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E-commerce Implementation in Nigerian Enterprises: Extents and Obstructs

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 E-commerce Implementation in Nigeria Enterprises: Extents and Obstructs
1
Aderemi Helen O. and 2Fakokunde, Tolutope, O.
1Department of Management and Accounting,Obafemi Awolowo University, Ile-Ife, Nigeria.
E-mail: helenaderemi@gmail.com
2
Department of Entrepreneurship Management Technology, Federal University of Technology, Akure,
Ondo State, Nigeria
Abstract
The implementation of e-commerce in private and public enterprises in Nigeria was appraised. This was with a view to determining
the challenges in the pathway towards development of e-commerce in the subsector and design a framework to enhance its
implementation. Primary data was sourced from 148 public and private enterprises in Southwestern Nigeria. Findings revealed
that despite the huge benefits accruable from the implementation of e-commerce such as global presence and competitiveness of
indigenous firms; many of the surveyed private and public enterprises have restricted the usage of e-commerce to merely e-mailing,
messaging and maintaining a web presence. On the whole, firm-level e-commerce implementation and effectiveness remained at
39.2%. The factors inhibiting the robust implementation and exploration of e-commerce in the study area included organisational
(70.8%, t=20.904; p<0.05), knowledge (75.6%, t=19.964, p<0.05), and market (72.1%, t=24.253; p<0.05) obstructs
among others. Infrastructure was least. Also while small size of market for e-commerce capability factors may not pose as obstacle to
smaller firms, it does for larger firms. A framework to facilitate and enhance e-commerce implementation in Nigeria was designed.
Keywords: E-commerce, enterprises, implementation, competitiveness, firms, Nigeria.

Introduction
Electronic Commerce commonly referred to as e-commerce is an information technology or internet
platform for engaging in business activities. Advancements in the field of information and
communication technologies (ICTs) especially from the twentieth century has made globalization a
household name and with it e-commerce. The enormous surge in e-commerce in the recent past has
significantly altered the ways in which business is conducted around the world. The e-commerce as a
fast-emerging phenomenon especially in developing economies is a reference to all markets in which
exchanges are facilitated by digital networks. The new market opportunities brought about by e-
commerce have forced firms to find digital solutions for becoming more competitive in the global
marketplace (Kumar & Liu, 2005). Due to the rapid expansion of the digital marketplace and
diffusion of information, e-commerce has been growing in scale and scope faster than the pace of
research devoted to the organizational development, regulatory, and institutional aspects of this
relatively new phenomenon. According to Lefebvre, Lefebvre & Mohnen (2012), global e-commerce
is projected to explode over the next five years. This is due to the growing rate of adoption. Today,
the scope of e-commerce comprises the electronic labour market, electronic procurement, electronic
money, and electronic entertainment, among other enterprises.
However, rendering a clear-cut definition of e-commerce is somewhat problematic because e-
commerce means different things to different people. VanHoose (2003) makes a distinction between
e-commerce and e-business. E-commerce is defined to capture any process that entails exchanging
ownership of or rights to use goods and services via electronically linked devices that communicate
interactively within networks. On the other hand, e-business includes a firm’s internal coordination,
decision-making, and implementation processes in its production, marketing, and management
functions by using electronic networks. Kauffman and Walden (2001) suggested a broader definition
of e-commerce, in which digital goods play a focal role. Digital goods, also known as information
goods, exhibit some characteristics that are substantially different from those of traditional goods sold
on the Internet. In particular, when a physical product is searched for and bought on the Internet, it
1
becomes a digital-physical bundle. Kauffman and Walden (2001) maintained that the research on e-
commerce is the “business” of business schools and suggested a multi- disciplinary approach to e-
commerce. The study of e-commerce is important for the following reasons: First, e-commerce marks
the beginning of a new era in the history of international trade and entrepreneurship where
production, marketing, sales, and distribution occur in the digital marketplace. By the end of 2005,
according to Sherif (2006), more than 25 percent of the global trade had been carried out through the
digital economy. Also, the global rate of growth of e-commerce from 2013 to 2018 has been put at an
average of 14.8% (Statista, 2016). Secondly, the Internet and other ICT- related media, called digital
opportunities, have the potential to reduce barriers of the free trade and create a somewhat
frictionless business environment. Although some potent impediments to the free flow of trade
persists today, the Internet through wired or wireless networks has virtually wiped out national
boundaries and eliminated the distance between trading partners in different nations in the global
economy. According to Mann and Stewart (2000) the Internet has reduced friction in the marketplace
in three dimensions: time, distance, and information, resulting in lower costs for new firms to enter
and exit from an industry. Thirdly, the new medium of exchange will enable developing countries to
expand their businesses, develop capability and in the long run enjoy the flow of foreign exchange
into their region. On the strength of the potential benefits of e-commerce, the following questions
guided this paper: to what extent has e-commerce been implemented in Nigeria? What factors
motivates firms to implement e-commerce? What are the factors hampering the introduction and
effectiveness of e-commerce in Nigeria private and public organisations? And; what is the profitability
and average pay back period of e-commerce implementation in Nigeria enterprises and organisations?
This was with a view to determining the challenges in the pathway towards e-commerce development
and develop a framework to enhance its profitability.

