The Impact of Electronic-Commerce on Gaining Competitiveness in the
Jordanian Telecommunication Sector
"A Field Study"
Faisal Al-Madi and Rasha Al – Sarayrah
Business Administration Department, Faculty of Eco. & Adm. Sciences, The
Hashemite University, Zarqa, Jordan
E-mail: f-madi@hu.edu.jo
Phone No. +962-777-260 265
Abstract
This study aimed to examine the current state of e-commerce and its impact on
gaining competitiveness in the Jordanian telecommunication sector. To achieve the
study objectives a questionnaire was designed and distributed randomly to a study
sample
consist
of
(350)
employees
from
both
(Umniah,
&
Orange)
telecommunication companies. A total of (327) questionnaire were returned; with a
(93.4%) response rate. However, 12 questionnaires were dropped, because they
deemed to be invalid for data analysis. The type of research is a single cross-sectional
design in which the collection of data from the respondents was carried out only once.
Data was analyzed using the statistical package for social sciences (SPSS).
The study results showed that there was a statistical significant relationship between
e-commerce and gaining competitiveness. The study recommends the Jordanian
telecommunication sector to develop its infrastructure, in order to meet the challenges
of information technology and globalization.
Key words: E-Commerce, Competitiveness, Telecommunication, Jordan
1
Introduction:
The internet has already fundamentally changed the way many organizations think
about and perform their work. The last few years have shown the revolution of
electronic-commerce (e-commerce) in all over the world; so, many organizations take
this opportunity in dynamic environment and adopt themselves in order to take the
benefits of this new business model to improve profits and achieve strategic
sustainability in a rapidly changing competitive environment (AL-Debei, 2005). Ecommerce as part of the information technology revolution became more reliable in
terms of the world trade. However, there is no universally accepted definition of the
term e-commerce. Thus, it is generally used to cover the distribution, marketing, sale,
or delivery of goods and services by electronic means (Thatcher et al, 2006).
Moreover, e-commerce applications afford users with unlimited advantages to venture
into international markets and to get active in worldwide. It is worth mentioning that
e-commerce exists in many forms such as B2B, B2C, B2A, A2C, and G2C
(Sahawneh, 2002).
Jordan is witnessing rapid developments in industrial modernization, liberalization of
trade and information technology. The successful penetration of the internet services
into Jordanian business offices, manufacturing plants, schools and universities,
governmental departments and ministries and households is becoming a reality. Many
Jordanian businessmen are becoming more convinced that the Internet is the place to
do business. Those who are learning the benefits of the Internet are looking for ways
and means in order to develop their business manipulation, upgrade their resources,
extent their marketing networks, and accomplish successful local and foreign sales
(Sahawneh, 2002).
Study Importance and Problem:
The importance of this study came from the importance of its topic which became an
essential enabler of business and the most fundamental change in trade since paper
money was invented, in addition to the tangible increase of interest about the adoption
of e-commerce at both national and international level. Also, the study importance
came
from
the
fact
that
there
are
few
studies
about
e-commerce application in Jordan and the Arab World in general. Therefore, the
2
results of this study can be considered as a base for decision makers at this sector to
use the e-commerce overcome to gain competitiveness. Therefore, this study came to
examine to what extent e-commerce is adopted by Jordanian Telecommunication
sector, and the way e-commerce affect gaining competitiveness among them.
Study objectives:
The study aims at achieving the following objectives:
-
To explore the current state of e-commerce adoption by Jordanian
telecommunication sector.
-
To identify the impact of e-commerce on gaining competitiveness in
Jordanian telecommunication sector.
Study Model:
This study consists of two types of variables (dependent, and independent
variables) as follow:
Figure (1)
Study model
Dependent Variable
Independent Variables
Electronic Commerce
Components
Technology
& Telecommunication
Infrastructure
Institutional and
Governmental Support
Gaining
Competitiveness
Organization Readiness
and Support
Community Culture
3
Study Hypotheses:
The study attempts to test the following hypotheses:
The Main Hypothesis:
H0: There is no statistically significant relationship between e-commerce and gaining
competitiveness at (α≤0.05).
The Sub -hypotheses:
H01: There is no statistically significant relationship between technology and
telecommunication infrastructure availability and gaining competitiveness at
(α≤0.05).
