Civil conflict effect on e-commerce adoption among small and medium enterprises (SMEs) in Kurdistan region of Iraq

There are limited studies on E-commerce adoption among Small Medium Enterprises (SMEs) in countries experiencing civil conflicts. Hence, the objectives of this study were to investigate the factors influencing E-commerce adoption and whether civil conflict plays a moderating role in the Kurdistan Region. This study used the Technological, Organizational and Environmental (TOE) Model to develop the research framework. This study was underpinned by the Diffusion of Innovations Theory (DOI) and the Resource Dependence Theory (RDT). Eight variables representing the technology (relative advantage, compatibility, complexity), organizational (organizational readiness, organizational innovativeness, absorptive capacity) and environmental (role of government and relational trust) were tested, and civil conflict was included as a moderator. Data were collected through self-administered questionnaires in 393 SMEs in the Kurdistan Region (Erbil, Sulaimaniyah and Duhok) using the stratified sampling method. However, after data cleaning, only 293 questionnaires were valid for further analysis. The result reveals that six variables (compatibility, complexity, organizational readiness, absorptive capacity and relational trust) have significant relationship with E-commerce adoption. However, organizational innovativeness and the role of government show insignificant relationship with E-commerce adoption. Interestingly, civil conflict moderates the relationship between relational advantage and the role of government in E-commerce adoption. This study contributes to the richness of TOE, DO1 and RDT with the inclusion of absorptive capacity, organizational innovativeness and civil conflict to the research framework. Also this study offers valuable insights to managers, and policy- makers who are responsible for assisting SMEs in the new paradigm business operations. The result also contributes to the explanation of E-commerce adoption levels and the government could formulate strategies to encourage SMEs to adopt E-commerce in the civil conflict areas. Conclusions, limitations and suggestions for future studies are also highlighted