review were confirmed in the research findings. Table 6. the operation manager of CBL and IT manager of CBL agreed that the National Payment System was developed by three international companies to provide a payment system environment in the country.

2. LTT marketing manager. and to allow for the electronic transactions. They suggested that such legislation will provide a good infrastructure for e-commerce in Libya. The undersecretary of MOC argued that the e-commerce law implementation is underway and should be ready by 2008.8. LIB marketing manager.1 Legislation and regulation are required to control of the flow of business e-commerce law and regulation was one the drivers that was taking place in the country. 194 . Nine interviewees (the undersecretary of MOC. AW Internet café manager and OC engineering manager) stated that the lack of payment legislation is considered a barrier. However. He explained: We have updated laws and regulations with which banking institutions are working to reflect the effects of technological developments. LCB operation manager.Chapter six: Findings management Lack of infrastructure drives organisation to break the New law Barrier 6. He stated: We are developing legislation for e-commerce. CI business development manager. BA Group chairman.8 Legislation 6. The decision was made by the Minister of Economy and Commerce to start the process of establishing a committee for this purpose. OPTC chairman. the IT manager of CBL argued that the legislation for payment systems and credit card use was considered before the National Payment System was implemented.2.

The MOC undersecretary explained that there are some barriers to adopting e-commerce law such as ensuring that both parties have equal rights. 6. An Internet café manager (AW) explained that the lack of e-commerce and Internet knowledge drives many people to take this hacking path.Chapter six: Findings Additionally.2 Piracy of products According to some interviewees. He explained that such signatures will ease the way of doing business and encourage businesses to deal electronically.8. He stated: As a result of not having the ability to buy online. He added that they usually share hacking and pirating knowledge and techniques with other users on the web.2. the OPTC argue that other issues such as electronic signatures are still not available in Libya. He said that many people use Internet cafes to crack software keys and hack websites rather than to gain other benefits from the Internet. The BA Group chairman argued that the absence of regulation has resulted in the delay of e-commerce adoption. many young Libyans are driven to finding alternative solutions to get what they want from the Internet. He explained that this was because of the lack of payment systems and security as well as the unawareness of computer crime in the country. 195 . many young people were interested in hacking and cracking techniques rather than getting information from the Internet.

the only authorised ISP in the country rather than any other provider such as satellite technology. However.g. it is been a while since we were thinking of getting involved in e-commerce because of the barriers such as payment systems. The OPTC chairman advocated that his organisation has developed applications which are not in use due to the absence of regulations (e.2. He explained: For LTT.Chapter six: Findings 6. e-signature). some interviewees said that the LTT 196 . but there are no regulations to map the way forward for adopting ecommerce. transactions and government departments. He explained that his organisation may be responsible for the infrastructure issues. The reason is that most satellite services providers have no licence to operate in the country and are classified as illegal. The Operation manager of CBL stated that businesses using the Internet have to use LTT. In the same way. The OPTC chairman explained that the absence of regulation has led to the difficulty of adopting e-commerce.8. He explained that many Libyans do not have the experience of using ecommerce and its related activities which may lead them to breach the law. we could not manage to move forward too much. the marketing manager of LTT argued that the lack of regulations and payment systems were the reason for stopping his organisation getting involved with e-commerce.3 The absence of legislation leads to difficulty in finding a total solution The undersecretary of MOC argued that the absence of regulation may effect badly the Libyan users.

Such issues were still not obvious in Libya because there is no payment system in place.In order for the people not to feel scared to use the internet. AW Internet Café manager and CI Business development manager) argued that viruses and hackers had created a miss-trust of ecommerce. 6.2. For example. The chairman of BA Group explained: The main disadvantage of e-commerce in Libya is the security.2. 6. 6.5 The regulation of e-commerce will build customer trust A number of interviewees ( BA Chairman.4 Online viruses are becoming a serious matter All interviewees argued that hackers and security are barriers for e-commerce (see Section 6. Regulations and legislation can drive people to develop a trust in the electronic services and use e-commerce for their activities. 197 .8.12). However.8. the literature indicates that some goods and commodities can be bought and sold illegally online.2.6 Issues not mentioned Some issues found in the literature search were not mentioned in this research.2.Chapter six: Findings service is improving and the company had reduced the cost of Internet connection by more than 70percent. the AW Internet café manager stated that the interest in developing viruses and hacking systems is result of the absence of regulation in the country.….8.

7 Other issues According to undersecretary of MOC. He explained: If the credit card system was distributed in the whole country then that will build a very good infrastructure for e-commerce in the country.they won’t wait for law to be issued. If citizens start using ecommerce in the country. Such issues can be seen as a driver for e-commerce adoption. then that will drive the government to issue the legislation and regulation to cope with development. that absence of regulation can affect economic development. People will start trading if they have a possibility . He explained that users will use other countries for their electronic activities which will affect badly the economy of the country. 6. The same issue would lead to the difficulty of understanding the conflict between the legislations of ecommerce and other legislation.2. people will not wait for government action to set up regulations.8.Chapter six: Findings Additionally. the issue of the difficulty of setting up e-commerce regulation by one government on its own was also not observed in Libya. 198 . According to the chairman of the BA group. especially since the Libyan government had just start thinking of adopting e-commerce regulation.

No regulation leads to the possibility of pornography Online viruses are a serious matter The regulation of e-commerce will build customer trust Regulation and prevention is very difficult for individual governments. BA Group chairman. In summary.12) Barriers (see Section 6. E-commerce regulation could conflict with other legislation and regulation in a country.12) Barrier Driver Barrier (not seen) Barrier (Not seen) Barrier (see Section 6.2.Chapter six: Findings Four interviewees (LTT marketing manager.11: Legislation issues in Libya Item Needs legislations and regulation to control the flow of business Goods and commodities can be bought and sold illegally online. Concern about the security of network systems Concerns about the use of computer technologies for traditional property offences such as theft and fraud.2.2. These issues are listed in Table 6. Concern about publishing hate speech and online 1 2 3 4 5 6 8 9 10 11 12 13 No Drivers and barriers Driver Barrier Barrier Barrier Barrier (see Section 6. this research confirms most of the issues mentioned in the literature review and adds some other new issues.12) Barrier (Not seen) 199 .11 Table 6. Piracy of products The absence of legislation leads to difficulty in finding a total solution. AW Internet café manager and OC engineering manager) argued that education and training are needed to provide an understanding of e-commerce and Internet technology and to prepare people in the correct use of e-commerce applications and activities.

1 Payment system will encourage people to do business The chairman of OPTC and the LTT marketing manager argued that a payment system will enable customers to pay for their billing online.2. He explained that this online payment system will save the cost and speed the time of transactions. The operation manager of LCB argued that his bank is expecting to see an increase in business activities from his customers after the introduction of the electronic payment system. arguing that his organisation was paying a significant amount of money for securing the cash and delivering it to other banks.9 Payment 7. The LIB marketing manager argued that the National Payment System will be a driver for e-commerce in Libya (see Section 6.2. he explained that a payment system will reduce the cost of securing cash. the BA Group chairman argued that his organisation is already working on introducing an electronic payment system for its customers (see Section 6.2.7). The Chairman of OPTC argued that a payment system will reduce the cost of employment and time of operating.Chapter six: Findings talking People will not wait for regulation to use ecommerce E-commerce users can force government to adopt regulations Absence of regulation drives business away from the local economy Training and education is needed for e-commerce regulations New New New New Barrier Driver Barrier Driver 6.2). Additionally. 200 . However.2.9.

2. that the system would enable banks to save time in transactions.9.2 A payment system will speed up transactions and other banking activities It is argued that a payment system would speed up transactions and increase activities between banks. He explained: For banks. it is even more important because it will help them to complete their transactions quickly and easily. The IT manager of CBL argued that the new system would help to monitor banks liquidities. 6.4).2.7 and Section 6. The same view was confirmed by the LCB operation manager.8). The absence of a payment system has driven users to adopt illegal techniques to enjoy the benefit of shopping online (see Section 6. Additionally.2.3 Payment systems constitute part of the basic structure of a country’s economy All interviewees agreed that payment systems are the main driver of e-commerce and are the basic structure of the country’s economy (see Sections 6. the lack of payment systems in the country has driven many businesses to operate in other countries which can affect the economic development of the country (see Section 6. 6. When the system is in place and operational. The LTT marketing manager explained that the National Payment System would allow immediate transactions between banks and organisations.2. The CBL operation manager explained that the next step for his bank is to provide Internet banking services.2. that type of transaction will be completed in seconds. to clear a check in your account from someone else in different bank will take from a week up to 40 days at present. As an example.2.2.9.12).Chapter six: Findings 6.2. The LTT marketing manager 201 .

He argued that: For the time being. Automatic Telling Machines and Point of Sales (POS) devices will provide a fundamental environment for the national 202 . explaining that people need to realise time is money and therefore the payment system can save time. In addition to that the operation manager of LCB stated that CBL is working on increasing the benefits from information systems development by improving the banking activity environment and introducing the National Payment System. E-payment has to be installed and ready Four managers (AW. BA. Each of the phases will be installed separately. LTT and LIB) and the undersecretary of MOC stated that the spread of credit cards and ATMs in Libya is expected shortly referring to the plan of CBL. He then discussed the Automated Cheque Processing (ACP) system which will enable electronic cheque clearing.4 For e-commerce to be used.Chapter six: Findings argued that the lack of a payment system has limited the development of the country.2. The LIB marketing manager argued that the National Payment System would positively affect the economic development of the country. The undersecretary of MOC explained: If the credit card-system is distributed in the whole country then that will build a very good infrastructure for e-commerce in the country. The IT manager of CBL explained that the programme will have five phases.9. we are doing most of our international business through the Arab Foreign bank. 6.

The system enables customers to pay their utility bills and any other services using their phone top ups. The operation manager of LCB argued that the biggest challenge of the National Payment System is the infrastructure. He explained: We cannot get good connections between our branches right now.Chapter six: Findings automated teller distributor that will provide access to all customer accounts with participating banks and execute cash drawing transactions through ATM machines by national and international networks. It was stated that other challenges and issues such as education. That is why we came up with this solution. He argued that: It also enables businessmen. The marketing manager of LIB explained that another payment system has been developed by the company. people won’t have enough time to spend in dealing with many issues such as paying bills etc. We have to be up to date with rapidly developing technology. He explained: As soon as the project is finished. 203 . their clients and companies that provide these services to accomplish the payments for transaction charges electronically using point of sale. which we believe will reduce cost and employment headcount. our next step is to adopt electronic banking for our customers that would enable customers to login to their account through a website and do some activities. He explained: As a company we are trying to help to develop the country’s infrastructure. training and languages are being dealt with. He added that the next step for Libyan banks is to adopt online banking systems. We believe in the rapid change of our daily lives.

He explained: We are in discussion with a shopping centre to introduce one of the new services which will enable customers to pay upfront for recharging cards.11). The operation manager of LCB argued that the National Payment System will cost the CBL around 40 million Libyan diner. Other workshops and training courses are taking place inside the country. the LCB operation manger and IT manager of CBL explained that the project will be delivered by three international companies and is focusing on providing human resources for the Libyan banking sector (see section 6. the committee chairman of OPTC that controls the telecommunication companies including LTT and the postal services stated that his organisation will introduce electronic billing and payment systems for his customers to pay online. he stated that once the system is ready to use.2. In addition. 204 . The LCB operation manager explained: The central bank of Libya is sending employees from all Libyan public banks outside the country for training from time to time to learn English and get some training in banking electronic systems. Additionally. 6.5 Adopting payment systems requires heavy investment However. Additionally. adopting payment systems requires large investment.2.Chapter six: Findings Furthermore. the marketing manager of LTT explained that his company strategy is to reduce Internet connection costs and implement alternative payment methods in line with the mobile company. his bank will introduce Internet banking to customers.9.

However.7 Payment in developing countries is cash or cheques Interviewees were asked about the type of payment systems they use in their organisations.9. Others mentioned the use of money transfer.Chapter six: Findings 6.2. the IT manager of CBL argued that the developer of National Payment System will have taken into consideration the important of security in payment transactions security. Most agreed that cash is the commonly-used method.6 Securing payment systems in a country would need significant investment All interviewees agreed that there is a need for secure payment systems (see Section 6. It is worth mentioning that some interviewees were using credit cards issued overseas for personal use to buy from the Internet. the currently-under-construction data centres and all electronic financial services channels. The manager of AW argued that money transfer and payment system was the main barriers: 205 . He explained: The system will be provided with coding and protection software in order to ensure safe and protected structure for data transmission between banks. The chairman of BA stated that credit-card systems are not available in the country at present. None of interviewees were using credit or debit cards in business.2.9. Payment systems are a barrier of e-commerce in Libya. bank transfer and approved cheques. However. 6. he stated that a development for accepting credit and debit cards via his company website is taking place to be ready for use as soon as it is available in the country.12).2.

well in Libya we cannot. the payment schemes available for online transactions are traditional payment methods which are cash-on-delivery and bank payment. He carried on explaining that transferring money is very difficult and expensive.2. the inability to accept payment online is one of the biggest e-commerce disadvantages in Libya. All issues are listed in Table 6.12 Table 6. In summary. Another manager (OCC) added. they sell.Chapter six: Findings The Internet has been introduced in order for people to get connected. his organisation has introduced an alternative payment method. and no ATMs. buy or exchange things. not even a third party to help customers to buy over the Internet.12: Payment issues in Libya Item Payment systems will encourage people to do business Payment systems speed up transactions and other banking activities 1 2 No Driver or barrier Driver Driver 206 . there are no cards to be used.8 Other issues According to the LIB marketing manager. The reason according to the interviewee is that users want to use the system and they will not wait for government action. 6. Additionally. the committee chairman of OPTC argued that people will not accept easily electronic payment systems as they used to carrying cash and paying by cheque. all payment issues that were mentioned in the literature review were confirmed in these research findings. Additionally a new issue arose.9. The same view was supported the undersecretary of MOC and LTT marketing manager.

1 Traditional businesses in developing countries were established long before e-commerce However. E-commerce is changing the way of doing business all over the world.Chapter six: Findings Payment systems provide new opportunities for online services. especially in a market like Libya.2. e-payment has to be installed and ready. All interviewees were asked if e-commerce would pose any threat to traditional commerce. he argued that 207 . One argued (OC engineering manager) that the two business methods are identical. A manager (AR) added that e-commerce will create many new companies which will pose threats to the older ones. others argued that e-commerce does not pose threat to traditional businesses. Adopting payment systems requires large investments Securing payment systems in a country would need significant investment. it is rather a new method for traditional businesses. He explained that older companies will have to adopt e-commerce along with the traditional way in order to survive. OC) that e-commerce may pose some threats.10 Traditional business Traditional trade in Libya might be threatened by e-commerce. 6. Some argued (CI. Payment in developing countries is via cash or cheques Alternative methods of payment will be introduced to fill the gap of payment systems in Libya 3 4 5 11 16 17 New Driver Driver Driver Barrier Barrier Barrier Driver 6. Payment systems constitute part of the basic structure of a country’s economy For e-commerce to be used.10.2.

IC) agreed that they will be not be a threat in the near future.Chapter six: Findings many traditional businesses are using the Internet and the result being a perfect combination in both sides. particularly since these depend upon the buyer’s sense of fashion and culture. and other merchandise belonging to this category are unlikely to benefit in the near future in a wide and accelerated manner from e-commerce. two managers (OCC. two interviewees (LCB. he stated that one of the reasons was the difficulty of correcting a mistake electronically then manually in his organisation. whereas the ecommerce infrastructure is still in its early years of existence. cosmetics. He added that the other reason is that most of the Internet users in the country are young. Furthermore. One argued: 208 . provided that traders can cope with the transformation and changed operations. Furthermore. AW) maintained that the level of e-commerce consciousness that has spread through Libya and other Arab countries is still considered as the least developed with regard to communications and information at the global level. and the modern applications of techniques in the field of information technology. A café manger maintained that traditional trade will not be threatened. The development manager of IC stated that the financial sector will not experience any threat arguing that in this sector manual and personal work is always needed. One manager (AR) maintained that the traditional trade infrastructure has been well established in Libya over the last thirty years. An Internet café manager (AW) explained that clothing items. middle-aged and older people do not really bother to learn any new technology because of the time and find difficulty in catching up. and the least competitive and the least free from government and private sector control. Explaining his view.

2. the latter is still in its childhood.10.3 Government and companies have to monitor e-commerce development The undersecretary of MOC argued that governments have been monitoring the development of e-commerce and its effect on traditional businesses in a number of countries such as Tunisia. indications reveal that we are going that way with big strides. he explained that Libyan producers are complaining that many international products have entered the market. However.2. He explained that this fear of e-commerce affecting the 209 .2 Traditional companies are the main economic contributors to the economy The undersecretary of MOC argued that traditional companies are the main contributor to the country’s economy. 6.1).10. 6. He said: We provide no service over the Internet. one can say that traditional trade is not threatened whatsoever by e-commerce. The LTT marketing manager argued that even though his organisation is an Internet services provider. For most of our services you would have to walk in and apply. most of the organisation’s activities are still done in the traditional way of business.2. He explained that the competition will be higher once e-commerce is adopted in Libya (see Section 6. Nonetheless. He argued that local producers have to improve their production quality in order to cope with e-commerce competition. if not in its infancy.Chapter six: Findings Our people have still a mile or so to go this way until they are used to using the Internet and become e-commerce customers. From now.

10. the chairman of the BA group argued that most of the products in Libya are imported from overseas.1 and Section 6. the government must encourage the use of e-commerce. the amount of production is not enough to satisfy the local market (see Section 6. so by allowing e-commerce services. Additionally. Additionally. He explained that traditional importers can save money on shipping and other costs of the imported equipment to the Libyan market than the cost of buying such equipment from e-commerce website.2.4 A failure to involve traditional businesses would work against e-commerce adoption The Business development manager of CI argued that the older generation in Libya do not use e-commerce and Internet but these people are the main spenders in the market. 210 . that would benefit more the consumer by buying the same product at lower prices. He stated: 70-80 percent of consumer products have been imported from outside.2.2. he added.1).4). The MOC undersecretary argued that the reduction of customs and taxes on electronic equipment may be beneficial to traditional businesses. He explained that there is no threat on traditional business. The OPTC chairman agreed with the CI manager explaining that in order for e-commerce to be adopted.Chapter six: Findings traditional businesses starts to disappear with experience (see Section 6. 6.2. He explained that e-commerce will not effect the agricultural products in Libya because Libyan fruit and vegetables have a reputation of high quality and low price.

Older people are not commonly using the Internet. The CI business development manager explained that older people do not have time to learn about e-commerce. Reduction on customs and taxes can drive traditional businesses to save more money than e-commerce websites.13: Traditional business issues in Libya Item Traditional businesses in developing countries were established long before e-commerce. Government and companies have to work together in monitoring technological and strategic development in the use of e-commerce in order for these companies to maintain their place in international competition and restructure their organisations.12 lists all the issues. Table 6. Table 6. all the literature issues mentioned are confirmed by these research findings. In summary. A failure to involve traditional businesses would work against e-commerce adoption and against economic development.2.10. Traditional businesses and e-commerce businesses could work together.5 Other issues The CI business development manager and the AW Internet café manager argued that most of the Internet users in the country are teenagers. Traditional companies are the main economic contributors in the economy.Chapter six: Findings 6. 1 2 No Drivers and barriers Barrier Barrier 3 Barrier 4 5 Barrier Driver 211 .

11 Knowledge 6. Seventy three percent of interviewees agreed that the term means commercial activities on the web including selling.Chapter six: Findings Traditional business will be effective as long as New the majority of users are teenagers Reduction of customs and taxes can help traditional businesses to save more money than e.New commerce websites. Moreover. Employees are not aware of their organisation’s engagement in electronic services and have no willingness to be notified.2. the chairman of BA added that: E-commerce is trading on all human needs through electronic sites.11. The reason could be a failure of managers to engage employees in their organisation’s activities.2. Driver Driver 6. buying and some other commercial activities. paying for these needs using different payment methods in informatics networks. This lack of awareness of companies’ electronic activities was notable from many respondents and interviewees. it is the future of traditional business with less difficulty and saving time and money.1 Knowledge of e-commerce Interviewees were asked if they had heard of the term e-commerce. the general manager of OCC argued that term of e-commerce had been taken notice of but a clear explanation was needed. 212 . Additionally.

There are no schools or colleges interested in the area or to provide courses in e-commerce. LCB and LTT) admitted that lack of knowledge and shortage of expertise in the field is a major barrier arguing that international expertise will not easily meet the needs of the Libyan market. It was noticed that many people use some Internet and e-commerce tools but they do not know that these tools are linked to the subject investigated. AW.2 Education and training The lack of e-commerce and information systems courses and training in the country may be one of the main issues arising from this low result of e-commerce engagement. He said: Electronic illiteracy is the other main barrier but this barrier can be dealt with in a short time if the government and people are willing to learn.2.11.Chapter six: Findings 6. Another manager (LIB) argued that knowledge is an important issue and it is a barrier for ecommerce in Libya. 213 . The BA chairman stated that one of the main barriers for e-commerce in Libya is electronic illiteracy. Some interviewees (BA. One Internet café manager (AR) argued: There are no available courses for e-commerce or even modules in courses. He said: Probably around 1 or 2 percent of the population know about and are interested in e-commerce.

