Gender-Related Barriers to E-commerce Adoption in the UAE

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Abstract

In recent years, the United Arab Emirates (UAE) has emerged as one of the worlds leading hubs of electronic commerce (E-Commerce). Despite the rapid growth in E-Commerce in the country, there are still a number of factors that are hindering broader adoption of E-Commerce in the country.

One of the most significant factors hindering broader adoption is low participation of Emirati women in E-Commerce. This gender imbalance can largely be explained by the traditional role in society that women have played in the UAE and the region as a whole. Nowadays, there is a greater presence of women in the UAE workforce, and, in particular, in the Information and Communication Technologies (ICT) sector.

Because of that, a greater number of women decide to adopt E-Commerce in their work. Nevertheless, Emirati women face significant barriers in adopting E-Commerce. Many of these barriers are quite different from those that men face. To foster broader adoption of E-Commerce in the UAE and maximize the potential benefits resulting from this broader adoption, a specific emphasis should be put on addressing these gender-related barriers.

In an attempt to contribute to this effort, this work-in-progress uses action research paradigm to diagnose the problem of low E-Commerce adoption among Emirati women by identifying barriers that Emirati women face and proposing possible strategies and tactics for removing these barriers.

Introduction

In 2000, Sheikh Maktoum bin Rashid al-Maktoum, the late ruler of Dubai, issued a decree that established a free trade zone for E-Commerce and technology in the emirate (Shakir et al, 2010). The free zone was to be governed by the Free Zone Authority a government entity under the umbrella of the government of Dubai. A total of 100 companies had registered in the free zone and commenced operations when the decree was issued (Shakir et al, 2010).

Eventually, the decree has led to the emergence of Dubai Internet City (DIC) the Middle East and North Africas largest technology business park (DIC, 2012). In 2007, the number of technology companies operating in the free zone had increased to over 1,000 (Shakir et al, 2010), featuring presence of such well-known companies as Microsoft, Google, Yahoo, HP, Dell, Intel, Booking.com and Cisco (DIC, 2012).

In 2006, the UAEs Ministry of Commerce enacted the Electronic Commerce and Transaction Act and formed the Telecommunications Authority Board (TRA) Shakir et al, 2010).

The Act was enacted, towards enhancing electronic transactions and communications, offering e-strategy development platforms, fostering universal access to e-business models by SMEs, and regulating the usage of information systems. TRA was created for the overall management of information technology and telecommunications industries across the U.A.E. The main goal of the federal government in relation to these initiatives was to ensure that free and fair use of ICTs among the UAE businesses and general population (Nelson, 2006).

In 2007, the Dubai International Financial Centre (a federal financial free zone administered by the government of Dubai), has issued the Data Protection Law and appointed a Data Protection Commissioner to oversee administration of the law within its jurisdiction (DFSA, 2008). The main purpose behind this initiative was to establish and enforce legal safeguards against the misuse of personal data (DIFC, 2007). According to His Excellency Dr. Omar Bin Sulaiman, Governor of the DIFC, the act was well-aligned with international best practices in relation to personal data protection.

Due to these government initiatives as well as unprecedented social, economic, and technological progress of the country in the last decades, the UAE emerged as one of the worlds most prominent hubs of E-Commerce, according to a report published, Visa and Media in Retail Group International 2011 (Emirates NBD, 2011).

E-Commerce sales in the UAE have reached USD 2 billion in 2010. This amounts to approximately 55-60% of total E-Commerce revenues in the Gulf Cooperation Council (GCC). A study by Dubai-based Madar Research Group established that Dubai was on-par with major European cities in terms of availability of various online services for both businesses and individuals (Madar Research Group, 2003).

Despite the unprecedented success of the UAE in boosting development of E-Commerce, there are a number of factors that hinder broader adoption of E-Commerce. A number of studies on E-Commerce adoption conducted in the UAE found that Emirati women have been lagging in adopting E-Commerce at work and as a part of their businesses (Macgregor & Vrazalic, 2008). This lag in E-Commerce adoption can be explained barriers that Emirati women face in adopting E-Commerce.

This conceptual work-in-progress uses action research approach to information systems research outlined by Baskerville (1999) to gain a better understanding of these barriers and propose strategies and techniques that policy makers in the UAE can use for removing these barriers. More specifically, this study focuses on diagnosing and action planning stages.

