Electronic Marketing in the Small and Medium-Sized Firms in
Developing Countries- Evidence from Saudi Arabia Kingdom
MOHAMED ABEDALLAH ABEDELMAKSOUD HASSAN
Business Administration Department,
Jouf University,
SAUDI ARABI KINGDOM
also with
Administrative Sciences Department,
College of Technology and Development,
Zagizag University,
EGYPT
Abstract: - This study aimed to determine the factors influencing the acceptance and usage of E-marketing in
small and medium-sized firms (SMEs) running in the Saudi Arabia Kingdom, which of them is the most
important, and develop a complete conceptual framework to realize utilization of E-marketing in Saudi SMEs.
A questionnaire consisting of (41) statements was developed to collect and analyse data using the SPSS
program. Simple and multiple linear regression analysis was used. It reached some results, the most important
of which are: The independent's variables (environmental context, technical context, organizational context,
and managerial context) as a whole explain approximately(93%) 0f the variance in E-marketing
adoption(dependent variable) and (7%) due to other variables. The managerial context group is the most
influential in E-marketing adoption and the Complexity dimension has a negative effect.
Key-Words: - E-marketing, e-marketing adoption, Small and Medium-Sized Firms (SMRs), Saudi Arabia
Kingdom, environment context, technical context, organization context, managerial context
Received: July 8, 2022. Revised: May 22, 2023. Accepted: June 25, 2023. Published: July 24, 2023.
1 Introduction
In the current business environment, the only
confirmed matter is uncertainty and the fixed
principle is change. The only rule in growth and
development is competition and variability of its
strategies and techniques. In such an environment,
companies increase in an unprecedented manner,
markets change rapidly, technology develops,
products become old and processes change quickly.
The SME sector plays an important role in
employment and economic development in every
country in the world, [1]. Nowadays, small and
medium-sized enterprises (SMEs) are becoming
even more important to national economies because
of their strategic significance in developing different
industrial sectors worldwide, [2]. Hence, what is
known as e-commerce started in the mid-nineties,
adding a new feature to the growth and evolution of
marketing thinking. Today our world is passing
through the knowledge age. The most dangerous
effect of the new age was the appearance of
competitiveness as a main fact determining the
success or failure of business organizations. In this
way, excellence and innovation have become the
most important activities in advanced business
companies, as they are crucial for the company to
survive and continue. Innovation is the only activity
related to the future and it is the activity that
increases wealth. Companies are shifting
progressively to a new type which can be described
as companies based on distinctiveness and
innovation in practicing the marketing activity in
organizations, or what is called e-marketing as a
tool of distinctiveness for organizations in the
business environment. Research shows that e-
marketing offers small and medium-sized firms
(SMEs) a series of advantages, such as increased
profitability via reduced costs and more extensive
reach, while simultaneously offering better services
to clients, [3].
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DOI: 10.37394/232018.2023.11.13
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2 Theoretical Framework of the
Study
2.1 Research Problem
There is still no evidence of e-marketing orientation
and its dynamics in the SMEs setting, regardless of
the expanding role of business directions in
clarifying why organizations shift in their
contribution to e-marketing, [4], [5]. Although
different studies have outlined E-marketing
acceptance and adoption by small and medium-sized
enterprises (SMEs) in developing countries, few of
these studies have been conducted in Arab
countries. Most studies that have been carried out to
investigate E-marketing adoption have ignored
internal and external factors affecting E-marketing
adoption. This appears to be a big gap in the E-
Marketing field and specifically E-marketing in
SMEs, [6]. So, this study tries to answer the
following questions:
1- What are the factors that affect Saudi SMRs in
adopting E-marketing?
2- What are the most important factors that can
drive effective E-marketing acceptance among
Saudi SMEs?
2.2 Study Objectives
1- inquiry the factors influencing the
acceptance and usage of E-marketing in
small and medium-sized firms (SMEs)
running in Saudi Arabia Kingdom.
2- determine the most important factors that
can drive effective E-marketing acceptance
among Saudi SMEs.
3- develop a complete conceptual framework
to realize the utilization of E-marketing in
Saudi SMEs.
2.3 Study Hypothesis
1- There is a statistically significant and
positive effect of environmental
context(competitive pressure, customer
pressure, and government support) on E-
marketing adoption in small and medium-
sized firms (SMEs) running in Saudi Arabia
Kingdom.
2- There is a statistically significant and
positive effect of technical context (relative
advantage, complexity, and compatibility)
on E-marketing adoption in small and
medium-sized firms (SMEs) running in
Saudi Arabia Kingdom.
3- There is a statistically significant and
positive effect of organizational context cost
and information technology expertise) to E-
marketing adoption in small and medium-
sized firms (SMEs) running in Saudi Arabia
Kingdom.
4- There is a statistically significant and
positive effect of managerial
context(manager information technology
knowledge, top management support, and
manager's innovativeness) on E-marketing
adoption in small and medium-sized firms
(SMEs) running in Saudi Arabia Kingdom.
5- There is a statistically significant and
positive effect of organizational context,
technical context, organizational context,
and managerial context on E-marketing
adoption in small and medium-sized firms
(SMEs) running in Saudi Arabia Kingdom.
2.4 The Importance of Study
The importance of this study arises from:
1- important role small and medium-sized
firms (SMEs) do play in the modern's world
economy as Saudi Arabia's vision 2030
explained.
2- bridging the gap in the E-marketing field,
especially in (SMEs) in developing
countries.
3- providing an overview of the factors
influencing the acceptance and usage of E-
marketing in small and medium-sized firms
(SMEs) running in Saudi Arabia Kingdom.