Statement of Problem
This study was borne out of the author’s concern on the extent, motivational and hampering factors
of e-commerce implementation in Nigeria’s private and public enterprises given that infrastructure for
e-commerce deployment in the country remains inadequate and at a huge cost. Also, prior studies in
developed economies (e.g. Scupola, 2009, Chibelushi & Costello, 2009; Brand & Huizingh, 2008; as
well as developing countries (Olatokun & Kebonye, 2010; Duncombe & Molla, 2009; Tan, Tyler,
Manica, 2007) have focused majorly on diffusion and use of ICT and e-commerce to the extent that
some researchers have concluded that the chapter is closed (Chitura, Mupemhi, Dube & Bolongkikit,
2008). Others meanwhile, have advocated for new dimensions of understanding e-commerce
adoption issues in organisations (Parker and Castleman, 2007). Adalikwu (2012) for instance
advocated for a need to examine the differences in problems of implementation of e-commerce by
start-up firms and large multinational firms.
As long as ICT developments are dynamic, it follows that e-commerce issues in organisations
would also draw on this characteristic, thus requiring more reason to establish patterns and extent of
e-commerce development and hampering factors for implementation in enterprises and organisations.
This will assist enterprises in their implementation plan.
Another fact that added impetus to this study was a recent report on the extent of e-commerce
presence in developing countries (Kordic, 2014). The report lamented on the difficulty in measuring
e-commerce because of little official statistics on e-commerce, and noted that this was a mission to be
carried out for each country and world institutions.
Furthermore, the concept of globalisation has made prominent the subject of e-commerce. In
developed nation, it is not uncommon for both cottage, small, medium and large firms to have a web
presence. It only means that anywhere in the globe, the firm or individual can be reached and
patronized. However desirable this is, it has remained far-fetched and unrealistic for majority of firms
2
in developing economies to have a web presence, let alone to implement e-commerce. Only very few
private and public institutions have a web presence adequate for e-commerce. The major challenges
facing e-commerce implementation range from technical, security to economic factors. Others
include quality and capability deficiency resulting from incompetency of indigenous firms or
individual to compete in a global front. This work intends to critically analyse these issues with a view
to designing a framework that private and public organisations can utilize to implement e-commerce
for enhanced visibility, profitability, and competitiveness.