H02: There is no statistically significant relationship between institutional and
governmental support and gaining competitiveness at (α≤0.05).
H03: There is no statistically significant relationship between organization readiness
and support and gaining competitiveness at (α≤0.05).
H04: There is no statistically significant relationship between community culture and
gaining competitiveness at (α≤0.05).
Theoretical Framework and Previous Studies:
E- Commerce Definition:
The definitions of e-commerce are many and varied. World Trade Organization
(WTO) defines the e-commerce as: “the production, distribution, marketing, sale or
delivery of goods and services by electronic means” (Baker and McKenzie, 2001).
Another definition, which is provided by the e-commerce Team of European Union,
exclusively defines e-commerce activities to the internet and reads as: “electronic
commerce refers specifically to buying and selling products or services over the
Internet” (Schulze and Baumgartner, 2001). In short e-commerce has been both as a
broad terms to cover the use of the internet for advertising and presenting information
about products and service, and a narrow term which recognize e-commerce to
include only business transaction, involving ordering and payment on the internet
(Blackwell et al., 2001).
Since there is no commonly agreed definition of e-
commerce, for the purpose of this study, the researchers adopted the description
provided by (Globerman et al., 2001) to define internet-based commerce as: “any
economic transaction where the buyer and seller come together through the electronic
4
media of the Internet, form a contractual agreement concerning the pricing and
delivery of particular goods and services, and complete the transaction through the
delivery of payments and good or services as contracted”.
E-commerce Infrastructure in Jordan:
Jordan has convenient telecommunication facilities among neighboring countries. It
applies the latest technologies in telephone and Internet services. The use of credit
card and Internet is intensified. Furthermore, human resources are having satisfactory
skills in order to operate e-commerce. It is worth mentioning that e-commerce in
Jordan is convenient, minimal e-commerce transaction is in practice. Some
institutions and firms have websites, while actual on-line selling and buying is not that
much occurring neither locally nor international. Moreover, some on-line firms,
institutions and marketplaces are mostly for marketing (Al-Debei, 2005).
The application of e-commerce in Jordan is influenced by number of elements. The
first is cultural resistance, which prevents consumers to use the Internet for trade with
unseen and unknown parties. Moreover, language is considered as another factor of
hindrance as local population relates more to Arabic sites and that in turn encourage
converting the language of foreign sites into Arabic. Another influencing factor is
trust, as many consumers have trust insufficiency, and they are scare of using credit
cards and the release of personal data. The most important reason for the lack of ecommerce practice is the combination of the lack of awareness about what ecommerce practice is, and what kind of available solutions, in addition to the absence
of legal mechanisms to protect transactions and consumers from on-line deceiving. It
is worth mentioning that Jordan is showing anxiousness towards e-commerce and egovernment. In spite of the entire infrastructure available in Jordan that could possibly
serve e-commerce, there are no new laws and legislation required governing ecommerce. However, the current laws and legislation are not so much helping in
governing the requirements of e-commerce application. New laws and legislation
extremely needed to be set forth in order to put e-commerce in practice. Moreover, the
Central Bank is showing an interest of drafting a law in order to organize payment
and regulate e-commerce.
5
E-commerce application in Jordan could be considered as in the beginning, and what
implemented is rather unsophisticated. Moreover, e-commerce experience in Jordan
could be considered as random, humble and dependant on the private initiatives as it
has been showing more success, Jordan doesn’t yet have an extensive approach for
the adjustment and administration of e-commerce. However, such a national strategy,
which could be set forth by the decision-makers, could be translated into a program
by combining both the public and the private sectors in order to describe and
recognize the barriers and the qualifying factors of e-commerce enlargement in Jordan
(Sahawneh, 2002).
Previous Studies:
Abbad et al. (2011) studied the status of e-commerce in terms of limitations, problems
and barriers facing the application and use of e-commerce in Jordan. The study found
six main limitations of e-commerce: security and trust, internet experience,
enjoyment, language, legal issues, and technology acceptance (ease of use and
usefulness). Also, the study showed that the main limitations of e-commerce in Jordan
appeared to be related to non-technical limitations.
Al-Dmour et al. (2008) investigated the Electronic Commerce (EC) usage profile of
services and industrial companies in Jordan as well as the factors affecting their
willingness to EC usage. The study discovered that the most useful EC applications in
Exporting were: EC Websites, online show rooms, online payments, e-banking
transactions, videoconferencing as well as online meetings. Also, the study found that
industrial companies were more concerned about the lack of security of online
payments than people in service firms.