2.5 Limits of Study
-Objective boundaries:
Studying the factors influencing the acceptance and
usage of E-marketing in small and medium-sized
firms (SMEs) running in Saudi Arabia Kingdom
without taking into account the implementation
level.
The data used in this study is only quantitative data.
-Human limits:
The study was conducted on marketing managers
and general managers or owners.
- Temporal boundaries:
Third Quarter of 2022.
-Spatial boundaries:
Saudi Arabia Kingdom.
The data for the study were collected from various
industry sectors, and it is not possible to make
sector-specific conclusions. This study relies on
a quantitative approach
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DOI: 10.37394/232018.2023.11.13
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E-ISSN: 2415-1521
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Volume 11, 2023
3 The Study Literature
3.1 Theoretical Background
3.1.1 Small and Medium-Sized Firms in Saudi
Arabia Kingdom
Small and Medium Enterprises General Authority
(Monsha’at) concentrates on supporting,
developing, and nurturing the SME sector in line
with the best universal practices by implementing
and supporting programs and projects to boost the
cultural and spirit of entrepreneurship, and
innovation, with diversifying sources of financial
support for SMEs.
There is no consensus on the definition of
SMEs, as their definition in the developed countries
is different from that in developing countries, [7].
Furthermore, the economic situation affects their
definition in the same country. There are some
standards used to classify these enterprises such as
total net assets, investment level, number of
employees, production mode, lawful condition, and
the industry, [8]. In Saudi Arabia Kingdom, General
Authority for Statistics classifies enterprises into
small, medium, and large according to the number
of employees in these enterprises. More
specifically, enterprises having from 1 to 5
employees are classified into very small ones and
those constitute about 11% of total operating
enterprises in Saudi Arabia Kingdom while those
having from 6 to 49 employees are classified into
small ones and constitute about 29% of total
operating enterprises in Saudi Arabia Kingdom. On
the other hand, enterprises having from 50 to 249
workers are classified into medium ones which
constitute about 20% of the total operating
enterprises whereas those having more than 249
employees constituting about 1.1% of the total
operating enterprises are classified into large
enterprises. SMEs are a significant mainstay of the
economy in any nation, regardless of whether
developed or developing. Moreover, SMEs account
for an enormous extent of the workforce in any
nation and contribute altogether to helping the
economy and make occupations. This additionally
features their role in the social framework, [9]. The
number of SMEs reached more than" 571,000" by
the end of the second quarter of 2020, indicating
that their contribution to GDP was 28.75 percent,
While their contribution to the non-oil sector
reached "43%". The Kingdom’s Vision 2030 aims
to raise the share of small and medium-sized
enterprises in the GDP from 20% to 5% by 2030.
The number of employees was about 5181253
workers, according to the 2018 Enterprise Survey
report issued by the General Statistics Authority in
October 2019. The number of employees in micro-
enterprises was about 933,966 workers, which
represents 11% of the total employees of the
facilities in Saudi Arabia, while small businesses
reached about 2494554 workers by 29%, and on the
other hand, medium-sized enterprises occupied 20%
of the total employees in the facilities in Saudi
Arabia, i.e. about 1752733 workers, and the number
of employees in large-enterprises was about
3,416,180 workers, up 40%. Table 1 shows the
Percentage of establishments using electronic
marketing methods by size of establishment and
economic activity.
Table 1. Percentage of establishments using
electronic marketing methods by size of
establishment and economic activity
Economic activity
1-
5emp.
%
6-
49emp.
%
Agriculture,
forestry, and fishing
11
19
Mining and
quarrying
17
15
Manufacturing
18
26
Electricity, gas,
steam, and air
conditioning supply
50
40
Water supply;
sewerage, waste
management, and
remediation
activities
38
43
Construction
15
16
Wholesale and retail
trade; repair of
motor vehicles and
motorcycles
10
11
Transportation and
storage
8
18
Accommodation
and food service
activities
12
20
Information and
communication
52
57
Financial and
insurance activities
57
57
Real estate activities
23
27
Professional,
scientific, and
technical activities
23
38
Administrative and
support service
activities
18
27
Education
14
45
Human health and
13
38
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Volume 11, 2023
Economic activity
1-
5emp.
%
6-
49emp.
%
50-
250emp.%
social work
activities
Arts, entertainment,
and recreation
16
36
43
Other service
activities
26
34
58
Source: General Statistics Survey of Small and medium
enterprises 2018
3.1.2 Electronic Marketing
Electronic marketing(thereafter E-marketing) is
considered as part of E-commerce, while the latest
is part of E-business, [10], [11]. Academics and
practitioners have used the term E-marketing
interchangeably with digital marketing, internet
marketing, online marketing, and social media
marketing, [12], but this is not correct. E-marketing
has broader scope while internet marketing just
refers to internet things like the world wide web
(www) and electronic mail, while E-marketing
includes all the above plus tools like mobile phones,
intranet and extranet, etc, [11]. There is no widely
accepted definition for E-marketing among
researchers because of this the concept of E-
marketing diverges depending on the author's point
of view, context, and area of expertise. In general,
E-marketing is mostly defined as a new attitude and
modern realistic involvement with the marketing of
goods, services, information, and even ideas via the
Internet and other electronic means, [13]. In
addition, [14], defined it as "the application of
marketing principles and techniques via electronic
media and more specifically the internet". The E-
Marketing Association defined it as" the use of
electronic data and application for planning and
executing the conception, distribution, promotion,
and pricing of ideas, goods, and services to create
exchanges that satisfy individuals and
organizational objectives", [15]. The authors of,
[16], defined it as" the use of electronic data and
applications for planning and executing the
conception, distribution, and pricing of ideas, goods,
and services to create exchanges that satisfy
individual and organizational goals", [16]. However,
[17], defines it as " achieving marketing objectives
through the use of electronic communications
technology". The authors of, [18], realized it as "
the use of information technology in the process of
creating, communicating, and delivering value
towards customers, and also can be used to maintain
the relationship with customers for mutual benefit",
[18].
