E-Commerce in Developing Countries: A Case Study on the Factors Affecting E-commerce Adoption in Libyan Companies

E-Commerce in Developing Countries: A Case Study on the Factors Affecting E-commerce Adoption in Libyan Companies

Bani-Walid, Libya.

Abstract The rapid development and increasing spread of e-commerce technology utilization have led to inspiring more

Libyan companies to inaugurate web sites on the internet, in order to make much benefit from the services

render thereon, to increase the mutual exchanges between these companies and other states, in such a manner as

to save time and cost and stock as well as to create a competitive advantage. However, there are some obstacles

which impede making benefit from the advantages and opportunities the e-commerce attempts to make.The

paper aimed to determine the most important obstacles that are facing the implementation of commerce, that is

to say, technological, Legal, human and organizational obstacles in the Libyan companies. This is on one hand,

however, the paper aimed, on the other, to know whether there is a correlation that is statistically significant

between such obstacles as to affect the implementation of e-commerce and the level of utilization of the same by

industrial and commercial companies in Libya.Findings have shown, on the whole, that there is a high positive

correlation of statistical significance at (α = 0.01) and (α =0.05) levels between the obstacles which affect

commerce and the level of e-commerce utilization, this is pursuant to the points of view of the managers of the

companies in question.The paper has reached a number of findings which have shown the fact that there are

many obstacles which may impede the growth of commerce in Libya. This is in addition to other significant

findings the paper has reached. However, the paper has suggested a number of recommendations to help

develop e-commerce in Libya.This paper also contributes substantially to enrich the applied research studies on

commerce and its applied activities and provides in details the related debate on the similarities and proposals

for future studies.

Keywords: E- commerce, marketing, internet, obstacles, Libya, implementation

I. Introduction: Recent years have witnessed a great development of

the Internet led to a growing number of Internet users

in the world, which has increased the importance of

e-commerce. The importance of this stems from the

lack of any geographical or political obstacles in

front of e-commerce as the business up to millions of

consumers in the whole world. Electronic commerce

or “e-commerce” is defined as doing business

electronically. Electronic commerce covers any form

of business or administrative transaction or

information exchange that is executed using any

information and communications technology (ICT)”.

E-commercealsorefers as the process of buying and

selling or exchanging products, service, and

information through computer networks including the

Internet.E-commerce is performing business

activities via the Internet. These activities include

buying and selling, and refer to information exchange

as well as product exchange as shown in figure 1.

Since its introduction in the 1970s, e-commerce has

developed progressively. Nowadays almost every

business organization has its own website so as to

meet the demand of the increasing number of Internet

users.

RESEARCH ARTICLE OPEN

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Figure 1. E-commerce concept

Access and look at the reality of the business

environment in Libyan, the existence of a set of

manifestations which indicate the presence of

problems. Theseproblems include:

1. Lack of awareness and preparedness for most managers of Libyan industrial and commercial

companies regarding the importance and the

advantages of using electronic commerce.

2. Lack of confidence managers of Libyan industrial and commercial companies in dealing

with e-commerce because of the risks that

surround it.

3. Weak consumer confidence in online shopping, which leads to reluctance to put credit card

details, such as credit card number and CVV

number (Card Verification Value), in addition to

the lack of familiarity with the English language.

4. The failure of the Libyan banks in taking an effective role in facilitating the payment systems

e-commerce

5. High costs related to Web design and technical support for electronic commerce.

6. The existing e-commerce in the Libyan industrial and commercial companies confined mostly to

the presence of a page belonging to the

companies on the International Network (Home

Page).

7. Lack of technical staff and specialists who are able to manage e-commerce and websites in the

company.

8. Adoption of Libyan companies on traditional methods of interacting with consumers.

Based on the previous limitations of e-commerce

in Libya, the problem statement can be summarized

as follows:

‘Despite the growing role of electronic commerce

with the trend towards global, however, the

Libyan industrial and commercial companies are

still dealing with traditional business methods’

The study derives its importance from the

importance of electronic commerce as the world goes

into e-commerce interfaces of different styles which

reached to 15 trillion dollars in the worldwide by

2011, which confirms the importance of e-commerce.

It also shows the importance of the Internet as a

global communication through rapid deployment

globally compared to other methods of

communication such as television, radio, personal

computer, and phone. The special importance of e-

commerce for industrial and commercial companies

in Libya lies in the gains achieved by e-commerce for

them.

II. Objectives of the study The objectives of this study are as follows:

1. To identify the current status of the adoption of e-

commerce incompanies (industrial and commercial)

in Libya.

2. To identify the most important obstacles facing the

implementation of e-commerce (technological, legal,

human, organizational).

3. To understand the relationship between the

obstacles affecting the implementation of e-

commerce and the level of use of e-commerce

companies (industrial and commercial).