Test of Hypothesis
The following null hypotheses were tested in the study:
H1: Cost factors are not significant factors hampering e-commerce introduction and effectiveness in
enterprises
H2: Infrastructure does not hamper e-commerce introduction and effectiveness in enterprises
H3: Organisational factor do not hamper e-commerce introduction and effectiveness in enterprises
H4: Market factors do not significantly hampering e-commerce implementation in organisations

Literature Review
E-Commerce has been described as a form of business which allows transaction of business activities
via a telecommunication network across the internet (Zwass, 2003). It involves sharing of business
information, maintaining of business relationship and doing business across the internet. It can be
described as consisting primarily of the distribution, marketing, buying and selling of product or
services, and transfer of funds over electronic systems such as the internet. E-commerce has been in
existence since the late 1940s and according to Siau and Shen (2003), it is divided into four main
categories based on the nature of transactions. These includes Business to Consumer (B2C), Business
to Business (B2B), Consumer to Consumer (C2C), and Government to Business (G2B). In B2C e-
commerce, businesses interact and sells products and services directly to a diverse group of customers
through electronic channels. Examples of businesses that uses B2C includes Amazon.com and Wal-
Mart Stores. Yahoo Small Business is another good example of an intermediary model of the B2C e-
commerce (Emmanuel, 2012). Some of the advantages of these e-commerce sites and companies
include availability of physical space (customers can physically visit the store), availability of returns
(customers can return a purchased item to the physical store), and availability of customer service in
these physical stores. B2B on the other hand, is a form of commercial transaction that involve the
exchange of products, services or information between two separate business parties. It facilitates the
reliance of businesses upon other companies for supplies, utilities, and services via the internet.
Oracle, PeopleSoft and Ariba are some of the major vendors of e-commerce and B2B solutions
(Chuang and Shaw, 2000). The C2C model involves transaction between consumers. Here, a
consumer sells directly to another consumer. EBay and www.bazee.com are common examples of
online auction Web sites that helps consumers to advertise and sell their products online to another
consumer. However, it is essential that both the seller and the buyer must register with the auction site
(Emmanuel, 2012). G2B model is a situation whereby e‐government agencies offer personalized e‐
services to business user. That is, a phenomenon whereby government entity sells products and
services to businesses. According to Lu, Shambour, Xu, Lin, and Zhang, (2010), G2B model is an
evolving area and will be one of the next directions of government e‐services. As corroborated by
Kraemer et al., (2005), global firms were more likely to engage in the business to business e-commerce
and local firms in business to consumer. Local firms do appear to be benefiting from e-commerce
though, especially B2C services, which drive increased sales. Global firms get more performance
improvements from e-commerce than local firms, as they tend to adopt B2B, which has greater

3
impacts across a broader range (efficiency, coordination, and commerce) than B2C, which is a driver
only of increased sales and efficiency (Totonchi and Manshady, 2012). Whereas this study did not
examine e-commerce models in the study area; it however investigated the extent of e-commerce
implementation in terms of year of adoption as well as factors influencing its implementation. With
regards to this, extant literature such as Addo (2014) showed that while significant numbers of the
Small and Medium Enterprises (SMEs) in Ghana have adopted e-commerce, usage levels have
remained relatively low. In South Africa and Nigeria, a few strong local players have already emerged,
such as South Africa’s online fashion retailer Zando, and Nigeria’s online mass merchants Jumia and
Konga. B2C ecommerce sales were less than EUR 1 billion in 2012, but annual growth of around
40% was anticipated in 2013 and 2014 (Kordic, 2014). The main obstacles to overcome on the way to
B2C e-commerce boom are poor logistics in rural areas, low banking penetration and limited
consumer education.
In Nigeria, though there is high awareness and usage of computer and other information and
communication technologies (ICTs) for various functions such as communication, information
download, and research; however, e-commerce is yet to be likewise prevalent majorly due to
infrastructural and security issues. Various studies have classified the factors influencing e-commerce
implementation even before the year 2000 (Kim and Galliers, 2004). Tornatzky and Fleischer (1990)
identified three different categories of factors: organizational, technological, and environmental
factors; that influence the decision to implement e-commerce. Kimberly and Evanisko (1981)
identified three groups of predictors of e-commerce when discussing innovation. These include:
characteristics of organizational leaders, characteristics of organization, and characteristics of
environment. In summary, four categories of factors can be found in technological innovation
literature that could be said to be influencing e-commerce implementation: (a) Managerial; (b)
Organizational; (c) Technological; and (d) Environmental. For the purpose of this study, the
researcher took into consideration the Nigeria environment and thus have investigated the factors
influencing e-commerce implementation on the following groups of criteria: cost factors, market
factors, knowledge factors, infrastructure, quality issues and organisational/managerial factor.