Many studies have identified several factors
influencing e-marketing adoption in a firm based on
prevalent theories in technology acceptance. These
theories are the technological-organizational-
environmental model, diffusion of innovation, and
technology acceptance model. This research asserts
the factors affecting the acceptance and
implementation of E-marketing into four groups:
environmental context, organizational context,
technological context, and managerial context. The
environmental context includes three factors which
are Competitor pressure, Customer pressure, and
Government support. Organizational context has
three factors which are cost, firm size, and
information technology expertise. While the
technological context has three elements which
contain relative advantage, complexity, and
compatibility. The managerial context consists of
three elements which are Manager's Information
Technology knowledge, top management support,
and manager's innovativeness. Below is a brief
explanation of these groups.
Environmental context:
Competitor pressure refers to the level of
competition among SMEs. This pressure has a
major effect on firms' E-marketing adoption because
of their fear of falling behind their competitors, [8].
The existence of competitor pressure imposes firms
to take on technology for being competitive in a
mobile environment, [19]. Competitive pressure has
confirmed its competence and actual impact on the
adoption and usage of technology in SMEs, [20],
[21].
Customer pressure portrays the level of the
firm's progress to embrace E-marketing in light of
the client's realization and culture. SMEs may adopt
a certain IT because of the pressure from their
patron or suppliers, [22].
Government support plays a vital role in a firm's
adoption of E-marketing. Government support refers
to assistance provided by the government to
encourage E-marketing adoption. It can boost firms
to adopt information technology or to enhance new
tools, [23]. Various studies set that government
support has an important effect on E-marketing
adoption in SMEs, [24], [25].
Organizational context:
Various studies have shown firm size has a
significant effect on E-marketing adoption in
SMEs, [26]. The study, [27], considered firm size
as one of the most important factors in the adoption
of technology, [27]. In addition, various studies
went the same way, [28], [22], [29].
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Several studies considered cost as an important
factor in the adoption of technology, [7], [30], [31],
information technology expertise refers to the level
of technical knowledge in the organization, which
comprises expertise, know-how, and knowledge of
technology amongst laborers, [32]. It is considered
a leading determinant of the adoption of E-
marketing in SMEs, [6], [7], [33].
Technological context:
Relative advantage contains growing productivity,
reinforced operational competence, reduced time,
improved competitiveness, increased profit, access
to new markets, and improved communication
between the business partner and customers, [34].
It has an affirmative and worthy effect on the
adoption of technology in SMEs, [7], [35].
Complexity indicates the level of difficulty the firm
has to understand or use new technology. Some
studies cleared that complexity has a negative
impact on E-marketing adoption in SMEs, [7],
[34],[35], [36].
Compatibility refers to the level to which E-
marketing is recognized as consistent with the IT
infrastructure of a firm and meeting goals of the
firm and the needs of its customers. Several studies
found that compatibility has a positive effect on firm
adoption of new technology, [7], [37].
Managerial context:
Managers' information Technology knowledge
incorporates abilities, experience, and preparation
identified with the use of information technology. It
has an important effect on the adoption of new
technology, [33], [38].
Top management support is considered an
important factor in the adoption of new technology
in SMEs, [39]. It has an important effect on the
adoption of E-marketing in SMEs, [7], [19], [33].
A manager's innovativeness refers to the eagerness
of the chief executive officer to adoption of new
innovations, [27]. It has a positive impact on the
adoption of E-marketing, [34].
3.2 Literature Review
Study of, [4]: The study aimed to reveal insight into
the key factors that influence the level of E-
marketing adapt among small and medium-sized
firms(SMRs) from an organizational orientation
point of view. Important data were assembled from
an arbitrarily chosen test of "136" European SMRs.
The outcomes revealed that there is a positive
relationship between perceived relative advantage
and customer pressure. In addition, there is no
negative relationship between the perceived
complexity of E-marketing and E-marketing
orientation(EMO), while there is a positive
relationship between the perceived apparent level of
E-marketing and EMO. influence Indonesian SMEs
in adopting e-commerce. It also indicated a positive
link between marketing competition intensity and
EMO.
Study of, [6]: This study aimed to break down the
various components influencing the appropriation of
E-marketing by Egyptian small tourism firms. It
also approved a theoretical structure stretching out
the technology Acceptance and innovation diffusion
theory models to clarify E-marketing adoption.
Significant data was collected from"163" Egyptian
small tourism firms. The results showed that E-
marketing adoption by Egyptian small tourism
firms was affected by the organization's internal
(owner skills, available resources, organizational
culture, organization size, E-marketing adoption
cost, E-marketing perceived ease of use, and E-
marketing perceived compatibility) and external
factors (competitive pressures, government
influence, market trends, national infrastructure and
cultural orientation towards E-Marketing by the
organization customers).