4. To providesomerecommendations that contributes

to the establishment of a clear idea about how can

Libyan companies benefit from e-commerce.

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III. Literature and hypotheses: Scientists and researchers have not yet reached to

a common definition of e-commerce because of the

multiplicity and variety of definitions, some of them

tend to narrow, and the other tends to expand [1].

This difference in views which reflected on the

differing interpretations for:

 Continuous development which changed year after year, leading to an expansion of the means,

methods, and objectives and thus expanding the

concept.

 Different areas mean different interpretations of e- commerce. As each area interprets the

meaning of e-commerce from the point of view

that it serves.[2]has defined the e- commerce

astheprocess of buying or selling, converting, or

replacement goods or services or information via

computer networks including the Internet.

Whereas, e- commerce has been defined by [3]

citing [4] as trade of goods and services that are

using the Internet and other digital media.

Furthermore, while [5]indicated that e-

commerce is the process of buying and selling by

electronic means.[6]indicated that e-commerce is

a type of sale and purchase transactions between

consumers and producers or between companies

by using information and communication

technologies. [7]has shown that e-commerce is

the process of production, promotion, sale, and

distribution of products through communication

networks ‘.

The processes of transition to the use of systems

and methods of e-commerce is a complex processfor

many businesses, because this transformation can

only be achieved through a deliberate plan built on

the foundations of thought developed which

combines the company’s culture, its capabilities and

its ability of the hand, and between the challenges

and obstacles associated with the extensive use of

information and communication technologies on the

other hand. On this basis, there is a set of procedural

steps that the company must be implemented;

including the establishment of the website on the

Internet includes many stages that have to be

followed asexplainedbymany researchers [ 8-6 ], as

shown in the following:

3.1. Use of electronic email (Email) During this stage, businesses start to enter the

world of e-commerceina very simple concept through

getting a special email address the organization or

company.

3.2. Subscribe to internet services Subscribe in internet services to expand the

transactions through email. With access the Internet

to the company, the first steps of the actual use of the

principles of electronic commerce will begin, where

the company turned in its correspondence to the e-

mail and achieve the considerable saving in cost with

great openness to the world.

3.3. Creating home pages for information on the network

Begin the transition from using e-mail to the

physical presence of the company by creating simple

Web pages includes information about the company.

This will be the first use of the network in the field of

advertising to allow the customers to see what goes

on of activities in the company‟s.

3.4. Website With the growth in the use of the Internet,the

company might considershifting to a higher level of

use through the establishment of the websitefor

information on the Internet, the company in which

the interaction between the company and its agents

and their products price lists and catalogs.

Establishment of Information website requires

several key components including:

 Server

 Leased Line

 Routers + Modems

 Special programs and applications

 Technical work team specialized in website management

 A team for preparing and updating data

3.5. Electronic Store Commercial transactions through the Internet

require providing degrees of protection and

insurance, it also requires the connection with one of

the banks to facilitate financial payments. From here,

the shift to the level of full transactions on the

Internet requires in addition components of security

and protection, as well as a financial method of

payment.

3.6. Full Loop EC Integration between all the operations of e-

commerce can be achieved through linking the

websites with the foundation’s internal information

systems and achieve full connection between the

company and its customerswith the level of internal

information systems, this requires providing the

highest level of information security.

IV. Benefits of electronic commerce E-commerce systems offer many opportunities and

benefits at all levels, both at the individual level and

at the level of enterprises and business sectors or at

the community level. [2]concluded that e- commerce

can achieve many benefits to users and customers. E-

commerce can be divided as follows:

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4.1. Benefits of e-commerce to organizations: One of the most prominent benefits of e-

commerce for organizations that it expands the scope

of the market from the scope of the local

representative to the scope of the international and

global scale and that, with a few costs, as any

company can find consumers more and better more

appropriate partners in a fast and easy way. Some

studies have demonstrated that the adoption of e-

commerce systems that would lead to a reduction in

administrative costs of the procurement process by

more than 85 % [2]. The following example

illustrates the benefits of electronic commerce, in the

United States of America, the bank draft costs 43

cents and the electronic payment costs only 2 cents

[9].

Follow the e-commerce systems help all

enterprises in the reduction of inventory and follow

the manufacturing systems and modern distribution

resource planning and needs using the system

specified timing (Just in Time), where an entity at the

request of goods from producers once received

purchase orders by consumers, and are shipped

directly to send it to them. Hence, the storage costs

drop dramatically, resulting in a reduction in

insurance costs and other costs related to the process

of storing[10].In addition to the foregoing, the e-

commerce helps to dispense with intermediaries as

there is no need for the existence of intermediaries

between the seller and the buyer in cyberspace[11],

as they reduce airline costs by selling tickets online

without the intervention of intermediaries trading as

mentioned in the Financial Times newspaper

(September 6, 2002 number).

