- Introduction
1.1 Background
The Gulf Cooperation Council (GCC) region has witnessed substantial internet penetration, which has resulted in the development and adoption of several technology-driven solutions, including e-commerce. For instance, the online market in the United Arab Emirates (UAE), one of the six GCC countries, is on an upward trend, driven by increasing demand for e-purchasing by a young, affluent, tech-savvy population. The young adult e-consumers are mostly Millennials (individuals born between 1981 and 1996) and Generation Z, born between 1997 and 2012 (Visa, 2020). As a result, the internet penetration in the country is estimated at 91%, 18% higher than that of the Kingdom of Saudi Arabia (KSA), which ranks second in the GCC region (Visa, 2020). Additionally, the UAE’s smartphone penetration and social media penetration stand at 66% and 99%, respectively. Further, Visa (2020) reports that the average time spent online daily in the United Arab Emirates is 7 hours 49 minutes. Moreover, the country’s retail industry, which encompasses the e-commerce segment, is anticipated to grow steadily from $55 billion in 2018 to $63.8 billion in 2023. The non-store category increases by 78% during this period (Visa, 2020). Accordingly, business organizations in the UAE e-commerce marketplace have acknowledged this trend and the significance of an e-platform on their competitiveness and profitability. Consequently, the e-commerce ‘pure play’ retailers in the market are increasingly embracing the technological revolution by creating innovative approaches to e-product offerings. Examples identified by Visa (2020) include social media, home shopping, and mobile internet. The overarching aim of the innovations is to enhance the shopping experiences of the Millennials and Generation Z, which comprises a significant, influential customer base within the UAE e-commerce market. Therefore, it is imperative to explore the e-commerce trends in corporations in the United Arab Emirates to understand their innovativeness and ability to leverage the existing opportunities in the marketplace to gain a competitive market advantage.
1.2 Problem Statement
The UAE is a vibrant, promising e-commerce market in the Middle East and North Africa (MENA) region. Schilirò (2015) points out that it is the most lucrative e-business market in the GCC region. Consequently, large corporations and small and medium enterprises (SMEs) strive to adopt innovative technologies to remain competitive in the market. However, the landscape of innovation in the UAE’s e-commerce landscape remains underexplored. Additionally, there is limited empirical evidence on the impact of e-commerce corporations’ innovative initiatives on their market competitiveness and profitability.
1.3 Research Questions
The study sets out to answer the following research questions: - What factors affect the growth of e-commerce in the UAE?
- What is the extent of innovation trends by corporations in the UAE e-commerce landscape?
- To what extent do the current innovation trends enhance the market competitiveness of the corporations in the UAE e-commerce market?
- What is the relationship between the innovations and the corporations’ success in the UAE e-commerce market?
1.4 Research Aim
The research aims to explore the factors affecting e-commerce growth in the UAE and investigate the impact of the current innovation trends in the country’s e-commerce landscape on the competitiveness and success of the existing corporations.
1.5 Research Objectives
In answering the research questions, the study hopes to achieve the following specific objectives: - To explore factors affecting the growth of e-commerce in the UAE.
- To evaluate the extent of innovation trends by corporations in the UAE e-commerce landscape.
- To assess the extent to which the current innovation trends enhance the market competitiveness of the corporations in the UAE e-commerce market.
- To examine the relationship between the innovations and the corporations’ success in the UAE e-commerce market.
1.6 Strategic Significance
The study is essential for filling in the current knowledge gap on the relationships between the current innovation trends in the UAE e-commerce landscape and the existing corporations’ market competitiveness and success. The findings are expected to help the management of the corporations understand the extent of innovations in the market and their influence on the market performance of their organizations. Additionally, the study outcomes will help the corporations’ leaders develop informed innovative strategic goals to gain a competitive edge over their market rivals. The results are also expected to provide valuable insights to potential investors seeking to establish successful e-commerce businesses in the UAE market. Therefore, the investigation will reveal the unique aspects of the UAE e-commerce landscape to the global community, creating vital knowledge about the utility of innovation to enhance firms’ strategic well-being and market competitiveness. - Literature Review
This chapter reviews existing relevant theoretical, conceptual, and empirical literature to identify the existing knowledge gaps. The empirical review is done based on four thematic areas: competitiveness, factors affecting the growth of and barriers to e-commerce, innovation, and e-commerce landscape.