However. The undersecretary of MOC explained that international companies know about e-commerce but Libyan companies do not. language courses. most of interviewees’ organisations are encouraging in-house development of applications which can be seen as a driver for adopting e-commerce knowledge. it is also the willingness of people to learn and gain knowledge about e-commerce. the marketing manager of LIB argued that lack of knowledge could cause the delay of the adoption of e-commerce. Other workshops and training courses are taking place inside the country. Additionally. People do not know about it at all. All interviewees argued that the lack of knowledge in e-commerce and its related activities have created some barriers for e-commerce adoption.2. and work experience. On the other hand. and do not want to try it. The OPTC chairman and LTT marketing manager argued that it is not just the technology of ecommence that is needed for e-commerce adoption. the government is trying to deal with technology issues by taking some action.Chapter six: Findings Additionally. the company is sending employees from all Libyan public banks outside the country for training. giving as example the introduction of 3G services in the country. he explained: We are facing a huge problem with 3G services.11). according to the operation manager of CBL. The LTT marketing manager explained that prepaid cards for shopping can help people to learn more about e-commerce without taking 214 . OPLC) (see Section 6. for example the undersecretary of MOC talked about providing one million portable computers to young people (One Laptop Per Child.

The same view was confirmed by the chairman of the BA group who stated that his organisation’s employees have the benefit of having overseas training and workshops in the country that are run by international expertise. The marketing manager of LIB argued that the resistance of users to gain knowledge is one of the barriers in the country. The lack of those people. The LCB operation manager argued that most of the specialised employees are not Libyan or are Libyan but living outside the country. And I think the same way should work with e-commerce. The reason for the high percentage of young people is that Libya has a high proportion of young people in the population as explained in Chapter 5. people don’t know about it at all. He added that people who had the opportunity to travel abroad gained knowledge about new technology. may result in delaying the payment system implementation. Then they know what e-commerce and the Internet are about. He stated: We are facing a huge problem with 3G services. but those who haven’t had the chance to go abroad know nothing about e-commerce and will face difficulty in getting into the new technology. and will not accept easily the change in their lives. 3G is a new technology. The LIB marketing manager argued that it is the responsibility of the Libyan government and other private organisations to educate and train people on e-commerce. What we have thought is to provide some services over 3G so people would get involved. He explained that his organisations faced significant barriers to educate people on using third generation mobile technology. He said: People who had the opportunity to travel abroad use the Internet and manage to get credit or debit cards.Chapter six: Findings the risk of electronic payment. Additionally the lack of highly qualified personnel is a barrier for e-commerce adoption. The Internet café manager of 215 . he explained.

It was noticed that many people use some Internet and e-commerce tools but they do not know that these tools are linked to the subject investigated.3: E-commerce awareness 50 45 40 35 35 31 Frequency 43 37 30 25 20 15 10 5 0 never heard of term before Have heared but not use in any way I have heard and useed in Have visited seminars have prepared strategy for ecommerce planning for using ecommerce Undertaking ewe are we are commerce extensive user extensive user development of e-commerce of other technology 18 17 12 7 5 Level of engagment The lack of e-commerce and information systems courses and training in the country may be one of the main issues arising from this low result of e-commerce engagement. while 43 stated that the term was heard of but had never been used. 216 .3 indicate that 35 respondents out of 150 had never heard of the term e-commerce before. one could argue only 35 candidates are using or are involved in e-commerce.Chapter six: Findings AW argued that younger generation users are sharing information with other Internet users specially in the area of hacking and viruses (see Section 6. However.12). Questionnaire respondents were much less positive regarding the term e-commerce. "Have you ever heard the term E-commerce" Figure 6.2. Figure 6. 37 had heard of ecommerce but used it minimally and 31 had heard of the term in seminars.

Chapter six: Findings 6.1 The need for security companies in Libya Two managers (LTT. all that stops these people is the fear of losing their money. They know what they should do and how to keep their rights. copyright and security are other e-commerce barriers. he said.12. e-commerce regulation is another barrier that was mentioned by interviewees.2. What works for the whole world may not work for Libya. The marketing manager of LTT explained that: For international companies the case is different. they may be abused by other companies through not knowing their rights. People feel no security on the Internet.2.12 Security 6. 6. Additionally. as the general manager of OCC stated describing hackers: As long as these people exist in the market don’t expect to see anyone trading online. The chairman of BA stated: Security companies should have representatives in the country and define the country’s needs. The BA chairman argued that there are many Libyans interested in exploring the new world of e-commerce.2.2 Viruses create mis-trust Viruses. One Internet Café manager (AW) said that nobody pays for software in Libya.12. It has been stated by the interviewees that most of the software in Libya is not legally acquired but is pirated in one way or another. he has. AW) agreed that there is a necessity of having security companies entering the country. spam. been using computers for more then 217 . but for Libyans who don’t know what e-commerce is all about.

9) 218 . He explained: As an example. the LIB marketing manager argued that by using e-commerce. He further explained that the software can be downloaded and activated using a stolen key. he explained that paying security companies to provide guards to secure the cash and guarantee the delivery to the bank costs his organisation a significant amount of money. but what else can we do? We have no alternative way of getting the software. Conducting transactions electronically would help to speed up the process and having things on the system right away. the moment the transaction is completed. However. the IT manager of CBL argued that the National Payment System provides a secure platform for transactions (see Section 6.2. He said: I know we should not do it this way. this is the only way to be upto-date with technology and software. Another Internet café manager (AR) admitted that even though he downloads software illegally. the OPTC chairman argues that e-commerce provides security for his organisations. As for the security of the payment system. Surprisingly. he knows it is not right. Additionally. we are paying a huge amount of money on security because we deal in cash. people do not have to carry cash and can feel safer. even security software such as Kasper Sky and Norton antivirus are installed with stolen activation keys. He explained that the lack of payment systems and other e-commerce barriers mean that there is no legal way of acquiring software in Libya.Chapter six: Findings fifteen years and has never paid for software.

the majority were not sure.4 below. Figure 6. Such a high percentage in a country which has not yet adopted e-commerce creates concern about the willingness of people to be involved in using the technology. is to participate in e-commerce. given the massive developments and progress in ICT at the global level.Chapter six: Findings Forty three percent of questionnaire respondents stated that security is the biggest Internet disadvantage. when people are asked if their fear of security is the reason for not adopting e-commerce.3 Pioneer Initiatives Libya has started thinking seriously about e-commerce as an important issue to catch up on the Internet revolution. and to use all resources available to strengthen the infrastructure 219 .4: Fear of security 6. As shown in Figure 6. One of the interviewees (OPTC committee chairman) indicated that such pioneering initiatives are attributable to the decision-makers’ belief that the only alternative.

the announcement of switching the Libyan Government to e-government. The remaining interviewees also referred to this initiative. products and services in a record time 220 . BA. LTT. The general manager of OCC explained that e-commerce will bring great benefits to Libya’s markets and will help to improve the country’s economy mentioning that Libya as one of the developing countries trying to re-establish their economies and to start being in the world market.4 Benefits of e-commerce to Libya Enterprises in both the public and the private sectors have recognised the concept and benefits of e-commerce through the Internet. 6. Most of the companies in Libya in particular. He maintains that the increasing move towards e-commerce will promote the international position of Libya’s businesses. and AW) maintained that the Internet and websites will benefit Libya a great deal in terms of offering high-quality goods. maintaining that it will offer an appropriate background for interaction between the government. in general. Another interviewee (undersecretary of MOC) referred to another initiative. LIB. the public and the business sector. LCB. This in turn will increase business trading opportunities. and working on developing new e-commerce legislation which stipulates that Libyan government departments must put into action an active programme to transform and transfer all governmental transactions into digital deals run on the Internet. have shown huge interest and enthusiasm in venturing into this field. Other interviewees (MOC. commodities.Chapter six: Findings base in preparation for the new modern economic order. and in the Arab World and Africa.

He stated that: We are paying a huge amount of money on security to secure cash that will be avoided when we have an e-commerce transaction system in place. Life will be changed and speeded up. it will speed up the way of doing work in the company. He adds: It might even affect social life. where 80 percent stated that the main benefit of e-commerce is to acquire information. marketing and purchasing. Questionnaire respondents justify the benefit of using e-commerce in the country. Table 6. The committee chairman of OPTC stated that e-commerce will be effective. and living.14: Reasons for Using e-commerce For External call 50 Reasons No. people will realise the meaning of “time is money” and they will pay money for Internet connection to save time. Seventy five percent expressed their feelings on the benefits of enabling chatting systems. Trade 54 Upload files 42 To get information 109 Purchases 31 For chatting 97 Sell and marketing 26 For internal calls 58 For web site visiting 58 Self improvement 54 File transfer 72 63 % 56 54 80 38 75 34 73 73 68 65 221 . The questionnaire results are summarised in Table 6. only 34 percent were convinced that it could bring benefits for selling. However. people won’t waste anymore extra time in sitting and chatting. Another benefit for Libyan state companies is reducing the cost of employing security guards to secure cash. custom. Seventy three percent of the respondents stated that surfing the web and using telephone calls are major benefits.14. A manager adds that e-commerce will affect the way of tradition.Chapter six: Findings and at affordable prices compared to those offered by stores and firms operating in shopping malls.

He contended that there is an urgent need for coordination among African countries in order to provide a joint information infrastructure that can contribute to the development of information and its applications.Chapter six: Findings 6. Some drivers apparent in some developed countries have not yet appeared in many developing countries and in some cases these drivers in developed countries could be barriers in developing countries. 222 . given the future of Libya’s distinctive position as a trade centre and a major financial market in the region for reexport. 6.5 Other Comments One interviewee (undersecretary of MOC) said that there is a need for coordination within Libya’s market. and the importance of human resources development to meet the likely need for IT professionals.6 Summary E-commerce drivers vary from one country to another. He referred to the expansion in e-commerce activities which is anticipated to result in an increase in the volume of the Libya’s exports. These companies would be able to deal internationally rapidly and with reduced costs. for example. It is significant to note that some additional drivers were identified for the first time (according to the researcher’s best knowledge) as a result of this research project. e-government. The chairman of the BA group stated that e-commerce would provide good opportunities for SMEs in Libya especially in the private sector.

There are many barriers to e-commerce in Libya. One of the traditional barriers cited by many organisations to the growth of e-commerce is the relatively high charge for Internet access. often focusing on production management. E-commerce is expected to facilitate low-cost access to international bidding and supply processes for companies in Libya. financing and accounting. Other costs such as hardware and web-design remain out of many people’s ability to pay for the service. viruses. Enterprises in both the public and private sectors have recognised the concept and benefits of e-commerce through the Internet. taxation or even in some circumstances. the misunderstanding of e-commerce by some of the population. There are a number of barriers to the adoption of e-commerce such as security. The Libyan government has begun to think seriously about adopting ecommerce as an important tool to catch up with the Internet revolution. E-commerce should have an effect on developing the economy. There are many issues that could count as drivers and barriers to e-commerce and economic development at the 223 . if it gets the right infrastructure and is adopted as an economic tool. Libya faces challenges as the Internet technologies can pose a danger of economic marginalisation to countries that cannot access it effectively. Moreover. Users are likely to be engaged in making improvements to their operations. product development and marketing rather then paying attention to e-commerce and e-business strategies. too much business for a company to cope with. lack of payment systems.Chapter six: Findings Technology adoption is usually combined with rapid economic growth and accompanied by rapid structural change. There are further barriers specifically related to developing countries. the poor communication with a high cost of Internet connection. copyright and security matters. the tariffs payable and cost of connection.

These issues are cost. For example. other issues including legislation and regulation.Chapter six: Findings same time. traditional business. not only as knowledge of understanding but also as a tool for changing culture and beliefs. but not depending upon. knowledge of e-commerce. However. For example. Knowledge of e-commerce.3) were examined in the interviews and the questionnaire. All driver and barrier issues listed in the literature review model (1) (see Section 4. having connections. and most importantly education before other issues of e-commerce. the lack of Internet security in Libya was created because of the absence of a payment system rather than the absence of legislation and regulation alone. the government will have to pay attention to the fundamental issues in the economy. In order for the government to adopt e-commerce and close the gap between Libya and advanced countries. such as competition and culture. legislation and regulation. Additionally. Results show that in Libya security was an issue on its own. government. payment systems. employment. infrastructure. some of the barriers. competition. such as infrastructure. The researcher believes that many countries have adopted the 224 . The results show that all driver and barrier issues are apparent in Libya. or lack of it. culture and religion. the government will have to think seriously about each and every one of the issues discussed above. the e-commerce literature considers that the security issue is a result of the lack of legislation and regulation. have not been experienced in Libya because Libya was in the early stages of ecommerce adoption. was seen as a fundamental issue for e-commerce adoption in Libya. payment systems. economic activities.

The more benefit the issue is to economic development. 225 . the case in Libya is different. people in other countries started using computers and the internet before wireless technology appeared. however. Each and every issue could count a driver and/or a barrier to e-commerce. e. These findings confirm the e-commerce driver and barrier issues found in the literature and identify two additional issues in security and knowledge. many people need to be educated and trained in using technology and to see the benefits before-adoption. the more the issue counted as a driver. The figure below shows the modified model of e-commerce drivers and barriers (ecommerce drivers and barriers (2).Chapter six: Findings knowledge of technology in stages by involving people in those stages of development of that technology. otherwise those people will resist the introduction of this technology.g.

the government will have to ensure that the cost of implementing and establishing the e-commerce is not higher than the investment returns. the government of Libya has to choose the right organisation to deliver good quality services at competitive prices. To achieve this.1 E-Commerce drivers and barriers (2) Barriers Drivers Competition Cost Culture & Religion Economic activities Employment Government Infrastructure Knowledge of ecommerce Legislation & Regulation Payment system Security Traditional business For e-commerce adoption to be successful. Most of these organisations will be 226 .Chapter six: Findings Figure 4.

The government could remove 227 . then a better market for Libyan businesses could be created. Changing business culture can also be a driver for e-commerce adoption. how to measure the cost reduction in a country’s economy is a problem. such competition could result in increasing economic activities and create new jobs and enterprises which may result in developing the economy of the country. If cost reduction is greater than the adoption cost of e-commerce then one could argue that the country’s economy is developing and that growth is starting to take place. such as encouraging Libyan women to work from home. The returns on the investment of e-commerce in the Libyan market will enable companies to save money and cut travel and shipping costs thus expanding the economy. If the government is able to support SMEs to adopt e-commerce. and it may very well increase sharply for traditional business providers. Economists should pay attention to the period of adoption as in the first couple of years the cost of adoption could be higher than the cost reduction. government has to ensure that the adopted technology can fit with the country’s culture and tradition. the government should support some cultural ideas and issues that ecommerce may help to retain. Changes in business culture could drive the whole country to see e-commerce as a useful tool. Therefore. Clearly. However. However. The culture of the country may be seriously affected by e-commerce. Competition in Libya will increase. Additionally. it will be necessary to keep comprehensive records.Chapter six: Findings international companies. Therefore a calculation of spreading this cost over some appropriate period could be a solution.

The government needs the help of international companies to build the ICT infrastructure and the payment system.Chapter six: Findings barriers to international trade and develop the market for Libyan products brands internationally. However. The companies can be the main drivers. Government has to play an important role in all activities for e-commerce adoption. it can be seen that e-commerce can benefit the Libyan market and help Libyan companies to provide better services in an international market. therefore the government should do its part by introducing credit and debit cards. Also the government needs to encourage users to get involve in e-commerce. 228 . The method of adopting e-commerce in Libya will be discussed in the following chapter. legislation and help in education. Such involvement of users will need the support of Libyan local businesses to create job opportunities. the Libyan government has tried to adopt e-commerce since 1984 and has still not achieved it. The government can not play the role by itself. The absence of government action may result in delays or even the death of e-commerce in Libya. This begs the question as to what strategy the government should now adopt for successful adoption. From the above.

Chapter seven: The three-quarter moon model 229 .

Chapter seven: The three-quarter moon model 230 .

Chapter seven: The three-quarter moon model Chapter seven The three-quarter moon model 231 .

...................... 233 7.... 249 7.................................................................................................................................................................. 259 7................................5............................................................................Chapter seven: The three-quarter moon model 7......................................5.......... 254 7...2 Socialist approach ............................3 Technologically advanced countries .............................................................................................................................................................................................. 239 7............................................................ 264 232 .......... 261 7................................ 242 7.....................................5 Summary................................ 255 7................................................1 Introduction.................................1 Before e-commerce adoption ..................3 The three-quarter moon model (specific to Libya) ....................5 The Three-Quarter Moon Model (General) ........................3 After e-commerce adoption...................................................................................................................1 Capitalist approach ...5...................2 During-adoption ......................................................................................................................... 246 7........4 Deploying the Three Quarter Moon Model ...2 Drivers and barriers ...............................................4....................................... 259 7........... 233 7.....................................4 Action plan..............................4................... 242 7...............................................................................................................4..............................................5.............

to allow a smooth transition to e-commerce. investments are required in the social infrastructure and employee skills to enable the use of the technology in a way that is compatible with the local circumstances. 233 . However. however a generalisation of the model will also be introduced. Libyan companies and technologically advanced countries (the three-quarter-moon) work together through set procedures to involve the fourth part (Libyan e-commerce users) to complete the moon. The chapter identifies the main actors for e-commerce adoption and introduces a plan of action that Libya will need to adopt for successful ecommerce adoption.1 Introduction This chapter examines the drivers and barriers of E-Commerce taking extracts from the literature review and findings chapters to create a new model to help countries such as Libya to adopt e-commerce. cultures and abilities of users in Libya. 7. In order for classifying the level of involvement in a country a formula of Internet involvement is introduced and a classification for countries to point the level of adoption is also explained. If the Libyan government. The three-quarter moon is designed to fit the situation in Libya.2 Drivers and barriers The findings and literature review chapters have indicated that there are many issues which can be drivers and barriers for e-commerce in Libya.Chapter seven: The three-quarter moon model 7. then one could argue that the adoption of e-commerce in Libyan has been successful. The generalisation will enable the model to be applied to other developing countries.

Therefore. Culture is another issue. storage costs and many other costs. adoption of e-commerce will have its implementation costs as well as the cost of hardware and software that is needed for the end users. it was argued that e-commerce conflicts with culture and religion. In Libya. However. it is still too early to predict the effect of e-commerce competition in Libya. postal costs. e-commerce is still in early stage of adoption. so such conflicts have not yet been seen. multinational corporations. It can reduce the costs related to buying and selling and save a significant amounts of money that can be re-invested in the market. competition could destroy the small local businesses. In any case. Cost reduction is one of the main drivers of e-commerce. These businesses will not have the ability to compete with well-structured. E-commerce will reduce communication costs. supply chain costs. E-commerce can help to maintain the Libyan culture to provide work for Libyan women from home. Additionally.Chapter seven: The three-quarter moon model Competition could drive the economic development of the country by providing cheaper products and services. However. However. the lower production costs will encourage the entry of new businesses and will increase competition in the market which may result in reduction of costs. other people in Libya see e-commerce as a tool that may 234 . The demise of these local companies will effect the economic development in the country and shift the economic activities away from the market. the Libyan government and companies in the market have to study the issue of cost carefully to calculate the benefits to the Libyan economy. as the infrastructure of the country is yet appropriate for e-commerce and most of the Internet users are young.

E-commerce may result in cutting jobs in the market by introducing technological applications and using the Internet. there may be a need for education and training for Libyan employees to cope with the challenges of technology and being able to adapt to new job opportunities. At the same time. For e-commerce to be successful. e-commerce will create new job opportunities for IT literate and other unemployed people. the Libyan government. Additionally. E-commerce and economic development are closely linked. Employment is an important factor in any economy. the Libyan government must prioritise these issues in order to overcome the delays of the development. especially as many infrastructure issues need to be dealt with before the adoption can take place. A number of Libyan organisations have recognised the need to change business culture and processes. Enabling e-commerce may force existing SMEs to modernise or move elsewhere to survive. 235 . The cost of adopting ecommerce technology could delay other economic development in the country. Additionally. local and international companies have to encourage people to use e-commerce. the government should encourage local sourcing and support local business to achieve the economic development. Therefore.Chapter seven: The three-quarter moon model affect their culture. Education and training may clarify the benefits of using such technology and will minimise user’s fear and encourage trust. Therefore. it was argued that unemployment in any economy is a result of economic activities rather than technology alone.

is working to introduce the Electronic Payment System. Also. However.2. The Libyan government. with the help of international companies. legislation. Internet providers). The absence of legislation has resulted in delays to e-commerce adoption and lack of confidence in using the Internet for business activities. Additionally.Chapter seven: The three-quarter moon model The Libyan government is playing an important role in the country’s economic development. it must pay attention to the conflict between new e-commerce regulations and other regulations in the country. then the chances of e-commerce adoption is low. Legislation for e-commerce and electronic activities is needed in the country.7. However. etc) and to support private sector organisations to compete with other companies to achieve cost reduction (e. as argued in Section 6. needs to improve the infrastructure of e-commerce in the country (e. even though the Libyan government has started working to introduce new legislation for e-commerce and electronic activities. The government has supported all the investment in the country and is working in improving the infrastructure. Goods and commodities can be sold illegally in Libya and pirated software is available in the market at low prices.g. If the infrastructure of the country is in a poor condition. the Central Bank of Libya. the government still controls most of the active companies in the market and supports monopolies which have minimised competition in the market. the Economic Ministry is working to establish e-commerce legislation which should support e-commerce in the country.g.. payment system. postal delivery. 236 .