E-commerce enables the re-engineering of

business processes, and through this change, the

productivity vendors, staffs, and administrators to

jump more than 100% [12]. The e-commerce systems

lead to the reduction of communication costs through

its adoption ofthe International Network for

communications (Internet) which is at least at the

cost of a network of value-added, or the so-called

(VANs) [2]. The adoption also leads to a decrease in

the costs of transport, especially in the case of digital

products that can be transferred across the network

directly, as is the case in computer programs [2].As

well as easy to conclude deals and contracts, using

the technologies of knowledge for purchase through

the Internet, including technology (Click and Pay),

the fame of this technology has increased in terms of

transactions over the Internet, and can be performed

by consumers and businesses throughout 24 hours a

day during all days of the year, [13]. [12]has been

added the benefits of e-commerce to improve the

company’s image and effectiveness of customer

service and to find new trading partners and facilitate

operations and reduce the time period to send the

products and services and increase productivity and

eliminate paperwork, reduce transportation costs and

finally increase flexibility in transactions.

4.2. Benefits of e-commerce to consumers E-commerce enables buyers to purchase 24

hours a day, and access to all markets in the world

simultaneously from anywhere. In general, the e-

commerce is cheaper for shopping, because the seller

can be marketed on a lot of websites on the Internet

and compares a company’s goods easily with their

counterparts, and eventually will be able to choose

the best offer for him [12].The benefits of e-

commerce is reflected in improving services to the

consumer, whether in transactions between

companies and consumers (B2C), or through the

purchase of the website directly (Online Shopping),

or transactions between Government and people,

which is known as the E- government[13]. It also

enables of shopping through international networks

and participation in the auctions directly without the

limits of place or the distance or time[12].

4.3. Benefits of e-commerce to society E-commerce allows an individual to work at

home, reducing the default time for shopping, which

means less congestion in the streets, thus reducing the

proportion of air pollution [2]. It also allows people

who live in third world countries to buy the products

and goods not available in their home countries. They

can also obtain the university certificates crossed

Internet [14]. It also enables the creation of new

opportunities for self-employment through the

establishment of an opportunity for small and

medium-sized businesses that connect to global

markets at the lowest possible cost[15]. In addition to

the above, e- commerce is also able to provide public

services via the Internet, such as educational services,

health care, and social services at the lowest price

and highest quality[2].

[16]has emerged a new concepts to help

companies to transition towards e-commerce, or the

so-called external resource service (Outsourcing),

which is based on the idea that, rental structure of e-

commerce partially or completely rather than

established within the company that want to convert

their work, in order to be across the network so that

all or part of the information infrastructure essential

for any company is located away from company site

under the management of the enterprise professional

in providing such a service, which helps to reduce

costs and reduce the time needed to fulfill customer

requests.

V. Obstacles to the implementation of e- commerce

Despite the multiplicity of benefits arising from

the implementation of e-commerce, the Arab

countries still face significant challenges, In general,

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[2] has divided the obstacles into two types of

obstacles, technical obstacles, and other non-

technical obstacles as follows:

5.1. Technical obstacles 1. Lack of security system or to strengthen

confidence in the transactions, and may not have

adequate standards (and protocols) of the

organization for commercial transactions that

take place electronically.

2. Low percentage of Internet users because of high prices with a low individual income [17]. The

number of Internet users in the Arab world about

29.4 million users by the end of 2007, which

means only about 2.5% of the population of

users in the world (Internet World 2008, Stats).

3. Tools for software development are still constantly changing and quickly and therefore

difficult to connect the Internet and e-commerce

software‟s with some applications and databases

used [12].

4. The need to have a private networks and infrastructure for seller beside the general

communications network sometimes may be

expensive for some buyers, especially in the case

of small enterprises.

5. Robberies of bank accounts through the computer, and the need for verification of the

access of the amounts due for transactions with

the parties involved and make sure there is no

manipulation or fraud in the credit cards used

[18].

5.2. Nontechnical obstacles 1. High implementationcosts, where the costs of

providing the necessary computer programs to

deal implementatione-commerce systems is

relatively high from the point of view of the

ordinary consumer.

2. Fear of providing personal data, particularly related to financial aspects or exposure to

electronic messages received without their

consent[19].

3. Browse the Internet is still too expensive for many people and the connection speed is still

slow in many of the countries of the world

including Libya [12].

4. There are some legislative and legal aspects of electronic commerce has not yet been set clear

and decisive solutions for any system

applications.

5. The inability of the consumer to see the product visually before buying it online, plus it is

possible to buy items unauthorized selling [18]as

some customers want to touch the products

before buying them as in traditional commerce.

6. The proliferation of commercial fraud and the absence of appropriate legislation and

weaknessof the security of online

communications is one of the obstacles that

hinder growth of e-commerce in the Arab

region[20].

7. The low level of awareness and knowledge about the e-commerce are a global problem faced by

many countries, including developed [21].

