Engineering, Technology & Applied Science Research Vol. 10, No.

2, 2020, 5528-5533 5528

Factors Influencing the Intention to Continue using

B2B e-Commerce in Manufacturing SMEs

Lubna A. Hussein Ahmad Suhaimi Baharudin

School of Distance Education School of Computer Sciences
Universiti Sains Malaysia Universiti Sains Malaysia
Penang, Malaysia Penang, Malaysia
[email protected] [email protected]

Shaian Kiumarsi Mohd Faiz Hilmi

Graduate School of Business School of Distance Education
Universiti Sains Malaysia Universiti Sains Malaysia
Penang, Malaysia Penang, Malaysia
[email protected] [email protected]

Abstract—Business-to-Business (B2B) electronic commerce plays The SMEs in Jordan play a vital role in boosting Jordan’s
a tremendous role in nurturing the growth of Small and Medium economy through the provision of employment opportunities
Enterprises (SMEs) in developed and developing countries. which account for 97% of all jobs. In Jordan SMEs contain
However, the growth of B2B e-commerce in developing nations 98.5% from the aggregate sum of enlisted enterprises and 60%
remains at the early adoption stage. The purpose of this paper is of formal occupations [8]. It has been asserted that the use of
to examine the factors that influence B2B e-commerce adoption B2B e-commerce is critical to the establishment of an
in SMEs in a developing country. The current study employs the organization as well as the future exponential growth of a
questionnaire survey technique to gather information from 245 nation [9]. Nevertheless, the B2B ecommerce expansion in the
manufacturing SMEs in Jordan. It uses Structural Equation
country is low, and some companies have stopped using B2B
Modeling (SEM) to investigate the different factors that affect the
intention to adopt or continue using B2B e-commerce. The study
ecommerce for their businesses. Several B2B e-commerce
reveals that compatibility and outsourcing IT support have adoption studies in SMEs have been undertaken in developing
significant effects on the intention to continue using B2B e- countries as can be represented by [5, 10-12]. A key area of
commerce in Jordanian manufacturing SMEs. The implications concern in the previous studies is the lack of detail on how B2B
of the findings are discussed. e-commerce adoption by SMEs is undertaken as most
researchers have used exploratory research methods such as
Keywords-TOE framework; intention to continue using B2B e- surveys that lack depth and theoretical foundation [13].
commerce; outsourcing IT support According to [5, 10, 13], organizations adopting B2B e-
commerce in developing countries face challenges such as lack
I. INTRODUCTION of IT infrastructure, lack of qualified staff to develop and
Business-to-Business (B2B) electronic commerce is defined support B2B e-commerce sites, lack of stuff skills and, low
as the internet-enabled technologies which allow businesses to bank account and credit card penetration. However, lack of
buy and promote products and offerings electronically and technical knowledge is considered as one of the major barriers
share value chain facts [1, 2]. E-commerce gains attention as it confronting the use of B2B e-commerce in developing
helps in achieving better prices, improved quality, and countries [13, 14]. Therefore, it is necessary for the SMEs to
customer satisfaction with lower costs. This attention is train their staff on B2B e-commerce technology. But this
growing as more facilities are introduced in the field [3]. training requires a lot of effort, time and financial resources,
Furthermore, communication within the business has become hence the SMEs take an alternative action of outsourcing IT
faster and managing has become more efficient with the support. Therefore, this study examines the main factors that
implementation of e-commerce technology [4]. Several studies affect B2B e-commerce continuance in manufacturing SMEs in
have anticipated that B2B e-commerce will dominate the Jordan.
global economic system since it is considered as a significant
determinant of the future increase of the economy [5]. Hence, II. CONCEPTUAL RESEARCH MODEL
developed countries have aggressively implemented B2B e- The Technological, Organizational and Environmental
commerce, where it has become an essential part of business (TOE) framework can be combined with Diffusion of
activities [6]. SMEs play an invaluable role in national and Innovation (DOI) theory in a way that the five factors of DOI
global economy [7]. theory (relative advantage, compatibility, complexity,
trialability, observability) are used in a technological context to
Corresponding author: Mohd Faiz Hilmi
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 Engineering, Technology & Applied Science Research Vol. 10, No. 2, 2020, 5528-5533 5529

