The Moderating Effect of Culture on the Influence of Organization in Saudi Arabia

The size of a firm not only influences a firm’s ability and readiness to adopt E-Commerce but also the extent to which technology will be adopted by the firm. This simply means that larger firms tend to adopt technology at higher levels while the smaller firms are inclined to adopt technology at the lower levels (Cragg B. P. Mills M.A., 2009)A firm’s prior usage of technology in the form of PCs with modems and an affinity towards the internet and e-mails will also affect the diffusion of the new innovation. An organisation with a large number of transactions and data is more likely to adopt E-Commerce as this can be of great assistance in streamlining operations and as well as in offering process efficiency within the organisation (Thong J. and Yap C, 1995).The adoption of E-Commerce by the SMEs relies heavily on the acceptance of the technology of e-commerce by the business owners. If the owner does not identify with the usefulness of technology nor has an understanding of its potential, then naturally the owner will be reluctant to adopt E-commerce. However, on the other hand, if the attitude of the owner is positive, that is, if he is well aware of the intricacies of computers and has some knowledge on technology and how ways to reap benefits from it, then the business is likely to adopt e-commerce (Lubbe S. et. al. 2003). Another case where an owner is likely to adopt E-Commerce for his business is on the recommendation of experienced people. Before investing in the adoption E-Commerce the owners also considers the return he will be getting for his investment. This concern for the returns on the investments made often leads to the small and medium-sized firms being more anxious on their mid-term survival rather than on the long-term viability (Lubbe S. et. al. 2003). Henceforth, most of the small and medium-sized business owners are often hesitant on making investmentswhen short or medium-term returns are not guaranteed.