8. The limited number of Internet users in the Arab world and not ready interesting in e-commerce

practice.

9. The lack of attendance of Arab banks and services in e-space and low ownership rate of

credit cards[22].

10. E-commerce is still in its first phase, which is characterized by rapid change; many people

want to provide tangible things before

investing[12].

11. The social and psychological obstacles that include language, lack of confidence between

people and regulations, despite the entry of

Arabic language in many of the software‟s, but

the psychological barrier still exists[17].

12. Lack of paper documents supporting the sale and send the purchased products, this may raise the

question of the obligations of contracting parties

in laws, and which are still focusing on the

priority of writing and written documents in

proof.

13. There are cultural factors, especially the Arab society may play a main prominent role in

making the most of electronic commerce

transactions take place between companies

between companies, and not between companies

and individuals, as to go out shopping may be

fun only for Arab women under the domination

of the social barriers that limit women’s freedom,

and this desire to go out threatening e-commerce

[20].

VI. The challenges of e-commerce regionally and locally

The obstacles to the development of electronic

commerce in the Arab countries in general, and Libya

in particular [23]can be identified as follows:

1. Lack of the presence of the Arab banks on the web pages and non-issuance of credit cards.

2. Lack of awareness and the lack of awareness of the importance and benefits of e-commerce for

individuals and businesses, as well as to the high

proportion of illiterates in the Arab nation, which

amounted to 38% by 2001 [24].

3. Arab governments did not adopt a strategy to raise the level of information and

communications technology and their adoption

only handicrafts.

4. The fragility of the telecommunications infrastructure in the Arab countries as the price is

still a very high cost of communications, in

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addition to other issues, most notably the

weakness of the Internet, and the unavailability

of telephone lines as required.

5. The absence of appropriate legal infrastructure and the legislation is the biggest obstacle in the

development of electronic commerce in Arab

countries, in particular with regard to the

regulation of banking transfers or protection or to

the prevention of fraud, piracy and the theft of

electronic.

6. Despite the availability of the possibility of the development and design of the programs in most

Arab countries, but so far have not been taking

advantage of the huge potential in the

development of information and communication

technology sectors.

7. The absence of transparency and some Arab government‟s put some restrictions on dealing

over the Internet, mostly for security reasons, it

is difficult to the presence of data on national

income and tracking income on the Internet, as

well as fears of the emergence of electronic

money and its spread resulting in facilitating

money-laundering operations, thereby preventing

the Central Government control on the

circulation currency, for the purpose of

controlling the money supply, if the private

companies expanded issuing the electronic

money [24].

8. The Internet suffers from the lack of security issues; this may be exploited by some pirates.

9. Reduction in the number of workers and employees, because of the use of the Internet

leads to higher unemployment rates [24].

Based on the above discussion of the previous

studies related to direct and indirect nature of the

problem of the study, the hypothesis of the study can

be formulated as follows

„There is a significant statistical relationship

between obstacles affecting the implementationof

e-commerce and the level of use of e-commerce in

companies (industrial and commercial) in Libya‟.

VII. Methodology of the study Descriptive analytical was selected because the

objectives of this study focused on the relationship

between the obstacles affecting the implementationof

e-commerce and the use of e-commerce in companies

(industrial and commercial) in Libya. The study

relied on two types of data which are:

7.1. Secondary data Preliminary data have been collected in the field

through the list of the survey, which has been

prepared on the basis of the findings of the results of

previous studies to measure the variables in order to

determine the variables to be measured and the

special constraints affecting the implementationof e-

commerce and the level of use of e-commerce in

companies (industrial and commercial) in Libya

included a list of questions on the two sections. The

first section is general information about the type of

activity of the company and the age of the company.

The second section focuses on the obstaclesof the

implementationof e-commerce and the use of

electronic commerce. In this section,Likert scale with

5-point was used.

7.2. The sample of study The list of the companies was obtained from the

records of the commercial register offices in the

Ministry of economy. The sample size was

determined by the equation were selected from the

previous studies by stratified random sample, where

the sample size was 400 single stationed in the cities,

(Tripoli, Sabha). Data were collected from the study

targeted research in the period of time between

March 2012 and October 2012.

7.3. Analysis and discussion of the results The sample answers were coded to the

questionnaire and entered into the statistical program

SPSS (Statistical Package for the Social Sciences)

and statistical program Exel then appropriate

statistical methods were used based on the nature of

the data to achieve the aims of the

study,wherestandard deviation, covariance,the

percentage of labs, Cronbach’s Coefficient

alpha,andfinallyPearson test were used.

7.4. Test the validity and reliability of the data collection

The study adopted the report of the validity and

reliability of the tool on the sincerity of arbitrators,

where the tool in its initial wording has been

displayed on the number of arbitrators in some

Libyan universities and on professionals with

experience and competence and then revised in the

final wording. From the analysis of the data, the

response rate was 80% of the total valid

questionnaires collected for analysis.