Chapter seven: The three-quarter moon model A payment system may encourage people to do business online and gain new customers. Therefore. It may speed up transactions and activities between banks and provide opportunities for online services. legislations. It was argued that traditional commerce is the main economic contributor in the economy. etc. The Central Bank of Libya has started the adoption of the National Payment System to introduce electronic cards. Traditional businesses in Libya were established long before e-commerce. training 237 .g. Because of the absence of regulation. Introducing e-commerce in the country may affect the traditional business. there is a lack of experienced workers in the country who are able to help in the adoption. government and companies have to work together to minimise the effect of e-commerce on other business and maximise the benefit of the local economy. e. The absence of knowledge of e-commerce and its related issues has discouraged many people from using it. Additionally. a payment system and other e-commerce issues. traditional businesses still have not experienced any threat from e-commerce. etc. However. point of sales. Therefore. ATMs. because of the absence of other issues. The findings of this research have pointed to the importance of knowledge within the population of e-commerce adoption. infrastructure. People see e-commerce and the Internet in general as a tool that may affect badly the culture of the country and may result in significant problems via hackers and lack of security. the system has come at significant cost and it will take time before people start seeing the benefits of the system.

the research findings confirm that there is a lack of infrastructure in Libya. Drivers and Barriers Model (2) of drivers and barriers explains the issues identified in Libya.Chapter seven: The three-quarter moon model and educations are important issues. each e-commerce issue can be a driver and barrier in Libya. However. the Libyan government does not have a clear strategy for e-commerce adoption. the researcher will need to develop a strategy for e-commerce adoption in Libya. a question to be asked is how can a country such as Libya adopt e-commerce? To answer this question. Therefore. a strategy of adoption and a plan of action is needed. In summary. the researcher believes that security is an issue on its own and has links to all other issues of e-commerce. security is an important factor in payment systems. Training and education are required for every ecommerce driver and barrier. For example. This research has confirmed that security is an important issue. the following section will introduce a plan for e-commerce adoption and list what the country will have to do to achieve successful adoption. It was clear from each interview that there is no one organisation that is responsible in Libya for setting the ecommerce strategies and planning. This infrastructure issue is a necessity for e-commerce adoption success. developing the infrastructure is likely to require a large amount of investment and is likely to require the government to decide either to develop the infrastructure of e-commerce or develop other aspect of the economy. Therefore. For example. However. Previous studies have associated the security problem with technical and legal issues. 238 . Also. However.

therefore research and development and educational programmes are required in order to keep up to date. 1999. remove international barriers and build a postal services infrastructure. then the two parties can work closely together to provide the technology and train government employees to use and maintain the adopted technology. technologically advanced countries. 239 . Well. These new technologies will have to be provided by more advanced countries. Government’s role in economic development varies from one country to another.3 The three-quarter moon model (specific to Libya) From this examination of the drivers and barriers for e-commerce. In economic theory. in order to establish an e-commerce environment in Libya. government always plays an important role whatever economic approach the country adopts (Todaro. In a country such as Libya. Once the two parties (Government and technologically advanced partner countries) agree on the type of technology to be adopted. companies and e-commerce users. establish a payment system. However. there will be more government involvement than in capitalist countries. the need to install and maintain advanced technology will be a challenge.Chapter seven: The three-quarter moon model 7. it appears that the main actors in e-commerce development are government. the government needs to bear in mind that technology is developing rapidly. However. 2005). Therefore the Libyan government needs to establish an improved telecommunication infrastructure. Government helps to build the right foundation and infrastructure for e-commerce adoption.

240 . attracting users to a company’s website to buy products or use the company’s services by offering better prices or giving awards via the website. They also can provide services such as recruitment and leisure activities. Government and companies have to work closely together in order to achieve these objectives. without whom government and companies would gain no benefit from their investment in technology. Another example is e-government services: citizens should experience the ease of use and the saving of time and money by using government services via the government websites. E-commerce users are the fourth quarter of the moon and the involvement of these users is very much dependent on the actions of the other three actors. For example. These companies clearly play an important role in increasing the number of e-commerce users by providing online services and lower prices. A fourth main actor is the e-commerce user.Chapter seven: The three-quarter moon model The third main actor in e-commerce development consists of companies (private or public) operating in Libya.

three adoption processes have to be undertaken: before. This theory suggests that in order for e-commerce to work smoothly within Libya’s economy. Even though the e-commerce users are the result of other actors’ actions.Chapter seven: The three-quarter moon model Companies in a particular developing country E-Commerce users in developing countries A government for a particular developing country Technological advanced countries Figure 7. The three adoption processes are the action plan and they are discussed below. Therefore all four actors have roles to play in the adoption of e-commerce. during and after. they still have roles to play in e-commerce adoption such as culture and religion. If an e-commerce service in Libya conflicts with the culture or religion then e-commerce adoption may be prejudiced and a bad image of the technology created which will be difficult to overcome. 241 .1: The four e-commerce actors These four actors have different roles to play to complete the adoption of e-commerce in Libya.

such as infrastructure and payment system. these other countries may seek FDI to speed the adoption process. 7. in this research.4. Other countries would have to reprioritize the plan of actions according to their ability to deliver and implement similar actions as determined by financial and other constraints. the adopters should go through three stages or ‘an adoption life cycle’.Chapter seven: The three-quarter moon model 7. a rich oil-producing country. priority in relation to financial constraints is not an issue specially that (as explained in the research findings) the country is willing to develop and support the adoption of ecommerce and ICT technology. The three stages should involve all four actors.4 Action plan The plan of action attempts to plan the adoption of e-commerce in Libya. For successful adoption. E-commerce legislation needs to consider globalisation and the involvement of other countries as 242 .1 Before e-commerce adoption Before e-commerce is adopted the following issues should be addressed:  Legislation and Regulation: regulation should control and manage the way that electronic transactions and activities are carried out in the country. Prioritizing action of plans varies from one country to another depends upon different issues and abilities. issues were prioritized according the interviewees’ opinions of the relative importance of each of the issues. However. For example. For Libya. For actions. interviewees stated that having legislation and regulation were the most important issues to be dealt with for successful e-commerce adoption.

For example the Libyan government restricts the purchase of products from Israel and even from companies having business activities in Israel.  Postal Infrastructure: in order for non-electronic products to be delivered to consumers who may have bought them from the Internet. or a new 243 . a postal and transportation services infrastructure must be established.  Telecommunications infrastructure: an infrastructure should be built for providing citizens with telephone lines and Internet connection.  International Trade: the infrastructure of international trade has to be established that would include many of the above mentioned factors. Removal of import and export barriers is vital to the success of e-commerce. Digital technology could be used to provide landlines and/or wireless technology especially for rural areas. Such restrictions limit the ability of e-commerce activities to expand. This department or committee could be representative of different ministries and departments of government.  Establishing E-commerce Department: one of the main issues of e-commerce adoption is creating a responsible committee or a department responsible for ecommerce activities and regulation. In either case the government has to think carefully about the way to develop postal services especially for countries such as Libya where there is no Post Code or delivery address.Chapter seven: The three-quarter moon model well as all economic activities in the country. This development could be carried out by government or by private delivery services. in order to enable buyers and sellers to trade fairly and without any restrictions.

representatives. they will have to make sure that there are no barriers to export or import. In order for these investors to enter Libya. Even though hardware and software costs have fallen 244 .  Payment System: this is an essential part of the infrastructure for economic activities and e-commerce. These international companies will help to develop the Libyan economy.  Low Cost Hardware and Software: this needs to be provided to users before the adoption in order for people to get used to using computers and understand the nature of computer software. Many international companies will have to have branches. Other related payment system issues such as Point of Sale and ATMs have to be considered.  E-government Strategies: e-government strategies are additional factors that have to be thought through carefully before the adoption of e-commerce. and after-sales support for their customers. receive and pay money without the need to visit a bank.Chapter seven: The three-quarter moon model department which will work closely with all ministries. E-government will be one of the main drivers of e-commerce and will encourage users and others to participate. The payment system must be established and put in place before e-commerce adoption to enable users to transfer. It has been argued in Libya that the main issue effecting e-commerce adoption is a lack of a responsible government department.  Removing Barriers to Foreign Investment: e-commerce adoption may bring more new businesses. as well as other issues such as taxation. create new strategies and platforms to do business. resellers. regulation and skilled employees.

while and after the adoption. Religion and Values: these have to be thought through carefully before adopting e-commerce. Therefore. which will benefit the government by increasing the activities relating to e-commerce. which will help the country to find the best possible way of adopting new technology and keep the development of the economy sustainable. An example of this is the OLPC supported by the United Nations to provide cheap laptops to children in developing countries. the prices are still out of the reach of many people in Libya. research and development on e-commerce and related subjects should take place before.  Culture. companies and other technologically advanced countries have to find ways of providing hardware and software.  Lowering Taxation: lowering taxation on imported and exported products and services would solve the problem of double-charge taxation between countries and encourage e-commerce users and others. Additionally.  Education and Labour Training: education and training could be delivered in Libya by companies from technological advanced countries or by sending citizens to these technologically advanced countries. This will enable the country to keep up to date with technologies and the best ways of using that technology. Removing taxation barriers will encourage many investors to trade with Libya. Libya has to make sure that e-commerce will not conflict with its culture and values. E-commerce actors (government and companies) have to 245 . the government.Chapter seven: The three-quarter moon model dramatically over the years. which will help in reducing unemployment and create new business opportunities.

2 During-adoption Once the ‘before-adoption’ issues are completed and dealt with. one could argue that the fundamental infrastructure and enabling environment for e-commerce is ready. As an example. However. Even more. Libya does not have to wait for full completion of all infrastructure projects. religion and values Y: Means Yes (every actor with ‘Y’ means that actor is responsible for this activity) 7.4.Chapter seven: The three-quarter moon model be very careful not to challenge the religion or the culture of Libya.1: Before-adoption issues in Libya Technological advanced countries E-commerce users Y Y Y Y Y Y Y Y Government Y Y Y Y Y Y Y Y Y Y Y Y 246 Companies Y Y Y Y Before-adoption Legislation and regulations Telecommunication infrastructure Postal infrastructure International trade Establish an e-commerce department Payment system Removing barriers for foreign investments E-government strategy Low cost hardware and software Education and labour training Lowering taxations Culture. a picture of that particular business could be applied to e-commerce as whole which will affect users’ incentive to use the Internet for shopping in the future. selling pornography magazines or alcohol will drive many shoppers away from that particular business. Once a . Table 7.

should ensure that e-commerce works smoothly with their traditional activities. therefore the Libyan government and other businesses should help by providing the services of designing e-commerce strategies. Change in the strategies of management.Chapter seven: The three-quarter moon model payment system. Local languages would encourage people to use the Internet and create self-confidence. legislation and regulation are established. culture and traditions remain safe and are not adversely influenced. accounting and finance has to take place. This could be summarised as:  New strategies: e-commerce is a new way of doing business. 247 . and access to the Internet is provided to citizens. People are likely to feel that their language. marketing. New strategies have to be developed and put in place at all organisational levels. a culture that deals with the skills of computers and quick response to emails and customers’ enquiries. If a website is in English then that would limit the involvement of users which will result in poor adoption. Many businesses in Libya would face the challenge of preparing new strategies. government should start the second stage of the adoption process and should think carefully about the following issues that will develop through the adoption of e-commerce.  Need to use local language on websites: many users and potential users in Libya do not speak English. promotion.  Change business culture: government and companies will have to change business culture. it is not just having a website for business. Most traditional businesses. e-commerce has its own organisational culture.

they could fill this gap by employing experienced and skilled workers from other countries who are cheaper and have similar culture. Such a payment system is likely to be provided by an international services provider.  Transaction security: security is one of the main challenges with e-commerce. Training and education of employees overseas or in-house would help but not fulfil the needs of experience. companies and technological advanced countries would need to work hard to secure transaction between buyers and by providing secure platforms and convincing users to trust service providers. religion and value: culture will be affected over the years from the adoption of e-commerce. traditions and values. This would risk reducing local income to government and local providers. many users do not feel confident that their information would remain safe over the Internet. If Libya fails to attract back their expatriate workers. Therefore attracting expatriates to return from overseas and work in the country would result in improving the services. Technology adoption usually combines with culture 248 . Therefore government.  Culture.Chapter seven: The three-quarter moon model  Encouraging expatriate workers to return from overseas: adoption of ecommerce would need more than establishing infrastructure and putting security systems and a payment system in place. It needs new skilled employees and expertise to help design and manage strategies for e-activities.  Accept credit cards and international payment: services providers and consumers would need to be able to pay for international services and products over the Internet.

Chapter seven: The three-quarter moon model change.4.3 After e-commerce adoption Once e-commerce is in place.  Training and Education: government and companies should work in developing ideas and training employees in using technologies as well as encouraging research and development to keep up to date. religion and value Training and education Y: Means Yes (every actor with ‘Y’ means that actor is responsible for this activity) 7. The government e-commerce department will have to monitor closely the changing culture and address the changes needed in management and strategies to fit with the new culture.2: During-adoption in Libya Technological advanced countries E-commerce users Y Y Y Y Y government Y Y Y Y Y Y Y Y Y 249 Companies Y Y Y Y Y Y Y Y During-adoption New strategies for government and businesses Change business culture The use of local languages in website Encouraging expatriate workers to return from overseas Accept credit card and international payments Transaction security Security Culture. The four e-commerce adoption actors will now have to pay . government. businesses and users are involved in ecommerce activities. Table 8.

Additionally. generate statistics for the use of e-commerce and activities. Thus companies need to update their websites with information to keep customers coming back and using the services. 250 . government needs to update infrastructure. strategies and other related issues according to new challenges and changes in technologies.  Monitoring and updating: monitoring and updating is different from one actor to another. Government. technologically advanced countries could help Libya to monitor the use of the bought or licensed technology and advise on ways to maximise the use of that technology as well as helping Libya to keep up-to-date. government has to monitor the use of the Internet. These factors need to be checked and monitored carefully and could be summarised as:  Security: as mentioned above security is a constant challenge to Internet and ecommerce. website visitors and their interest and new technology and develop an understanding of their user’s behaviour and be technologically up-to-date. For example. and provide these data to researchers and companies enabling them to redesign and restructure their business activities.Chapter seven: The three-quarter moon model attention to other factors that will arise after the adoption of e-commerce. Furthermore. businesses and technologically advanced countries must work closely to overcome the threats to security that are created from the use of e-commerce. Companies should monitor their business activities.

satisfied customers should trust the service provider which will create a special relationship between the provider and the consumer.4. 7. Thus this relationship should result in more involvement in e-activities. Additionally.4.1. religion and value (see Section 7.2) Table 8.3: After-adoption issues to Libya Technological advanced countries E-commerce user Y Y Y Y Y Y Governments Y Y Y Y Y 251 After-adoption Security Monitoring and updating Online promotions Customer satisfaction and customer trust Culture.4.Chapter seven: The three-quarter moon model  Online promotion: companies have to pay attention to online promotions and marketing issues to attract customers to their websites.2) Training and education: (see Section 7. 7. tradition and value Training and education Y: Means Yes (every actor with ‘Y’ means that actor is responsible for this activity) Y Y Y Y Y Y Companies .  Customer satisfaction and customer trust: government and companies should satisfy their customers with the services provided. These customers could be from Libya or from any other part of the world. This may generate more use of the service and help in promoting e-commerce services to other citizens.   Culture.1.4.

if government manages to encourage users to use e-government services by providing most services online or reducing the cost of service charges online 252 . Before-adoption Infrastructure Payment system Legislation and regulation New business strategies and models Establishing e-commerce department Customs and free markets Education and training Culture and religion Security International payment Encouraging expatriates to return Change in business culture Culture. and ecommerce users). The result of the three actors’ activities (Government. For example. religion and values Training and education During-adoption After-adoption Figure 7. religion and customs Training and education Training Monitoring and Updating Security Culture.2: The adoption stages The three stages of adoption (before. companies. The quicker Libya acts to deal with the adoption stages. The adoption actors and stages together complete the digital economic activities in Libya and create the complete moon. banks and service providers (see 8. Each of the four actors has a different role to play.2 below. Technologically-advanced countries. technologically-advanced countries and companies) affects the involvement of e-commerce users and completes the moon circle. The government in Libya plays an important role as it controls most of the organisations. The adoption will depend on the amount Libya is willing to invest in the technology as well as the stage of development for infrastructure.3 below). the importance of each actor is different from one country to another. during and after) are driven by the four e-commerce adoption actors (Government.Chapter seven: The three-quarter moon model The three stages of adoption are illustrated in the Figure 8. the faster the adoption of e-commerce should be and the faster the economy should develop. However.

Additionally. companies. The three-quarter moon model describes the whole adoption of e-commerce in Libya. then one could argue that users could be positively influenced to engage in e-commerce activities. religion and value. so companies and government should work closely to monitor the change in the country’s culture and meet the new needs or help restoring some of the culture aspects that may have been affected by e-commerce. training and education is the responsibility of government. and training and education over all the adoption stages. Therefore companies and government should monitor culture and values over all adoption stages. Further. It is called a three-quarter moon model to illustrate the way that the three main actors (Government. and technologically-advanced countries. 253 . The conflict of e-commerce with Libya’s culture or religion may drive users away of using the technology.Chapter seven: The three-quarter moon model rather than the traditional way. Libyan people should be encouraged to be trained and educated and to carry out research and development to meet the rapid development in the world and keep the economic growth of the country sustainable. technologically-advanced countries and companies) encourage the fourth player (e-commerce users) to get involved and complete the adoption. culture would be affected by e-commerce activities. The three players should pay attention to culture.

5 The Three-Quarter Moon Model (General) The three quarter moon model was designed specially for Libya.3: The Three-Quarter Moon Model (specific to Libya) Culture and religion Companies Government of a country E-Commerce Adoption Before EC department Infrastructure Payment system New strategies Remove restriction During Import technology Change organisation Culture Training and education International payment Security After Monitoring and updates Online promotion Security Customer satisfaction Fit with culture change Technologically advanced countries Training and Education 7. the effect of government will be much less than countries that have adopted a socialist approach. whatever the type of approach the 254 E-commerce user .Chapter seven: The three-quarter moon model Figure 7. For countries that have adopted a capitalist approach for their economy. The argument here is. however. the model can be more generalised to be used by other countries.

local companies and/or international companies in the local market will have more power in that country’s economy and will be the organisations responsible for the development. For countries that are technologically strong.5.Chapter seven: The three-quarter moon model country is using. the effect of international companies will be limited. 255 . 7. However. and describes the deployment formula which can be used to indicate the level of development needed to progress to full e-commerce adoption. The change of the plan of action is discussed as follow: 7.5. most of the issues will remain the same. the method of adoption and role of actors will be different in each country. the same issues of e-commerce drivers and barriers have to be dealt with in order for the adoption to be successful. international companies. Even so. These countries will have their own technologically advanced companies who will be able to help in implementing the technology. the government will still have a major role to play. The level of change will depend on the level of the country’s development and the effect of the capitalist approach in that particular country.1 Capitalist approach Capitalist countries will encourage private companies to be more involved in economic development and infrastructure investment.1. local companies and Internet users) will change.1 Before-adoption In the before-adoption stage. a change in the role of the actors may be required. This section introduces the use of the three-quarter moon model in these different countries. Of course. In the plan of actions the roles of actors (government. Therefore.

the barriers of setting the legislation and regulation in a country will be affected by the involvement of investors in that market. postal investor companies may not wish to consider distribution to small villages in the middle of the dessert of Chad to serve a small group of people. private companies will very much consider the economic benefit and profit more than other infrastructural and social benefits of that country. The same situation will apply to the postal infrastructure. Private companies can help the development and increase the competition in the market which may result in reduction of costs and being up-to-date with technology.4 below lists the issues and shows the actors’ involvement in each issue. For example. payment system and other issues. Other issues such as low cost of equipment and removing barriers for foreign investments would have been dealt with once the country has a capitalist approach.Chapter seven: The three-quarter moon model The investment in a capitalist country’s infrastructure will very likely be controlled by private companies (national or international). therefore a government has to consider such involvement and encourage the private companies to invest in the market. which may result in shifting the activities and considering the benefit of the companies in the market without paying attention to the citizens of that country. 256 . Table 8. However. Additionally.

credit cards.2 During-adoption Once the before-adoption issues are dealt with. For example. a country’s actors would have to deal with other issues such as local languages.1. international payments and changes in the business culture. religion and values Y: Means Yes (every actor with ‘Y’ means that actor is responsible for this activity) 7. companies who are based in a country using an international and a local language (such as South Africa where English and other local languages are used) would not bother to develop the system to retain the use of the .5.Chapter seven: The three-quarter moon model Table 7. and a country is in the during-adoption stage.4: Before-adoption issues (general) Technological advanced countries E-commerce users Y Y Y Y Y Y Y Y Y Y Y Y Governments Y Y Y Y Y Y 257 Companies Y Y Y Y Y Y Y Y Y Y Before-adoption Telecommunication infrastructure Postal infrastructure Payment system Legislation and regulations Education and labour training E-government strategy Low cost hardware and software International trade Removing barriers for foreign investments Establish an e-commerce department Lowering taxations Culture. Companies in the market will be involved in the during-adoption stages and will design the new changes in the country to their organisation’s benefit. The government of a country will have a very limited involvement in such issues.

