An Extended Technological-Organizational-Environmental (TOE) Model for E-Commerce Adoption for Nigerian Engineering Enterprises

Abstract

Despite the significant benefits of e-commerce for Small and Medium-Sized Enterprises (SMEs), adoption rates remain relatively low among engineering SMEs in Nigeria. This study aims to examine the determinants of e-commerce adoption among engineering SMEs in Nigeria and its implications for digital transformation. Grounded in the Technology-Organization-Environment (TOE) framework, the study investigates technological, organizational, and environmental factors that facilitate or hinder adoption. A stratified random sampling technique was employed to select a representative sample of 600 respondents from diverse engineering sectors and regions in Nigeria. Data were collected using a structured online questionnaire and analyzed through Partial Least Squares Structural Equation Modeling (PLS-SEM). The results indicate that technological factors, such as ICT infrastructure, internet
connectivity, logistics and supply chain efficiency, along with environmental factors like economic conditions and socio-cultural influences, significantly facilitate e-commerce adoption. Conversely, technological barriers, including cybersecurity challenges and inadequate electronic payment systems, and environmental barriers such as regulatory constraints, market dynamics, and technological advancements, hinder progress. Notably, all organizational factors such as organizational readiness,
top management support, innovation culture, and employee training were found to have no significant influence. The study concludes that technological and environmental factors serve as key enablers of e-commerce adoption among engineering enterprises in Nigeria, whereas organizational factors act as barriers. This study offers theoretical contributions to the TOE framework by highlighting sector-specific and regional nuances in e-commerce adoption. Additionally, it provides managerial and policy implications to address technological, organizational, and environmental barriers, enabling engineering SMEs in Nigeria to thrive in the digital economy.