The development of the e-commerce technology adoption in Libya : evidence from the Libyan oil and gas industry

Abstract

The style of doing business electronically, especially using the Internet, is now popularly known as e-Commerce technology. It is generally acknowledged that e-Commerce is revolutionizing the way of doing business. Internet and e-Commerce experts and researchers have recognized the potential of e-Commerce applications for the success of any organization. There is evidence that many companies have benefited from such technology. However, despite numerous studies of e-Commerce, there is a little research identifying the factors associated with the adoption of e-Commerce within petroleum companies. This research investigates factors that influence the adoption of e-Commerce in Libyan Oil and Gas Companies (LOGCs). The study provides insights into the perceptions of Internet and e-Commerce in Libyan petroleum companies who are developing or will develop Internet and e-Commerce technology. However, the LOGCs lack information technology (IT) infrastructure, technical expertise and good management, which appear to be real barriers to adopting e-Commerce. This study will assist those LOGCs that are considering or currently conducting their business using the Internet and e-Commerce. A framework of e-Commerce adoption will be developed to investigate the factors that potentially influence the adoption of e-Commerce. Many oil and gas companies are transferring part of their businesses to the Internet. So how are the LOGCs rising to face the challenges of the fast-moving information age? The Libyan petroleum industry seems to be very slow in responding to this area of information technology. If so, then the full potential of the industry and economy will be compromised. This research examines the factors that hinder or facilitate e- Commerce adoption. A questionnaire was developed utilizing ideas from the existing literature. The sample consisted of top managers in LOGCs (n--21 1). Multiple methods were used to collect and analyse the data: descriptive statistics, correlation and regression analysis. All analysis was performed using the Statistical Package for Social Sciences. The results confirmed the findings of the literature survey, in that organizational characteristics influence e-Commerce adoption level. This study proposes a theoretical framework with influential factor groups including organizational, innovation, industry, and environmental factors. Some themes have emerged from previous literature explaining the reasons for rejecting e-Commerce adoption. The results confirm that organizational factors are highly significant in explaining e-Commerce adoption. The results also confirm that environmental factors are crucial and there was a significant relationship between the level of e-Commerce adoption and environmental factors. It is also confirmed that the perceived benefit coefficient has a negative sign and it is not significantly related to adoption level. Finally, the industry factors are not related to e-Commerce adoption level as hypothesized. This study has various limitations, and further research is needed in order to develop a more comprehensive e-Commerce technology adoption model.

Date of Award	1 Sept 2005
Original language	English
Awarding Institution	Northumbria University
Supervisor	Barrie Craven (Supervisor) & Richard Li Hua (Supervisor)