VIII. Results and Discussion 8.1. The stability of the questionnaire

The reliability coefficient questionnaire was

calculated using alpha coefficient Cronbach

(Chronback Alpha), where the value of the

coefficient alpha Cronbach of the reliability

coefficient was 0.938% and its high reliability

coefficient, implying a high degree of stability and

the health of the answers of respondents, and thus

achieved the stability and consistency is acceptable

for the purpose of scientific study, and the following

table shows the value of coefficient alpha.

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Table (1) the results of alpha testing of the validity and reliability of the questionnaire

Reliability

index

Validity

index

Scale

variance

Average

scale

Study Themes No

0.737 0.238 6.948 21.537 The level of use of electronic

commerce

1

0.670 0.451 6.552 21.216 Impediments to the use of e-commerce 2

0.938 Alpha value for the questionnaire 3

The above table shows that all values of the

alpha coefficients Cronbach are greater than 0.6

[25]which are acceptable, this indicates the stability

and reliability of the questionnaire and relying on the

tool for the purposes of the study.

8.2. Characteristics of the study sample To know the characteristics of the study sample,

the frequency distribution of the sample was obtained

based on the kind of activity and the age of the

companies as follows:

 Type of activity Table 2 and figure 2 show the results for the type

of activity, and it is clear that the percentage of

commercial activity is the largest percentage of 63.66

%, followed by industrial activity 36.34 %. This

shows the role and size of commercial activities and

their impact on the Libyan economy.

Table (2): frequency distribution for sample by type

of activity

Percentage Frequency Type of activity

63.66 205 Commercial

36.34 117 Industrial

100 322 Total

Figure 2.Frequency distribution for commercialand industrial activities

 The age group of companies Table 3 and figure 3 show the results for the age groups of companies, it is clear that the age group from 5

to 10 years has the is the largest percentage (59.63%) among the age groups, followed by the age group from 10

years and more by 25.16%, and finally the age group (less than 5 years) by 15.22%.

Table 3: The frequency distribution of the sample by age group of companies

Percentage Frequency Age groups

15.22 49 Less than 5 years

59.63 192 5 to 10 years

25.16 81 10 years or more

100 322 Total

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Figure 3.Frequency distribution for age group of companies

 The level of use of e-commerce in Libyan companies For the purpose of identifying the level of the use of e-commerce, arithmetic average, standard deviation,

and relative importance of the study sample were used. Table 4 shows the results of the level of use of the

Internet in e-commerce by Libyan companies.

Table 4: The arithmetic mean, standard deviation, and the percentage of the level of use of e-commerce

Ranking The relative

importance

(%)

Standard

deviation

Average Statements No

1 87.58 0.83 4.38 Send and receive e-mail 1

2

83.04

0.93

4.15 Access to the latest news and

information

2

3

79.07

0.98

3.95 Searching on sufficient information on

the prices

3

4

75.84

1.20

3.79 Conducting international

communications

4

5

75.03

1.14

3.75 The announcement of the company’s

products

5

6

75.03

1.16

3.75 Find enough information about

competitors

6

7

74.53

1.29

3.73 Provide enough information about the

goods

7

8 72.11 1.28 3.61 Searches for different websites 8

9 71.55 1.03 3.58 Getting requests and supply orders 9

10 71.37 1.08 3.57 Find new customers 10

11

71.12

1.18

3.56 Provide detailed information about the

company and its products

11

12 64.91 1.07 3.25 Searching for new partners 12

13

64.91

1.27

3.25 Selling the company’s products through

electronic markets

13

14

59.94

1.17

3.00 Payment through credit cards or

electronic drafts

14

15

59.25

1.14

2.96 The exchange of documents and

contracts electronically

15

From table 4, it can be seen that the percentage

and the arithmetic mean of answers

respondentsindicatethatsend and receive e-mail is

ranked first (87. 58 %), followed by access to the

latest news and information by 83. 04 %, and

followed find enough information about prices by

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79.07% and conducting international

communications by 75. 84 %.It is observed from

analysis that lower relative importance to exchange

documents and contracts electronically ranked by

59.25% in comparisonto previous items.

Therefore, the previous results confirm that the

Libyan companies practiced the e-commerce

techniques only by sending and receiving e-mail and

access to the latest news and information. This result

is consistent with the study [26] which revealed the

reality of the implementationof e-commerce in small

industrial plants with small with identifying the most

important factors affecting them, which indicated that

more areas of e-commerce used by the study

population is (sending and receiving e-mail, access to

the latest news and information, search for new

customers, provide detailed information about the

company and its products).On the other hand, the

areas of e-commerce were less used by the

population of the study consisted of (attend

conferences through video, advertising, search for

new partners and conduct international

communications). This result is consistent with the

study conducted by[22], which aimsto evaluate the

development of e-marketing in Yemen companies,

where it reached that there are weaknesses in Yemeni

companies dealing in e-marketing and is limited to

the use of e- mail to exchange information with

suppliers.And this also consistent with a study

conducted by [27], which focused on identifying the

areas of the use of e-marketing in the Libyan oil

companies, and has shown its limitations in terms

ofusing of e-mail and website to view the products

and data about the company activity, as well as

customer contact.

