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Purpose

To examine issues related to the development of the internet and e‐commerce (EC) in the Kingdom of Saudi Arabia.

Design/methodology/approach

Two surveys were sent out following a pilot project to gather data on the validity and reliability of the questionnaires. The first survey was sent to 60 internet users, a total of 48 responded with a rate of 80 per cent. The second was sent to 60 managers and accountants within organisations in Saudi Arabia, a total of 44 responded with a rate of 73 per cent.

Findings

The key challenges identified for Saudi's organisations are the continuing relying on face‐to‐face contact principles, problems with information overload, charges still expensive, the need for technical support and expertise, lack of a management commitment and understanding the potential role of information technology (IT) on the country's future and middle aged and older people were more reluctant to use IT.

Research limitations/implications

Difficulties in reaching the right people to answer questions. This paper was relying on the subjective opinions and generlisability issues and it could benefited from further analysis.

Practical implications

For executives, the implications of the findings are that those factors identified can be used as a checklist to assist companies in their effective adoption of e‐business and the maximisation of opportunities.

Originality/value

This paper is an initial phase of an on going research, which will contribute to the body of knowledge in the EC domain from different cultural perspectives.

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