Factors affecting e-commerce adoption in Zanzibar: From buyers’ perspectives

Abstract

This paper examines factors affecting e-commerce adoption among users in Zanzibar. Due to differences in culture, technological infrastructure, education, and awareness, the factors affecting e-commerce adoption in developing nations differ from those in industrialized ones. Zanzibar as an archipelago off the coast of East Africa in the Indian Ocean has adopted e-commerce. As the number of internet users grows dramatically in Zanzibar, the significance of e-commerce has risen which increases the need to conceptualize and understand e-commerce consumer adoption behaviors. Through literature review, the first model was developed with six variables. The Trust, Risk, and Technology Acceptance Model (Tri TAM) theory was used as a basis. A total of thirteen hypotheses were formulated in this paper. Additionally, data collected from 264 respondents was analyzed by IBM SPSS Statistic and Analysis of Moment Structures (AMOS). Furthermore, SEM revealed two significant factors out of three that directly affect the dependent variable. These are Trust (TR) and Technology Perception (TP). Although Policy Perception (PP) was insignificant with a negative value, but has an indirect effect by positively affecting Trust (TR). It discovered that, Trust (TR) mediates relationship of both Technology Perception (TP) and Policy Perception (PP) on Intention to use e-commerce (ITU). Education and Experience were then tested to verify their moderating effect between independent and dependent variables by the Hayer process macro. Both (Education and Experience) moderate effects of Technology Perception (TP) and Trust (TR) on Intention to use e-commerce (ITU). Hence, ten (10) hypotheses were accepted while three (3) hypotheses were rejected. The valid model was then produced. Lastly, the paper provides recommendations to the revolutionary government of Zanzibar together with the Government of Tanzania on the ways to improve e-commerce usage for the development of the country.

Keywords: E-commerce, e-commerce adoption, Zanzibar e-commerce, Tri-TAM

DOI: 10.7176/EJBM/16-4-05

Publication date: May 30th 2024