2.1 Theoretical Studies
Various theories underpin the relationships between technological innovations, e-commerce, and organizational performance. The technology acceptance model (TAM), diffusion of innovation (DOI) theory, and the resource-based view (RBV) theory of the firm are the most utilized theoretical postulations to explain the tripartite relationship. Davis’ TAM posits that the adoption of technological innovations by corporations is most influenced by their perceived usefulness (PU) and perceived ease of use (PEOU) (Idris, Edwards, and McDonald, 2017). Consequently, an organization or its employees would only adopt a technology if they deem it helpful and easy to use. In contrast, Idris et al. (2017) point out that Rogers’ DOI describes diffusion as the means through which innovation is transmitted via specific channels over time in a given social system. Therefore, from the diffusion of innovation theory standpoint, a person’s decision regarding innovation is not an event but a process that occurs over a time frame defined by a series of events and activities (Idris et al., 2017). Conversely, the RBV theory, introduced by Barney in 1991, suggests that a firm’s resources contribute significantly to its market competitiveness. However, for a corporation to derive such benefits, the theory posits that the resource must be valuable, rare, inimitable, and un-substitutable. As an illustration, an e-commerce platform would contribute to the corporations’ market competitiveness if it has the VRIO elements. Therefore, these theories provide a valuable framework for conducting the study.
2.2 Conceptual Studies
The term “innovation” is conceptualized variously by different scholars. For instance, Lin (2006), as cited by Nur, Wahab, Al Mamun, and Yaacob (2016, p. 88), notes that it implies creating something new. However, Drucker (1985), as cited by Nur et al. (2016, p. 88), had previously conceptualized the phenomenon as a tool with which an entrepreneur exploits change to diverse their services or businesses. He also perceived innovation as a discipline that is subjectable to organizational learning and practice. In other words, the phenomenon is perceivable as an idea that is new and can be learned and practised by an organization. Some scholars whose works are reviewed by Nur et al. (2016) contend that innovation entails utilizing novel technical and administrative knowledge to enhance service or product quality. Therefore, the concept is construable as a practice that is new to an organization. They may include processes, policies, equipment, products, or services. Additionally, various conceptualizations of e-commerce exist in the existing literature. For instance, Khan (2016) argues that electronic commerce entails selling and purchasing goods and services online. Nonetheless, studies reviewed by the scholar suggest that the conceptualization of e-commerce may not be limited to the trading of products. It may also involve the dissemination of information for consumer decision-making. Therefore, the idea may be described as exchanging products, services, and information through the internet.
2.3 Empirical Studies
2.3.1 Theme 1: Competitiveness
Several studies have explored competitiveness in the context of innovation and e-commerce. For instance, Wang and Wang (2019) believe that electronic commerce provides corporations with a more sustainable way of enhancing their market competitiveness. Furthermore, Ghandour (2015) observes that a high level of completion characterizes the UAE due to the increased adoption of e-commerce by corporations. Schilirò (2015) concurs that most companies in the country are leveraging innovation to gain a competitive edge over their market rivals. This claim is corroborated by Sibanda, Bakhouche, Chaita, and Kehal (2020). They observe that SMEs in the UAE are increasingly being innovative to compete favourably with more giant corporations in the market.
2.3.2 Theme 2: Factors Affecting Growth of and Barriers to E-Commerce
Research shows that several factors impact the growth of e-commerce. For example, a paper by Ghandour (2015) identifies internet, social media and mobile phone penetration, government encouragement, range of products, low cost of e-business, and convenience of payment as the notable factors affecting e-commerce growth in the UAE. However, lack of trust, doubt about a merchant’s ability to deliver the indicated products, cash-orientedness of society, and the physicality of purchasing experience limit the success of the electronic commerce in the United Arab Emirates (Ghandour, 2015). Others like Sibanda et al. (2020) identify demographics, ownership structure of businesses, and size as some of the factors impacting e-commerce adoption in the UAE.