Study of, [7]: The study aimed to examine the
variables influencing the acknowledgment and
execution of E-marketing and its effect on
marketing activities in small and medium-sized
firms(SMEs) in Palestine. Important data were
assembled from an arbitrarily chosen test of "223"
SMEs working in Palestine. The outcomes showed
that E-marketing has a positive considerable effect
on marketing activities. It also indicated all single
hypothesized factors have a positive important
impact on E-marketing implementation and market
scope, customer compression, firm size, and
comparative merit have a significant positive impact
on implementation.
Study of, [13]: This paper intended to assemble an
organized writing audit of the field of E-marketing.
It provided a document of past examination focuses
and techniques identified with the investigations of
E-marketing to investigate, break down and build
up a reasonable comprehension of the diverse
examination subjects and philosophies actualized in
E-marketing distributed articles somewhere in the
range of 2003 and 2010. Many exploration holes
were distinguished in the field particularly in the
field of E-Marketing execution just as E-marketing
selection in Small Business endeavors (SBEs).
Study of [19]: This study looked to propose a
conceptual model for E-marketing adoption in
Australian SMEs. Significant data were gathered
from a subjectively picked trial of "229" top
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DOI: 10.37394/232018.2023.11.13
Mohamed Abedallah Abedelmaksoud Hassan
E-ISSN: 2415-1521
147
Volume 11, 2023
managers in Australian SMEs. The consequences of
this examination give SMEs a significant
understanding of the issues associated with the
selection of E-marketing. They distinguished the
basic determinants for adopting E-marketing in
Australian SMEs including the top administration
upholding, trust, external pressure, and understood
direct advantage. Besides, this examination showed
that the size and the association availability of
SEMs are less persuasive in E-marketing adoption.
The most critical determinant was management
support.
Study of, [22]: The study aimed to examine the
variables influencing small and medium-sized
firms(SMRs)in developing countries in adopting e-
commerce. Important data were assembled from an
arbitrarily chosen test of "292" SMRs working in
Indonesia. The outcomes showed that perceived
benefits, technology readiness, owners’
innovativeness, owners’ IT ability, and owners’ IT
experience are the determinant factors that influence
Indonesian SMEs in their adoption of e-commerce.
It also indicated individual factors play a critical
role in that situation.
Study of, [24]: The study's purpose was to examine
the reactive role of pressure from competitive
pressure, technological opportunism, effects of
trading partners and government support among top
management support, sustainable firm performance,
and use of e-marketing. It also investigated the
mediating role of the use of e-marketing between
top management support and sustainable firm
performance. Important data were collected from
"293" marketing executives in Pakistan textile
companies. The outcomes showed significant
positive relationships among top management
support, sustainable firm performance, and usage of
E-marketing. Besides, technological opportunism
moderated the relationship between sustainable firm
performance and the usage of E-marketing. In
addition, competitive pressure and government
support did not moderate the relationship.
Study of, [33]: This study aimed to recognize the
powerful factors that affect the improvement of E-
marketing of occupational athletics organizations in
Iran. The sample comprised employees of
Marketing the Board (20 individuals) and
employees of the game the Board (60 individuals)
from the nation's colleges. The outcomes explored
that the powerful factors that affect the
improvement of E-marketing of occupational
athletics organizations in Iran were management
factors, knowledge management, customer
relationship management, strategies, environmental
and competitive factors, website features,
organizational Culture, supply chain management,
brand factors, and resources.
Study of, [34]: this study aimed to build up a
thorough theoretical system to give a superior
comprehension of E-marketing appropriation by
Jordanian SMEs and to distinguish the key variables
related to the appropriation of E-marketing by them.
The outcomes revealed that there are six basic
factors that distinguish adopters from non-adopters
of E-marketing. These factors are a manager’s IT
knowledge, external pressure, relative advantages,
IT expertise, top management support, and
complexity.
Study of, [35]: The study attempted to investigate
factors that impact the selection of E-Marketing by
SMEs and to analyze the connection between E-
marketing selection factors and marketing execution
in SMEs in Ghana. Significant information was
amassed from a subjectively picked trial of "107"
SMEs working in Ghana. The outcomes discovered
four elements were recognized as the E-Marketing
adoption factors by SMEs in this investigation.
These factors were perceived usefulness (PU),
perceived ease of use (PEOU), external stress, and
Strategic goal. In addition, there was no relationship
between E-marketing selection and the marketing
performance of SMEs.
Study of, [40]: The study aimed to determine the
factors that influence the underrating of marketing
activities in Hungarian SMEs. Important data were
collected from 15 SMEs. The results showed that
the most important factors are the leader’s role,
customer orientation, the basic orientation of the
SME to its target segments, and innovativeness
relationship.
Study of, [41]: This study aimed to discuss internet
marketing adoption in emerging industrial markets
across several internet-based technologies (i.e.
social media platforms, static and transactional
websites) and to find out if websites are used for
basic marketing communications (brochureware) or
for conducting advanced marketing activities. The
results confirmed the positive relationship between
internet marketing adoption and perceived
comparative advantage, customer and competitor
pressure, perceived compatibility, and
organizational innovativeness, but no relationship
between internet marketing adoption and perceived
complexity. It also explored that half of the
industrial organizations in emerging markets are
using their websites as brochureware for basic
communication purposes.
Study of, [42]: The study's purpose was to
empirically examine determinants of the adoption of
E-commerce among Malaysian SMEs. Significant
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DOI: 10.37394/232018.2023.11.13
Mohamed Abedallah Abedelmaksoud Hassan
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Volume 11, 2023
data were collected from "307" SMEs in Malaysia.
The study found the factors influencing the adoption
of E-commerce among Malaysian SMEs. These
factors are perceived compatibility, external change
agents, owner's/managers' E-commerce knowledge,
relative advantage, and management attitude toward
E-commerce.