Al-Moudi (2006) discussed the impact of e-commerce on the review and assessment
of internal control by external auditor, and the auditing requirements of e- commerce
transactions as the knowledge and skills. The study concludes that the auditing of ecommerce transaction requires from auditor considering group of risk related with
internal control, nature of e-commerce transactions, and the need to some knowledge
and skills that must available in external auditor.
6
Thatcher et al. (2006) described the degree to which various organizational, industrial,
governmental and cultural factors influence Business-to-Business (B2B) e-commerce
adoption decisions in Taiwan. It is one of the first studies investigating the interaction
of B2B e-commerce adoption decision factors and provides insights into the impact of
Chinese culture on B2B adoption. Results indicated that organizational, industrial,
governmental, and cultural factors do indeed influence B2B e-commerce adoption
decisions. In addition, the nature of the cultural influence is dictated by industry
conditions.
Cheung and Fung (2005) examined four of the largest competitors: Japan, China,
Hong Kong, and Singapore, and analyzes the advantages and hurdles each nation or
region faces in constructing a successful e-commerce market. It is found that, while
each country possess a unique advantage in this tight race, each also faces a variety of
socio-political, economic, technical, and legislative hurdles. A particular emphasis is
placed on the evaluation of current intellectual property, copyright and domain name
registry laws in each country or region. In the end, no single country stood out as a
definite, foreseeable victor.
Gupta and Dubelaar (2005) examined the concepts of e-commerce in the light of the
B2B transaction. The study link the adoption of e-commerce through information
flow and speed of decision making to business performance. The study found that the
adoption of e-commerce has a moderate impact on business performance.
MacGregor and Vrazalic (2005) developed a basic model of e-commerce adoption
barriers to small businesses located in regional areas of developed countries. The
study found that e-commerce adoption barriers to small businesses in regional areas in
both Sweden and Australia can be grouped according to two distinct factors: ecommerce is either “too difficult” or “unsuitable” for the business.
Kaynak et al. (2005) investigated the internet-based e-commerce adoption profile of
small and medium-sized enterprises (SMEs) in Turkey as well as the factors affecting
their willingness to adopt e-commerce usage. The result of the study indicated that ecommerce adoption was significantly influenced by its perceived benefits. However,
the perceived limitations of e-commerce applications were found to have no
statistically significant effect on e-commerce adoption. The result also showed that
7
company and industry-specific factors, with the exception of amount of resources
allocated for export development, did not appear to have any significant impact on ecommerce adoption. The results of this study also indicated that the lack of legal
regulations is cited as one of the most serious limitations of e-commerce and hence ecommerce is least used for payment purposes. These findings confirm that legal and
security issues are highly sensitive issues for SMEs. Another leading issue that
matters SMEs are security measures that should be taken to protect data transfer in
internet environment. To this end, collaboration of governmental bodies to enact
necessary rules and regulations within the framework of international law is essential
in order to remove security concerns.
AL-Debei (2005) studied the current state of e-commerce in Jordan, as well as the
future prospects through testing whether the presence of strong technology and
telecommunication
infrastructure,
institutional
and
governmental
support,
organizational readiness and support, and community culture and by deep
investigation of various elements included in each dimension. The study concluded
that Jordan has adequate and efficient telecommunication infrastructure in order to
reach e-commerce readiness stage, however, there is no suitable and appropriate
community culture in Jordan in order to reach e-commerce readiness stage.
Elia and Lefebvre (2004) presented empirical data from an electronic survey
conducted among 96 manufacturing SMEs to investigate e-commerce initiatives and
their perceived benefits for adopting firms. The study findings point to four main
profiles for manufacturing SMEs with different e-commerce focuses. The first group
seems to lack any focus or may still be exploring e-commerce opportunities. The
second and third groups are supplier and customer-focused, respectively. The fourth
group consists of the more involved SMEs that have leveraged their e-commerce
initiatives with both their customers and their suppliers. The results also suggested the
existence of a close alignment between e-commerce focus and the related benefits.