Methodologically, the study uses literature review as its underlying methodology in both of these stages. Review of existing literature on E-Commerce adoption and gender issues in the ICT domain in the UAE is used to diagnose the problem of low E-Commerce adoption among Emirati women.

As a part of this stage, the study identifies six specific barriers that Emirati women face in adopting E-Commerce: underrepresentation in the workforce, lack of technical know-how, incompatibility with communication style, concerns over privacy, lack of perceived benefits, and lack of funding opportunities. As a part of the action planning stage, the study will review literature on E-Commerce adoption and general feminist theory literature to devise strategies and techniques that UAE policy makers can use for removing these barriers.

Literature Review

E-Commerce

E-commerce is a term that has been traditionally used to refer to the process of selling and purchasing goods and services over a variety of electronic systems (Berry, 2009). These electronic systems typically include the Internet and other telecommunication networks. However, the recent advancements in Information and Communication technologies have broadened the definition of E-Commerce to include other types of activities, such as development, marketing, selling, paying, delivery and servicing of goods and services over the Internet or any other computer network (Boone and Kurtz, 2011).

E-commerce has greatly influenced how business is conducted around the globe. In addition to improving organizational efficiency and effectiveness, E-Commerce, if used in conjunction with a sound business strategy, can be used to gain competitive edge over industry rivals (Porter, 2001).

Because of these benefits, E-Commerce is increasingly used by companies around the globe. Other benefits drawn from e-commerce include the ability of the companies, in targeting and access end clients within the distribution chain directly, which allows for a more personalized service to clients and increased levels of meeting market needs. The e-commerce platform, also, offers highly affordable online trade options these include the ability to develop new relationships with potential business associates and customers as well.

E-commerce, further, allows companies to expand their product and brand awareness, as it allows them the companies in the UAE to reach distant groups and corners, which they would not reach physically, including international clients. Further, the e-commerce model allows for easier promotion and advertising moves, these including those carried out over the internet, televised programming or electronic advertising.

Gender-Related Barriers to E-Commerce Adoption

Despite the rapid growth of E-Commerce in the UAE, several studies reveal that Emirati women have been lagging in adoption of E-Commerce and thus, may be deprived of the benefits that E-Commerce presents (Shakir, Vodanovich & Urquhart, 2010). This slow adoption of E-Commerce among Emirati women can be explained by numerous of barriers that females face in adopting this new approach to business.

While these barriers are varied in nature, they can all be traced back to the traditional role of women in a Arab society. In a traditional Arab society, the role of women has been reduced to that of a homemaker. Thus, Emirati women have been historically deprived of the opportunities available to men.

The unprecedented socioeconomic development of the UAE together with the government policies aimed at increasing women participation in society have significantly elevated the role of women in the UAE society over the last few decades. Nevertheless, a number of barriers still make it difficult for Emirati women to adopt E-Commerce and enjoy the benefits that E-Commerce can potentially offer. These barriers to E-Commerce adoption among Emirati women are discussed below.

Barrier 1: Underrepresentation in the Workforce

One significant barrier to broader adoption of E-Commerce among Emirati women is general underrepresentation of women in the UAE workforce. A recent study by Naseda in collaboration with YouGov Siraj conducted for the second annual Women in Leadership Forum Middle East revealed that Emirati women comprise 28% of the national labor force (Haan, 2002).

While the percentage has tripled since 2003 (Nelson, 2006), it is clear Emirati women are still underrepresented in UAE Nationals workforce. Moreover, in some parts of UAE where women are not allowed to hold specific positions that are presumed to be for men only. This underrepresentation of women in the Emirati workforce can be explained by a number of social and economic factors. These include socio-cultural factors like family pressure, where the common belief is that a working woman shows that the husband is not capable of providing for their family.

There is also a laxity of the UAE society, where work-family balance, thus many will lose their employment after getting children, which is further perpetuated by the employers. The highly established cultural identity binds women from working, which implies the stability of the family.

Most times, working women in the UAE will not receive the approval of their husbands and family, which they do not get, especially due to the gender lines in operation. The flexibility of work offered to women is limited, which makes it difficult for married and family-committed women unable to work (Mcmeans, 2010). Due to this underrepresentation of Emirati women in the male-dominated UAE workforce, Emirati women are statistically less likely to use E-Commerce.