From the previous result, it can be reached to achieve

one of the objectives of the study which seeks to

identify the level of the use of e- commerce

techniques practiced by Libyan companies.

8.3. Obstacles totheimplementation and use of electronic commerce in Libyan companies

In order to identify obstacles to the

implementation and use of electronic commerce, the

arithmetic mean and standard deviation and relative

importance of the answers of the study sample were

used and Table 5 shows the results of the study

sample answers of obstacles of the implementation

and use of e-commerce.

Table 5 arithmetic mean and standard deviation, and

the relative importance of obstacles to the

implementation and use of e-commerce

Ranking The relative

importance

(%)

Standard

deviation

Average Statements No

1 83.85 0.91 4.19 The absence of security and confidentiality

of the information on the Internet 1

2 83.29 1.05 4.16 Non- habitual consumers of this kind of trade 2

3

82.67

0.98

4.13 The absence of laws and legislation

regulating the electronic commerce

3

4

76.89

1.02

3.84 Lack of Libyans for a Culture of use of credit

cards

4

5

76.77

1.20

3.84 Consumer preference for buying through

traditional shops

5

6

76.71

1.17

3.84 Lack of training programs on electronic

commerce

6

7

75.09

1.21

3.75 Low intensity of competition between

Libyan companies

7

8

74.84

1.12

3.74 The impact of the media in focusing on the

negative aspects of the Internet

8

9

74.16

1.12

3.71 Scarcity of Arab sites on a network

information

9

10

74.10

1.16

3.70 A few number of companies used the

Internet in Libya commercially

10

11

73.98

1.09

3.70 Low level of English for clients with e-

commerce

11

12

71.30

1.17

3.57 The Libyan banks are not support the e-

commerce

12

13 69.07 1.20 3.45 Crashes and slow the internet in Libya 13

14 67.45 1.19 3.37 Weakness of the information infrastructure 14

15

67.02

1.20

3.35 Scarcity of human resources needed to deal

with modern technology

15

16 66.77 1.26 3.34 Small size of the company 16

17 65.65 1.14 3.28 Lack of state support to disseminate a culture 17

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Ranking The relative

importance

(%)

Standard

deviation

Average Statements No

of e-commerce

18 60.43 1.35 3.02 E- commerce need a long time to be applied 18

19 58.01 1.30 2.90 High costs of implementation 19

20

55.90

1.13

2.80 The failure of the implementation of e-

commerce in some of the companies

20

From Table 5 it can be noted that relative

percentages and the arithmetic average of the answers

of respondents indicate that the absence of systems

security and confidentiality of information on the

Internet has the largest effect on e- commerce by

83.85%, followed by non-habitual consumer on this

kind of trade by 83.29%, and then followed by The

absence of laws and legislation regulating the

electronic commerce, which contributesby 82.67%,

and lack of Libyans for a Culture of use of credit

cards by up to 76.89%. From Table 5, Is was noted

that consumer preference for buying through

traditional shops where it came in fifth place with

76.77%, while the lack of training programs on e-

commerce have a percentage of 76.71%, as well as it

can be seen from Table 5 that the decline in the

relative importance of the high costs of

implementation and the failure of the experience of

the implementation of e-commerce in some

companies have a little percentage of effect on the

implementation of e-commerce compared to the other

previous elements.

Through previous results, it can be noted that the

result is logical, because the success of e-commerce

cannot be achieved with the absence of systems

security and confidentiality of information and with

the absence of laws and regulations governing e-

commerce. In addition to that, the success of e-

commerce cannot be achieved by the lack of training

programs on e-commerce and with the weakness of

the information infrastructure in Libya, besides, the

scarcity of human resources needed to deal with the

modern technology.These results are consistent with

several previous studies, where the study conducted

by [28]shows that the absence of security systems

and confidential information on the Internet are

animportantobstacle effect on e-commerce

implementation in United Arab Emirates. The results

are alsoconsistentwith the study made by[29], which

found that companies in developing countries are

facing many challenges for the use and exploitation

of e-commerce.

These results are also consistent with the study

made by [30]on obstacles to the implementationof e-

commerce in Libyan commercial banks. The results

of this study indicated that there are many obstacles

that hinder the implementationof e-commerce in

Libyan commercial banks, such as the absence of

laws and legislation regulating the electronic

commerce, as well as the absence of security and

confidentiality of the information on the Internet and

the weakness of the information infrastructure in

Libya.

