A STUDY ON THE FACTORS AFFECTING E-COMMERCE ADOPTION IN NIGERIAN BANKS (A CASE STUDY OF GUARANTY TRUST BANK PLC)
1.1 OVERVIEW OF THE STUDY
1.2 STATEMENT OF PROBLEM Implementing successful e-commerce service is not as easy as most people might think. Many obstacles exist and they all revolve around three major pieces of the electronic commerce puzzle-money, technology and people. Hence, there is limited research on e-commerce in developing countries particularly in Africa. Sometimes the cost of avoiding e-commerce is greater than the cost of initiating it. Web technology is still developing. Despite the global reach of e-commerce, not all country has taken advantage of ecommerce. There is a big gap in the internet and e-commerce adoption between the developed and developing country, thus creating a digital divide. Nigeria with a population of about l5Omillionpeople is a potentially lucrative market for e-commerce services. Nigeria being one the few nations in the world blessed with abundant mineral wealth, and entrepreneurial population and productive agricultural base. By virtue of size, population location is well positioned to the economic activities in Africa. E-commerce is an opportunity to use private sector to drive economic development. The banking sector has been most successful with e-commerce in Nigeria. The main obstacles that prevent developing countries from leveraging the interest are lack of adequate communication infrastructure, technical know-how and information processing about the economy and the environment. The lack of adequate banking infrastructure is also considered as one of the problems faced by developing countries in building economic solution. 1.3 OBJECTIVES OF THE STUDY The aim of this study is to carry out an in-depth investigation on the factor that influences the adoption and implementation of e-commerce in developing countries with particular reference to Nigeria banking industry. In order to achieve this aim, the following objectives are hereby set: - To evaluate the adoption of e-commerce in Nigerian Banks. - To identify and explain the factors that drives or inhibits the adoption or use of e-commerce in Nigerian banks - To appraise the impact of e-commerce on the performance of Nigerian banks. - To examine the roles of e-commerce in banks in Nigeria - To ascertain the problems of e-commerce application in Nigerian banking industry. - To make recommendations as to how e-commerce can be meaningfully applied in Nigerian banking industry with a view to contribute to bank’s development and Nigeria economic growth. 1.4 RESEARCH QUESTIONS This research work attempt to provide answers to the following questions: - What is meant by e-commerce? - What factors drive the adoption of e-commerce in Nigerian Banks? - What impacts ha e-commerce taken on the performance of Nigerian Banks? - Can the role of e-commerce in Nigerian Banks be examined? - What are the problems of e-commerce application in Nigerian Banking Industry? - What recommendations can e-commerce apply to Nigerian Banking Industry?
1.5 RESEARCH HYPOTHESIS Hypothesis can be explained as the statement created by a researcher when they speculate upon the outcome of a research. They are basically two (2) types of hypothesis, which are null, and alternative hypothesis. The null hypothesis predicts the number of difference between comparison, groups, or association among tested variables, while the alternative hypothesis predicts either a simple difference or a difference in a particular direction. The two hypothesis will be presented as Ho and Hi respectively and the two are considered in this project. The following hypothesis where formulated and will be tested using available data from the questionnaire. The hypothesis includes: Ho: E-commerce has not made an impact in the level of growth and profitability in Nigerian banking industry. Hi: E-commerce has made an impact in the level of growth and profitability in Nigerian banking industry Ho: There is no effective e-commerce on the performance of Nigerian banks. Hi-there is effective e-commerce on the performance of Nigerian banks.
1.6 SCOPE OF THE STUDY