Methodology
The study adopted primary source of data collection using a survey, cross sectional descriptive,
exploratory and explanatory research design. Prior to the main survey, a pilot study was carried out
since the research instrument used for the study was designed and used for the first time by the
researcher. The instrument was pre-tested in ten public and private enterprises in Osun State, Nigeria.
The internal consistency was 0.81 on Cronbach alpha while the test reliability yielded 0.77. The
research instrument elicited information on when e-commerce was implemented; extent of
implementation; motivating and hampering factors; estimate of amount expended as well as when
their e-commerce investment started to yield profit for the organizations. This was to enable the
researcher determine the cost effectiveness and profitability of e-commerce implementation for
different categories of private and public enterprises. However, the later aspects were not reported in
this paper. The population studied included all duly registered students of the 2013/2014 Executive
Master of Business Administration (MBA) II students of the Obafemi Awolowo University, Ile-Ife,
Nigeria who were either business owners, top executives or employees in public or private small,
medium and large enterprises. Most of these public and private small, medium and large enterprises
were located in Lagos while some were located in other states in south western Nigeria. A total of
520 students representing about 500 private and public enterprises were identified as having being
registered in the institution database during the study period. However, for various reasons emanating
from the criteria for selection such as absenteeism from class, incomplete or improper completion of
research instrument, failure to mail completed questionnaire within the period stipulated among
4
others, three hundred and seventy-two of the mailed instruments were dropped from the investigation
process, thereby reducing the sample population to one hundred and forty-eight. The one hundred
and forty-eight translated to approximately 28% of the population which is okay going by the 10% of
the population as recommended in Asika (1991). Asika (1991) stressed that a sample of a hundred
elements selected randomly from a population of one thousand is to all intents and purposes deemed
to be representative of the population, and the findings from the study of the sample can be
generalized for the population. The researcher employed focused group technique to administer the
questionnaire in class to those who were present. The service of the class representative was then
enlisted to assist in mailing the instrument to the rest of the class stipulating a deadline to mail back
the completed questionnaire. Data obtained were analysed using descriptive and inferential statistics.

Results
Socio-demographic Information and Nature of Firms
Table 1 shows the socio-demographic profile of the respondents. The majority (90.5%) of the
respondents surveyed belonged to privately owned enterprises while those who worked in
government owned organisations were negligible (9.5%).

Table 1: Socio-demographic information of Respondents

Ownership Frequency Percent
privately owned 134 90.5
government owned 14 9.5
Total 148 100.0
Number of Employees Frequency Percent
1-10 14 10.1
11-50 18 12.9
51-300 27 19.4
Above 300 80 57.6
Total 139 100.0
Designation Frequency Percent
Chief Executives 2 1.6
Directors 13 10.5
Managers 25 20.2
Supervisors 10 8.1
Middle-Level Officers 74 59.6
Total 124 100
About 10% of the public and private organisations had employees in the range 1-10; 13% in the range
11-50; 19.4% in the range 51-300; while more than half (57.6%) of the organisations had employees
above 300. The designation of the respondents in these organisations included chief executives (2%);
directors (10%); managers (20%); supervisors (8%) and middle-level officers constituting 60% of the
respondents.