describe the way that the adoption depends on the technologies very difficult to continue using B2B e-commerce since it may
inside and outside the enterprises. TOE has been used in necessitate making major changes in the organization. The
studies related to B2B e-commerce adoption in business. For changes could lead to many difficulties that prevent its
instance, the TOE framework has been used to identify factors continuance. The use of B2B e-commerce requires
influencing B2B e-commerce adoption of 320 Iranian considerable modifications to an organization’s work practices,
manufacturing companies [11] and of 926 Vietnamese SMEs structure, processes and routines [6], therefore the perceived
[15]. The TOE framework emphasizes the internal and external compatibility of the SMEs towards e-commerce is considered
characteristics of a company. Internal characteristics refer to as a significant factor in B2B e-commerce adoption [19]. This
the organizational context in the TOE framework, whereas the is fundamental because the adoption may not succeed if the
external characteristics of the organization refer to the prevailing infrastructures are not consistent with the B2B e-
environmental context within the TOE framework. The TOE commerce technology. Therefore, this study proposes that
framework has been suggested as a useful starting point in compatibility has a direct influence on the intention to continue
studying B2B e-commerce adoption [2]. B2B e-commerce using B2B e-commerce in manufacturing SMEs in Jordan.:
expansion in the Jordan can be considered as low, some firms
may have even discontinued using B2B e-commerce for their H1: Compatibility has a positive impact on the intention to
business. The main reasons are uncertainties regarding online continue using B2B e-commerce.
payments, information intensity for the products and lack of IT C. Information Intensity
staff, because the majority of SMEs employ from 1 to 9 Information intensity is defined as the complexity of the
employees. The proposed research model depicted in Figure 1 records required to understand the products or the services
shows the important variables that affect B2B e-commerce in provided by an enterprise and the process of ordering them [20,
Jordanian manufacturing SMEs. The technological context for 21]. Many enterprises are unable to continue using B2B e-
this study refers to compatibility, organizational context commerce because their products or services require lengthy
(information intensity), and environmental context (outsourcing explanations which seem complicated, and the information for
IT support and security) that influence the dependent variable their products are difficult to explain. Information intensity
(intention to continue using B2B e-commerce) which is the may also be related to the enterprise’s reliance on gaining
main contribution of this study since the previous B2B e- access to up-to-date, reliable, applicable and accurate
commerce technology models do not address the issue of information whenever they want it. The Jordanian
intention to continue using B2B e-commerce. Therefore, the manufacturing SMEs have different information processing
model in this study is to determine the factors that influence the needs, and those SMEs with more information intensity are
intention to continue using B2B ecommerce. more likely to continue using B2B e-commerce. Therefore, this
study proposes that information intensity has a positive impact
on the intention to continue using B2B e-commerce by
Jordanian manufacturing SMEs.
H2: Information intensity has a positive impact on the
intention to continue using B2B e-commerce.
D. Security
Security is defined as the trust or confidence of the
organization in using B2B e-commerce [13], hence it is a
critical barrier to technology adoption. In Malaysia for
instance, IT security is one of the fundamental factors that
determine the adoption of B2B e-commerce [22]. Besides, the
fear of fraud discourages many organizations in Jordan from
making payments online. Moreover, various factors have been
Fig. 1. Conceptual framework identified to contribute to the slow development of e-commerce
in Arabic countries (including Jordan). The crucial role of
III. HYPOTHESIS DEVELOPMENT security in technology adoption has been indicated in [23, 24].
A. Intention to Continue using B2B e-Commerce Since Jordanian SMEs have concerns about security, a more
secure B2B e-commerce would encourage the continuation of
The intention to continue using B2B e-commerce is
considered as the enterprise’s intention to frequently use or using B2B e-commerce. Thus, this study proposes that security
has an effect on the intention to continue using B2B e-
proceed to the use of B2B e-commerce in the enterprise’s
commerce in Jordanian SMEs.
current and future practices [16, 17].
H3: Security has a positive impact on the intention to
B. Compatibility
continue using B2B e-commerce.
Compatibility is defined as the consistent between B2B e-
commerce and the organization existent values, preferred work E. Outsourcing IT support
practices and the way its suppliers and customers do their Outsourcing IT support is defined as the availability and the
business [18]. The compatibility of B2B e-commerce to a effectiveness of the support from external sources with respect
company’s current system is very important. Otherwise, it is to the implementation and maintenance of B2B e-commerce

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 Engineering, Technology & Applied Science Research Vol. 10, No. 2, 2020, 5528-5533 5530