2.3.3 Theme 3: Innovation
There is evidence of innovation trends in various jurisdictions worldwide. For example, Ghandour (2015) notes that business entities in the UAE market exploit social media platforms to enhance their industry competitiveness. According to Schilirò (2015), the UAE is characterized by a high level of innovation with corporations developing more advanced technologies to leverage the existing opportunities in the online market. In addition, Sibanda et al. (2020) believe that the high education level among the youth in the UAE plays a considerable role in fostering innovation in the country.
2.3.4 Theme 4: E-Commerce Landscape
E-commerce is an innovative economic, strategic approach that has emerged during the Fourth Industrial revolution. According to Ghandour (2015), the UAE’s e-commerce landscape is vibrant because the government has created an enabling policy environment to adopt innovative approaches, such as electronic commerce. However, Schilirò (2020) believes that limited entrepreneurship is adversely impacting the quality in the country because most organizations in the academia do not fully embrace the concept. Sibanda et al. (2020) contend that the UAE landscape is characterized by positive and negative factors either promote or bar the growth of e-commerce.
2.4 Research Gap
Therefore, the existing evidence in the literature suggests that little scholarly work has quantitatively investigated the relationships between the current innovation trends in the UAE and the market competitiveness and success of the existing corporations. This is an essential knowledge gap worth filling. It is against this backdrop that this study is designed.
- Methodology
3.1 Research Philosophy
Philosophical underpinning is an essential aspect of a scholarly inquiry. Saunders, Lewis, and Thornhill (2019) define the term as a system of beliefs and assumptions regarding k knowledge development. Their research onion identifies positivism, critical realism, interpretivism, postmodernism, and pragmatism as the standard philosophical approaches to research. This study assumes a realist assumption of the research phenomena. It adopts positivism as the guiding epistemological paradigm. According to Saunders et al. (2019), positivism entails making law-like generalizations based on observable social realities. Positivist researchers seek to develop precise and accurate knowledge about the research phenomenon.
3.2 Research Approach
In keeping with the positivistic thinking, the study adopts a deductive reasoning approach to scholarly inquiry. This is the commonly used research approach in social science. Saunders et al. (2019) note that this approach entails developing a theory, which is subsequently subjected to a rigorous examination via a series of propositions. In other words, research applying the deductive reasoning strive to test an existing theory.
3.3 Research Strategy
A research strategy refers to the strategic plan for collecting the necessary, sufficient data to answer the research questions and realise the specific objectives. It also covers how such data is analyzed and presented. This study adopts an online survey while involves sending a set of questions to sampled research participants through different online media, such as emails, social media platforms, and dedicated sites like survey monkey. This method is deemed appropriate for engaging the research subjects during the current COVID-19 pandemic due to social distancing and movement restrictions. Additionally, the strategy is more efficient and less costly.
3.4 Time Horizon
Time horizon refers to the time frame a research process takes to complete. Saunders et al.’s (2019) research onion identifies longitudinal and cross-sectional as the two main time horizons in business research. The former entails gathering data repeatedly over a more extended period to monitor and compare changes in specific aspects of the research phenomenon. In contrast, the cross-sectional time horizon involves collecting data over a relatively shorter time. The proposed study follows a cross-sectional time horizon to collect the necessary data from the sampled members of the target population.
3.5 Data Collection Methods
Data collection and analysis are critical components of the research process in social sciences, such as business studies. Saunders et al.’s (2019) research onion suggests that the activity of gathering and analyzing data lies at the core of the scholarly investigation process. This study will collect the necessary data from 100 randomly sampled managers of e-commerce corporations in the UAE using a structured questionnaire designed with closed-ended questions. The data collection tool will be organized into five sections . The first section captures the participants’ sociodemographic information, including age, gender, education level, and period worked in their respective organizations. The rest of the four sections will collect information relating to the four research objectives. The collected data will be analyzed using the statistical package for social sciences (SPSS). A descriptive statistic analysis will be performed to describe, illustrate, and summarize data in a meaningful manner. Additionally, a 2-tailed Pearson correlation analysis will be performed to determine the relationships between innovation trends and e-commerce corporations’ market competitiveness and success in the UAE.