Extent of E-commerce Implementation in the Firms (EXEI)

The year of e-commerce implementation (YREI) is presented in Figure 1. From the figure, 4% of the
firms claimed to have implemented e-commerce as far back since independence between 1960 and
1980; 12% implemented between 1981-2000, while majority (38%) of the organisations implemented
e-commerce in the period 2001-2010. Some others 26%, implemented e-commerce in recent times
spanning 2011-2014. However, a total of 29 (20%) of the firms returned a no response. Figure 2
revealed that only 5.6% of the firms have thoroughly implemented e-commerce, 21% claimed
moderate implementation; 12.6% claimed low implementation while the majority, 60.8% indicated
that they were yet to implement e-commerce. This shows that firm-level implementation and
effectiveness of e-commerce was 39.2%. Further analysis on specific e-commerce tools (Figure 3) that

5
were effectively used by those who have implemented e-commerce revealed that tools being utilized
included: point of sales (59.5%); Electronic mail and messaging (92.6%); world wide web (59.5%);
iboard/electronic bulletin (50%); smart card (51.4%); electronic fund transfer (83.1%); websites/web
presence (59.5%); and online sales and purchases (60.1%).

40
Percentage of Firms

35
30
25
20
15
10
5
0
1960- 1981- 2001- 2011-
1980 2000 2010 2014
Percent 4.1 12.2 38.5 25.6

No response = 29(19.6%)
Figure 1: Year of E-commerce Implementation in the Firms
Source: Field Survey, 2014

To a high extent 5.6

To a moderate extent 21 Percent

To a low extent 12.6

Not at all 60.8

Figure 2: Extent of E-commerce Implementation in Southwest Nigeria Public and Private

Enterprises
Source: Field Survey, 2014

6
 100.0
90.0
80.0
70.0
60.0
50.0
40.0
30.0
20.0
10.0
0.0

Multiple Responses
Figure 3: Prevalence of E-commerce Tools in the Firms
Source: Field Survey, 2014

Factors Influencing E-commerce Implementation

Respondents were asked to indicate the extent to which certain four endogenous (organisational-OF,
knowledge-KF, cost-CF and quality-QF) and two exogenous (market-MF and infrastructure-IF)
factors hampered the introduction of e-commerce or its effectiveness in their business/organization.
Hierarchically, the following factors hampered introduction and effectiveness of e-commerce in the
enterprises: knowledge factors (70.8%), organisational factors (70.8%), quality factors (66.5%), cost
factors (60.4%), market factors (57.2%) and least, infrastructural factors (54.4%). A closer analysis of
the components of these factors using one sample t-test (Table 3) revealed the following as having
highest t-values: KF_lack of information on market potentials (72.1%, t=24.253; p<0.05),
KF_inability and lack of knowledge to calculate cost effectiveness and profitability (69.0%, t=23.956;
p<0.05), KF_difficulty in finding partners to cooperate/collaborate for e-commerce implementation
(61.6%, t=21.336; p<0.05) and KF_lack of qualified personnel to develop or operate e-commerce
platform (75.6%, t=19.964, p<0.05), Other components having higher t-values included MF-market
dominated by foreign substitutes (68.6%, t=22.839, p<0.05), MF_market dominated by established
enterprises (55.9%, t=17.530, p<0.05), MF_consumer unwillingness to pay higher price for better
quality products (40.6%, t=11.969, p<0.05), MF_uncertain demand for goods and services (63.8%,
t=8.138, p<0.05), More than half of the respondents indicated that cost factors such as lack of fund
was a hampering factor (61.2%, t= 19.803, p<0.05). Other cost related factors having high degree of
importance in hampering e-commerce implementation and effectiveness in the firms included high
cost of bandwidth (48.4%, t=15.395; p<0.05), relatively high bank charges and non-commensurability
of freight cost with anticipated sales (71.6%, t=19.448, p<0.05).
With regards to infrastructure, factors such as epileptic power supply (37.4%), poor/unavailable
internet network facility (48.8%), insecurity of web operations/presence of scammers (47.0%), and
7
proliferation of e-fraudsters (44.3%) were considered as high to moderately challenging. In other
words, majority (62.6%, 51.2%, 53% and 55.7% respectively) negated the assertion by adjudging
infrastructural issues as having little or no consequences on their e-commerce implementation. On
quality issues, majority (66.5%) of the firms affirmed that difficulty in ensuring that the quality of their
product meet international standard was a high hampering factor in their quest to introduce and be
effective in e-commerce implementation.
Furthermore, non-readiness of some owners/managers (70.8%, t= 20.904; p<0.05) hampered
e-commerce introduction and effectiveness. This was the only but significant organisational related
challenge in the introduction and effectiveness of e-commerce implementation.