Chapter seven: The three-quarter moon model local language.1. whereas a governments of other countries may well considered such change.5 below shows the change in actors’ roles during the adoption stages.5.5: During-adoption issues (General) Technological advanced countries E-commerce users Y Y Y Y Y Y Y Y Y Y Governments Y Y 258 Companies Y Y Y Y Y Y Y Y Y During-adoption The use of local languages in website Accept credit card and international payments Transaction security Encouraging expatriate workers to return from overseas New strategies for government and businesses Change business culture Security Culture. .6 lists the change of the actors’ role in the after-adoption stages. Table 7. Table 8. religion and value Training and education Y: Means Yes (every actor with ‘Y’ means that actor is responsible for this activity) 7. Table 8.3 After-adoption In the after-adoption stage. companies would work closely to maintain a growth in ecommerce and increase the number of users and value of sales. Government will have to keep a close eye on the development and guarantee the positive effect on that country’s economy. The after-adoption issues would have to be dealt with in order to secure a smooth development of growth of ecommerce.

7. tradition and value Training and education Y: Means Yes (every actor with ‘Y’ means that actor is responsible for this activity) 7. The reason is that such countries may share most of the economic tools and activities with Libya.Chapter seven: The three-quarter moon model Table 7.5.6: After-adoption issues (general) Technological advanced countries E-commerce users Y Y Y Y Y Y Governments Y Y 259 Companies Y Y Y Y Y Y After-adoption Security Monitoring and updating Online promotions Customer satisfactions and customer trust Culture. Therefore. a country needs to be careful because what will work for one country may not work perfectly for others. Such companies exist in the market and can provide services at competitive prices.5. there will always be a need for sharing and transforming . However. However.2 Socialist approach For developing countries similar to Libya. the Three-Quarter Moon Model may be successful for e-commerce adoption. the government of a country has to examine all adoption proposed issues and test them in their economy before-adoption. therefore the effect of the international advanced companies in that country will be limited. the use of international technological companies would be limited.3 Technologically advanced countries For technologically advanced countries such as India.

the generic Three-Quarter Moon Model can be as in Figure 7.4 Figure 7.4: The Three-Quarter Moon Model (General) Culture and religion Companies Government of a country E-commerce Adoption EC department Infrastructure Payment system New strategies Remove restriction Import technology Change organisation Culture Training and education International payment Security Monitoring and updates Online promotion Security Customer satisfaction Fit with culture change Technologically advanced countries Training and Education The arrow in the three quarter moon model can be moved according to the involvement of each actor in a country’s economy. 260 E-Commerce user Before During After .Chapter seven: The three-quarter moon model experience and knowledge. The question to be raised here is “how can a country know which stage of the adoption they have reached?” Therefore deploying the Three Quarter Moon Model formula and diagram are introduced next. Therefore.

4.4 Deploying the Three Quarter Moon Model The Internet involvement formula is the place to start.1 Understanding the Internet involvement formula The level of Internet involvement in a country’s economy can be a measure of the level of engagement with e-commerce. Further. The reason of developing the e-commerce involvement formula is that all e-commerce activities have to be carried out over the Internet regardless to the type of service.5. This Internet involvement metric could be used to indicate the digital development of a country as shown below (Hamed. 2008). Number of Internet users in the country x 100 Internet involvement = Country’s Population – Number of children under 6 years This metric can now be used in a classification model that attempts to indicate where a country currently is on a scale of technological development. the OLPC project to provide children in developing countries with laptops will result in more involvement from the younger generation who enter school at the age of six.5. Hamed (2008) explained that the reason for using the number of Internet users in a country is that the number of Internet users is a result of all government and company economic and infrastructure activities. This involvement can be calculated by dividing the number of Internet users in the country by the over-six population of the country (assuming that children under six years of age will not be using e-commerce).Chapter seven: The three-quarter moon model 7. 261 . 7.

less technologically-advanced and technologically-advanced countries. etc.2 The classification model The classification model examines the e-commerce drivers and barriers of a country which will depend upon the level of technological involvement with e-commerce and its effect on a particular economy. based on three basic milestones: nontechnologically advanced. Once these issues play a greater driver role than barrier role.4. Hamed (2008) argued that there are many issues that could count as drivers or barriers to ecommerce. This classification could be. payment system issues. the government will have dealt with all infrastructure issues. regulation etc.Chapter seven: The three-quarter moon model 7. The reason for the classification is that if a country is managing to adopt e-commerce such that it is affecting economic activities. regulations. 1984).g. if a country has adopted e-commerce and managed to reduce costs by more than the cost of establishing e-commerce then the economy would be more developed than previously (Rostow.5. payments system issues. then one could argue that the country is less-technologically advanced or technologically advanced. The nontechnologically advanced countries are those countries in which the infrastructure issues. 262 . e. are not yet implemented.

Chapter seven: The three-quarter moon model Figure 7.5: The classification model Barriers Drivers 0 25 50 75 100 Non-Technolgically Advanced Less-Technologically Advanced Technologically Advanced 7. The government should pay attention to international payment and other aspects mentioned in 263 . If the result of the Internet involvement formula places a country in the less-technologically advanced category. or there are some complications for different infrastructures to work together and with other issues such as regulation. then the country could start the adoption from during-adoption stage. then the country will have to start at the before-adoption stage. This means that a government has managed to establish the basic infrastructure for ecommerce which has resulted in a reasonable involvement of Internet users.5.3 Deploying the formula in the classification model If the result places a country in the non-technologically advanced category. This means that a country has no infrastructure to support e-commerce. etc. payment. Therefore these countries have to re-examine all before-adoption aspects and adopt the new strategies for e-commerce activities.4.

the government will have to implement the action plan. The same philosophy could work with other aspects of e-commerce drivers and barriers. and therefore the country should work carefully with the after-adoption stage. infrastructure.5 Summary There are many drivers and barriers to e-commerce. a government will have to deal with telecommunication infrastructure issues before the adoption of e-commerce. etc. information. If a country has managed to achieve cost reduction greater than the investment made in adopting the new technology then one could say that the cost factor is a driver rather than a barrier. 264 . a government will have to think of e-commerce issues and their effect on their economy. intellectual property. then the country has managed to establish all the necessary aspects for e-commerce use. Each stage has a number of issues to be dealt with. legislation and regulation. etc) could be drivers or barriers. In order for a country to successfully adopt e-commerce. time. if the formula resulted in placing a country in a technologically advanced category. satisfying customers as well as other issues such as privacy. Finally. For example.Chapter seven: The three-quarter moon model the during-adoption stage to keep user-involvement and attract new users to electronic activities. However. most of these issues (cost. For a successful e-commerce adoption. 7. The action plan consists of three stages of implementation (before-adoption. during-adoption and after-adoption).

If a country lies in the nontechnologically advanced level. by applying the number of internet users. The model was designed specifically for Libya.1. After applying the formula. The calculation attempts to specify the stage of adoption the country is at. The action plan is driven by the four main actors (government. 265 . the Three-Quarter Moon Model. A generalisation of the model was introduced and a table of actions for the action plan was introduced for other developing countries. Additionally. population of a country and children under 6 years of age to the formula. the result will give us an indication of where the country lies in the diagram (figure 7. the result will be applied to the classification model which classifies a country according to its advancement in technology (nontechnologically advanced. the formula and classification diagram are proposed but not yet implemented in any country.5).Chapter seven: The three-quarter moon model Failure of the adoption may be a result of a failure of one issue or a failure of a number of issues together. technologically advanced. then a country have to review Before-adoption action of plan issues that are listed in Table 7. For example. The action plan and the e-commerce adoption actors together create the Three-Quarter Moon Model. a formula for measuring the e-commerce level of involvement in a country was introduced. less-technologically advanced and technologically advanced). The action plan. The involvement of the fourth actor is the result of the other three actors’ actions on the economy. Therefore the Internet involvement formula should help to indicate where the problem lies. companies and e-commerce users).

Chapter eight: Conclusions 266 .

Chapter eight: Conclusions Chapter eight Conclusion 267 .

..............2.............................................................................................................2......................................................................................... 271 8...........................1 Reviewing the literature of Economic development ..... 270 8..........................................................................................................3........... 289 8........................... 270 8........................ 288 8..........................................1 Contribution to theory .......................................2 Review of objectives ..................................... 270 8......3.2.............................................4 Limitations of the research.......................................2 Reviewing the literature of e-commerce .........................................................................................................2....... 287 8..............................Chapter eight: Conclusions 8............................................................. 281 8........................................................................... 281 8............3 Contribution of the body of knowledge ..............................................................3Developing a theoretical framework to conceptualise e-commerce drivers and barriers ......... 279 8... 273 8......6 Future Research .. 290 268 ...............1 Introduction......................... 279 8...........................4 Investigate practical drivers and barriers of E-Commerce and its impact on Libya’s economy .............2..............................................2 Contribution to Practice .............................2..............5 Recommendations .....................................................................................7 Develop a model to assist in E-Commerce adoption in Libya and consider how the model can be generalised for other developing countries .....................5 Develop an implementation plan for e-commerce adoption in Libya ............................. 272 8..................

Chapter eight: Conclusions 269 .

2. processing and adopting foreignproduced technological knowledge to local conditions and recognising the potential and dangers of its own discoveries when applied to the domestic economy. findings and model chapters. Recommendations are also made for e-commerce and Internet adoption in developing countries generally. the more likely it is that the pace of economic growth will be rapid. Recommendations are made to the Libyan government regarding e-commerce and Internet adoption. literature review. 8.2 Review of objectives 8. 270 . first. of understanding.1 Reviewing the literature of Economic development It is now widely accepted by policy makers and society that e-commerce is an economic and social transformation method that is affecting all countries.1 Introduction This chapter summarises the thesis and draws conclusions from thesis objectives. The successful introduction of technology into the domestic production process in any country requires a domestic scientific establishment capable. recommendations are made for further studies to be made on the subject of e-commerce and developing countries. E-commerce has created a new economic and social landscape. The more rapidly the technology is adopted and put to work in an economy.Chapter eight: Conclusions 8. Finally.

and cultural resistance to online trade. The impact of investment in ICT on economic growth is commonly regarded as a major driver of the new economy. such as new strategies. The investment in the digital infrastructure that supports these burgeoning new services from the Internet servers to fibre-optic networks has itself become a major engine of economic growth.2. the majority of developing countries face limitations on the development of their economy stemming largely from low income levels. The Third World has huge and well-recognised e-commerce and marketing potential. 8. the future of international business for all personal or commercial investment companies involves e-commerce and all it has to offer. new business processes. The potential of e-commerce applications to enable access to global markets and to reduce barriers to market entry is a theme which is heavily emphasised in the burgeoning literature 271 .2 Reviewing the literature of e-commerce Electronic commerce is the practice of conducting trade and retail business online through the use of secure websites. lack of payment systems that can support online transactions. Even so. ICT offers great benefits when ICT investment is combined with other organisational assets. With the latest computerization and Internet technology. However.Chapter eight: Conclusions Advances in information technology have done more than almost anything else to drive the last decade’s economic boom and the integration of markets around the planet. new organisational structures and better educated and trained workers. low literacy rates.

Developing a theoretical framework to conceptualise ecommerce drivers and barriers E-commerce is expanding rapidly and has facilitated changes by significantly reducing the costs of outsourcing and co-operation with external entities. often focusing on production management. Ecommerce is a key technology for speeding up the innovation process. Some drivers that are seen in some developed countries are not yet evident in many developing countries and in some cases those drivers in a developed country could be barriers in other countries. There are a number of barriers to the adoption e-commerce (see Section 4. fostering greater networking in the economy and making faster diffusion of knowledge and ideas possible.2. financing and accounting. 272 . E-commerce enables producers in the developing world to overcome traditional limitations associated with restricted access to information. E-commerce drivers vary from one country to another. Users in developing countries are likely to be engaged in making improvements to their operations. high market-entry costs. product development and marketing rather then paying attention to e-commerce strategies. and isolation from potential markets.3) such as security. taxation or even in some circumstances. E-commerce has helped to break down the natural monopoly characteristic of services such as telecommunications. 8.Chapter eight: Conclusions on e-commerce for developing countries. reducing time scales. too much business for a company to cope with.

legislation and regulation. This framework consists of number of issues that can be drivers and barriers for e-commerce adoption. These issues are cost. time.1 E-commerce drivers and barriers in Libya There are many drivers and barriers to e-commerce. Ecommerce is rapidly changing the foundation of Libyan government policies and improving their online communication strategies for expanding their economy. etc) could be drivers or barriers. The Libyan economy will gain many advantages from e-commerce that will totally change the way that businesses operate.2. 8. 8. Most issues (cost. Each of these issues can have its effect on the country’s economy.4 Investigate practical drivers and barriers of E-Commerce and its impact on Libya’s economy E-commerce should increase the efficiency of Libya’s economy by making products higher quality and customer service more efficient. culture and religion. If a country has 273 . employment. legislation and regulation. infrastructure.4. infrastructure. the government has to make sure that they have dealt with barriers and sustain the drivers of each issue. For the country to guarantee a success of e-commerce adoption. traditional business and economic activities.Chapter eight: Conclusions Reviewing the literature resulted in developing a framework to conceptualise e-commerce drivers and barriers. competition. government. information.2. payment systems.

However. the Libyan government has started to think seriously about e-government as an important tool for economic development. and Libya in particular. Libya has no electronic payment system in place as yet. is moderately high compared to developed countries. Even though e-government services are still at a very basic level. political and other aspects in the country. Most international payment transactions are carried out by a third bank located outside the country. The lack of an electronic payment system has delayed the adoption of e-commerce as well as encouraging 274 . E-government is significant factor for e-commerce as it delivers services to businesses and the public.Chapter eight: Conclusions managed to achieve a cost reduction greater than the investment made in adopting the new technology then one could say that the cost factor is a driver rather than a barrier. the cost of Internet connection in developing countries. The same philosophy could work with other aspects of e-commerce drivers and barriers. Cost is an important factor for the world’s e-commerce in general and for Libya in particular. The results of this research show that e-commerce reduces the cost of communication and delivery in Libya as elsewhere. Reduction of costs using Internet technology is one of the main drivers for ecommerce in Libya. The government has to bear in mind the effect of issues on social. The absence of e-government is another barrier for e-commerce in Libya.

Libyan organisations are pushing the government to adopt an alternative electronic payment system. pirated products. One could argue that e-commerce may not pose a threat to traditional business as a result of the low involvement of the older generation in e-commerce and the low custom charges on the imported products. which will be a driver for e-commerce. Traditional businesses and user behaviour needs to be developed to cope with the new technology. Security can affect organisations in a number of ways including the security of information. Moreover. However. However. the pressure of private sector companies has encouraged the Central Bank of Libya to adopt an electronic payment system which will link banks in Libya. and other illegal activities. The introduction of wireless technology in rural areas and desert locations will help people to engage with e-commerce. One of the most controversial aspects of e-commerce in countries like Libya is the availability of pornography. e-commerce legislation and regulation needs to put in place. Furthermore. 275 . The Libyan infrastructure for the Internet and e-commerce needs to be developed for the benefit of e-commerce and other advanced technologies. These create security and legal issues that may never have total solutions.Chapter eight: Conclusions Internet users to adopt hacking approaches in order to use some Internet services. traditional businesses may face sharp competition with e-commerce businesses in the future.

Chapter eight: Conclusions The research also indicated that a society’s culture. operating. Firms need to carefully consider and create a business model that will be applicable to the Internet and will need to ensure that the Internet matches their organisation’s business objectives. extensive regulation and censorship. Libyan companies need to change their business structure. The OLPC project will encourage the younger generation and their families to be involved with e-commerce and Internet. traditions and values may be barriers to e-commerce in terms of intervention to ban the sale of certain items that violate such culture. Electronic illiteracy and lack of e-commerce knowledge is another important barrier. training and supporting that is beyond the means of many enterprises in developing countries. 276 . Additionally the cost of connection is a challenge. However. such as taxation. as is the fact that most Internet content is English. Information systems infrastructures require restructuring and business strategies will need to be reformulated. Also. governments should support the creation of a legal framework for doing business on the Internet. the OLPC project is considered as a potential driver for e-commerce in Libya. Governments must bring down the different barriers that impose constraints on e-commerce. which limits the involvement of non-English speakers. and let e-commerce mature in an environment driven by markets. maintaining. Add to this the human capital cost of installing. traditions and values.

2 The impact of e-commerce drivers and barriers on Libya’s economy The two main driving forces behind the new economy are the Internet and e-commerce. Ecommerce has had a significant effect on economic development. Rather.4. it could result in creating new job opportunities and force employees to gain new skills. adopting e-commerce technology will not reduce employment in Libya.2. Agriculture could also benefit from e-commerce. 277 . E-commerce would certainly help to develop the tourism industry in Libya as tourists and tour organisers were among the first to use the Internet and this has now become standard practice. The importance of Libya’s location and its tourism potential will create new economic activities in the country.Chapter eight: Conclusions 8. therefore consumers would save money by paying less for goods and services. This research shows that e-commerce will help to develop Libya’s economy. E-commerce may result in job cuts. The increase in production will result in greater savings and investment and hence in developing the economy. E-commerce will enable farmers in Libya to export their products and increase their production which will lead to significant economic activity in the country. Libya is a consumer-market. This money could be reinvested and contribute positively to the economy of the country. However. Libya has many potentially attractive historical sites that could form the bases of a lucrative tourist industry. Libyan agriculture is well established and known for its low prices and fine quality. relying on imported products.

The traditional trade infrastructure is well established whereas the e-commerce infrastructure. Most of products in Libya are imported from overseas and sold at good prices to end consumers. the country should adopt the technology in order not to be left behind. with the increase of ecommerce popularity and infrastructure improvement. As a result of the research findings. traditional businesses in developed countries have demonstrated that adoption of e-commerce has been successful in improving their services. one could argue that E-commerce may pose some threat in the future as new. Libyan markets could be described as consumer-markets rather than productive markets. The longer the delay to e-commerce adoption. hardly exists. Therefore e-commerce could not compete with traditional business methods. 278 .Chapter eight: Conclusions E-commerce in Libya should not pose any threat to traditional businesses (off-line and importing businesses). advanced technology equipped companies are established and put pressure on traditional businesses. Although e-commerce may disrupt a country’s economy at first. However. Rather. the bigger the gap may be between that country’s economy and the economy of advanced nations. particularly that of order fulfilment. it was clear that a strategy is needed in order for the government of Libya to assure the successful adoption of e-commerce.

The failure of adoption may be a result of a failure of one issue or a failure of a number of issues together.Chapter eight: Conclusions 8. All action plan issues are driven by four main actors (government. The plan of action and the e-commerce actors create the Three-Quarter Moon Model. companies and e-commerce users).7 Develop a model to assist in E-Commerce adoption in Libya and consider how the model can be generalised for other developing countries The Three-Quarter Moon Model proposes a solution for e-commerce adoption in Libya. The involvement of the fourth actor (e- 279 . while and after-adoption.2. there is a need to put a plan of action in place that the government will have to undertake to guarantee the adoption. Because of complication of e-commerce issues and the links between each and every one of the issues. in Libya most of the issues are the Libyan government’s responsibility whereas in other countries the same issues may be the responsibility of the national or international companies in the market.5 Develop an implementation plan for e-commerce adoption in Libya A plan of action was introduced for e-commerce adoption in Libya.2. The plan of action consists of three stages consisting of issues that must be dealt with before. Actors are different from one country to another. For example. 8. The plan of action will be delivered by a number of e-commerce actors. technologically advanced countries. The Three-Quarter Moon Model consists of the plan of action and e-commerce actors.

Chapter eight: Conclusions

commerce users) is the result of the other three actors’ actions on the economy. These three actors comprise the Three-Quarter Moon that encourages the fourth actor to complete the circle of adoption. The Three-Quarter Moon Model was designed specifically for Libya. A generalisation for the model was suggested for other developing countries.