3.6 Ethical Considerations
The study will observe all the necessary ethical considerations, including obtaining approval from the University’s ethics review board (ERB). Additionally, the participants will be reminded that their participation in the survey is voluntary. Further, their identities will be kept anonymous, and the information they volunteer kept confidential. - Project Management
4.1 Gantt Chart
Research Task Weeks
Wk 1 Wk 2 Wk 3 Wk 4 Wk 5 Wk 6 Wk 7 Wk 8
Writing and submitting the Research Proposal
Editing the Proposal to Incorporate Professor’s Feedback.
Developing Survey Questionnaire.
Seeking and Obtaining Ethical Approval.
Data Collection
Data Analysis
Writing, Submitting, and Editing Chapters 4, 5, and 6
Submitting Completed Research Report.
4.2 Key Stakeholders
The key stakeholders in this study include the participants and managers of e-commerce corporations in the United Arab Emirates, shareholders in the organizations, and potential investors. Others including e-consumes in the country and the other employees of the participating organizations.
4.3 Risks
Unwilling respondents are one of the possible challenges that this study is likely to face. The risk poses a considerable threat to the survey’s response rate. It will be addressed by building the respondents’ confidence in the research process, including observing the necessary ethical obligations.
- Conclusion
5.1 Summary
Therefore, the proposal covers charters one, two, and three of the dissertation. The first chapter provides a brief background of the study, states the research aim and objectives that the research hopes to achieve. Additionally, it lists the questions the investigation sets out to answer and their strategic significance. In contrast, Chapter Two reviews the existing conceptual, theoretical, and empirical literature to identify the knowledge gaps that the study seeks to fill. Finally, Chapter Three describes the methodological framework that the inquiry adopts to gather and analyze the necessary quantitative data for answering the research questions.
5.2 Dissertation Structure
The rest of the dissertation is organized into Chapters Four, Five, and Six. Chapter Four presents the research findings, while Chapter Five offer the analysis of the results. Conversely, Chapter Six concludes the study, makes recommendations, highlights research limitations, and identifies areas of further research. The report also has references and appendices sections.
References
Ghandour, A., 2015. ‘An analysis of factors affecting growth and barriers of e-commerce in UAE,’ International Conference on Intelligent Systems, Control & Manufacturing Technology (ICICMT’2015) at Abu Dhabi (UAE). Available at: http://iieng.org/images/proceedings_pdf/3123E0315531.pdf [Accessed July 2, 2021]
Idris, A., Edwards, H., and McDonald, S., 2017. ‘E-commerce adoption in developing countries SMEs: What do the prevailing theoretical models off us? The 4th International Conference on E-Commerce. Available at: https://core.ac.uk/download/pdf/110690991.pdf [Accessed July 2, 2021]
Khan, G. A., 2016. ‘Electronic commerce: A Study on benefits and challenges in an emerging economy,’ Global Journal of Management and Business Research: B Economics and Commerce, vol. 16, no. 1, pp. 1-5.
Nur, M. Z. F., Wahab, A. S., Al Mamun, A., and Yaacob, S. A., 2016. ‘Defining the concept of innovation and firm innovativeness: A critical analysis from a resource-based view perspective. International Journal of Business and Management, vol. 11, no. 6, pp. 87-94.
Saunders N. K. M., Lewis, P., and Thornhill, A., 2019. Research methods for business studies (8th ed.). Harlow, UK: Pearson.
Schilirò, D., 2015. ‘Innovation in small and medium enterprises in the United Arab Emirates,’ International Journal of Social Science Studies, viol. 3, no. 5, pp. 148-160.
Schilirò, D., 2015. ‘Innovation in small and medium enterprises in the United Arab Emirates,’ Intentional Journal of Social Science Studies, vol. 3, no. 5, pp. 148-160.
Sibanda, W., Bakhouche, A., Chaita, M., and Kehal, M., 2020. ‘Disruptive technology adoption dynamics by United Arab Emirates small-to-medium enterprises,’ International Journal of Business Performance Management, vol. 21, no. 4, pp. 477-503.
Visa. 2020. The United Arab Emirates (UAE) e-commerce landscape 2020: Accelerated growth during turbulent times. Visa. Available at: [Accessed July 2, 2021]
Wang, X., and Wang, H., 2019. ‘A study on sustaining corporate innovation with e-commerce in China,’ Sustainability, vol. 11, no. 1, pp. 1-16.
