An Econometric approach was adopted using structural equation modeling to analyze the antecedent challenges to eTourism adoption in Kenya. The study was conducted in Nairobi province. Data were collected using a Questionnaire. Using LISREL programming, hypothetical relationships among latent variables (Generic and Contextual challenges) could be measured by empirical indicators (27 antecedent variables) in one model. Maximum likelihood criterion was adopted as the default estimation technique. This approach provided instantaneous estimates on the latent and observable variables in the measurement and structural parts of the overall covariance structural model predicted. Estimation results (at 1% significance level) revealed that, concerns on Lack of regulation, inadequate infrastructure and that the internet gives the consumer too much power, significantly explained Internet preference. Further, the t-values confirmed that the variables identified were significantly different from zero at 1% significance level (as indicated by t-values greater than ׀1.96׀). Since the overall structural model allowed modeling of interactions between endogenous and exogenous variables, the structural and measurement parts of the model were estimated using structural equations. By further analyzing influence of generic and contextual challenges on Transactional and Informational use of the Internet, key determinants to eTourism adoption were identified. Based on empirical findings, several recommendations and policy implications were formulated.
Available at: http://works.bepress.com/shem_maingi/8/