The Three-Quarter Moon Model can be generalised to work with other developing countries. The generalisation proposes a solution for countries according to their economic approaches (capitalist or socialist). The generalised model consists of the same issues and plan of action as Libya with a change in the role of e-commerce actors. In capitalist countries, most of roles will be played by the national and international companies rather than the government. However, the government still has important roles to play.

Additionally, it introduces a new classification model in order for countries to examine the level of adoption they have already achieved. The new classification uses drivers and barriers. The classification model divides countries according to their technological advancement. The new classification groups countries into non-technologically advanced, less-technologically advanced and technologically advanced. The classification model introduced a formula for Internet involvement. Applying the formula to a specific country results in a measure of Internet involvement in that country, which can then be applied to the classification model to identify the country’s level of adoption.

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Chapter eight: Conclusions

8.3 Contribution of the body of knowledge
The research described in this thesis has led to the following achievements and novel contributions: the research provides an understanding of the e-commerce situation in Libya; this has led to a contribution to e-commerce theory by establishing the drivers and barriers to e-commerce adoption in Libya. Additionally, a new model for e-commerce adoption the ‘Three-Quarter Moon’ was developed to help countries like Libya to adopt e-commerce, avoiding adverse effects on the economy and following prescribed stages to complete the adoption.

8.3.1 Contribution to theory
8.3.1.1 New knowledge about literature of e-commerce and economic development
E-commerce drivers and barriers issues were established from reviewing the literature of ecommerce and economic development and then examined in a Libyan context. As a result of the examination, most of the issues were confirmed, some were not, some new subissues and two new issues were identified.

For the competition issue, all the issues identified in the literature were examined and confirmed by the interviewee’s comments. However, the research adds to this literature:

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the lack of e-commerce infrastructure in Libya was the result of the delays of ecommerce competition in the country.

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Chapter eight: Conclusions

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the lack of competition in the market is because of the low level of involvement of the older generation who prefer using traditional business methods for their activities.

For the cost issue, some problems identified in the literature were not evident in Libya due to the early stages of adoption in Libya. For example implementation and maintenance costs were identified in the literature and therefore expected (especially for the private organisations) but was not encountered. The research also indicated that e-commerce in Libya should help in reducing the cost of bank transactions.

For the culture issue, the research findings confirmed the effect of culture on the adoption of e-commerce. However, the research findings also indicated that e-commerce may help to maintain Arab culture by providing opportunities for Arab women to work and shop from home. It also suggested that training and education may help to change the cultural prejudices against e-commerce and that pressure from government on citizens to use ecommerce may result in significant engagement in e-commerce.

The economic development literature indicated that the cost of adopting e-commerce technology was expected to be a barrier as it may affect other development in the country. This research indicated that e-commerce adoption should work as a driver for Libya. Ecommerce adoption should also encourage the opening of the markets and the involvement of international investors as well as creating opportunities for business in the country. E-

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commerce adoption is expected to work positively with the market. The research findings stated that training and education is an important issue for economic development.

Unemployment in Libya is a result of economic activities and not e-commerce alone. It was argued that the employment rate did not change much over the last decade in other countries from before the introduction of e-commerce. Additionally, training and education for employment is essential to be able to find new jobs and gain new knowledge.

Government is still playing an important role of e-commerce adoption, especially in Libya. However, people will not wait for the government to formulate legislation; they will start to use e-commerce once it is ready in the market. Therefore countries have to work towards introduce legislation and regulation to control e-commerce activities. Training and education for government staff and people are needed to understand safe methods of using e-commerce and how to sustain citizen’s rights.

The lack of infrastructure drives organisations and businesses to break the law to use ecommerce. For example, companies using satellite technology to connect to the Internet. The need for new strategies and management for the infrastructure was not considered important by the government which may result in serious delays in the adoption of ecommerce.

The difficulty of establishing legislation by one government alone and the conflict with other regulations in the country was identified. As the legislation development has yet to be

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completed, the issues will remain unconfirmed. The new regulations are a result of ecommerce users in the country which gives the government no option but to begin ecommerce regulation. Additionally, the absence of regulation drives businesses away from the market to somewhere else where business can operate. Also, there is a need for training and education of users as regards e-commerce regulation: their rights and how they can protect themselves while using the Internet and e-commerce.

Because of the absence of an electronic payment system in the country, many organisations (public and private) started planning to introduce alternative payment methods for ecommerce use in the country. For example, the top-up cards for shopping by LIB.

Traditional businesses in Libya will not be affected seriously by e-commerce because the the majority of users in Libya are teenagers. Additionally, the reduction in customs and taxes will help traditional businesses to be competitive with e-commerce traders by providing cheaper overall prices for imported products.

Examining e-commerce driver and barrier issues in Libya resulted in the identification of new issues. It was advocated that the need of education and training is necessary for each and every issue of e-commerce drivers and barrier. This research has introduced knowledge of e-commerce as a separate issue. Knowledge can be a driver for developing the economy, training employees and creating new jobs. However, it also can be a barrier for poorer countries that have to send trainees overseas to be educated and trained.

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Another issue identified as a result of this research is security. Security is an issue related to lack of regulation and legislation. However, the researcher identified security as an issue on its own. Security has relationships with each and every issue of e-commerce drivers and barriers. Adopting security in the market will be a driver for e-commerce adoption and will encourage people to start using the e-commerce. Thus a security market will create opportunities for national and international companies to be involved in and provide opportunities for employment in the market. However, security can be a barrier for ecommerce adoption. Providing security by international companies may result in spying on government activities and information. Also, systems security may be to complicated to use which may discourage people from using e-commerce.

8.3.1.2 The Three-Quarter Moon Model
The research findings and discussion has resulted in introducing the Three-Quarter Moon Model. The Three-Quarter Moon model is designed specifically to assist Libya’s adoption of e-commerce. The model consists of a plan of action (a to-do list of issues) and the ecommerce actors (government, local companies, international companies and Internet users). The plan of action divides the adoption into three stages: before-adoption of ecommerce, during-adoption and after-adoption. In each stage there are issues to be dealt with. A failure of e-commerce adoption according to the Three-Quarter Moon Model may be the result of one or more issue.

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8.3.1.3 Generalisation of the Three-Quarter Moon Model for other developing countries
The Three-Quarter Moon Model was designed for Libya; however, a generalisation of the model was introduced to be used for other developing countries. The generalisation of the model suggests a possible change of roles for the e-commerce actors and introduces a modified plan of action for other developing countries according to their economic approach (capitalist or socialist). Also it provides a classification for other technologically developed countries. Countries will be different in their level of e-commerce adoption and involvement; therefore a classification model was also introduced

8.3.1.4 New classification model and Internet involvement formula
The classification model was introduced to calculate the level of e-commerce adoption. Countries will work differently with e-commerce, therefore, the classification model has divided countries according to their level of technological involvement into three categories (non-technologically advanced, less-technologically advanced and technologically

advanced). If a country is classified as non-technologically advanced, then the infrastructure and other issues in the before-adoption plan of action have to be addressed. If classified as less-technologically advanced, then the during-adoption issues need consideration. If the country is classified as technologically advanced, then the country’s adoption of e-commerce was successful but now the country should pay attention to other issues in the after-adoption plan of action.

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The Internet involvement formula helps to classify countries in the model. The formula measures Internet involvement in a country. It divides the number of Internet users in the particular country by the population excluding those under six years. The result of the formula classifies the country in the classification model.

8.3.2 Contribution to Practice
8.3.2.1 Plan of action for e-commerce adoption
The plan of action is a set of actions a country has to take in order to guarantee the successful adoption of e-commerce. The plan of action consists of three stages: before-, while- and after-adoption. In the before-adoption stage, the country has to pay attention to a number of issues such as the infrastructure of the country, implementing a payment system and finding a government department to be responsible for e-commerce adoption. Once the before-adoption issues are dealt with and e-commerce is beginning to be used, the government enters the during-adoption stage. The during-adopting stage consists of a number of actions that e-commerce actors have to deal with while in the process of adopting e-commerce. For example, government, international companies and national companies have to start implementing an international payment system to allow international transactions between a country’s users and other businesses. The third level is after-adoption issues. When a country comes to after-adoption issues, one could argue the adoption of e-commerce has been successfully implemented in the country, therefore ecommerce actors have to pay attention to other ongoing issues such as training, monitoring,

287

In socialist economies the reverse is true. Hence the potential for some bias was unavoidable. 288 . this period was insufficient to indicate the real effects of e-commerce.Chapter eight: Conclusions auditing. private companies will have more involvement in the development and implementation than the government.  The research is a small-scale evaluation study. The issue remains the actors of e-commerce adoption changing according the type of economic approach adopted in the country. 8. but because of the research timescale only one country (Libya) was investigated. For example.4 Limitations of the research The study was conducted in Libya.  The study aims to propose a model for developing countries. This issue drove the researcher to use some personal connections in government departments and organisations in order for these interviews to be conducted. The model and plan of action were not implemented and therefore have not been validated. However. The rationale for choosing Libya was because Libya was one of the developing countries that has attempted but failed to adopt e-commerce.  Interviewing candidates requires permission and consent from individuals or their organisations. in capitalist countries. in which the research was undertaken for a period of four years. The plan of action can be modified to work with any country. For example. etc. there are certain factors that researchers should take into consideration when methods and techniques appropriate for study are being selected.

The effect of e-commerce on the country’s culture and religion has to be investigated to ensure that the adoption of e-commerce does not conflict with the culture of a country in a way which would affect the adoption. A government department responsible for e-commerce has to be established. 289 . 1. Therefore. the Three-Quarter Moon Model will need to be implemented and validated in other developing countries. 3. This infrastructure must include ICT and delivery fulfilment. 6. A country should monitor e-commerce activities and their effects on economic development. A country should encourage expatriate workers to return from overseas. The topic of e-commerce must be introduced as a subject in schools and universities and employees must be given appropriate training.Chapter eight: Conclusions  The generalisation of the Three-Quarter Moon Model was introduced but not implemented in other countries. 8. 2. The return of these workers would result in reducing the cost of employment and attracting other employees to follow the path of these workers. A country has to build an infrastructure for e-commerce. 5. 4.5 Recommendations The following recommendations are made to the Libyan government in particular and the governments of other developing countries who are seeking the e-commerce adoption.

Therefore. the model has not been validated.6 Future Research Further research could be carried out in the following areas:  E-commerce in Libya still in its infancy. training. A future study could investigate the opportunities for adopting Mcommerce in developing countries and African countries in particular. However. future studies could examine these factors and issues and provide a deeper understanding of each.  M-commerce has been proposed as a solution for developing countries in adopting e-commerce. Therefore a study deploying and evaluating this model would be appropriate. cost. 290 .g. culture. therefore a further study of the same subject may result in different drivers and barriers of e-commerce resulting from the rapid change in technology and other issues that may not have been observed in this study  The Three-Quarter Moon Model has been proposed to help developing countries to adopt e-commerce.Chapter eight: Conclusions 8. etc.  The Three-Quarter Moon Model has many factors and issues (e.) that the researcher could not investigate in detail through time limitations. especially after the launch of the African Telecommunication Satellite.

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Appendices Appendices 316 .

..... 401 317 ................................................ 381 10........................................................... 342 10.........................................1..5 Questionnaire questions linked to e-commerce issues ......................................................................................4 Questionnaire questions .......................................................1.....................5 Culture and Religion: ......................................................... 345 10...................13 Security .................................1.................................... 329 10..................8 Government :.............. 385 10.......2: Interview question .............7 Employment: .1.........................................1......... 318 10..................................................12 Payment:........1.................1............................................................................11 Legislation:..........................................................................................Appendices Appendices 10..... 358 10...................9 Infrastructure: ..........1 Data gathered: Use of tables.............. 326 10............................................................................................................................................ 375 10.....................................................1................................................................................................................................1..... 318 10.................................................................. 393 10.......................................................4 Cost: ............................................... 373 10..........................................................................................................14 Traditional Business:..2 Important: example of use of tables ......................................1..................................................................................................................................................................................................................................................1.10 Knowledge: ...............................................6 Economic Development: ......... 351 10................................1.................................................................................. 335 10.................................3 Competition:..........................3 Questionnaires’ answers......... 365 10..........................1 Interviewees’ comments tables: .............................1..................................................................................... 320 10...................................................................................................................1.................................... 362 10...... 322 10........................................

Each table includes the interviewee’s organisation name. Libyan government company 318 . and his comments. all original data were summarised and fit into tables which present the research finding in this chapter. Libyan government company Libyanna Mobile company. his organisations.1 Interviewees’ comments tables: 10. Each table consists of 6 columns stating the position of the interviewee. Each issue of the E-Commerce drivers and barriers has its own section and its data presented in a separate table.1: list of organisation interviewed Name of the organisation MOC OPTC LTT LIB Ministry of Economy. Below is a detailed explanation of these six columns: 1. The original information was gathered and listed. Each issue has its own table in the appendixes of this thesis. 2.1. the interviewee position and his comments related to a particular issue. The first column contains the interviewee’s job title. Libyan government Organisation of postal and telecommunication company. Each of the comments has been directly related to the literature review and the findings presented in each issue section. the abbreviations used are follows: Table 10.Appendices 10. Libyan government company Libyan telecommunication technology. The second column contains the organisation’s name. Additionally.3) were examined across interviews.1 Data gathered: Use of tables All E-Commerce drivers and barriers issues in the e-commerce Drivers and Barriers Model (1) (see section 4.

The third column is for the interviewee statements. each argument being numbered. Their original statement (as in the CD) were summarised to focus the interviewee point of view to the reader and to enable researcher to link the statement to the literature review tables of each section 4. financial and oil companies Concord investment Oil and construction company Al Wesam Internet Café Al Reiad Internet Café Al Mukhtar Oil Company 3. there is a table summarising the arguments relevant to that issue. The (L) indicates that the driver or barrier has been mentioned in the Literature review chapter 6. The fifth column indicates whether the issue discussed is a driver (D) or a barrier (B). Arguments are cross-referenced to comments in this column. a group of companies in construction. At the end of each issue section in the literature review. The fourth column indicates whether the issue discussed is a driver (D) or a barrier (B). The (F) indicates that the driver or barrier has been mentioned in this Finding chapter 5. in which case (-) is entered. 319 . In some cases the comments can not be cross-referenced. Central bank of Libya. BA Group.Appendices LCB CBL BA CI OCC AW AR AL OC Libyan Commercial bank. The sixth column.

The same view is confirmed in the literature.1.8 in section 4.2.2 Important: example of use of tables In order for the reader to be able to use the table below.2). The 320 . statement number 4 states that competition could destroy small businesses. an example is demonstrated here. the comment sate “International companies know about E-Commerce but Libyan companies do not”.8 Which related to the competition. By reviewing table 4. the statement above resulted in this research finding as a barrier in that the lack of Libyan company’s knowledge about electronic commerce can be a barrier for Libyan company to compete against the International companies who have the experience and knowledge of using E-Commerce and its activities.Appendices 10. These businesses could go elsewhere or cease to exist which will affect the economy badly. Such statement was not mentioned in the literature review. Another example could be giving is the second statement of the same table (table 12.2). it may even be that E-Commerce can be a solution for those traditional businesses who do not have the time or the ability to travel somewhere to compete with the importation. This statement in the table stated by the undersecretary of the Libyan government ministry of economy (MOE). therefore (-) was used to confirm that can be a contribution to the E-Commerce literature for Libya. The original statement can be seen in the competition appendices in the CD in the competition table. This statement confirm that the competition in the Libyan market was not because of E-Commerce. For understanding the first statement mentioned in the competition table (table 12. The comment in the table state “The competition in the commercial market is already exists”.

in the competition table. in the CD.Appendices original statement can be seen in the competition appendices. The same example can apply to the other drivers and barriers issues in this section 321 .

Appendices 10.1.B D D. 4 2 1. B - - D.3 Competition: Table 10. B D. B D D D B D 1. B D. 3. 4 1 3 4 2 D. Libyan producers are complaining that many international products have interred the country through Libyan importers or trader E-Commerce will create more competition in the market Using the internet will drive many travel agencies to close People will use the source rather then a physical shop E-commerce in developing countries will sharp the competition Competition could help developing the Libyan economy Consumers can save money by using E-Commerce and buying from source Competition on employment will increase because of E-Commerce Reduction on customs and taxation increases the competitions between traditional traders and electronic traders E-commerce in developing countries will effect the competition. The competition in the commercial market is already existed. 2 2. 4 322 . B D.1: Competition issues in findings Job title Org comments International companies know about E-Commerce but Libyan companies do not. B D D B D. 4 3. B D D. B D 1. 4 Undersecretary M O E D D. B D. Local suppliers and producers will have to provide a better services and quality to face competition D/B F B D/B L B No.

Chairman OPTC Electronic competition in Libya still not seeing E-Commerce will fast up the way of doing work in the company. 4 1 Marketing manager LTT D B B - - B D.Appendices Competition did not really happen in many country and this fear start to be disappeared. B B 4 Marketing manager LIB 323 . B B B - 4 - B - - D. B B D D. B D. B D 1. It will reduce the expense of doing things in a manual way. Competition in employment The readiness of country’s infrastructure will delay the competition There is no competitions of Internet services providers in Libya as all owned by the same company which owned by the government The Internet providers in Libya going to be privatised Business will shift their activities into the web Payment system delays the adoption of electronic business Alternative payment system start creating competitions between their adopter and other traditional business providers Other companies start thinking of adopting alternative payment system Payment system delays the competitions and electronic business There is no domain registration competition in Libya as all provided by one company To coupe with demand LTT increase the charge of services E-Commerce will create competition in employment D - - D. B D D 2 D.

2 D.Appendices Learning of other companies mistakes D can be the way out of the problem Internet services providers in Libya B are completing each others rather then competing with each other Operations manager LCB Absence of Electronic payment system drove all banks in Libya to deal with one International bank in all their international activities B B 1 B 1 National payment system will create a D. B D B D 4 1 Chairman BA 324 . B competition in employment Bank will ask other technical companies to provide electronic services such as web designing and database links which will create competition between IT companies Internet is legally provided by only one company in Libya Competition between electronic and traditional business may result in disappearing the traditional businesses from the market Competition between electronic and traditional business will need time to be seen in Libya National payment system will create an opportunity for Libyan companies to provide business online National payment system gives the opportunity to Libyan local bank to operate and compete with international banks National payment system will create competition in employments Competition between traditional telephone services and VOIP is existed D B - 4 B B B B 1 4 - - - IT Manager CBL D D 1 D D 1.

4 You have the opportunity to compare D prices for different products or even for the same products. 2 B D B B D - 4 1 D D D - 1 D D D D 1 1 325 . it will not get effected from ecommerce. 3 D D 1. and as we all know that Internet services are too much lower then the high street prices Libyan Market is consuming market. D D 3 D 3 D D 2. B competition between traditional way and electronic businesses specially for buying products and availability of different type of products.3. Competition is stronger between electronic businesses and more stronger for traditional businesses D. 4 D. B 1.Appendices E-Commerce will create a D. B 1. Libyan consumers will save more money and get better quality by using E-Commerce Libya’s agriculture products will not be competed because of its quality and low price Business development manager CI Competition for employment will rise Competition between the same services providers Old generation do not care to use the E-Commerce General Manager OCC Competition between mail services provider will sharp E-Commerce will create a benefit to all companies rather then competition Internet Café manager AW E-commerce will bring many new companies For older companies to survive they have to take the same bath along with the traditional way. B D.

Breaking the low to get a cheaper Internet connection No competition between Internet service providers kept the internet connection charge high Engineering manager OC In a market like Libya E-commerce and traditional business are barrel Many traditional business are using the internet . it a business around the glob. 6 16 - Undersecretary M O E Chairman OPTC D D D B B 13 13 326 . it works perfect in both sides. Internet Café manager AR E-Commerce is much easy way of doing business then a traditional way E-commerce has a big market. The future more likely to be just e-commerce B D D B B B B 1 1 D D - - 10.1.2: cost issues in findings Job title Org comments Increase importation Reduce the cost of products Increase people saving Reduce the cost of establishing new companies Reduce the expense of doing things in a manual Reduction on fixed line charge Reduction on Internet connection D/B F D D D D D/B L D D No.4 Cost: Table 10.Appendices The reason of high Internet charge is because of there is no completion.

Reducing general expenses Chairman BA 327 . Cost of training for new system and language Reduce the cost of transactions in banking businesses Cost of connection The cost of infrastructure (40M for NPS).14 1 1 Marketing manager LIB Cost saving for paying bills and children school registrations The cost of Internet per 1KB is 2 Dirham. Reduce the amount of money for printing top up cards. 9 14 13 14 16 1 13 9. Reduce the charge of service Operation manager LCB Reduce cost Reduce employment. cost of having website IT Manager CBL Saving resources Reduce employment Reduce huge cost.Appendices Marketing manager LTT High charge for Internet connection B Charge for ATM technology for ADSL B High charge to control high demand Reduction in cost by %70 B D D B D D D D D D D D D B D B B B D D D D B B B B B D D B B D D 13 14. M-commerce save money for building the infrastructure Reduces the employment Increase saving Reduce the cost of travailing Reduce the cost of getting job done.