Study of, [43]: This study aimed to define factors
that impact digital marketing adoption and its
channels use in SMEs in Finland. Data were
collected by half-construct meetings among "16"
directors and "421" scanning respondents from
SMEs in Centric Finland. The results discovered
that approximately "50%" of respondents reported
they use digital marketing poorly or very poorly.
Firm size doesn't influence the designation of digital
marketing spending plans, yet significantly affects
oneself detailed use of it. The outcomes also
uncover that SMEs appear to not utilize the
maximum capacity of the new computerized
devices, as they are not getting an advantage from
the open doors they give. Besides, the outcomes
likewise bring up the issue of whether SMEs have
perceived the principal change in the idea of
correspondence achieved by digitization.
Study of, [44]: This study examined the online
marketing possibilities of SMEs in the
administration area in India. Audits have been done
dependent on the sort of administrations
associations in the SME area that use online media
for marketing. The study uncovered that there are
very few studies on the online marketing of SMEs
searching for a viewpoint to make a passage in
worldwide commercial centers. Explores uncover
that SMEs who are exceptionally in administration,
work for a specialty market. With the range of time
online media has gained significance in marketing
and it tends to be an ideal vehicle for SMEs'
achievement in marketing.
Study of, [45]: The study aimed to determine
factors that influence E-marketing adoption by
SMEs in South Africa. Important data were
assembled from an arbitrarily chosen test of "123"
SMRs working in the Vaal Triangle region of South
Africa. The results showed that the E-marketing
adoption factors are perceived ease of use, external
pressure and mission, job performance, resource
availability, and compatibility.
Study of, [46]: The study aimed to investigate the
holdbacks of E-marketing in the hotel industry in
Egypt, determine the level of application of E-
marketing procedures in Alexandrian hotels,
Analyse the distinction between Alexandrian
lodgings' evaluation; four versus five-star inns, with
respect to the utilization of E-marketing and its
applicable determinants and to examine the
connection between the use of Awareness/General-
Policy-related techniques, and the procedures of E-
marketing in different stages. Data were gathered
from inn promoting, deals, or reservation
supervisors in all hotels in Alexandrian. The study
revealed that E-marketing techniques have not been
applied, utilization of Awareness/General-Policy-
related systems made a difference in better-applying
techniques in different stages, and that 5-star inns
apply E-marketing halfway in a way that is better
than 4-star inns. Further supervisors' conclusions
and considerations have been looked for, concerning
the general setting and saw obstructions of applying
E-marketing, both current and future viewpoints. At
last, best E-marketing rehearsals are recognized, and
a disentangled procedure for building up a
compelling E-marketing blend was proposed.
Study of, [47]: The study aimed to determine the
effect of E-marketing adoption on marketing
Success in small business enterprises(SBEs).
Important data were assembled from an arbitrarily
chosen test of "114" small business enterprises
working in England. The outcomes showed that the
utilization of E-marketing instruments impacts
SBEs' pre-deals exercises, and aftersales exercises,
showcasing execution and promoting adequacy.
Study of, [48]: The study aimed to evaluate the
effect of the Internet on SMEs' marketing activities.
It used a qualitative research approach (In-depth
interviews and one-to-one). Important data was
assembled from"10" managers of SMEs who used
the internet and E-marketing in their company. The
discoveries of this study demonstrated that e-
marketing is still, particularly in its early stages for
some SMEs in a local economy (Northern Ireland).
Finally, it is clear that there are few studies
examining factors influencing E-marketing adoption
in the Saudi Arabia Kingdom. In addition, the
previous studies didn't investigate the impact of
some variables such as the manager's information
technology knowledge and the manager's
innovativeness. On the other hand, they studied
variables separated not as a whole. Therefore, the
current study differs from them in studying some
new variables and treating the variables' impact as a
whole and separated
4 Study Methodology and Procedures
4.1 Study Methodology
The researcher used the descriptive analytical
approach to achieve the objectives of the study, by
collecting and analyzing data, where he depended
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on the field survey, by relying on a questionnaire
that was developed and to be processed and
analyzed statistically. The primary data needed for
the study and secondary data were collected from
Arab and foreign references, scientific periodicals,
and published studies of parties related to the field
of study, while the primary data was obtained
through the study instrument.
4.2 Study Population and Sample
The population of this study is SMEs in Saudi
Arabia Kingdom approximately "571000". The
study used an equation, [49], to determine the
sample size, then the sample was "384" firm. So,
384 SMEs were randomly selected. Marketing
managers were selected as key informants for firms
with more than "49" employees, while general
managers or owners were considered suitable
informants for firms with, more than "49"
employees. 307 of them responded so the response
rate was approximately 80%.
4.3 Study Instrument
The researcher designed a questionnaire based on
previous studies in the field of study and the
researcher's experience, in addition to the opinions
of specialists in the fields of management and
marketing. The questionnaire included two parts, the
first part related to the characteristics of the study
sample, while the second part of the questionnaire
included the variables of the study, namely:
Environment context which includes
competitive pressure (3 phrases), customers
pressure(3 phrases), and government support(2
phrases), technical context contains relative
advantage(4 phrases), complexity (3 phrases), and
compatibility(3 phrases), organizational context
encloses cost(2 phrases) and information technology
expertise (3 phrases), managerial context comprises
manager information technology knowledge (4
phrases), top management support (3 phrases)and
manager's innovativeness (3 phrases) and E-
marketing adoption (4 phrases).
4.4 Study Variables
Exogenous variables:
E-marketing adoption
Independents variables:
-Environment context and its dimensions
(competitive pressure, customer pressure, and
government support).