Framework for Alleviation of E-commerce Implementation Obstructs in Enterprises

Given that knowledge, organisational, quality, cost and market factors topped the list of factors
inhibiting the robust implementation of e-commerce in firms, this paper proposes a framework
(Figure 3) whereby government (ICT regulatory body) use policy instrument to promote the ease of
adoption of e-commerce by providing training and technical support to enterprises and organisations.
Furthermore, the promotion of public-private partnerships and alliances for the sharing of
infrastructure will also alleviate the challenges. Relevant stakeholders such as educational institution,
network providers, venture capitalists and business angels can also offer support to alleviate the
challenges. Computer science curricula in secondary schools should incorporate website training
especially since in the higher institutions, students are already required to register online. This study
recommends that a research to determine the cost effectiveness, payback period and profitability of e-
commerce implementation in enterprises be conducted in different regional and environmental
conditions of developing economies. This will further allay the fears of investment in e-commerce.

Figure 3: Framework for Alleviation of E-commerce Implementation Obstructs in Enterprises

Source: Field Survey, 2014

Test of Hypotheses
H1: Cost factors are not significant factors hampering e-commerce introduction and effectiveness in
enterprises.
Test statistic: The test statistic is a t-score (t) defined by the following equation.
t = (x - μ)/SE. Where x is the sample mean, μ is the hypothesized population mean in the null
hypothesis, and SE is the standard error.
8
The formula for standard error (SE) is given by:
SE = s * sqrt{ ( 1/n ) * ( 1 - n/N ) * [ N / ( N - 1 ) ] } OR SE = s / sqrt(n)
Where s is the standard deviation of the sample, N is the population size, and n is the sample
size.

Table 2: Descriptive Statistics of Cost Factors Influencing E-commerce Introduction and

Effectiveness in Firms
N Mean Std. Deviation
CF_lack of fund within ent/org 134 1.9552 1.14291
CF_bandwidth cost too high 130 1.5923 1.17925
CF_bank charges and freight cost not commensurate with anticipated sales
133 1.8195 1.07896

The degrees of freedom (DF) is equal to the sample size (n) minus one. Thus, DF = n – 1 = 132-1 =
131
From Table 2, standard deviation (s) of cost factors = Average of (1.14291, 1.17925 and 1.07896) =
1.13371 and Average n = 132.
Thus SE = 1.13371/11.4891=0.9868
Recall that test statistic is given by: t = (x - μ) / SE
t = (132-148)/0.9868 = -16.21
The P-value is the probability that the t-score having 131 degrees of freedom is less than -16.21.
Using the t Distribution Calculator to find P (t < -16.21) = 0.00
Action/Interpretation: Since the P-value (0.00) is less than the significance level (0.05), we reject the
null hypothesis and accept the alternative hypothesis that cost factors are significant factors
hampering e-commerce introduction and effectiveness in enterprises
The result can also be obtained using the one sample t-test generated from SPSS analysis (Table 3)
and hence we use Table 3 to process the other hypotheses.