6 1.14 9 6 5 16 -.8 6 16 13 2 13 2 2.4 13 General Manager OCC Internet Café manager AW B B B D D D D B B B B B B B D D D B B B - 13 9. increasing production by saving the cost reduce buying price increase the saving cost of connection Business development manager CI Reduce the cost of employments Reduce the cost of printing Reduce the cost of communication.9 -.Appendices Emails and VoIP reduce communication cost (90%) Reduce the cost of buying products Reduce trading cost for importers Reduce travailing cost Reduce cost and provide a better services. Reduce marketing cost. Cost of connection Reduce communication Reduce supplier communication Cost of the internet connection is too high Cost of connection is high Cost of implementation is high for privet business Cost of PCs and Networks Reduce buying cost Reduce selling cost and increase revenue Reduce the cost of money transfer Internet Café manager AR Save money Cost of web design Cost of hosting Cost of domain name Cost of submission to search engine D D D D D D D D B D D D D B D D B D D D D D D B D B D D B - 2 6 5.9 - 328 .9 -.

B Libyan are resistance for culture B change E-Commerce will change business D culture Young generations will grow up with D E-Commerce Providing every house with PC may D will change the culture Education and reducing customs on D technical equipment may help to change the culture Changes in the business culture will D create money and help the economy Change the business culture in the Ministry of Economy D - - D D 7 Chairman OPTC OPTC start changing the business D culture 329 . 3. B D B D D D No.Appendices Cost of connection is high Cost of computer literate employees Cost of computer and network maintenance Cost of training OC No comments B B B B B B - 13 9 - 10.1.5 Culture and Religion: Table 10. 7 7 1 7 Undersecretary M O E D D.3: culture and religion issues in findings Job Title Org comments Spread of Credit cards in Libya Needs for business culture change D/B F D/B L D.

culture.B Commerce B 1 330 . Government and companies should D help for changing the culture Reduction cost can help in changing D the culture E-Commerce will change the business D. E-government is actually a challenge to be adopted Marketing manager LTT D B B 1 1.Appendices Electronic way is much better than D traditional way There are also a culture barrier. Its not only the technology will do the D job. many people will shift there B activity into e-commerce . E-Commerce will be good for business D and customers if you manage to change our business culture. B people needs to change the culture of B caring cash or cheques into cards and electronic payment People still don’t have a culture of B writing a check how we expect them just to accept e-commerce. It’s important to push for new D technology. but also the willing of the people themselves. 2 B 1 D 7 D 7 - - D D D 7 7 Changes in payment culture needed D Banks and shopping centres start D providing alternative payment methods to change the business culture Foreign travellers are culturally ready D to use E-Commerce Locals will have difficulty to use E. People needs to be forced to use for a first time.

B 1.Appendices Locals will flight not to adopt E. living . E-Commerce makes people believe D Time is money. B D D.B Commerce LTT enables Wireless Internet in the D desert LTT enabled wireless services in D exhibitions Educations and training needed to B change the culture E-Commerce will help people for their activities rather then wasting time Marketing manager LIB Customer can pay their bills by mobile D D B D D D D 1. D organisations needs to provide services over the Internet Education and training is needed to B change the understanding of technology and its benefit Paying money for time services is not B allowed by Islamic religion Technology give the freedom to D. B E-Commerce will speed up the way D doing business. different opinions and thought B Tradition and custom will affect E. 3 1 1 1 7 1 331 . 2 7 7 7 7 People need to save time for their daily D activities E-Commerce will help in change the D culture of carrying cash and cheques In order to change business culture. 2. D.B commerce E-commerce will change the way of D. B D 7 - - B B B D. E-Commerce may effect the social life.

business is a time D - - D 7 - - Operation manager LCB E-commerce drive people to be more D organised with there jobs and payments. Central Bank of Libya help other D banks to change their traditional business methods.B Commerce People acceptance of new technology B is a barrier E-Commerce still in its infancy to B know its effect on culture E-Commerce May effect traditional business B 332 . English language is a barrier for E. Traditional consuming. People believe that E-commerce will B affect the employment rate in the country and will slow the wheel of economy development E-Commerce create a new way of D thinking to do new job and develop knowledge. Electronic services and cards will be D introduces to all customers. Next step is to adopt Internet Banking D D 7 D D D B - 3. E-Commerce make and business easer.Appendices E-Commerce helps in administration D work. 7 7 7 1 - Central bank of Libya is sending D employees overseas for training E-commerce bring the whole world D together. communication D E-Commerce helps banks to do there D transaction quickly and easily.

D banks clearing of checks according to scanning technique. BA business culture has adopted the D email and VOIP E-Commerce provide a better services D and safe time and money Culture and customs won’t make a D huge barriers to e-commerce Religion will not make a barrier to E. The new system settles the accounts of D banks and public institutions with the CBL at every working day-end. D D 7 7 D 7 D 7 D 3. 7 Chairman BA E-Commerce strategy has to fit with D culture religion and custom of the country.Appendices IT Manager CBL Central Bank of Libya improving the D banking activity environment. 5 - 7 1 1 1 333 . paper files and net-transaction posting to the clearing Automated Clearing House System ATM provides a fundamental D environment for the national automated teller distributor It also enables businessmen and D companies to accept payments electronically Training programs are offered to all banks staff aimed at qualifying national professionals capable to mange and function all parts of the project.D Commerce Human like to develop there skills. D Libyan are willing to change their D culture D 1 D D D D D 1. This system relates to electronic inter.

B Older people do not bother to learn B new technology Most of older and middle age people B prefer the traditional methods of doing business.Appendices if e-commerce will get the right D structure in the country the result will be encouraging 70-80% from consuming product has been imported from out side Business development manager CI D D 7 D B 4 1 E-Commerce makes customers trade D themseles The higher population of internet user D. E-commerce needs to be seen as a new D method for business D D B D 7 7 1 7 Internet Café manager AW Software are downloaded from the B Internet for free E-Commerce provide an easy tool for D shopping E-Commerce helps to maintain the D culture for Libyan Women Men don’t have to wait for their D women while shopping Lack of payment system create a bad B effect on E-Commerce D D B 6 6 - 334 . Education and training is needed to change the culture of business B - - General Manager OCC Using email as a main tool for business D Email is a low cost tool comparing to D telephone Tradition and customs are one of the B big barriers. in the country are teenagers.

only B travellers People come to cafe net to know about web design.6 Economic Development: Table 10. Few people using E-commerce.1. B 10.Appendices Younger and old people using the D Internet Customer comes to check there mails D or chatting online.D per hour Only 10% of the internet user who use B for a good reason Engineering manager OC E-Commerce helps in doing business D - - - - Many traditional business are using the D internet The future more likely to be just ecommerce D.4: Economic activities issues in findings Job Title Org comments D/B F D/B L No. 335 . chatting and games Lack of payment system drive users to B adopt hacking methods E-Commerce create a share knowledge D culture between users. Internet Café manager AR Website is not beneficial provide dynamic services unless B D - - D - D - 1 - Traffic in dynamic site is increasing D Libyans customer were using the Internet since 1994 and they were paying 12 L.

however.Appendices Undersecretary M O E B2B will work very well as soon as E-Commerce is ready.g. accommodations. B D D - 4 - D D 8. removing travel expenses. air tickets. etc) E-commerce may effect the employments. D D D D D. B 9. Ministry of economy do not think using E-Commerce will affect the economy badly. The worries of E-commerce in developing countries will effect the competition start to disappear The unemployment in the whole world is because of the economic cycle but not e-commerce. Competition between Libyan producers and international importers or trader is sharp E-Commerce will create more competition E-commerce in developing countries will sharp the competition Economic ministry do think competition could help developing the Libyan economy E-Commerce can help consumers to buy products cheaper (e. B D D D D. unemployment in Libya was because not having the right people in the right place. 9 D. B D. 10 6 12 7. E-Commerce activities help people to make and save money E-commerce will not have any bad effect on the Libyan market. shipping. 10 B - - D D 12 D - - D - - 336 . The competition in the commercial market is already existed.

D D D 12 D D 9 12 Chairman OPTC E-Commerce has to be adopted.Appendices The percentage of unemployment is D almost the same in all decades. D wasting time on adoption will result in making the situation worse and needs more money to invest and catching up It will be easer for the customer to use D the electronic services E-Commerce will fast up the way of doing work in the company. International travel has gone too high in the whole world because of ecommerce D - - D 10 If we start providing services in Libya D using e-commerce we would help developing the economy and being in a better place. E-Commerce can help the tourism industry in Libya and bring more business to the whole country. B D 12 3. and that confirm e-commerce is not the only reason for unemployment but the development of the economy. E-Commerce will reduce the expense of doing work in a manual way Many people will shift there activity into E-commerce E-payment system will help many people to get cheaper products in short time D D D D - - D D. Providing services over the web will result in expecting huge business. 7 10 Marketing manager LTT E-commerce benefits every one using it E-Commerce help in selling. buying and doing activities over the internet D D D 10 337 .

B - - D. B D 9 B B 1 D D D D D 3 3 D D 8 D D 9 D D 9 D D 3. and speed up the way doing business E-commerce would make companies reduces the employment and save extra money. The reduction of cost will have its effect on customer which will benefit of reduction on using mobile services charge.Appendices Marketing manager LIB M-commerce would save the country huge amount of money for building the infrastructure There people who has managed to make millions of dollar by using ecommerce. 9 338 . Adopting E-commerce will result in providing better services in much less cost. D - - D - - D. E-commerce will change the way of living. E-commerce will effect the employment rate and will slow the wheel of economy development Internet is important for living activities Traditional billing payment is time and money consuming Traditional billing payment results in delay the economic circle in the country E-Commerce is a driver to develop the economy E-Commerce will encourage the government state companies to catch up with the new technology Adopting electronic charge services will help the country to reduce amount of money and time of bidding.

Infrastructure delay the adoption of Banking system D - - D. The project plan is to formulate a strategy that ensures efficiency.Appendices Operation manager LCB Adopting electronic banking system will enables customers to save time on doing their banking activities Internet banking will reduce cost and employment numbers. B D D D D - 9 3 B D B D 1 12 IT Manager CBL Central Bank of Libya project aims to large developments of information technologies and improving the banking activity environment. It will reinforce the CBL’s capabilities to control banking operations risks and maintain the financial stability. effectiveness and safety for the developments of a national payment system to contribute in the development of financial and other economic sectors. rather it provides banks with potentials to provide international quality banking services. The training and qualification programs will contribute in providing human resources needed to function and support the application associated with the programs. The successful implementation of this project not only ensure handling the technical deficiencies. For banks E-commerce is more important that it will help banks to do there transaction quickly and easily. D D 12 D D 8 D - - D - - 339 . E-commerce makes communication and business easer.

For agriculture and internal use products. Government still has not adopted ECommerce as a policy E-Commerce is reducing general expenses in private companies D - - D B D D B D B 9 8 9 4 E-Commerce competition is more D. B stronger. Economic development is different between cost and production.Appendices Chairman BA The banking sector will be more capable and efficient in intermediation between saving resources and employment opportunities. 12 D B D B 12 3. Libyan Market will not get effected badly from E-commerce. E-commerce would pose some threat to traditional commerce in industrial products. these will not get effected from e-commerce because of the low price and a good quality that people get used of. D D 4 B B 12 D D D D D D 9 12 9. E-Commerce reduces cost. cutting the expenses. reducing the cost and increasing the possibility of opening new market places would increase the production of the economy. choosing the right product could result in reducing traditional importation business. E-commerce create opportunities to expand business E-Commerce developing the economy. and the verity of chooses are wider then traditional market E-Commerce gives the opportunity to compare prices for different products or even for the same products E-Commerce advantages of trading. 6 D D 8 340 .

D D 9. E-Commerce help to generate money. There is no benefit out of having a website. old B people see technology is complicated and time consuming General Manager OCC E-Commerce will benefit companies D and pose threat to traditional business. D Internet user are mostly teenagers. so in order for older companies to survive they have to take the same bath along with the traditional way. Business development manager CI E-Commerce reduces the cost of employment E-Commerce reduce the cost of printing and communication.Appendices Allowing e-commerce will result in reducing the cost of imported products and services that will drive consumers to save money and reinvest them in the local economy. 12 D. D D D B 10 2. E-Commerce offer a verity of products E-Commerce enables customers to save time in searching for what they want Many new E-commerce companies will develop. 3 Internet Café manager AW D - 10 D D 3 Internet Café manager AR B B D D D D D - 6 9 - 341 . B D D D D - 9 9 9 - E-Commerce reduces marketing cost. B Right now there is no threat. Having a website is waste of time and money If customers are locals then no need for website E-commerce has a huge market and has no limit E-Commerce save time.

Appendices E-Commerce gives possibility to do new businesses Engineering manager OC E-Commerce help to do business E-Commerce is a marketing tool D D 10 D D D D 4 12 10.1. 2 Undersecretary M O E People believes E-Commerce will B affect employment badly Employment crises in Libya because D of not having the right person in the right place rather then E-Commerce Libyans do not accept any type of job D E-Commerce will force people to D learn.5: employments issues in findings Job title Org comments D/B F D/B L B No. being trained to be re located in another job The unemployment in the whole D world is because of the economic cycle but not e-commerce E-commerce is not the only reason for D unemployment but the development of the economy.7 Employment: Table 10. D 3 - - - - Chairman OPTC E-Commerce will be adopted in B OPTC services Cashers will be replaced electronic payment system with B B B B B 2 2 5 Many people will shift there activity into E-commerce Marketing manager LTT Payment system will be introduced in D other shops All services electronically will be done B B 2 342 .

D D D B - 3 3 3 Operation manager LCB 2 - - - - D 3 343 . Electronic banking system will reduce B employment numbers. This national payment system is B designed to work with Oracel database system. We have no people who knows about Oracel IT Manager CBL National Payments System provide D training programs aimed at qualifying national professionals Preparation and qualification of D human resources is needed for the program to be successful The training and qualification D programs will contribute in providing human resources needed to function and support the application associated with the programs. E-commerce employment will reduces the B B B 2 1 People will think that e-commerce B will affect the employment rate in the country and will slow the wheel of economy development People could be located in other D position E-Commerce will create a new way D of thinking to do new jobs E-Commerce will help to develop D workers’ knowledge Adopting e-commerce and ask people D to leave reduces cost.Appendices Marketing manager LIB E-Commerce helps in administration D work. Central bank of Libya is sending D employees for training Trained and professional people are a B not available in Libya.

People can work from home Create employment opportunity and reduce security braches Needs for web designers and programmers D 3. It also will contribute to the D employment and economic growth. 4 D D B D D - 5 3.Appendices National payment system will result D in saving resources and employment opportunities. E-Commerce provide a better services D atmosphere to workers Being able to provide services internationally can be employment D benefit Business development manager CI E-Commerce reduce the cost of B employments Education and training courses about D e-commerce is needed OCC AW Reducing number of workers B D 3. 5 - Internet Café manager AR Training and education is needed for B new employments Engineering manager OC No comments 344 . 4 D - 1 - Chairman BA - - - - General Manager Internet Café manager B D D - 2 3 E-Commerce provide an opportunity D for unemployed people There is lack of expertise to help B working with E-Commerce Knowledge and experience is needed B for new jobs and new workers E-commerce will open new spaces and provide employment opportunities.

The committee has the right to D choose any person that they believe he could help in doing and developing the approach. Libya’s government recognise the benefit of E-Commerce and compare its economy to Tunisia All that matters is how can we make a regulation that will satisfy and keep right for both parities (Customers.1. There is a decision was made by the D minister of economic and commerce to start the process of establishing committee for ECommerce regulation. and service providers). B actions in regulation to start using the Internet. 3 Undersecretary M O E Credit cards will be available across D Libya by next year according to the plan of Central Bank of Libya. E-commerce infrastructure of telecommunication is poor in the country High charge of Internet connection D D 3 - - D 4 D 4 - - D 1 - - - B B 13 B B 13 345 . If the credit card system been D distributed in the whole country then that will build a very good infrastructure for e-commerce in the country. People will not wait for government D. Government taken action on D developing theory or a law for ecommerce.8 Government : Table 10.6: government issues in findings Job title Org Comments D/B F D/B L D No.Appendices 10.

E-government policy is under process E-government adoption idea was there 1984 Libya is ready for e-government Many ministries have websites Ministry of Economic provides services online such as registering companies Ministry of economic claim the soon the E-commerce adopted. 5 1.000 laptop to kids Government encourages having PC in each House Government reduces custom to encourage people buying technological equipments Government believes competition will not get effects from ECommerce Electronic services putting the country in better place Providing services in Libya using ecommerce could help developing the economy.000.Appendices Government has responsibility in the lack of training and education Libya provides 1. 5 D D D D D D D D D - 4 6 3 2 D - - Chairman OPTC D B D B B B 13 14 346 . the better for the country and the economy Electronic bill payment is developed by the OPTC OPTC is responsible for ECommerce infrastructure E-Commerce will be effective as a service Dis-organisation between government department created a chaos on responsibilities B D D D B D D D 3 3 3 D - - D D D D 1.

Government thinking to privatise the two Mobile service companies (Almadar and Libyanna). 12 3 D D 10 D B D B 3 4 D D D D 6 3 LTT provides Internet connection in D the middle of the desert Providing free hosting services to companies would help encouraging the adoption of E-Commerce Marketing manager LIB Libyanna working in providing 3G services D D D 12 3 D D 3 347 . OPTC reduced the international calls up to %75 . and government departments are lacking the improvement in the country. Marketing manager LTT LTT thinking of adopting Ecommerce Barriers such as Payment systems. 3G service is one of Libyanna services. It provide up to 300KBper second.Appendices Government or companies are responsible for establishment of ECommerce. OPTC reduced the calling charge from fixed line to Mobile by %25 The last couple of years there were a big achievement in improving Telecommunication services. B D - 3 - D D D D D D 3 10. Things start changing from the government point of view LTT provides Domain registration free of charge to Local companies and government agencies B B 13 D D. accessing internet via mobile and other applications. OPTC reduced the calls into %70. transactions. which could provide video calling.

D B 13 D D 2. Government state companies which need to wake up and catch up and move on with the new technology needs to adopt E-Commerce The only mobile companies in the country are completing each other. 15 D D D D D - 3 3 D D 1. 3 348 . D D D 3 D - - B B 13 B. Operation manager LCB Central bank of Libya has signed a deal with three international companies to put in Libya a National payment system The project designed to provide all electronic services Adopting Internet banking is the next step The central bank of Libya is sending employees from all Libyan public banks outside the country for training IT Manager CBL Central Bank of Libya works in increasing the benefits of the large developments of information technologies and improving the banking activity environment. The government and other private organisation should pay attention to conferences. training sessions. and they both have a same aim which helping in developing the country infrastructure for mobile phone services.Appendices Libyanna thinking of using Top up card as money Libyanna is a state company trying to help developing the country infrastructure. workshops etc.

rather it provides banks with potentials to provide international quality banking services.Appendices Chairman BA This system aims to develop technologies and techniques for banking activities The system will be interlinked and linked with commercial banks with various communication means The successful implementation of this project not only ensure handling the technical deficiencies. 9. 7 D - - B B 6 B B B B 3 6 D D 1 B B 12 D D D D D D 8. The training and qualification programs will contribute in providing human resources needed to function and support the application associated with these programs. The government is planning to adopt the E-government services There are website for most government ministries The CBL is working in introducing ATMs Machine and providing people with Credit and Debt cards to be used D D 7 D D 1. E-Commerce has not been implemented as a policy for the government Government have to pay attention to infrastructure Government has to take Ecommerce issue very serious if they want to develop Adopting E-commerce and developing E-government services will push the country into a higher position Electronic illiteracy can be solved by the help of government and people willing to learn. 14 3 3 349 .

B B B - 3 General Manager Internet Café manager OCC AW No comments Government failure to provide cheap Internet connection drove people to break the low Government failure on providing security for Internet dis-encourage people to use the Internet Lack of payment system drove people to adopt hacking techniques No law to admit Computer crime encourage people to use hacking software B - B - - B B B 4 Internet Café manager AR There are no schools to provide courses in e-commerce Failure to provide cheap Internet connection drove people to break the law B B - - Project manager OC Infrastructure. B - - D D 4 350 . conferences and forum about e-commerce to educate people the right way of using the ecommerce. the regulation. training courses. and the knowledge in IT in general are the barriers The new regulation and IT development are the new drivers.Appendices Business development manager CI The main barrier is the connection to the Internet There should be many workshops.