-Technological context and its dimensions(relative
advantage, complexity and compatibility).
-Organizational context and its dimensions(cost and
information technology expertise)
-Managerial context and its dimensions(manager
information technology knowledge, top
management support, and manager's
innovativeness).
4.5 Study Instrument Reliability
The researcher tested the initial stability of the study
tool by distributing it to an exploratory sample of 30
marketing managers and calculating the stability
coefficient it turned out to be 70%, and accordingly,
it was calculated again after excluding some
phrases, as it was 90%, which is an acceptable
percentage, then the stability coefficient of the
questionnaire list items was determined by
determining the Cronbach coefficient, which reflects
the internal consistency of the questionnaire, the
total consistency coefficient was (94%), and the
internal consistency coefficient was calculated for
each of the study axes, as shown in Table 2.
Table 2. The stability coefficients of the study
instrument
Item
Phrase
s No.
Cronbach
coefficient
%
validity
coefficient
%
Environment
context
8
85
92
Technological
context
10
90
95
Organizationa
l context
5
93
96
Managerial
context
10
88
94
E-marketing
adoption
4
91
95
the tool as a
whole
41
94
97
Source: prepared by the researcher based on the outputs
of SPSS V.24
4.6 Study Instrument Validity
The apparent validity of the study tool was judged
by presenting it to a number of specialists in
business administration and marketing, and there
was a consensus by the arbitrators that the
questionnaire measures what will be measured, and
some modifications were made according to the
agreement of the arbitrators' opinions. As for
content validity, the questionnaire was distributed to
a sample of the study population, and its phrases
were understandable and clear to them. The criterion
validity coefficient was calculated as shown in
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Table (2), which is the square root of the stability
coefficient.
4.7 Statistical Techniques
- Cronbach's test.
-Simple and multiple correlation coefficient
5 Analysis and Discussion of the
Study Results
The researcher tested the study hypotheses as
follows:
- First Hypothesis Test:
It states that "there is a statistically significant and
positive effect of environmental
context(competitive pressure, customers pressure,
and government support) to E-marketing adoption
in small and medium-sized firms (SMEs) running in
Saudi Arabia Kingdom."
To test this hypothesis, Pearson's correlation
coefficient and simple regression analysis were
used. Table 3 shows the correlation matrix between
the environment context and its dimensions and the
E-marketing adoption.
Table 3. The correlation matrix between
environment context and its dimensions and the E-
marketing adoption
Variable
Environment
Context
Environment Context
Competitive
pressure
Customers
pressure
Government
support
E-
marketing
adoption
0.715
0.642
0.675
0.601
*Independent variable: environment context
*Dependent variable: E-marketing adoption
Source: prepared by the researcher based on the outputs
of SPSS V.24
It is clear from Table 3 that there is a positive
correlation between environment context and E-
marketing adoption (approximately 72%), and the
customer pressure dimension is the most influential
in E-marketing adoption. Regression analysis was
used between the two variables. Table 4 shows the
results of the regression analysis.
Table 4. The results of the simple linear regression
between environment context and E-marketing
adoption
Independent
Variable
R
R 2
F
Sig
a
β
T
Sig
Environment
context
0.715
0.511
179.3
0
5.34
0.857
7.532
0
*Dependent variable: E-marketing adoption
Source: prepared by the researcher based on the outputs
of SPSS V.24
It is clear from Table 4 that the correlation
coefficient between the context of the environment
and e-marketing adoption (R) is about (72%), and
the coefficient of determination (R2) is about (51%),
and this means that the context of the environment
explains about 51% of the changes In the variable of
e-marketing adoption, which indicates the degree of
influence (83%), approximately the value of β. The
value of (F) confirms the significance of this effect,
which is statistically significant with a level of
significance of (zero), and based on the foregoing,
the first hypothesis is accepted, therefore there is a
statistically significant and positive effect of
environment context (competitive pressure,
customers pressure, and government support) to E-
marketing adoption in small and medium-sized
firms (SMEs) running in Saudi Arabia Kingdom.
- Second Hypothesis Test:
It shows " There is a statistically significant and
positive effect of technical context (relative
advantage, complexity, and compatibility) to E-
marketing adoption in small and medium-sized
firms (SMEs) running in Saudi Arabia Kingdom."
To test this hypothesis, Pearson's correlation
coefficient and simple regression analysis were
used. Table 5 exhibits the correlation matrix
between technical context and its dimensions and
the E-marketing adoption.
Table 5. The correlation matrix between technical
context and its dimensions and the E-marketing
adoption
Variable
Technical
context
Technical context
Relative
advantage
Complexity
Compatibility
E-
marketing
adoption
0.775
0.744
-0.695
0.651
*Independent variable: technical context
*Dependent variable: E-marketing adoption
Source: prepared by the researcher based on the outputs
of SPSS V.24
It is clear from Table 5 that there is a positive
correlation between technical context and E-
marketing adoption (approximately 78%), and the
relative advantage dimension is the most influential
in E-marketing adoption, but the Complexity
dimension has a negative effect. Regression analysis
was used between the two variables. Table 6 shows
the results of the regression analysis.