Barrier 2: Lack of Technical Know-How

Traditionally, Emirati women have been deprived of the many educational opportunities available to men. Again, this has to do with the traditional role that women have played in the Arab society. However, this trend has been reversed in recent years and now an increasing number of Emirati women enroll in universities.

Nowadays, 77% of Emirati women enter universities to study. Moreover, Emirati women are increasingly enrolling in traditionally male-dominated degree programs. For example, in 2003 the UAE had more female than male students pursuing a degree in Information Technology (Nelson, 2006). Despite this fact, the number of women who have the technical know-how required for using E-Commerce is still low (MacGregor & Vrazalic, 2008).

The cause for the low levels of technical know-how, despite their access to high quality education, includes the fact that employers do not prefer women candidates as compared to their male counterparts. Other causes for the low technical know-how among women include family pressure not to work, even after receiving education and the societal pressure not to break the cultural values. Because of that, many Emirati women think implementation of E-Commerce is very complicated and, therefore, should be left to men.

Barrier 3: Incompatibility with Communication Style

Studies on management styles of women in general have revealed that women refer to using informal means of communication to pass information to other employees within the organization (MacGregor and Vrazalic, 2008). This generalization may apply to Emirati women as well. Emirati women view electronic communication, something that often accompanies E-Commerce, as formal. Instead, they prefer to use informal means of communication for interacting with their co-workers and clients.

Further, the uptake of the new technology is left to men, as they are considered the movers of the society and development, which is a function of the cultural model observed there.

Barrier 4: Concerns over Privacy

The use of online networking tools is hindered by the privacy concerns that Emirati women have. They have the perception that adopting social business networks will increase the risk of leaking personal and private information to the public something that can result in serious consequences in a traditional society.

Based on the gender roles and lines established, women are supposed to offer support to their men, and not engage in public involvement which is against the course of privacy. Therefore, women find it safer use personal, face-to-face communication instead of adopting the online social networks.

Barrier 5: Lack of Perceived Benefits

Some studies have reported that Emirati women are hesitant to employ E-Commerce since they do not view E-Commerce to be compatible with the nature of their business (Quayle, 2010). Thus, these women have the perception that incorporating ICT in the normal operations of their work will not result in any tangible benefits. Most of the women surveyed in the study were involved in trading and manufacturing operations.

These included textile, fashion and design, hairdressing, consultancy and small to medium scale retail services. In these lines of business, women felt more comfortable using traditional methods to reach their clients and were concerned with traditional business issues (such as pricing) rather than implementing ICT in their operations.

Barrier 6: Lack of Funding Opportunities

Incorporating E-Commerce into a business requires additional capital. The requirement of this capital may act as a barrier to the adoption E-Commerce by a number of Emirati entrepreneurs. This is because these women face substantial difficulties in raising the capital for their businesses. Despite the fact that nowadays it is much easier for e women to access bank loans, there is still some degree of gender discrimination in these financial institutions (Nelsen, 2006).

Because of that, most Emirati women usually use their savings or source funds from friends and family to finance their business (Hadjimonolis, 2009). Due to this financial constrain, these women have not been willing to incur additional costs that are required to incorporate E-Commerce into their businesses. Most of these women substitute the use of E-Commerce with the superb interpersonal and marketing skills that they have (Hadjimonolis, 2009).

Conclusion

E-Commerce holds the promise to transform the way business and economies operate, creating efficiencies and serving as a source of competitive advantage for companies choosing to embrace E-Commerce as a part of their operations and strategy. However, Emirati women are yet to benefit fully from these changes due to the barriers that they face in adoption E-Commerce.

This study explored the following barriers that Emirati women face in adopting E-Commerce: underrepresentation in the workforce, lack of technical know-how, incompatibility with communication style, concerns over privacy, lack of perceived benefits, and lack of funding opportunities. To enable Emirati women to adopt E-Commerce in their work and enjoy the benefits that E-Commerce can potentially offer, the following initiatives must be implemented.

Towards eliminating the barriers limiting the involvement and the uptake of IT among women in the UAE include addressing the employment imbalances among men and women; offering training and orientation of women into the fields that they have been marginalized from; and the revision of the socio-cultural constructs, to allow for a more open view to the involvement of women.

The elimination of underrepresentation among women should also be eliminated, through making gender-sensitive innovative patterns and investment models. The needs of women should also be given principal consideration when deciding societal matters, which will allow for more female involvement in the different spheres of life.

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