It is noted that there are other studies did not

address the infrastructure among the factors of the

success of e-commerce, including studies made by

[31-33]. These studies have been done in some of the

countries of Europe and America, where the

development of the infrastructure in these countries,

but they focused on the topics of confidence and

security. However, in most of the developing

countries, the infrastructure, laws, and legislation are

still the main factors hindering the growth and

success of e-commerce.

From the previous result, the objectives of this

study can be achieved, which identify the most

important obstacles facing the implementationof e-

commerce (technological, legal, human, and

organizational) in Libyan companies (industrial and

commercial).

From previous results, we can move to test the

validity or deny of the hypothesis of the study.

8.4. Test the hypothesis of the study The hypothesis of the study states that

„There is a statistically significant relationship

between the obstacles affecting the

implementationofe-commerce and the use of

electronic commerce in companies (industrial-

commercial) in Libya‟.

To test this hypothesis, simple linear correlation

coefficient (Pearson) was used in order to determine

the level of the relationship between the obstacles

affecting the implementationof e-commerce and the

use of e- commerce in the industrial and commercial

companies in Libya, as can be seen from Table 6.

Table 6: the relationship between the obstacles

affecting the implementationof e-commerce and the

level of use of e-commerce

No Statements relating to the level use of e-commerce Pearson

Correlation

Significant

1 Payment through credit cards or electronic drafts 0.396 **0.000

2 Searches for different websites 0.367 **0.000

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No Statements relating to the level use of e-commerce Pearson

Correlation

Significant

3 Provide detailed information about the company and its products 0.354 **0.000

4 Selling the company products through the site or through

electronic markets

0.340 **0.000

5 Provide enough information about the goods 0.258 **0.000

6 Conduct international communications 0.249 **0.000

7 The exchange of documents and contracts electronically 0.246 **0.000

8 Find enough information about competitors 0.200 **0.000

9 The announcement of the company’s products 0.133 *0.017

10 Access to the latest news and information 0.126 *0.023

11 Send and receive e-mail 0.123 *0.027

12 Searching for new partners 0.088 0.116

13 Searching on sufficient information on the prices 0.073 0.189

14 Find new customers -0.018 0.751

15 Getting requests and supply orders -0.092 0.099

16 The level of use of e- commerce 0.463 **0.000

** Level of significance = 0.01

* The level of significance = 0.05

Table (6) the results of the analysis of the

relationship between the obstacles affecting the

implementationof e-commerce and the use of e-

commerce in industrial and commercial companies in

Libya. The analysis shows that payment through

credit cards or electronic drafts come in first place,

while searching for different websites come in second

place, and providing detailed information about the

company and its products come in third place.As well

as, simple linear correlation coefficient was also used

to identify the level of the relationship between the

variables in terms of the degree of influence at the

level of significance (α = 0.05) or (α =0.01). The

results indicated that there is a very high correlation

(α =0.01) between the obstacles affecting the

implementationof e-commerce and the use of e-

commerce, according to the following terms.

1. Payment through credit cards or electronic drafts. 2. Searches for different websites. 3. Provide detailed information about the company

and its products.

4. Sell the company’s products through the site or through electronic markets.

5. Provide enough information about the goods. 6. Conduct international communications 7. The exchange of documents and contracts

electronically.

8. Find enough information about competitors

The results also pointed out that there is a high

correlation(α = 0.05)between the obstacles affecting

the implementation of e- commerce and the use of e-

commerce, according to the following terms:

1. The announcement of the company’s products

2. Access to the latest news and information 3. Send and receive e-mail

The results also indicated that there is no

relationship between obstacles affecting the

implementationof e-commerce and the use of e-

commerce, for the remaining terms.

Based on the above discussion, the hypothesis of

the study can be accepted, which states that ‘There is

a statistically significant relationship between the

obstacles affecting the implementationof e-commerce

and the use of e- commerce in the industrial and

commercial companies in Libya’.

The analysis results indicated that there is a very

high correlation (α =0.01) between the obstacles

affecting the implementationof e-commerce and the

use of e- commerce, according to the following

terms.

4. Payment through credit cards or electronic drafts. 5. Searches for different websites. 6. Provide detailed information about the company

and its products.

7. Sell the company’s products through the site or through electronic markets.

8. Provide enough information about the goods. 9. Conduct international communications 10. The exchange of documents and contracts

electronically.

11. Find enough information about competitors The analysis results also indicated that there is a

high correlation (α =0. 05), according to the

following terms:

1. The announcement of the company’s products

2. Access to the latest news and information 3. Send and receive e-mail From previous results, it is clearthat the obstacles

have a very high correlation and influential role in the

level of use of e-commerce and the evidence for that

is indicated by the results of the field study at two

levels (α = 0.01) and (α =0.05) or most of the terms.