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Table 6. The results of the simple linear regression
between technical context and E-marketing
adoption
Independent
Variable
R
R 2
F
Sig
a
β
T
Sig
Technical
context
0.775
0.601
210.3
0
3.74
0.941
8.502
0.00001
*Dependent variable: E-marketing adoption
Source: prepared by the researcher based on the outputs
of SPSS V.24
It is clear from Table 6 that the correlation
coefficient between the context of the environment
and e-marketing adoption (R) is about (78%), and
the coefficient of determination (R2) is about (60%),
and this means that technical context explains about
51% of the changes In the variable of e-marketing
adoption, which indicates the degree of influence
(94%), approximately the value of β. The value of
(F) confirms the significance of this effect, which is
statistically significant with a level of significance
of (0.00001), and based on the foregoing, the second
hypothesis is accepted, therefore, there is a
statistically significant and positive effect of
technical context (relative advantage, complexity
and compatibility) to E-marketing adoption in small
and medium-sized firms (SMEs) running in Saudi
Arabia Kingdom.
- Third Hypothesis Test:
It shows " There is a statistically significant and
positive effect of organizational context( cost and
information technology expertise) to E-marketing
adoption in small and medium-sized firms (SMEs)
running in Saudi Arabia Kingdom ."
To test this hypothesis, Pearson's correlation
coefficient and simple regression analysis were
used. Table 7 exhibits the correlation matrix
between organizational context and its dimensions
and E-marketing adoption.
Table 7. the correlation matrix between
organizational context and its dimensions and the
E-marketing adoption
Variable
Organizational
Context
Organizational Context
Cost
Information
Technology Expertise
E-
marketing
adoption
0.801
0.753
0.781
*Independent variable: organizational context
*Dependent variable: E-marketing adoption
Source: prepared by the researcher based on the outputs
of SPSS V.24
It is obvious from Table 7 that there is a positive
correlation between organizational context and E-
marketing adoption (approximately 80%), and the
information technology expertise dimension is the
most influential in E-marketing adoption.
Regression analysis was used between the two
variables. Table 8 shows the results of the
regression analysis.
Table 8. The results of the simple linear regression
between organizational context and E-marketing
adoption
Independent
Variable
R
R 2
F
Sig
a
β
T
Sig
Organizational
context
0.801
0.641
310.2
0
2.74
1.021
9.522
0.00001
*Dependent variable: E-marketing adoption
Source: prepared by the researcher based on the outputs
of SPSS V.24
It is clear from Table 8 that the correlation
coefficient between the organizational context and
e-marketing adoption (R) is about (80%), and the
coefficient of determination (R2) is about (64%),
and this means that organizational context explains
about 64% of the changes In the variable of e-
marketing adoption, which indicates the degree of
influence (102%), approximately the value of β. The
value of (F) confirms the significance of this effect,
which is statistically significant with a level of
significance of (0.00001), and based on the
foregoing, the third hypothesis is accepted,
therefore, there is a statistically significant and
positive effect of organizational context( cost and
information technology expertise) to E-marketing
adoption in small and medium-sized firms (SMEs)
running in Saudi Arabia Kingdom.
- Fourth Hypothesis Test:
It shows It shows " There is a statistically
significant and positive effect of managerial
context(manager information technology
knowledge, top management support, and manager's
innovativeness) to E-marketing adoption in small
and medium-sized firms (SMEs) running in Saudi
Arabia Kingdom.
To test this hypothesis, Pearson's correlation
coefficient and simple regression analysis were
used. Table 9 exhibits the correlation matrix
between managerial context and its dimensions and
the E-marketing adoption.
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Table 9. The correlation matrix between
managerial context and its dimensions and the E-
marketing adoption
Variable
Managerial
Context
Managerial Context
Manager
Information
Technology
Knowledge
Top
Management
Support
Manager's
Innovativeness
E-
marketing
adoption
0.935
0.904
0.912
0.895
*Independent variable: managerial context
*Dependent variable: E-marketing adoption
Source: prepared by the researcher based on the outputs
of SPSS V.24
It is clear from Table 9 that there is a positive
correlation between managerial context and E-
marketing adoption (approximately 94%), and the
top management support dimension is the most
influential in E-marketing adoption. Regression
analysis was used between the two variables. Table
10 shows the results of the regression analysis.
Table 10. The results of the simple linear regression
between managerial context and E-marketing
adoption
Independent
Variable
R
R 2
F
Sig
a
β
T
Sig
Managerial
context
0.935
0.874
196.3
0
3.74
2.041
9.322
0
*Dependent variable: E-marketing adoption
Source: prepared by the researcher based on the outputs
of SPSS V.24
It is clear from Table 10 that the correlation
coefficient between the managerial context and e-
marketing adoption (R) is about (94%), and the
coefficient of determination (R2) is about (87%),
and this means that managerial context explains
about 87% of the changes In the variable of e-
marketing adoption, which indicates the degree of
influence (204%), approximately the value of β. The
value of (F) confirms the significance of this effect,
which is statistically significant with a level of
significance of (Zero), and based on the foregoing,
the fourth hypothesis is accepted, therefore, there is
a statistically significant and positive effect of
managerial context(manager information technology
knowledge, top management support and manager's
innovativeness) to E-marketing adoption in small
and medium-sized firms (SMEs) running in Saudi
Arabia Kingdom.
- Fifth Hypothesis Test:
It shows " There is a statistically significant and
positive effect of organizational context, technical
context, organizational context and managerial
context to E-marketing adoption in small and
medium-sized firms (SMEs) running in Saudi
Arabia Kingdom." To test this hypothesis, multiple
linear regression analysis was used, where E-
marketing adoption is the dependent variable and
environment context, technical context, organization
context, and managerial context are independent
variables, and the correlation coefficient was (0.964)
and the determination coefficient was (0.929). This
means that the independent's variables as a whole
explain approximately (93%) 0f the variance in E-
marketing adoption(dependent variable) and (7%)
due to other variables and it was significant as the
value of "p" (0.0002) is less than the level of
significance (0.05).