Companies software are developed in house OPTC is responsible for fixed line services OPTC offers V-Sat services for businesses OPTC provides broadcasting TV to the Libyan National Broadcast corporation.Appendices 10. E-commerce infrastructure of telecommunication is not there Land line infrastructure is not good The high charge of Internet connection is a barrier Chairman OPTC Organization network does not cover all regions OPTC are working in a plan to connect all its branches with a data network.9 Infrastructure: Table 10.1. 4 Undersecretary M O E D D 4 D B B B B D D B B B B - 4 1 1 1 1 D B D D B D D 2. Credit card system build a good infrastructure for e-commerce in the country. D/B F D D D/B L D No. Advancement in Internet technology put Tunisia in a better place.7: Infrastructure issues in findings Job title Org comments Expecting the spread of Credit cards in Libya soon National payment system project is implemented by three large international companies. 3 4 351 . OPTC provides routers services for the banks.

B D D D 7 4 B D D 2 4 D B D D B D 4 2. Central bank of Libya project will help developing the E-Commerce infrastructure in the country B D D D B B D D D B 2.000subscribers. LTT provide telephone connection in rural place using a VSAT technology rather then cables using space satellites. The last couple of years there were a big achievement in improving Telecommunication services. OPTC has reduced telephone charge to 70% OPTC expand its wireless services through its subsidiaries companies OPTC plan to expand fixed line services in the next couple of years In the present OPTC have around 650. Libyanna start providing 3G services through its mobile network LTT is the main internet service provider in Libya. 3 D. Restructuring and re-organizing of telecom sector is taken place. Reduction on cost is depends on covering the installation expenses. 3 4 Marketing manager LTT D D 4 352 . OPTC through its other companies are working in expanding the network. it is around %10 of the pupation.Appendices OPTC is responsible for the infrastructure. All telecommunication companies are owned by the government through a mother company There are thinking of privatize the two Mobile service companies In 2004 OPTC reduced the calling charge from fixed line to Mobile by %25. 3 4 4 4 1 D B D B 6 2.

LY. this price been reduces from 55000L. LTT provides internet services using DVB-RCS.D. 5 4 2. B B 2. the cost per 1KB is 2 Dirham. the price is high comparing with other internet provider M-commerce would save the country money for building the infrastructure D - - B B 3. 3 D D 3 D D 4 353 . its one of many state company that trying to help developing the country infrastructure 3G charge to customer still under discussion. 5 B D B D D B B D B D D B 3.000 L.Appendices Prepaid cards for shopping is an alternative solution to over come the infrastructure problems. LTT provided wi-fi services in rural areas Needs of technological equipments and part remain the Internet connection charge high High charge is to coupe with the high demand on the service Marketing manager LIB Libyanna provides 3G services Libyanna introducing alternative methods for paying bills Libyanna planning to connect all distributor to the main database using online application so they can issue new SIM cards and provide an efficient services to their customers. Liseline charges start from 256Kb for 9000 L. The charge of 8 Mb for 280. Libyanna is a state company. 3 4 4 3 B D D D B D D 3 4 4 D.d.D LTT provide hosting and Domain registration LTT is the only main register for .

3. D 4 354 . If there is no good communication infrastructure in place then the system will not be used. 5 D D 4 B B B B B B 3 1 1 B B B B 1 2 B B 1 B B 1. Almadar have another strategy which providing services to Businessmen in the country The central bank of Libya project was done through International companies to provide banking infrastructure Internet connection provided by LTT. it will solve the payment problem in the country and put a right foundation for e-commerce to be used. Satellite connection (2 ways) between our branches are not allowed if not provided by the LTT The main barriers to e-commerce in Libya is the infrastructure and communications Commercial bank claim that Libya has a poor infrastructure A project of 40 Million Libyan dinner cost is not in use because of the infrastructure.Appendices Operation manager LCB The two mobile companies in the country are completing each other. Libyanna strategy is to reduce the cost as much as possible to enable citizen use there services. There are no connection between bank’s branches right now. the line is not fast and have problems The biggest challenge of CBL project success is the infrastructure. 5 National payment system is one of the D drivers of e-commerce in Libya. B B 2. and they both have a same aim which helping in developing the country infrastructure for mobile phone services.

D D 4 D D 4 D D 6 Chairman BA To ensure the success of the system.D a month The infrastructure is the main barrier Government have to pay attention to infrastructure B B D 4.Appendices IT Manager CBL National payment system is about to build the payment and banking infrastructure This system provides a fundamental environment for the national automated teller distributor. 7 B B B B 2. a D new technological system was developed in order to develop the quality of services and to use sophisticated electronic techniques for the banking activity. CBL is working in introducing ATMs Machine and providing people with Credit and Debt cards to be used Internet connection type is ADSL Connection to the Internet is a barrier in Libya Connection failure and problem are common in busy time D D 4 Business development manager CI B - - B B 1 355 . It also enables businessmen. in addition to the execution of all financial generally accepted international electronic transactions. 5 1 1 1 Government have to adopt EB commerce if they want to develop and catch up quickly. through developing an electronic banking system and the underlying communication infrastructure. Payment for Internet around 1000 B L. 3. their clients and companies that provide these services to accomplish the payments for transaction charges electronically using points of sales.

D a month for B 512 kb Download and 256 k.D per hour.D a month a cable rental. 5 3 1 Engineering manager OC The company use ADSL provided by LTT. 2. and internet connection not for the equipment and PCs Paying 1360L.D a month for 1 Mb as well as 150 L. B B B B B B 1. B B B B 2. it is around B 7000 Libyan Dinner. 5 5 Internet Café manager AR B B B B B 2. 3 3. 5 1. 5Gb per month and paying €100 for installing and €25 per month.Appendices General Manager OCC The cost of the internet connection is high in Libya. The infrastructure is one of the main barriers of E-Commerce in Libya 356 .b. 5 B D - - Internet Café manager AW Satellites connection is used B The café pay 750 L. 3 1 1 5 B B B B B B B 3. The company pay 1500 L. upload This is a one time cost.D for 256KB per B month ADSL is not good for Internet Café as B it has limit of 5G per month Most Internet café’s uses Satellite connection Un-sustainability of ADSL bandwidth is a problem People walk away from Internet because of the bad connection Café’s net hardly making profit because of the high charge of Internet charge of LTT Internet in 1994 was 12 L. This cost is for the dish. Company break the low to have Internet connection Satellite connection has less connection failure and the providers provides a quick responds.

Appendices 357 .

8: Knowledge issues in findings Job title Org comments D/B F D/B L No.1. - Undersecretary M O E International companies know what B they should do but Libyan do not know about E-commerce Libyan mentality do not have the willing of accepting any type of job European may take training to change carrier but Libyan do not. Not only technology is needed. Knowledge and the ability of using computers is a barrier for ECommerce. Encouragement and force of government to its people to use ECommerce is necessary B B B - - D D D - - D - - Chairman OPTC D B - - B B - - 358 . Education. Government provides 1. willing of people themselves is also needed.000 laptops to kids Government expecting to see a PC in each house Government trying to help people to be educated by reducing customs on technology equipments 25% to 30% of Libyan young generation have PCs at home and the rest uses internet café’s Companies encourage in-house applications development People will not accept E-commerce easily because of the lack opf knowledge in E-Commerce and payment system.10 Knowledge: Table 10.000.Appendices 10.

The biggest barrier in the country is the knowledge. Provide services on the internet such as forums could help and be a driver for e-commerce Enthusiasm is needed in order for the adoption to be successful lack of knowledge about e-commerce and internet is a barrier Libyanna encourage in house system development. Libyanna experience lack of knowledge in their 3G service adoption Government and other private organisations are responsible for knowledge In order for people to know more about e-commerce and its benefits. training and conferences is needed People needs to know about ECommerce effect D - - B D - - B - - B D - - D - - B B D B B - - Marketing manager LIB - - B - - B - - B - - 359 .Appendices Marketing manager LTT Prepaid cards for shopping will help people to learn more about ECommerce knowledge of local people is a barrier. People who had the opportunity to travel abroad. use the internet and manage to get a credit or debit cards they know about e-commerce and internet People who does not know about ECommerce will face difficulty to get into the new technology People will not accept easily the change in their life. LTT encourage in house system development.

The training and qualification programs will contribute in providing human resources needed to function and support the application associated with these programs. English language is a barrier. The programs considered the preparation and qualification of human resources to function. Other workshops and training courses are taking place inside the country. maintain and reinforce these systems.Appendices E-Commerce will create a new way of thinking to do new job and develop there knowledge Exploring technology and understand its advantages and disadvantages as well as learning form other countries and companies mistakes is better. IT Manager CBL National Payment System provide knowledge about the using of new technology Banks are being prepared. Central bank of Libya provides training and education. though intensified training programs aimed at qualifying national professionals capable to mange and function all parts of the project. The central bank of Libya is sending employees from all Libyan public banks outside the country for training from time to time to learn English and get some training in banking electronic systems. Trained and professional people are a barrier. BA provide training for its staff B - - D - - Operation manager LCB D D - - D B B D - - D - - D - - D - - Chairman BA D - - 360 . to work with National Payments System.

Companies can help in provide security and teaching people how to use internet safely E-Commerce can be a tool for gaining knowledge Lack of payment drove people to learn about hacking techniques online E-Commerce encourage users to share knowledge Lack of knowledge of E-commerce is a barrier for E-Commerce People do not know what E-commerce means.Appendices Staff benefit from international expertise BA encourage in house system development Electronic illiteracy is the main barrier Knowledge barrier can be dealt with if government and people are willing to solve it Business development manager CI One of the barriers is e-commerce knowledge Customers do not know much about ecommerce and use of computer. The higher population of internet user in the country are teenagers Old people do not bother to learn new technology Old people prefer face to face communication No comments Finding expertise has delay adoption of new business Libya needs Knowledge and expert about security and using internet in safe ways. D D B B - - B B D. B B B - - General Manager Internet Café manager OCC AW B B - - B - - D B D B B - - Internet Café manager AR 361 .

1 1.1.Appendices There are no schools or colleges to teach E-commerce B - - Internet cafes provides training courses D to Oil companies and Government departments Few people uses the internet for a reason Engineering manager OC The knowledge in IT in general is a barrier B B - - 10. D Absence of regulation stopping other B development Chairman OPTC Absence of legislation delays other B development legal issues are barriers in Libya B 362 .4 1 1 Undersecretary M O E Lack of payment legislations B People will not wait for legislations D People will not wait for government D actions Absence of regulation may effect B badly Libyan users E-commerce law is about to develop. Ministry of Economic issued a decision to start working in ECommerce law Help of expertise is permitted Regulation need to not conflict with other issues.9: Legislations issues Job title Org comments D/B F D/B L B B D D No.11 Legislation: Table 10. D D D D D B 1 4 There is a need for regulation.

12. 11.Appendices Electronic payment is not permitted B yet by law Electronic signature still not permitted B by law No regulation and legislation in Libya Security is a barrier for e-commerce National plan to developing regulation is needed Marketing manager LTT B B B B B B B B B B B 1 1 1 11 1 4 1 6. - Absence of regulations delays E.B Commerce development There is a need for Electronic payment B regulations Hackers and security are barriers B Marketing manager LIB No education on security issues B Islam may be a barrier for E.B Commerce regulations Transactions over internet is not B allowed in Islam Be ready to face security problem D rather then wake away Learn from other countries companies experience and D - Operation manager LCB Regulation for E-Payment system is D considered E-Commerce has not used to know barriers Bank cards still not accepted in Libya B Regulation is a barrier ion Libya B Regulation of Electronic payment is D considered in the national payment system Regulations for Credit and debit cards D is considered Regulation for Point of sale is D considered D B B D - 1 IT Manager CBL 1 1 1 D D 1 1 363 .

B People afraid of using e-commerce B because of hackers Pricy of software B 4 4 12 8 3.B Commerce and its rights General Manager Oil and Constru ction compan y People break the law to connect to D Internet Better services drive people to break B the law Hackers are barrier.Appendices Regulations for international payment D is considered Coding and protection between banks are located software D D D D B B B B B B B B B B B B B B - 1 11 1 11 8 1 Updating laws and regulations to D allow for the electronic transactions.B 1 Education is needed for Use of E. 11 364 . B 12. 7 3 3 12 Internet Café manager AW Cracked software available for free B Users help each other to share cracked B software Security software are available for B free People break the law for Internet D connection Security is a big barrier. Chairman BA Security in Libya is a barrier B Lack of security scared people to use B the Internet Absence of regulation delays the B development of E-Commerce Absence of regulation drive people to B use other county for their business Regulation will help the economic D development Business development manager CI International regulation is existed in D Libya Regulations Commerce are barriers for E.

12 1 1 People feel no secure of the internet.Appendices Internet needs good security. and software is another barrier. D hacked B B B B B 12 12 8 1. expecting the spread of Credit cards in Libya D/B F B B D D D/B L B D 4 No.1. 5 Undersecretary M O E 365 . B Lack payment system drove people to B adopt hacking techniques No law to admit Computer crime and B no company who are working in this field. B Internet not secure to make payment B International companies needed for D security Education is needed Copyrights. Internet Café manager AR Breaking the law for Internet connection Un clarity on Internet connection contracts Regulation is a barrier for ECommerce New regulation and IT development will be the main drivers D B B D B B D Engineering manager OC 10.10: Payment Issues in Findings Job title Org comments Buying is limited to Credit and debit card holders Buying is limited to overseas account holders Some purchases are done on line by cards holders. No education and knowledge about B computer crime.12 Payment: Table 10. Security.

Banks need to enable E-Commerce use Banks do not have the legislation to authorise the acceptance of Epayment E-Signature is not accepted for Libya’s new E. D D 4 People will start trading if they have a D possibility they won’t wait for law to be issued. Bank system need to update there system. 3 To enable online payment through the D web for customers once the cards are ready to use Payment system will reduce the expense of doing things in a manual Payment system will reduce the cost of security on cash Payment system will reduce employment We accept cash and checks only. There are also a culture barrier with payment system D D D B B B B D 1. we have part of plan called electronic bill payment This EBP will be with the help of banks we are trying to work with other banks to develop and introduce this payment system.payment Banks are taking steps to put Credit Card and ATM Machine in place. 4 13 17 people used on having cash than cards B or E-payment 366 . D - - D 3 D D 2. Chairman OPTC In the automation plan. 3 B - 17 - B D B D B B 10.Appendices If the credit card system been distributed in Libya then that will build a very good infrastructure for ecommerce in the country.

The lack of payment system controlled our development E-Commerce is known by people who had the opportunity to travel abroad Shopping online in Libya just for Credit and debit cards holders B B B D D D D B B D D D - 17 13 1 5 4 D D D D D - 2 10 - D - - D - - D D B B B D D B - 1 5 4 - B - - 367 . payment and transaction system is important for E-Commerce adoption The government realised the importance of payment system and working in NPS. we will provide online services Payment systems and transactions are barriers of E-Commerce. E-Commerce and payment adoption will not be easy People need to be forced to use EPayment system Once the system is used people can realise the benefit Marketing manager LTT E-Payment is easy to use. NPS allow immediate transactions between banks NPS allow the use of ATMs machines Alternative payment project taken place to cover the delay of NPS adoption Al-oma bank and Al-Mahari shopping centre created alternative payment cards The idea of the project is enabling shopper to use prepaid cards for shopping.Appendices Cash is more in use then personal cheques in Libya. one of our new services is a prepaid cards to be used over the Internet Once NPS is ready to use.

E-commerce will drive people to be more organised with there jobs and payments. We accept Cash only.Appendices People will face problem for adopting e-commerce and payment system LTT accept checks and Cash. Not having a payment method is a barrier. Operation manager LCB National payment system signed between central bank of Libya and three international companies NPS would help Libyan banks to do transaction and receive payments electronically. D B B B D D D D D B B B D D D - 17 17 14 2 2 4 D B 15 D D 2 368 . Banks could play an important role in encouraging people We are benefiting from E-Commerce by pushing banks to adopt the NPS Marketing manager LIB Thinking of using Top up card as money customer can pay there bills over the mobile. E-Payment reduce the time of getting job done E-Payment reduce the number of employment by organisation E-Payment save time E-Payment will effect positively the development of the economy. B B B D D B B B - 14 17 5 D D D - 1 - people don’t have enough time to deal D with paying bills Libyanna will take the money from your balance and transfer it to the electricity company bank account. we probably need some time to adopt any other way of payment. people prefer to deal with cash.

Sending employees for overseas training in NSP and English language is done by central bank of Libya Other workshops and training courses are taking place inside the country. Money transfer into account. approved check. checks. NPS not in use because of the infrastructure. We don’t have good connection between our branches right now. The biggest challenge of this project success is the infrastructure. Lack of expertise in Computing and electronic system D D B B B D D D D 2 B B 17 B B 17 B B B - - 369 . The project designed to provide all electronic services B D D D D D - 2 5 2 1 - By the end of the project cards will be D introduces to all customers. Traditional payment system is time consuming (40 days for cheque liquidation) As Bank we accept most of the type payment such as Cash.Appendices Most of international transfer are done through the Arab Foreign bank. NPS is more important for banks to do there transaction quickly and easily. etc. The only thing we don’t accept and not dealt with is the cards. The next step is to start thinking of adopting electronic banking system E-Banking will enables customers to do some activities. Regulation and limitation of choosing ISP is a barrier.

Automated Clearing House is for settlement of all banks transactions Automated Checks Processing is for clearing of checks ATM provides a fundamental environment for the national automated teller distributor ATM provide service for national and International networks NPS enable e-payment for Business. set by a committee of experts in the banking activities. Real-Time Gross Settlement is to settles the accounts of banks and public institutions with the CBL at every working day-end. NPS will solve the payment problem in the country NPS will put the right foundation for e-commerce NPS was preceded by approving a plan. clients and companies to accept national and International payment Core Banking System aims to develop technologies for National banks by adopting NPS to compete with International banks. NPS will contribute to the development of financial and other economic sectors in Libya. NPS is implemented by NPS and some other commercial banks - - - D D D D D 5 5 - 5 IT Manager CBL D D 4 D D 4 D D D D D D 2 2 9 D D D D 9 1 D D 4 D - - 370 .Appendices Overseas training is necessary to deal with the system and repair it when its needed. NPS is one of the drivers of ecommerce in Libya.

Appendices NPS interlinked and linked with D commercial banks using optic fibbers.4 - D D D D 1 10 D D 5 371 . centimetre waves. Payment system is a driver D D - - D D 16 4 D D 2 D - - D D D D D - 8 4 D D D - 2. and to allow for the electronic transactions. CBL focuses in training and qualification programs to provide the needed human resources for the NPS Chairman BA We are working on accepting credit and dept cards via our website. satellites. NPS helps to create the required data centres to tele-control risks. wireless net. NPS help to monitor the banking sensitive operations. Security issue were considered with NPS NPS provide electronic banking system and the underlying communication infrastructure. NPS force the CBL to Update laws and regulations with which banking institutions are working to reflect the effects of technological developments. NPS provides banks with control over their accounts. NPS helps in updating the banking activities in accordance to these systems. digital circuits and other communication means. NPS provide the potentials for local banks to provide international quality banking services. CBL is introducing ATMs Machine and providing people with Credit and Debt cards to be used.

AW B B B B B B B B B B B B B B - 17 16 17 4 4 17 Internet Café manager AR Lack of payment create the popularity B of hacking and cracking cards in Libya Accept cash only B B 17 372 .Appendices Business development manager General Manager Internet Café manager CI we only allowed to accept money transfer Restriction of money transfer in and out the country B B B B 17 OCC we accept approved checks and bank transfers No alternative method for electronic payment Security for payment is a barrier We accept cash only Banks and Money Transfer is the main barriers. there is no credit or debit cards to be used There is not even a third party to help buying from online . Buying and selling on the Internet is limited because of E-Payment transferring money is very difficult and expensive.

New technology needs exploration rather then fear Learning form other mistakes can be a solution Operation manager IT Manager LCB D D D B B B B B B B - Marketing manager LIB D - - - - One of the disadvantages is the JUNK B information that is on the net.Appendices 10.13 Security Table 10. D B - CBL D - 373 . and service providers) Chairman OPTC E-Commerce provide more security to secure the cash Security another barrier for ecommerce as a technical issue Marketing manager LTT Hackers and security are barriers for E-Commerce Education is needed to show the power of technology. There are many Hardware and software barriers specially for security issues E-Commerce benefit is that customer will not have to carry cash By using E-Commerce people would feel more secure. CBL centres will ensure online functioning of national banks all the time and in all circumstances. - Undersecretary M O E How can a regulation satisfy and keep B right for both parities (Customers.11: Security Issues in Findings Job title Org comments Adopting e-commerce law and start the e-commerce regulation process D/B F D D/B L D No.1.

Kasper Sky antivirus are also cracked Internet needs good security transaction are not secure in the Internet Security Software and Hardware is needed in Libya Knowledge and experience sharing is needed in Libya B B D - B - - B B B - - Business development manager CI General Manager OCC B B B B B B - B B - B B B B B B B B - - 374 .Appendices The appropriate networking of the D main data centre. Security scare people to use the Internet There should be many workshops. conferences and forum about e-commerce to educate people the right way of using the ecommerce Hackers are barrier to E-Commerce Hackers pose a huge threat to ecommerce user. Many people afraid of using ecommerce in order not to be victim in one of hackers problems. training courses. Internet Café manager AW Illegal downloaded software and cracked software are in favored use in Libya security software such as Kasper. They should be security companies in Libya to secure systems and educate people regards security. auxiliary and emergency centres will allow for their automatic alteration when necessary to avoid any interruption whatsoever the reasons. Chairman BA The main disadvantage of ecommerce in Libya is the security.

