Journal of Economics and Behavioral Studies (ISSN: 2220-6140) Vol. 10, No. 2, pp. 176-187, April 2018 176 Organisational Factors Influencing E-business Adoption in Zimbabwe’s Manufacturing Sector S. Mupemhi, A. Muposhi Midlands State University, Gweru, Zimbabwe Vaal University of Technology, Vanderbijlpark, South Africa mupemhis@staff.msu.ac.zw, vmunhewu@gmail.com Abstract: Creating and sustaining competitive advantage through the adoption and implementation of innovative technologies is a strategic imperative for all learning organizations. Despite this, manufacturing companies in developing countries such as Zimbabwe are confronting challenges in implementing e-business practices. Against this background, the objective of this study was to understand organizational factors influencing e-business adoption in Zimbabwe’s manufacturing sector. The study was motivated by the need to appreciate factors that facilitate or inhibit the adoption of e-business in the context of developing countries such as Zimbabwe. A questionnaire was distributed to a random sample of 118 companies registered by the Confederation of Zimbabwe Industries in 2015. Regression analysis was used to test the posited hypotheses. Results revealed that manufacturing companies in Zimbabwe differ significantly in their inclination to adopt and implement e-business strategies. Innovation orientation, financial resources, perceived usefulness and size of the firm were found to be positively associated with e-business adoption. The study also found that technological resources did not have a statistically significant relationship with e-business adoption. The study furthers current debate on e-business adoption by identifying the drivers of e-business adoption in the manufacturing sector in the context of a developing country. The importance of this study lies in its contribution to theory and practice. In terms of theory, this study contributes to the body of knowledge on organizational factors influencing e-business adoption and provides avenues for further studies. In practice, the findings of this study add to the insights of managers in the manufacturing sector in developing countries, which influence the adoption of e-business practices. Keywords: e-business practices, e-business adoption, e-business efficiency, manufacturing sector, Zimbabwe 1. Introduction Study Background: The dawn of the new millennium ushered a new dispensation characterized by ‘e- business hype’ in the business fraternity (Hinton& Baines, 2009). During the early 2000s (new millennium), the number of companies adopting Internet anchored electronic business practices proliferated (Huy, Rowe, Truex & Huynh, 2012). Empirical evidence suggests that business efficiency and competitiveness have been significantly enhanced by adoption of electronic business practices, more so in the context of developed economies (Huy et al., 2012; Kim & Nam, 2007; Li & Xie, 2012). For instance, Smith and Spiers (2009) note improvements in supply chain management, planning, communication and collaboration by companies in the manufacturing industry. It is also argued that electronic business, hereafter referred to as e-business, has reshaped customer-supplier relationships and streamlined business processes and in some cases, re- engineered the industry’s operating philosophy (Cardwell, Harland, Bwell & Zheng, 2013; Chao & Chandra, 2012). E-business applications that have revolutionised business practice include electronic data interchange (EDI), Just-In-Time (JIT), Quick Response System (QRS), computer-aided-manufacturing (CAM), computer- numerical control (CNC), manufacturing resource planning (MRP), enterprise resource planning (ERP) and product data management system (Chitourou&Souidan, 2010).For this reason, e-business adoption has generated much interest in research and practice (Dube, Chitura & Runyowa, 2009; Tsokota & Solmes, 2013). While the majority of manufacturing companies in developed companies are managing to tap into the opportunities associated with e-business adoption, limited success has been reported in developing countries (Chao & Chandra, 2012). A typical example is the case of Zimbabwe where little success has been reported in terms of successful adoption and implementation of e-business practices (Dube et al., 2009). In particular, researchers such as Chitourou and Souidan (2010) as well as Cardwell et al. (2013) note that companies in developing economies face a host of organizational challenges when implementing e-business practices. Thus, the importance of this study emanates from the need to understand the pertinent factors that drive successful e-business implementation. Since e-business adoption is now a mega trend and a mainstream business norm,