[5]. Outsourcing IT support is an important factor in IT in Manufacturing SMEs. A total number of 245 usable
adoption as it can facilitate the adoption, implementation, and questionnaires were obtained from SMEs that have email or
on-going success [25], probably because many enterprises are website and who intend to advance the level of utilization of
confronted with a shortage of internal IT skilled personnel and B2B e-commerce technology.
difficulty in engaging external experts or consultants, hence the
organizations can overcome the challenge via the development TABLE I. DESCRIPTIVE INFORMATION
of their internal end-users’ computing skills or get assistance Variable Description Number %
from external sources. Therefore, this study proposes that 1-9 147 60
outsourcing IT support influences the intention to continue Number of 10-49 82 33.5
using B2B e-commerce in the Jordanian SMEs. employees
50-249 16 6.5
H4: Outsourcing IT supports has a positive impact on the Less than 1 year 6 2.4
1 year to less than 5 years 77 31.4
intention to continue using B2B e-commerce. Years of operation
5 years to less than 10 years 73 29.8
10 or above 89 36.3
IV. METHODOLOGY Therapeutic & medical 34 13.9
A. Measurement Development Chemical & cosmetics 39 15.9
Plastic & rubber products 14 5.7
This study employs a quantitative survey, with a structured Engineering & electronics 34 13.9
questionnaire, consisting of 22 items and divided into two Industry type Furniture, Kitchens & doors 32 13.1
sections, containing respondents’ basic information and (manufacturing) Paper, stationeries & office
13 5.3
organization information. Besides basic information, the other supplies
items were measured using a seven-point Likert scale ranging Food & supply 49 20.0
from ‘strongly disagree’ to ‘strongly agree’. The items Leather & garments 21 8.6
capturing the theoretical constructs were developed in line with Other 9 3.7
an extensive literature review. Less than USD 42,440 80 32.7
Capital Equal or more than USD
165 67.3
B. Data Collection 42,440
Email with no website 111 45.3
The population of this study consists of the manufacturing Website with communication
SMEs in Amman, the capital city of Jordan. This study requires between supplier and 52 21.2
the respondents to possess certain knowledge of information customers
Level of B2B e-
technology [11] as well as general organizational infrastructure. commerce
Website with just information
57 23.3
The respondents are made up of department managers, assistant about products
managers, executives and supervisors. The sample frame of Website with ordering online 16 6.5
Website with online payment
this study consists of the manufacturing SMEs in the Amman and online transactions
9 3.7
Chamber of Industry, which is the association of manufacturing
SMEs in the Hashemite Kingdom of Jordan. However, some B. Assessment of Measurement Model
studies have indicated that a sample size of 200 to 500 is
adequate for multivariate data analysis [26], while other The measurement model evaluated the reliability and
researchers asserted that a sample size large than 30 and less validity of the constructs (variables). Composite reliability
than 500 is appropriate for most researches [27]. (CR) and Average Variance Extracted (AVE) were determined
in the course of such evaluation [29]. For CR the recommended
C. Analysis minimum threshold is 0.7 [30]. In this study, the CR values
This study employs the Partial Least Squares (PLS) ranged from 0.874 to 0.958 which goes higher than the
approach to determine the relationship between constructs minimum value. All constructs have an AVE above 0.5, which
using Smart PLS 3.0. The collected data were analyzed with demonstrated a satisfactory degree of convergent validity as
SEM, based on the PLS approach. This method shows the suggested in [31]. Table II and Figure 2 show all the values
relationships and the quality of connections among the factors were above the suggested value points, thus confirming the
in the proposed model. It uses the two-step technique [28] for accomplishment of convergent validity. Moreover, S3 and S4
data analysis. The first step consists of analyzing the model’s were deleted due to AVE which is less than 0.5.
measurements while the second step examines the structural C. Discriminant Validity of the Measurement Model
relationships that exist among the latent constructs.
Fundamentally, the two-step technique seeks to ascertain the The current technique for assessing discriminant validity is
measures’ reliability and validity prior to the assessment of the the Heterotrait-Monotrait (HTMT) ratio of correlations.
model’s structural relationships. According to [32] the Fornell-Larcker criterion and the
examination of cross-loadings are the major methods to
V. RESULTS evaluate discriminant validity. However, the simulation study
has showed that these techniques are not reliable in detecting
A. Demographic Variables the lack of discriminant validity in common research situations.
The result for demographic variables is analyzed by using Consequently the HTMT ratio of correlations was proposed as
the SPSS Version 22, as shown in Table I. The data are a new approach that has the functionality to assess discriminant
collected through distributed questionnaires to the respondents validity in variance-based SEM. Previous studies [32]