H2: Infrastructure does not influence e-commerce introduction and effectiveness in enterprises
P-values for Infrastructure Factor (IF) = 0.00 (Table 3)
Action/Interpretation (IF): Since the P-value (0.00) is less than the significance level (0.05), we
reject the null hypothesis and accept the alternative hypothesis that infrastructure have effect on e-
commerce introduction and effectiveness in enterprises

H3: Organisational factor do not hamper e-commerce introduction and effectiveness in enterprises
P-values for Organisational Factor (OF) = 0.00 (Table 3)
Action/Interpretation (IF): Since the P-value (0.00) is less than the significance level (0.05), we
reject the null hypothesis and accept the alternative hypothesis that Organisational factor influences e-
commerce introduction and effectiveness.

H4: Market factors do not significantly influence e-commerce implementation in organisations

P-values for Infrastructure Factor (IF) = 0.00 (Table 3)
Action/Interpretation (MF): Since the P-value (0.00) is less than the significance level (0.05), we
reject the null hypothesis and accept the alternative hypothesis that Market factors significantly
influences e-commerce implementation in organisations

9
Table 3: One Sample t-test for hypothesis analysis
Factors T Df *Sig. (2- Mean
tailed) Difference
CF_lack of fund within enterprise/organisation 19.803 133 .000 1.95522
CF_bandwidth cost too high 15.395 129 .000 1.59231
CF_bank charges and freight cost not
commensurate with anticipated sales 19.448 132 .000 1.81955
MF_market dominated by established
enterprise 17.530 126 .000 1.70079
MF_uncertain demand for goods and services 8.138 126 .000 2.12598
MF_market dominated by foreign goods 22.839 120 .000 1.95868
MF_consumers unwillingness to pay higher
price for better quality 11.969 127 .000 1.19531
KF_lack of qualified personnel to develop or
operate e-commerce platform 19.964 130 .000 2.25191
KF_Lack of information on technology and
requirements 13.390 130 .000 2.32824
KF_lack of information on market and
potentials 24.253 128 .000 2.08527
KF_difficulty in finding partners to
cooperate/collaborate for e-commerce
implementation 21.336 124 .000 1.96000
KF_inability and lack of knowledge to calculate
cost effectiveness and profitability 23.958 125 .000 2.11905
IF_lack of regular electric power supply 11.209 130 .000 1.19084
IF_Poor/unavailable internet network facility 12.529 128 .000 1.60465
IF_insecurity of web operations/scammers 14.456 129 .000 1.34615
IF_Proliferation of e-fraudsters 13.205 123 .000 1.26613
OF_Organisation_non-readiness of
owners/managers 20.904 133 .000 1.89552
CF_lack of fund within ent/org 23.697 129 .000 2.10000
* Significant at 0.05 level

Discussion
Extent of E-commerce Implementation in the Firms
Though majority (60.8%) of the firms indicated that they were yet to implement e-commerce.
However, 64% of firms who have implemented e-commerce did so between 2001and 2014. Murray
(2009) stated that e-commerce was a low-cost means of reaching consumers worldwide and that it
favours private sector more. This may account for the reason why private organisations were faster in
embracing e-commerce. For instance, some (16%) of the consumer goods organisations (mostly large
firms and multinationals) sampled had already implemented e-commerce before Nigeria independence
in 1960. Half of the respondents claimed that their enterprises implemented e-commerce before year
2000; it is not unlikely that these firms were all private firms because it was not until about a decade