Awad (2003) developed a strategy for the adoption of e-commerce applications by
Jordanian companies. The study identified the main factors in the adoption of ecommerce applications and categorized these factors into three main categories:
perceived stimuli, perceived obstacles and perceived benefits. The study proposed a
8
model of examining the relationships between the levels of adoption of e-commerce
applications by Jordanian companies and these three constructs. The study indicated
that, in general, the levels of e-commerce applications used by Jordanian companies'
were slow, and the main types of application were related to promoting the company
and its products.
Sahawneh (2002) studied the status of e-commerce in terms of infrastructure, benefits,
problems and barriers facing the application and use of e-commerce by local
institutions. Furthermore, the study also shades the light on the experience of ecommerce in neighboring countries such as United Arab Emirates, Lebanon and
Egypt. The study results revealed that e-commerce application in Jordan could be
considered as in the beginning, and what implemented is rather unsophisticated. Also,
the study concluded that e-commerce application in Jordan is facing some obstacles
such as insufficient infrastructure required to apply the e-commerce.
Research Methodology
Population and Sample:
There are four telecommunications companies in Jordan, (Zain, Orange, Umniah, and
Xpress). The population of this study includes all employees of both Orang and
Umniah companies for mobile telecommunications, because of the difficulties to get a
needed information from the other two companies, which were (3150) employees
according to the companies record in 2008. A sample size of (350) was chosen guided
by Sekaran (2003). The questionnaire had been administrated personally. A total of
(327) questionnaire were returned; with a (93.4%) response rate. Table (1) shows the
distributed and returned questionnaires:
Table (1): Distributed and Returned Questionnaires
No. of
No. of returned
Company
Distributed
Percentage
Percentage
questionnaires
questionnaires
Orange
200
57.14
190
59.04
Umniah
150
42.28
135
40.95
Total
350
100%
327
100%
9
However, 12 questionnaires were dropped, because they were not valid for data
analysis. Therefore, the total number of questionnaires included in the study analysis
was (315) questionnaires.
Instrument Validity and Reliability:
Validity: The questionnaire was reviewed by four experts- whose knowledge and
experiences were sufficient in this scope -to make sure that each item is measuring
exactly what is intended to be measured. Furthermore, a pilot study was conducted on
30 respondents to test the research instrument before distributing it to the whole
sample. Upon the feedback of the experts and the pilot study the questionnaire had
been amended taking into consideration their suggestions, comments, and directions
to achieve the validity of the instrument.
Reliability: The internal consistency reliability of each of the dimensions was
assessed by Cronbach’s Alpha. The Alpha values for all dimensions vary from 0.620
to 0.810, which are considered to be acceptable according to (Sekaran, 2003). Table
(2) shows the study instrument reliability:
Table (2): Cronbach’s Alpha for Study Variables
No.
1
2
3
4
5
Field
Technology & Telecommunication Infrastructure
Institutional and Governmental Support
Organization Readiness and Support
Community Culture
Gaining Competitiveness
Alpha
0.81
0.62
0.68
0.69
0.93
Data Analysis and Findings:
Descriptive statistics:
Five points Likert scale has been coded to enter t he data into Statistical Package for
Social Sciences (SPSS) software in order to achieve the study objective. The levels of
the scale were given the following rating: (1) strongly disagree, (2) disagree, (0)
neutral, (4) agree and (5) strongly agree. To get the general results of the study, the
mean and the standard deviation of different responses to the statements were
calculated using (SPSS). The responses treated according to the following scale (12.49) weak response, (2.50-3.49) moderate response, and (3.50- 5) high response.
10
Table (3): Means and standard deviation for the Infrastructure and
Telecommunication
No.
1
2
3
4
5
6
7
8
9
10
Statement
Means
standard
deviation
4.69
0.52
4.59
0.59
4.63
0.58
4.54
0.57
4.54
0.64
4.45
0.73
3.37
1.29
3.98
0.96
4.30
0.79
4.37
0.77
The company uses advanced information and
telecommunication technology on a wide scale.
The company's branches are linked through one
computer network.
The company has modern communication networks.
The company systematically updates its electronic
site in order to ensure the continuity of providing
service and to cover the target market.
The company updates its data.
There is a system of direct inquiry about any
information which consumer may need.
There's selling of the company's products and
services through its electronic site.
The company provides specialized information
about its products specifications.
There is continuous update of the company's'
software and hardware.
There are effective internal and external
communication network in the company.
