The digitising process of the Maltese spare parts retail business in industry

Abstract

The purpose of this study was to investigate Malta’s slow uptake of e-commerce systems in the spare parts retail business. The study assessed the Maltese businesses and their willingness to engage into online activity particularly with regards to the local automobile component industry. It explored Malta’s opportunities and obstacles in engaging online. Enterprises in Malta have several barriers keeping them from progressing in e-commerce. There are government incentives and grants pushing these companies towards more ecommerce, but it seems that training and grants alone are not doing much for the Maltese ecommerce economy. Businesses in Malta have invested enough in technology to be proficient with it and have a good understanding of e-commerce. Some businesses currently operate with extensive software and hardware architecture to communicate and trade online. The study was focused on a targeted group of businesses operating in the spare parts retail sector in Malta. The population tested consisted of customers and shop owners. A sample comprised of 189 Maltese businesses was sent a survey by email out of which 43 responded resulting in a response rate of 23%. Another survey about purchase decisions was sent to their customers. The target included domestic customers such as mechanics, reseller and maintenance people of all ages and walks of life. 97 survey responses were collected. The products purchased by these customers were components used in racing, engineering projects, marine equipment and supplies, motorcycle and vehicle service parts, electrical installations, audio upgrades, system installations, and machinery restoration. The results from the surveys show that the Maltese landscape in digital business is evolving. Shop owners have shown keen interest in purchasing or selling spare parts online, while customers on the other hand still prefer to shop offline. The study shows that the majority (52.1%) prefer to shop exclusively offline backed by reasons such as urgency, customer contact, trust and purchase assistance. This study investigates the barriers stopping the Maltese enterprise to adopt faster e-commerce technologies/systems to compete locally and internationally. This study makes use of quantitative and qualitative analysis by studying the Maltese consumer behaviour and the associated business e-commerce in Malta. Some of the barriers hindering the local businesses’ e-commerce progress were identified to be time, technology, and infrastructure issues. These factors have been compared with similar European studies. The results were also analysed in relation to the literature. Some differences were noted during this research meaning that Malta’s size and culture may have played a major role in making this economy unique.