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 Engineering, Technology & Applied Science Research Vol. 10, No. 2, 2020, 5528-5533 5531

suggested construct thresholds of 0.85 [33] and 0.9 [34] for (β=0.230, t-value=3.567, p<0.001) have positive relationship
HTMT to confirm discriminant validity. Hence, this study uses and are supported. Thus, H1 and H4 are supported. Table IV
the HTMT of 0.85 to set up discriminant validity. Table III, presents the significance of direct effects, the path coefficients,
reports the results of the discriminant validity evaluation of the and the f2 values. According to [35], 0.02 signifies ‘small’ f2
measurement model using HTMT. effect, 0.15 signifies ‘medium’ effect, and more than 0.35
signifies ‘large’ effect. It could be noted that there is a small
TABLE II. MEASUREMENT MODEL ASSESSMENT effect of dropping incentives from the model. Authors in [32]
Variable Items Loading AVE CR CA stressed the importance of presenting the Standardized Root
COMP1 0.890 Means Square Residual (SRMR) as an approximation of model
COMP2 0.909 fit. The recommended SRMR score of less than 0.08 is
Compatibility COMP3 0.908 0.783 0.947 0.930 appropriate for a satisfactory PLS path models fit. This study’s
COMP4 0.910 SRMR score of 0.058 suggesting a satisfactory model fit.
COMP5 0.801 Besides, the INT.CON’s R-square value of 21.2 fulfilled the
II1 0.857 rule of thumb recommended by [30]. Figure 3 shows the path
Information II2 0.920 analysis of t-values results.
0.703 0.902 0.865
intensity II3 0.940
II4 0.588 TABLE IV. RESULTS FROM HYPOTHESIS TESTING
OITS1 0.847
Outsourcing IT OITS2 0.941 Beta
0.832 0.952 0.933 SE t-value p-value Results f2
support value
OITS3 0.945
H1 0.298 0.067 4.445 0.000 Supported 0.084
OITS4 0.912 H2 0.035 0.068 0.523 0.300 Not supported 0.002
S1 0.930 H3 0.030 0.056 0.542 0.294 Not supported 0.001
Security S2 0.954 0.706 0.874 0.821 H4 0.230 0.064 3.567 0.000 Supported 0.054
S5 0.586
INT.CON1 0.918
Intention to INT.CON2 0.936
continue using B2B INT.CON3 0.935 0.852 0.958 0.942
e-commerce
INT.CON4 0.902

Fig. 3. PLS-path analysis of t-values (n=245)

VI. DISCUSSION
The findings of this study are discussed with consideration
Fig. 2. Measurement model (n=245)
of three distinct categories namely organization, technology
and environment. From the perspective of technological
TABLE III. DISCRIMINANT VALIDITY-HTMT
factors, this study reveals that compatibility is a significant
factor that influences the intention to continue using B2B e-
COMP II INT.CON OITS S commerce technology. Thus, the adoption of B2B e-commerce
COMP
should be compatible with the prevailing system otherwise the
II 0.101
INT.CON 0.433 0.048
adoption level is low and will have no effects. In the context of
OITS 0.459 0.065 0.373 organizational factor, this study indicates that information
S 0.290 0.168 0.154 0.161 intensity has no significant effect on the intention to continue
using B2B e-commerce technology. The reason for this result
D. Assessment of the Structural Model is because most of the manufacturing SMEs in Jordan are at a
lower level of B2B e-commerce adoption. Hence, it is possible
The path coefficient of the structural model and bootstrap that despite their high information intensity, they are already
analysis with 5,000 re-samples was used to check the structural satisfied with the use of e-mail to disseminate information. In
model of the significance of path coefficients. The significant the environmental context, the study reveals that outsourcing
effects specified by the model were evaluated and the results IT support has a significant effect on the intention to continue
indicated that the effects of COMP → INT.CON (H1) using B2B e-commerce in the Jordanian manufacturing SMEs.
(β=0.298, t-value=4.445, p<0.001), OITS → INT.CON (H4) Basically, outsourcing IT support includes support in the