Table (3) shows that item (1) has the highest arithmetic mean (4.69) and a standard
deviation of (0.52). Item (7) came last with arithmetic mean of (3.37) and a standard
deviation of (1.29).
Table (4): Means and standard deviation for institutional and governmental
support.
No.
11
12
13
14
15
Statement
There's a drop in the level of the company's perception to
the importance of using electronic commerce.
There is a weak level of organizational support regarding
the non – availability of a specialized department in
information technology.
The company has governmental legislations that regulate
electronic commerce business.
The company faces a problem, which is the weakness of
the national telecommunication networks, which are
unreliable.
The company pay attention to increase the level of
government support related taxes and fees on electronic
11
Means
standard
deviation
4.59
0.59
4.63
0.58
4.28
0.90
4.23
1.00
2.89
1.24
16
17
18
19
deals.
The company seeks to raise the level of technical support
provided by suppliers of technology and internet.
The company faces the problem of absence of the legal
framework that regulates property issues and commercial
relations in electronic commerce.
The company suffers from the absence of legislation that
guarantees the safety and security its information.
The complexity of work procedures and losing control as
a result of using electronic commerce applications.
2.39
1.09
4.40
0.75
3.37
1.29
4.43
0.78
Based on the results in table (4) the item (12) has the highest arithmetic mean (4.63)
and a standard deviation of (0.90). Item (16) came last with an arithmetic mean of
(2.39) and a standard deviation of (1.09).
Table (5): Means and standard deviation for support and organizational
readiness
No.
Statement
standard
Means
deviation
20 High cost for creating website and maintaining it.
2.39
1.09
21 Lack of the required financial resources to create
3.28
1.22
suitable website.
22 High cost of training and educating the employee on
these applications.
23 The cost of shifting from traditional methods to
electronic commerce.
24 Time need to implement electronic commerce.
25 The easiness and flexibility of communication with
the internet.
26 Lack of legal protection to the processes of paying
the costs of electronic transaction through internet.
3.49
1.05
3.66
0.98
4.23
1.00
2.89
1.24
2.39
1.09
Based on the results in table (5) the item (24) came in the first place with an
arithmetic mean of (4.23) and a standard deviation of (1.05). Items (20) and (26) came
last with an arithmetic means of (2.39) and a standard deviation of (1.09).
12
No.
27
28
29
30
31
32
33
34
Table (6): Means and standard deviation for community culture
Statement
Means standard
deviation
Employees think that the applications of the electronic
commerce dose not lead to an improvement in their
performance.
The employees are confident about their abilities to use the
applications of electronic commerce.
The weak level of the employees in English language is
considered a dominate cost on the internet.
The company suffers from the lack of the employees self
initiative to use the applications of electronic commerce.
There is a need to train the employees to use the applications
of electronic commerce.
The employees worry that using the applications of
electronic commerce will result in their losing of their jobs.
The employees resist electronic commerce because it
contradicts with the traditional methods work which they are
used to.
There is a worry that rivals will attack the electronic site.
2.87
1.34
3.90
1.08
3.64
1.22
3.11
1.36
4.20
0.94
2.83
1.12
3.08
3.54
1.12
1.06
Based on table (6) the item (31) has come in the first place with an arithmetic mean of
(4.20) and a standard deviation (0.94). Item (32) came last with an arithmetic mean of
(2.83) and standard deviation of (1.12).
No.
35
36
37
38
39
40
41
Table (7): Means and standard deviation for competitiveness
Statement
Means standard
deviation
The company enhances the confidence of its international
clients.
The company uses advanced information and
telecommunication technology on a wide scale in order to
gain the competitive advantage.
The company allocates some funds to get modern
communication techniques in providing new and various
services for clients.
The company allocates some funds to obtain modern
telecommunication technology to reduce the prices of
different kinds of telecommunication.
The important managerial positions are occupied by
qualified people how are competent in the science of
modern telecommunication technology which increase the
company effectiveness.
The company works to achieve competitive advantage
against other competitors.
Services offered to clients have high level of creditability
and reliability.
13
4.69
0.52
4.27
0.83
4.37
0.80
4.40
0.77
4.37
0.87
4.37
0.85
4.54
0.78
42
43
44
45
46
The company exerts efforts to improve the quality of
telecommunication and other service to clients.
The company offers new and various technical services to
clients.
