The objective of this study is to assess the factors causing the adoption of e-commerce in the agribusiness sector in Oman. Previous research suggests that adoption of e-commerce depends on internal factors that relate to individual businesses and external factors relating to government policy, legal aspects and supporting public infrastructure. Among the internal factors that relate to the adoption of e-commerce, benefits of e-commerce in improving functions of the supply chain as perceived by business managers are considered as critical factors. Hence the main hypothesis of the study is that perceived benefits by managers from adopting e-commerce in improving functions of the supply chain influences the adoption of e-commerce. The data was obtained from a random sample (n = 31) of agribusiness in Oman using a structured questionnaire and through mail survey. The questionnaire sought information on type of business, product and employees' education etc, general opinion of business managers about the adoption of e-commerce, barriers affecting the adoption of ecommerce, factors supporting the adoption of e-commerce. The data was analyzed by using descriptive statistical methods and a Probit regression model. The dependent variable of the regression was whether the firm has a website. The independent variables consist of a number of variables that related to perception of benefits of adopting ecommerce in improving function of the supply chain and two other factors namely the size of the business and the scope of the business (international or national). Perceptions on benefits of e-commerce by business managers were measured on a Likert scale. It was found that although businesses use computers (94% of businesses) and about 52% of the businesses have websites, only a small percentage (3.2%) engaged in all aspects of e-commerce. The R-squared, of the estimated Probit regression model was 0.65. All the signs except of the "Security" variable (e-commerce reduces security of business transactions) had the hypothesized signs. Of the variables confirming with hypothesized sign, the "Size" of the Company (ineasured by number of employees) was significant at 5% level of significance. The other variables measuring perceptions on benefits on adopting e-commerce by managers were not significant. The study found that perception of managers on benefits of e-commerce did not influence the adoption of e-coinmerce. The only variable that explains the adoption of e-commerce is the size of the business.