Users share knowledge and information about hacking and cracking No law to admit Computer crime and no company who are working in this field has created a good market for hackers and crackers No comments No comments B B - B B B - - B B - D - - B B - B B - Internet Café manager Engineering manager AR OC 10. Security. People feel no secure of the internet. As long as hackers exist in the market do not expect to see any trade online.1.Appendices special companies Is needed in the market to provide security and safe use services and to be responsible for fighting these crime as well as teaching people how to use internet safely Copyrights.12: Traditional Business Issues Job title Org comments Libyan producers are complaining that many international products have interred the country through Libyan importers or trader D/B F B D/B L B No. Lack of payment was a reason of driving people to adopt hacking techniques Hackers and Crackers techniques needs a long time to understand and be able to use.14 Traditional Business: Table 10. and hacked software is another barrier. 2 Undersecretary M O E 375 .

Appendices Travel agents will disappear because of E-Commerce E-Commerce business provide cheaper staff and may be better quality If the product and service in local supplier will not get better. With the popularity of internet website and increasing numbers of internet users many people will shift there activity into e-commerce There is a big threat to traditional business. most of services are in traditional way Hackers and security can be in the benefit of traditional business D - - - - D - - D - - D B B 2 B B 4 D - - D - - 376 . then they face a huge competition. E-Commerce can provide a better marketing tool Chairman OPTC Electronic services will fast up the way of doing work in the company and reduce the expense of doing things in a manual way Electronic entry will show in the system right away the moment that been entered. I think e-commerce is a new way of doing business. International travel has gone too high in the whole world because of ecommerce B B B - 2. Marketing manager LTT LTT provide no service over the internet. 4. 3 - B B 2. Rather then the manual way that we are doing now. 3 B - - If we start providing services in Libya D using e-commerce we would help developing our economy and being in a better place.

4 B B 2. 4 Operation manager LCB E-Commerce actually a driver to D develop the economy specially for government state companies which need to wake up and catch up to move on with the new technology that is developing too rapidly.Appendices Marketing manager LIB High Internet charge was in the benefit of Traditional businesses Thinking of using Top up card as money people looking for solutions to save time. Central bank of Libya helping bank to D transfer from traditional to electronic services providers Next step is to start Internet banking E-commerce For banks is even more important that it will help banks to do there transaction quickly and easily. Traditional commerce will get effect by e-commerce and probably will disappear from business activities as e-business will take over every thing Automated Teller Machines (ATM)/Points of Sales (POS) enables businessmen. D D D D D - - B B 3. their clients and companies that provide these services to accomplish the payments for transaction charges electronically using points of sales which will effect the traditional business Electronic commerce works along the side with traditional methods For products E-commerce will create a threat to traditional business D D D 3 D D 3. 4 IT Manager CBL D D 3 Chairman BA D B D B 3 2 377 . and will speed up the way doing business. 4 3. traditional way of business is a time consuming. Electronic payment is safer E-commerce will change the way of living .

B B 2 D D 3. so it doesn’t really get affected too much from e-commerce.Appendices Traditional importer will face difficulties with E-Commerce because of its low prices If E-Commerce campaign with traditional commerce. E-Commerce pose a threat to products and material importers For agriculture and internal use products. companies will have a chance to expand business Libyan Market is consuming market. The higher population of internet user in the country are teenagers Old people do not have the time to learn as well as facing difficulty of catching ups. The difficulty of correcting a mistake electronically comparing to correcting mistake manually is much easer and strait forward. D D - - D - - D D D D D D 3 3 3 378 . Email is lower cost comparing to a telephone line. Most of old age people prefer using a traditional way of doing business. these will not get effected from e-commerce because of the low price and a good quality that people get used of. 5 D - - B D B - 2 D D 2 D D D D D 1 1 B. Business development manager CI Traditional financial trading companies have to adopt ECommerce E-Commerce help business activities There is no threat to traditional business. General Manager OCC Most of work done over the internet contact with supplier and sub contractor by email.

B B 4 B D D D - - D - - D D 3 D D 3 D D D D D D D 1 - 5 Internet Café manager AR Few people using e-commerce E-Commerce is a new way of making money E-Commerce is smellier to the traditional ways of business with less hustle and saving time and money. It not a real threat. E-commerce will bring many new companies. E-Commerce is more convince then traditional commerce Simple ideas online can be money generators Security can be a threat of using ECommerce Payment system been a barrier to ECommerce and a benefit for traditional business Copyrights. There is no benefit of having a website 5 D - - 379 . E-Commerce might be a challenge to traditional business. . so in order for older companies to survive they have to take the same bath along with the traditional way. Right now there is no threat. Security. People feel no secure of the internet. But in the same time it will drive trader to adopt this technology to catch up with the rest. The two ways will be there. and hacked software is another barrier to ECommerce.Appendices Internet Café manager AW If every one start using e-commerce then we will see a big benefit which will effect the business between companies and pose threat to traditional business.

E-Commerce help you to do new businesses that they might had never come across your mind. The future more likely to be just ecommerce. specially in a market like Libya. E-Commerce is more powerful then a traditional commerce. design. D D D 5 5 B B 4 380 .Appendices The charge of hosting. Many traditional business are using the internet. and submitting to search engine is discouraging businesses to go online If customers are local then you don’t need a website E-Commerce is much easy way of doing business then a traditional way of doing that business. D the rest can be done in traditional way E-Commerce and traditional business are pearl. it works perfect in both sides. Engineering manager OC D - - D B B 1 B B - - Website is there to attract customers.

Appendices Appendices 10.2: Interview question INTERVIEW Date: Day: Time: 1. Personal Information Full name: Position: Sex: Telephone No: Fax Number: E-mail: Web site: 381 .

Company Details Company Name Industry Operational location Annual Turnover Number of employees Trading partner Customers: Suppliers: Information technology infrastructure Network Hardware Applications Contact point Address Phone no Fax E-mail Website 382 .Appendices 2.

Appendices

3. Interview Questions
1 2 3 4 5 6 7 8 9 10 Do you know the term e-commerce? Does your company have a strategy for electronic commerce? Which communication do you use? Does your business engaged in electronic commerce ? If you implementing e-commerce, what is the advantages / reasons of implementing e-commerce? What is the main befit to your business? If you are not implementing e-commerce, what is the disadvantages/reason of not implementing? Why you are not involved? If you don’t have a clear strategy for e-commerce at present, is it likely to become important in 2-3 years? How many products and services does your business offer? How do you deliver your products and services to consumer/client What type of payment do you accept

11 Do you update your web if you have one, or does the third party doing for you? 12 13 14 15 16 What is the barriers of e-commerce in Libya What is the drivers of e-commerce in Libya What is the threat to the traditional commerce What are the pioneers to e-commerce in Libya Any other comments

383

Appendices

384

Appendices

10.3 Appendices: questionnaires’ answers
1 General information

1.1 Position
Manager Decision makers Students Employees Self employees Other 1 0 69 48 9 23

1.2 Number of employees 0-20 21-100 101-200 201-500 501-1000 1000+ Don’t know 23 27 13 11 9 7 60

2 E-commerce

2.1 Does your company have an e-commerce strategy? Yes No Don't know 54 42 54

2.2 Does your company use any of the following communication technology?

385

Appendices

Automatic Data Collection Telephone over the internet Document image processing E-Catalogue EDI EDI to Fax EDI to Paper Electronic form Electronic fund transfer Electronic mail Fax Telex Trade data interchange Video Conferencing Voice mail Others

42 98 59 41 6 5 0 36 25 116 32 23 9 18 7

2.3 The statement blow show the engagement with e-commerce never heard of term before Have heard but not use in any way I have heard and used in Have visited seminars have prepared strategy for e-commerce planning for using e-commerce Undertaking e-commerce development we are extensive user of e-commerce we are extensive user of other technology 26 31 27 23 12 13 9 5 4

2.4 Advantage /reason why organisation are implementing e-commerce internal e-commerce speeds communications make organisation more

Strongly agree

agree

Not sure

disagree

Strongly disagree

No Answer

N/A

2 2

51 25

32 37

31 46

13 13

12 19

9 8

386

Appendices

efficient email is useful for communication e-commerce provide efficient increase real storage way Lower cost retained/gained customers better relationship with partners less paper handling better control over information reduction in admin task 2.5 Disadvantages/ reason not adopting We don't fully understand it we don't know we to go to learn about it we cannot use it it does not reduce costs we don't have time we can not afford the cost we are fearful of security we have the willing but we don't have support is a lack of government and industry -led visibility There are lack of legal issues it leads to more mundane jobs and job losses 5 30 44 30 7 33 13 2 30 19 54 47 18 30 8 12 22 34 5 6 7 31 43 25 4 37 3 13 25 2 12 19 13 32 18 12 9 7 31 35 36 61 59 48 36 25 13 11 19 19 24 24 31 36 12 30 18 21 23 21 34 23 21 0 4 7 5 4 7 3 3 Strongly agree 37 53 35 agree 19 20 25 Not sure 31 47 53 disagree 30 17 13 Strongly disagree 17 No Answer 14 7 6 3 15 N/A 2 4 4 42 45 17 1 35 43 17 3 19 7 16 47 3 5 2 6 3 52 49 52 43 47 19 13 24 17 19 30 31 25 37 37 13 13 17 18 7 18 11 19 13 5 15 28 11 16 32

1

2.6 Are there any other reason? No internet 66

387

Appendices

2.7 if you don't have an e-commerce strategy now, will you have a strategy within 2-3 years Yes No don't know 72 7 71

3 The internet

3.1 Who is you internet provider LTT GPTS Satellite Others 36 12 24 78

3.2 What is the type of connection? Modem Lise-line Broadband Wireless Other 18 12 0 36 24

28KB 56KB 64KB 128KB 256 512 Don’t know

0 11 7 7 5 6 42

3.3 What tool do you use when accessing the internet? Archie Email 0 90

388

Appendices

FTP Mailing list Newsgroup Remote login Internet browser Chat www via email Other

18 30 24 12 42 66 30 0

3.4 from the used tools which is the most frequently used Archie Email FTP Mailing list Newsgroup Remote login Internet browser Chat www via email Other 0 48 6 0 0 0 24 24 0 0

3.5 Do you have a web site? Yes No No answer 48 42 60

3.6 If the answer yes do you update in-house or by third party in-house third party Don’t know 24 0 24

389

Appendices

3.7 Do you have internet security such as Firewall? Yes No Don’t know 42 24 12

3.8 if the answer were yes please specify: Firewall Kasper

3.9 please specify the reason of using internet cafes for self improvement For internal calls for External call For web site visiting for chatting File transfer trade upload files purchases sell and marketing to get information others

Very important 42 45 33 51 72 52 40 25 13 24 67 23

Important

Not sure 7 2 3 9 8 25 13 17 9 6 5 7

Not important 7 0 8 0 18 13 17 7 24 15 23 0

Not very important 12 19 18 13 6 0 13 12 18 30 0 0

No answer 70 71 71 70 21 40 53 72 68 73 13 106

12 13 17 7 25 20 14 17 18 2 42 14

3.9 From the listed before what was the most used reason? for self improvement For internal calls for External call For web site visiting for chatting File transfer Trade 0 0 12 6 36 6 0

390

.Appendices upload files Purchases sell and marketing to get information Others 0 0 0 30 6 3.10 What do you think the most internet features? Information and easy to contact Cost 3. Government involvement Young people misunderstanding of the real meaning No answer 41 32 10 14 53 3.12 what are the barriers in Libya Infrastructure.14 what is the best solution for the internet to successes in Libya? Reduce cost 29 391 .13 will you buy from the internet if you have a chance? Yes No Don’t know No Answer 67 38 45 0 3. Culture.11 What are the internet disadvantages Security. speed No answer 65 20 34 31 3.

Appendices Knowledge and educations Family support Improvement Cost reduction Cards No answer 13 13 13 18 25 39 392 .

4 Questionnaire questions 393 .Appendices 10.

Appendices 394 .

4 Questionnaire questions 395 .Appendices 10.

Appendices Section 1: company & Personal details: 1.5: the statements below outline advantages and/or reasons why organisations are implementing e-commerce solution. do not use in any way Section 2: Electronic commerce 2.1 : Over view Name: Sex: Business sector: Number of employees: 0 -20 201-500 Telephone: Fax: E-mail: WWW: 21-100 501-1000 101-200 1000 + Position: Other.1: Does your company have a strategy for electronic commerce? Yes No 2. Had not heard of term until now Have heard of term. for example:……………… Have visited seminar(s) Have prepared strategy for e-commerce-type activities Planning of using e-commerce Undertaking e-commerce development We are extensive user of e-commerce We are extensive user of other technology Explanations: 2. please specify: 2. Please use the following scale 1= 3= 5= Strongly agree Neither agree nor disagree Strongly disagree 2= 4= agree disagree The main benefits of e-commerce to our organisation are: 1 2 3 4 5 Internal e-commerce speeds communications flows within 396 .3: Are any of the previously stated technologies integrated? EDI & E-mail EDI & FEDI Other integration’s: E-forms & Email CTI & Fax 2.2: Does your company use any of the following communications technologies? Automatic Data Collection /Transfer Computer Telephone Integration (CTI Document Image Processing Electronic Catalogues Electronic Data Interchange (EDI) EDI to FAX EDI to paper Electronic Form Electronic Fund Transfer (EFT) Electronic Mail (E-Mail) Facsimile (Fax) Financial EDI Telex Trade Data Interchange Video Conferencing Voice mail Have heard of term but only use.4: the statements listed below attempt to characterise your company’s e-commerce engagement.

we don’t have enough high-level support within our organisation There is a lack of government and industry-led visibility 3.4Kbps the shelf type packages 28.8Kbps We believe the supposed benefits do Modem not outweigh the cost Value add network 56kbps We don’t have the time to learn about it Virtual privet network 64Kbps We cannot afford the high costs Wireless connection 128Kbps We are fearful of security. If your company is not Better control over information connected. offLeased Line 14. please specify We are not involved in e-commerce because 1 2 3 4 5 We don’t fully understand it We don’t know where to go to learn what connection type and speed 3. data entry.Appendices Make organisation more efficient E-mail is useful for communications with trading partners 2. viruses and bugs 256Kbps We do not have a sufficient mass of Broadband connection trading partners who are involved Other: please specify Other: please specify Although we would like to be. is it likely to become increasingly Increase in reliable/accessible ways important in the next 2-3 years? Please provide details of storing information Lower costs e. intrusions. please go to Question 3.g.3. There lacks a legal infrastructure to what tools does your company use when accessing the internet? support it It leads to more mundane jobs and Archie Veronica job losses E-mail WAIS 2.2: about it We cannot obtain easy-to-use.7: are there any other reasons why your organisation has/is not implementing any form of e-commence? File Transfer (FTP) Gopher Mailing list WHOIS WWW browser Please state which: 397 . Retained/gained customers Better relationship with trading partners Section Less paper handling 3: The Internet This section deals with the internet.8: E-commerce provides efficiencies if your company does not have a clear strategy for ecommerce at present.1: which services provider use to connect to the internet? Reduction in administrative tasks Libyan Telecom and Technology (LTT) The general post and telecommunication company 2.6: the statement listed below outline disadvantages and/or (GPTC) reason why organisation are not implementing e-commerce Internet Via satellites solution Other.13 availability and reliability 3.

mail.13: Does your company have.g. email.3 do you perform any of your own administrative network services e.9: Approximately how many employees in your organisation have access to the internet? If yes. ftp.4: of the tools listed in Q3. news? Yes No If yes please provide brief details: 3.6: Does your company have a Web server/Site Yes No 3. telnet Other . what are the major benefits gained? 3. www browsing.11: What do the majority of employees use the internet such as Firewall for e.8: Does your company utilise the internet for any of the following business activities? Please mark 1-5 where 1= very important and 5=less important 3. please specify: WWW via e-mail Electronic trading opportunities File transfer (including Documents) Gaining/maintaining competitive advantages Globalisation Graphics/Technical data transfer Purchasing Sales & Marketing 3. news feeds or this provided by a third party? Information retrieval and utilisation Information provision Information exchange Other. No 398 .7: Does your company operate Internet security features 3.12: if your company utilise the internet. is it likely to be important in the next 2-3 years? Creating a corporate presence Please provide details (other) please specify Yes If Yes.Appendices Newsgroups Remote login. www searching. please provide details. DNS. or will you soon be Collaboration & Development developing an internet strategy? Communication (internal) Communication (external) Corporate logistics Creating a corporate presence (WWW) Creating a corporate presence (ftp/gopher site) If No. please indicate if the server/site managed by your company or by a third party provider? 3. 3.g. please specify.10: Approximately how many of these employees use the internet on regular basis (at least once a week) 3.5 of the tools listed in Q 3.3 which are the most frequently used? 3.

2: What is your company’s future perspective of item within your company where electronic commerce over the internet? 1= Very positive 2= Positive Very 5= Unsure/don’t negative 3= 4= negative know 1 2 3 4 5 Accessibility WWW browser E-mail Other tools e. please indicate any Management service (outsourcing) positive/negative opinion as to the potential success of each 4.1: of the item listed below. ftp and gopher Packaged solution Integrated applications Resources Search tools Catalogues Information Brokerage Virtual shopping malls Virtual trading malls Middleware Access control Authentication Directories Electronic payments Mechanisms Hardware/Network Servers Modems/routers Dial-up ISDN ATM/Frame relay Consultancy /Training Libya Address Bader Al-Hasse & Co 102 Al-Madina Tower Ali KAlifa Al-Zaidi street Triploi.g.Appendices Assessment & Planning Design service Training Section 4: E-commerce and Future Implementation services 4. UK CF24 3JW +44 (0) 29 2041 6332 +44 (0) 78 4167 5951 399 .O.3: Further information If you have any further information you would like to add please do so below Section 5:Contact details If you would like to receive any future information about E-commerce and developing countries please contact Name: UK Address: Abdalla Hamed 20 Keppoch street Cardiff.Libya P.BOX: AL-BAIDA 270 Office Phone No: Mobile No: 4.

com Website www.Appendices Office phone No: Mobile No: e-mail +218 21444 5319 / 318 +218 91209 3316 ahamed@uwic.uk research@alhasse.com/e-commerce.alhasse.ac.html Thank you for participating 400 .

5 Questionnaire question linked to e-commerce issues Table 10.13 questionnaire questions and e-commerce issues traditional business ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● economic activities infrastructure employment government competition legislations knowledge payment ● ● ● ● ● ● ● ● ● 1 General information Automatic Data Collection Telephone over the internet Document image processing E-Catalogue EDI EDI to Fax EDI to Paper Electronic form Electronic fund transfer Electronic mail Fax Telex Trade data interchange Video Conferencing Voice mail Others 2.Appendices 10.3 The statement blow show the engagement with e-commerce never heard of term before Have heard but not use in any way I have heard and used in Have visited seminars have prepared strategy for e-commerce planning for using e-commerce Undertaking e-commerce development we are extensive user of e-commerce we are extensive user of other technology internal e-commerce speeds ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● 401 security culture cost .

2 What is the type of connection? Modem Lise line Broadband Wireless Other 28KB 56KB 64KB 128KB 256 512 ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● 402 .Appendices communications make organisation more effectint email is useful for communication e-commerce provide effectint increase real storage way Lower cost retained/gained customers better relationship with partners less paper handling better control over information reduction in admin task 2.1 Who is you internet provider LTT GPTS Satellite Others 3.5 Disadvantages/ reason not adopting We don't fully understand it we don't know we to go to learn about it we cannot use it it does not reduce costs we don't have time we can not afford the cost we are fearful of security we have the willing but we don't have support is a lack of government and industry -led visibility There are lack of legal issues it leads to more mundane jobs and job losses 2.6 Are there any other reason? No internet 3 The internet 3.

Government involvement Young people ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● 403 .12 what are the barriers in Libya Infrastructure.6 If the answer yes do you update inhouse or by third party in-house third party Don’t know 3.9please specify the reason of using internet cafes for self improvement For internal calls for External call For web site visiting for chatting File transfer trade upload files purchases sell and marketing to get information others 3.11 What are the internet disadvantages Security.10 What do you think the most internet features? Information and easy to contact Cost 3.Appendices Don’t know 3.7 Do you have internet security such as Firewall? 3. speed No answer 3.5 Do you have a web site? 3. Culture.3 What tool do you use when accessing the internet? Archie Email FTP Mailing list Newsgroup Remote login Internet browser Chat www via email 3. .

14 what is the best solution for the internet to succeed in Libya? Reduce cost Knowledge and educations Family support Improvement Cost reduction Cards ● ● ● ● ● ● ● 404 .Appendices misunderstanding of the real meaning No answer 3.

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