Strategic Government Initiatives to Promote Diffusion of Online Retailing in Saudi Arabia

This paper presents findings from a study of factors affecting the rate of diffusion and adoption of online retailing in Saudi Arabia. In general, Saudi retailers have not responded actively to the global growth of online retailing. Accordingly, this research was conducted to find the key factors involved in this phenomenon. A major finding presented here, is that both buyers and sellers emphasize the need for government involvement to support and promote development of online commerce. Particularly, it indicates the need for strategic government initiatives to provide regulation, legislation, education, and trusted infrastructure for secure payment and delivery. Saudi Arabia presents a unique cultural, technological and political context for the development of e-commerce. We highlight the particular motivators and potential benefits of Saudi government involvement in e-commerce development. A new model for formulating roles and strategic government initiatives to support the successful diffusion of online retailing in KSA is presented and discussed. This will be of interest to any following the development of e-commerce and the information economy in the Arab nations.