6 Results and Recommendations
6.1 The Results
1- There is a statistically significant and
positive effect of environmental
context(competitive pressure, customer
pressure, and government support) on E-
marketing adoption in small and medium-
sized firms (SMEs) running in Saudi Arabia
Kingdom. The customer pressure dimension
is the most influential in E-marketing
adoption. This is consistent with the results
of the following studies: [6], [24].
2- There is a statistically significant and
positive effect of technical context (relative
advantage, complexity, and compatibility)
on E-marketing adoption in small and
medium-sized firms (SMEs) running in
Saudi Arabia Kingdom. The relative
advantage dimension is the most influential
in E-marketing adoption and the
Complexity dimension has a negative effect.
This is consistent with the results of the
following studies : [4], [34], [35], [36].
3- Organizational context( cost and
information technology expertise) has a
statistically significant and positive effect
on E-marketing adoption in small and
medium-sized firms (SMEs) running in
Saudi Arabia Kingdom. The information
technology expertise dimension is the most
influential in E-marketing adoption. This is
consistent with the results of the following
studies : [6], [7], [30], [31].
4- There is a statistically significant and
positive effect of managerial
context(manager information technology
knowledge, top management support, and
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manager's innovativeness) on E-marketing
adoption in small and medium-sized firms
(SMEs) running in Saudi Arabia Kingdom.
The top management support dimension is
the most influential in E-marketing
adoption. This is consistent with the results
of the following studies : [7], [19], [34].
5- Managerial context group is the most
influential in E-marketing adoption and the
Complexity dimension has a negative effect.
6- The independent variables (environment
context, technical context, organization
context, and managerial context) as a whole
explain approximately(93%) 0f the
variance in E-marketing adoption(dependent
variable) and (7%) due to other variables.
Then, it would be better to find out these
variables by conducting other studies based
on qualitative data. So, this may uncover
unmentioned variables.
6.2 The Recommendations
In light of the study results, the researcher
recommends the following:
1- Senior management must be aware of the
importance of E-marketing adoption
because of its impact on the performance of
the organization.
2- Top management must support E-marketing
adoption in implementing the activities of
their company.
3- Allow firms to experiment with E-
marketing for free long enough before
realizing it to see how effective it is.
4- Supporting government and other
stakeholder initiatives to improve mass
awareness campaigns, boost the use of e-
marketing, build shared portals to enable
information sharing, and expand network
capabilities among corporate communities.
5- To encourage the use and growth of E-
marketing, a highly qualified marketing
team must be offered. This can be
accomplished by either hiring experts or
sourcing them from other countries, where
there are numerous specialized E-marketing
businesses.
7 Future Researches
In light of the study results, the researcher suggests
some future studies, the most important of which
are:
1- Study the impact of industry type on E-
marketing adoption.
2- Applying the current study in another
developing country.
3- Applying the current study in a developed
country and comparing the results.
4- The data utilized in this research is only
quantitative data. So it's best to hold future
studies on qualitative data to pay attention
to the opinion of respondents about factors
affecting E-marketing adoption. This
process may discover other factors that were
not studied in this study.
8 Conclusion
The purpose of this study is ternary (1) to inquiry
the factors influencing the acceptance and usage of
E-marketing in small and medium-sized firms
(SMEs) running in the Saudi Arabia Kingdom, (2)
to determine the most important factors that can
drive an effective E-marketing acceptance among
Saudi SMEs and (3) to develop a complete
conceptual framework to realize utilization of E-
marketing in Saudi SMEs. To this terminus,
unparalleled lineaments of SMEs were offered. The
most important factors influencing the acceptance
and usage of E-marketing in small and medium-
sized firms running in Saudi Arabia Kingdom were
determined. To collect data, A questionnaire
consisting of (41) statements was developed. The
SPSS program was used to analyse data through
simple and multiple linear regression analysis.
the most important study results are: The
independent variables (environment context,
technical context, organization context, and
managerial context) as a whole explain
approximately (93%) 0f the variance in E-
marketing adoption(dependent variable) and (7%)
due to other variables. Managerial context group is
the most influential in E-marketing adoption and the
Complexity dimension has a negative effect. These
results are very important for both academics and
practitioners in this field. It opens the door for other
studies to uncover other factors unmentioned here
especially E-marketing implementation in SMEs is
still in its infancy stage.
Acknowledgment:
I would like to show my gratitude to the Vice
Presidency for Graduate Studies and Scientific
Research of Jouf University for funding this
research under No. DSR-2021-04-0211.
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Contribution of Individual Authors to the
Creation of a Scientific Article (Ghostwriting
Policy)
The author contributed in the present research, at all
stages from the formulation of the problem to the
final findings and solution.
Sources of Funding for Research Presented in a
Scientific Article or Scientific Article Itself
The Vice Presidency for Graduate Studies and
Scientific Research of Jouf University funded this
study under No. DSR-2021-04-0211.
Conflict of Interest
The author has no conflict of interest to declare.
Creative Commons Attribution License 4.0
(Attribution 4.0 International, CC BY 4.0)
This article is published under the terms of the
Creative Commons Attribution License 4.0
https://creativecommons.org/licenses/by/4.0/deed.en
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WSEAS TRANSACTIONS on COMPUTER RESEARCH
DOI: 10.37394/232018.2023.11.13
Mohamed Abedallah Abedelmaksoud Hassan
E-ISSN: 2415-1521
157
Volume 11, 2023