The company works to reduce costs on the long run.
The company seeks to acquire new clients and to increase its
market share.
The company establishes strong ties and relations with
clients.
4.28
0.90
4.40
0.75
4.44
0.67
4.43
0.78
4.57
0.71
Table (7) shows that item (35) came first with an arithmetic mean of (4.69), and
standard deviation of (0.52). Item (36) came last with an arithmetic means (4.27), and
standard deviation of (0.83).
Testing hypotheses:
The Main Hypothesis:
H01: There is no statistically significant relationship between electronic commerce
components and gaining competitiveness among the Jordanian telecommunication
sector at (α ≤ 0.05).
Table (8): Results of Testing the Main Hypothesis
F. tabulated
F. calculated
R
R2
F-Sig.
1.96
110.882
.801
.642
.000
Result of H0
Rejected
*significant at ( 0.05) .
Multiple regressions were used to test the main hypothesis. It was found that
(calculated F= 110.882) is greater than (tabulated F 1.96), and the significance of “F”
value is (.001). Therefore, according to the rule: "Accept H0 if calculated value is less
than tabulated value and reject H0 if calculated value is greater than tabulated value".
The null hypothesis (H0) is rejected and the alternate hypothesis is accepted, the value
of correlation (R = 0.801) reflects positive correlation which means that there is a
statistically significant correlation between e-commerce and gaining competitiveness.
Therefore, the alternate hypothesis is accepted. Moreover, (R 2 =.642) which means
over (64%) of the variation in gaining competitiveness has been explained by ecommerce.
14
The Sub -hypotheses:
H01: There is no statistically significant relationship between technology and
telecommunication infrastructure availability and gaining competitiveness among the
Jordanian telecommunication sector at (α ≤ 0.05).
Table (9): Results of Testing Sub-Hypothesis (1)
T. tabulated
T. calculated
R
R2
t-Sig.
Result of H0
1.96
16.675
.416
.173
.021
Rejected
*significant at ( 0.05)
Simple regression was used to test the sub- hypothesis (1) and it was found that
calculated T (16.675) is greater than tabulated T (1.96) with significant of the T value
is (0.021). Therefore, the decision is to accept Ha and reject H0 , so this mean there is
statistically significant correlation between technology and telecommunication
infrastructure availability and gaining competitiveness, and it was found that (R=.416)
which reflects a positive correlation . Moreover, (R 2 =.173) which means that over
(17.3 %) of the variation in gaining competitiveness could be explained by the change
in technology and telecommunication infrastructure availability.
H02: There is no statistically significant relationship between institutional and
governmental support availability and gaining competitiveness among the Jordanian
telecommunication sector (α ≤ 0.05).
Table (10): Results of Testing Sub-Hypothesis (2)
T. tabulated
T. calculated
R
R2
t-Sig.
Result of H0
1.96
19.328
.601
.361
.000
Rejected
*significant at ( 0.05)
Simple regression was used to test the sub - hypothesis (2) and it was found that
calculated T (19.328) is greater than tabulated T (1.96) with significant of the T value
is (.001). Therefore, the decision is to accept Ha and reject H0 , so this mean there is
statistically significant correlation between institutional and governmental support
15
availability and gaining competitiveness, and it was found that (R=.601) which
reflects a moderate positive correlation . Moreover, (R 2 =.361) which means that over
(36%) of the variation in gaining competitiveness could be explained by the change in
institutional and governmental support availability.
H03: There is no significant relationship between organization readiness and support
and gaining competitiveness among the Jordanian telecommunication sector at (α ≤
0.05).
Table (11): Results of Testing Sub-Hypothesis (3)
T. tabulated
T. calculated
R
R2
t-Sig.
Result of H0
1.96
10.600
.365
.133
.000
Rejected
*significant at ( 0.05)
Simple regression was used to test the sub- hypothesis (3) and it was found that
calculated T (10.600) is greater than tabulated T (1.96) with significant of the T value
is (.001). Therefore, the decision was taken to accept Ha and reject H0 , so this mean
there is statistically significant correlation between organization readiness and support
and gaining competitiveness, and it was found that (R=.365) which reflects a positive
correlation. Moreover, (R 2 =.133) which means that over (13 %) of the variation in
gaining competitiveness could be explained by the change in organization readiness
and support.