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 Engineering, Technology & Applied Science Research Vol. 10, No. 2, 2020, 5528-5533 5532

implementation of B2B applications and the use of the encourage them to continue using it. Ways should be provided
applications where the support is obtained from the sources to link SMEs and IT consultants available in the country. Such
outside the business organization [36]. Outsourcing IT support strategies would include holding courses and workshops by the
functions as an agent of change in B2B e-commerce adoption local IT companies where the IT consultants can educate and
assisting enterprises that lack in IT infrastructure and train decision makers of the SMEs on B2B e-commerce
knowledge necessary for B2B e-commerce adoption. In this usefulness through conferences, workshops and personal visits.
study, the majority of the manufacturing SMEs have the 1-9 They may also persuade and assist SMEs with a low level of
employees. Therefore, this small number makes the SMEs not B2B e-commerce technology adoption to implement a higher
to have much technical support internally. Having a limited level of adoption. Another strategy is that they may encourage
number of employees with IT knowledge could inhibit the the IT providers to offer trial periods before full
intention to continue using B2B e-commerce. So, they depend implementation of B2B e-commerce. Also, ways should be
on outsourcing IT to help them to continue using B2B e- provided to link SMEs and IT consultants from abroad.
commerce technology. Regarding security, this study shows Strategies may include advertising the availability of offshore
that security has no significant effect on the intention to and virtual IT consultants. Like the local IT support, policies
continue using B2B e-commerce in the Jordanian may also involve the motivation for IT organizations and SMEs
manufacturing SMEs. This is consistent with the findings in to link.
[24] regarding security and its not significant effect on cloud
computing adoption. For this study, since the majority of SMEs B. Implications for IT Developers
are at a low level of B2B e-commerce adoption without online In high-level adoption of B2B e-commerce, the provision of
transactions, there is no reason to be concerned about security. online electronic payment is crucial to ensure that the business
transactions with customers or suppliers are convenient and
VII. IMPLICATIONS OF THE STUDY swift. But it is the responsibility of the firms to ensure the
safety of the transactions and the confidentiality of the
A. Implications for Agencies
information disclosed during transactions.
This study shows that the majority of the manufacturing
SMEs in Jordan are enterprises with a small number of VIII. FUTURE WORK
employees. Therefore, they lack the IT staff to implement B2B This study focused on the factors that influence the
e-commerce technology. The findings serve as guidelines for intention to continue using B2B e-commerce among the
government agencies and Non-Profit Organizations (e.g. manufacturing SMEs with varying levels of B2B e-commerce
Jordan Chamber of Industry, Amman Chamber of Industry, and adoption. Future studies could examine the factors that
JEDCO (Jordan Enterprise Development Corporation)) to influence the intention to continue using B2B e-commerce at
evaluate the existing policies and design the strategy and plan each level of B2B e-commerce adoption. This would provide
to support B2B e-commerce technology in manufacturing complete insight into B2B e-commerce adoption by identifying
SMEs in Jordan. They could assist the manufacturing SMEs to the different factors associated with different B2B e-commerce
understand the usefulness of B2B e-commerce adoption or adoption levels.
APPENDIX: QUASTIONNAIRE ITEMS
No Construct Items References
Comp1 B2B e-commerce is compatible with our existing values
Comp2 B2B e-commerce is compatible with our supplier’s and customer’s ways of doing business.
1 Compatibility Comp3 B2B e-commerce creates changes which are compatible with our current business operations. [5, 18]
Comp4 B2B e-commerce is compatible with our preferred work practice.
Comp5 B2B e-commerce is compatible with our organization’s traditional operating procedures
II1 The product/services in our industry are complicated or complex to understand.
Information II2 The product/services in our industry generally require a lot of information before selling.
2 [20, 21]
intensity II3 Ordering products in our industry by customers are generally a complex process.
II4 Our firm is dependent on up-to-date information
There are businesses in the community who provide technical support for the executive use of B2B e-
OITS1
commerce technology.
Outsourcing OITS2 There are agencies in the community who provide training sessions for adoption.
3 [5, 38]
IT support Outsourcing IT support in the region are actively promoting B2B e-commerce technology and other
OITS3
technologies by providing incentives for adoption.
OITS4 We can easily obtain support from local IT support as we implement B2B e-commerce.
S1 Our firm is concerned that the information involved in a transaction over the internet is not private.
S2 Our firm lacks confidence about the security of B2B e-commerce transactions.
4 Security S3 Our firm trusts that the internet can protect the confidential data that we enter on the websites. [13, 37]
S4 Our customers are worried about the security of the internet and will not use the internet to make payments
S5 Our firm does not have confidence in the payment system of B2B e-commerce.
Intention to INT.CON1 I intend to use B2B e-commerce in my organization frequently.
continue using INT.CON2 I intend to continue using B2B e-commerce in my organization in the future.
5 [16, 17]
B2B e- INT.CON3 I will always try to use B2B e-commerce in my organization daily.
commerce INT.CON4 I plan to continue to use B2B e-commerce frequently

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