10
ago that government organisations began to see a need to embrace e-commerce. This finding agrees
with ITU (2011) report which revealed increased internet adoption and penetration in developing
countries between 2000 and 2014. This estimate was derived from household surveys and Internet
subscription data and includes persons using the Internet from any device, including mobile phones.
While ITU, could not state categorically the extent of e-commerce implementation, however, it can be
deduced that increased internet subscription will invariably lead to increased e-commerce
implementation. This is because the most basic e-commerce requirement is to have internet
connection and a medium, be it a mobile phone, point of sale or any other information and
communication technology (ICT). For instance, findings from this study revealed the prevalence of e-
commerce tools such as point of sales (59.5%); Electronic mail and messaging (92.6%); World Wide
Web (59.5%); iboard/electronic bulletin (50%); smart card (51.4%); electronic fund transfer (83.1%);
websites/web presence (59.5%); and online sales and purchases (60.1%) amongst the firms. This
became possible due to the firms having satisfied the most basic requirement. There were some few
enterprises that indicated automated third party card system, e-banking, mobile banking, automated
teller machine (ATM), mobile apps, electronic data capture, use of PDA and geo spatial mapping to
conduct interviews and gain access to distant regions and uncountable software solutions and
packages for processing, monitoring, production, payments amongst other uses. As adoption becomes
more diffused, it is evidenced that there would be a prevalence of more e-commerce tools including
the ones that are yet to be made or innovated.

Factors Influencing E-commerce Implementation (FIEI)

Findings from the test of hypotheses revealed that the four endogenous (organisational-OF,
knowledge -OK, cost-CF and quality-QF) and two exogenous (market-MF and infrastructure-IF)
factors have significantly hampered the introduction of e-commerce and its effectiveness in
business/organization in Nigeria. Ranking by percentage response gives first place to knowledge
factors (70.8%) which was also at par with organisational factors. Next was quality obstructs (66.5%),
followed by cost (60.4%), then market (57.2%). Least was infrastructure (54.4%). A study by
Adalikwu (2012) of Nigerian SMEs found that lack of supporting business law (t =2.487, p < 0.05),
concern for data security and privacy (t=1.794, p<0.05) and difficulty in integrating e-commerce
software with an existing system (t=1.293, p < 0.05) were statistically significant in terms of
contribution to obstacles in e-commerce implementation while “shortage of skilled human resources”
and “small size of market for ecommerce” were not statistically significant. However, the author was
concerned with validating if the same obstacles will hold for larger firms. Comparing Adalikwu’s
finding with this study, while small size of market for e-commerce and capability factors does not
pose as obstacle to smaller firms, it does for larger firms. Also, the concern for data security and
privacy and difficulty in integrating e-commerce software with an existing system which were
significant in Adalikwu’s work were considered under infrastructure in this study and have somewhat
less impact. The reason why Infrastructure challenge came least could be that as reported by Adalikwu
(2012) Nigeria has witnessed substantial progress in the field of ICT-related infrastructural
development in the first decade of the 21st century. In the Nigeria of today, even kids have access to
internet through their mobile phones and could easily engage in e-commerce if the need arose. A
framework to alleviate all e-commerce implementation obstructs was proposed.

Conclusion
It can be concluded from this study that though individual level usage of e-commerce may be high,
firm-level e-commerce implementation and effectiveness remained at 39.2%. Factors that significantly
hampered the introduction of e-commerce and its effectiveness in businesses/organisations in Nigeria
by t-values ranking were KF_lack of information on market potentials (72.1%, t=24.253; p<0.05),
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KF_inability and lack of knowledge to calculate cost effectiveness and profitability (69.0%, t=23.956;
p<0.05), KF_difficulty in finding partners to cooperate/collaborate for e-commerce implementation
(61.6%, t=21.336; p<0.05), OF_non-readiness of some owners/managers (70.8%, t= 20.904; p<0.05)
and KF_lack of qualified personnel to develop or operate e-commerce platform (75.6%, t=19.964,
p<0.05) among others.
Also, while small size of market for e-commerce and capability factors may not pose as obstacle
to smaller firms, it does for larger firms. Infrastructure challenge came least because Nigeria has
witnessed substantial progress in the field of ICT-related infrastructural development in the first
decade of the 21st century. However, using the intervention of policy instrument, private-public
partnership, training and technical support for and between individuals, organisations and enterprises,
key challenges like market, knowledge and organizational inhibitors to e-commerce implementation
and effectiveness can be removed. Also, using the framework, the prevalence of more e-commerce
tools and implementation including the ones that are yet to be made or innovated in the future is
promising.

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