H04: There is no statistically significant relationship between community culture and
gaining competitiveness among the Jordanian telecommunication sector at (α ≤ 0.05).
Table (12): Results of Testing Sub-Hypothesis (4)
T. tabulated
T. calculated
R
R2
t-Sig.
Result of H0
1.96
7.892
.432
.187
.035
Rejected
*significant at ( 0.05)
Simple regression was used to test the sub - hypothesis (4) and it was found that
calculated T (7.892) is greater than tabulated T (1.96) with significant of the T value
16
is (.035). Therefore , the decision is to accept Ha and reject H0 , so this mean there is
statistically significant correlation between community culture and gaining
competitiveness, and it was found that (R=.432) which reflects a positive correlation .
Moreover, (R
2
=.187) which means that over (18 %) of the variation in gaining
competitiveness could be explained by the change in community culture.
Conclusion and Recommendations:
Conclusion:
The aim of this empirical study was to examine the current state of e-commerce and
its impact on gaining competitiveness in the Jordanian telecommunication sector.
Pertaining to the state of e-commerce adoption, the results showed that the two
companies (Umniah and Organge) have adopted some form of e-commerce
applications, but the adoption level was not high, as they have only adopted basic
applications. The finding implied that more efforts are needed to help and encourage
telecommunication companies to speed up e-commerce adoption, particularly the
more advanced applications. In addition, the
results of the study showed that there is
a statistically significant relationship between technology and telecommunication
infrastructure availability and gaining competitiveness among the Jordanian
telecommunication sector. This result is supported by the arguments of (Al-Helo,
2005, Al-Jamal, 2005, Al-Omoush, 2003, Arora, 2003, Ekeledo, 2004; Derbas, 2002).
Moreover, The study revealed that there is statistically significant relationship
between
institutional
and
governmental
support
availability
and
gaining
competitiveness among the Jordanian telecommunication sector. This is supported by
the findings of (Enow, 2003; Gibbs and Kraemer, 2004; Gunasekaran et al., 2002;
Gupta and Dubelaar, 2005; Kaynak et al., 2005; Kendall et al., 2005). Results also
showed that there is significant relationship between organization readiness and
support and gaining competitiveness among the Jordanian telecommunication sector.
This result is in the vein of (Lawrence, 1997; Riggins, 1999; MacGregor and Vrazalic,
2005; McMaster et al. 2005; Yassen and Al-Rafa’ei, 2002. Another result showed that
there is statistically significant relationship between community culture and gaining
competitiveness among the Jordanian telecommunication sector, which is matching is
17
argument of (Shin, 2005; Turban et al. 2002;Scupla, 2003; Venkatesan and Frank,
2002).
Accordingly, Jordanian Telecommunication Companies needs to apply information
and telecommunication technology in an effective way in order to provide advanced
services and achieve competitive advantage. Moreover, the existence of modern
telecommunication networks facilitates work, and improves information flow among
employees which increases efficiency and effectiveness and improve the quality of
the company's services. Electronic commerce has great effect in developing services
offered to clients due to its speed, accuracy, time and effort saving. On the other side,
applying electronic commerce and sustaining it is a costly process and needs much
time and effort. Moreover, applying electronic trade requires the employees to have
multiple skills and competencies, which will increase their confidence and job
security. Jordanian telecommunication company objective is to market its services
locally and internationally, and to enhance the clients' loyalty and confidence, which
will increase its market share and revenues
Recommendations:
1. The government of the Hashemite kingdom of Jordan, should regulate the
rules and procedures to keep up with the technological and scientific
achievement.
2. Jordan Telecommunication sector need to develop its infrastructure in order to
meet the challenges of information technology and globalization.
3. Extensive culture awareness programs must be established and run by both
public and private sectors in order to provide Jordanian population with
needed information about e-commerce and its benefits.
4. Jordanian companies must make their internet presence more effective by
offering multiple incentive programs for their online customers and by
offering their products or services in lower prices on the internet.
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5. Jordanian telecommunication companies must give more attention to the
security issues; also, they must communicate their actions toward ensuring
secured services to their customers and to the community.
6. The researchers recommends investigating the reasons behind the lack of
awareness, access, and perception of e - commerce by Jordanian population.
7. Both public and private sector must launch a comprehensive e-commerce
strategy toward expanding Jordanian business to reach the international
market; in order to exploit its opportunities.
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