The remaining terms have no effect on the level of

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use of e-commerce. They have counterproductive in

other obstacles. The study found that whenever the

Libyan companies were able to overcome the

difficulties and impediments to the implementationof

e-commerce, the greater the level of use of e-

commerce in these companies and vice versa.

This result is logical and consistent with many

previous studies such as [33], which revealed the

effect of the level of confidence in the use of e-

commerce, and the presence of a significant

correlation between the confidence and the level of

use of e-commerce. This study also consistent with a

study made by [34], which indicated its results to link

of the obstacles facing the institutions of the role of

the publishing and distribution of Arab, and which

prevent the implementation of e-commerce. In

addition to that, this study also consistent with a

study made by [27], which pointed out that the

correlation coefficient in its results to a positive

correlation between the variable of confidence and

security, and the use of e-marketing, the greater the

degree of confidence in electronic dealing, whenever

led to greater use of e-marketing.

This study also consistent with a study

conducted by [30] which focused on the

identification of the reality of the implementationof

e-commerce and to identify the main obstacles to the

implementationof e-commerce in the Libyan

commercial banks. The most important results of the

study indicated that there is a need to accelerate the

implementationof e-commerce to take advantage of

the benefits that can be achieved if applied, and the

emphasis on the need for many of the ingredients

(requirements), and increase the attention of the

implementationof e-commerce in the Libyan

commercial banks in order to increase the level of use

of e- commerce in the Libyan commercial banks.

IX. Contributions of the study The present study supports the knowledge in e-

commerce as the theoretical contribution to disclose

the relationship between the obstacles of the

implementationof e-commerce and the levels of use

of e- commerce,whereas, the contribution in terms of

management represented in clarifying the elements of

the implementationof e-commerce in industrial and

commercial companies where:

1. The results showed that the marketing of products which represents the marketing through

personal selling is the most widely used,

followed by marketing through exhibitions, and

then followed by television marketing in the

third place. And the results showed that low use

of e-marketing in the marketing of the products

from the companies with commercial and

industrial activities.

2. With regard to the obstacles facing the study sample and the optimum implementationof e-

commerce, the study presented firstly, the

absence of security systems and confidential

information on the Internet. Secondly, lack of

familiarity with the consumer this type of trade

exchange. Thirdly, the absence of laws and

legislation of e-commerce. Next, lack of Libyans

for a Culture of credit cards. Fifthly, the

consumer is preference for buying through the

traditional stores or shops. Sixthly, lack of

training programs for e-commerce. In addition to

the high cost of communications and slow

internet networks as well as the shortcomings of

the qualification of human cadres, including

serves the goal of growth of e-commerce.

X. Concluding remarks Based on the results of this study, this study

suggests some recommendations, which contributes

at least partially overcome the problems and

obstacles that prevent the implementationof e-

commerce effectively in various types of Libyan

companies. It will also help official bodies in the

development of strategies and projects leading to the

spread of information and communication technology

in Libya, the most prominent of these Libyan

recommendations and proposals as follows:

1. Development of appropriate legislation to the requirements of e-commerce locally and

internationally,andelectronic security and safety

when using electronic shopping.

2. Create a climate that aims to disseminate the concept, importance, and advantages of e-

commerce, and increasing the consumer

confidence and seek to literacy and increasing

the technical scientific conferences and

symposia.

3. Working on the lifting of the communications infrastructure level and improve its level of

efficiency and development of infrastructure

technological advancement means of

communications and software industry and

facilitating the conditions of participation in the

international information network, and the lifting

of the scientific and technical competence of the

staff.

4. Communications and Web design companies must reduce the cost for enterprises used e-

commerce so that they can develop their

potential.

5. In order to reach the largest amount of users must, Arabic language must be added to the

localize foreign websites on the international

information network (Internet) in order to use the

network on a large scale, which facilitates the

growth of e-marketing process and the

subsequent services.

6. Encourage and stimulate the banking sector to enter the field of e-banking services to facilitate

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electronic payment operations and simplifying

banking procedures associated with the bank.

7. The need to work on the establishment of a body to stimulate e-commerce aims to conduct surveys

and studies to determine the needs of the

companies relating to e-commerce and the

issuance of periodic bulletins to promote e-

commerce, so that it must be interested with all

the latest developments in the area of electronic

transactions and promotion incentives and

providing the subsidies for small and medium-

sized enterprises to practice e-commerce.

8. The Parties dealing with e-commerce should be directed towards starting small business

transactions in order to increase confidence

among customers and dealers and reduce the

level of risk, so that the size of those transactions

can be increased gradually commensurate with

the degree gain confidence.

9. Development of the curriculums for all stages to keep up with the age of information and

international information network (Internet) in

the field of education and the creation of virtual

universities and research centers in accordance

with the plan meet the needs of the electronic

market.

10. Organizations that rely on e-marketing in Libya must take into consideration the social customs

and traditions for the consumer, when the target

community is conservative community.

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