E-commerce adoption in Developing Countries SMEs: What Do the Prevailing Theoretical Models Offer Us? (original) (raw)
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The use of e-commerce in SMEs has become an important topic in information systems research. Despite the enormous attention given to encourage SMEs to adopt e-commerce by governments, research undertaken to identify strategies of e-commerce adoption for SMEs in developing countries, especially in Sri Lanka is minimal. The primary objective of this study was to examine the relationship between organizational factors and ecommerce adoption to understand the factors that contribute to e-commerce adoption. Quantitative approaches were considered in this research. The study draws on the data obtained from a sample of 200 SMEs in Colombo District using a postal survey. The sample was chosen using a stratified random sampling technique based on business type of the SMEs. Based on correlation, regression and cluster analysis, the findings of this research were revealing and facilitated the understanding of certain organizational factors that influence the level of e-commerce adoption. The main factor identified was organizational culture. The results of this study show empirical evidence that there is a positive correlation between the adhocracy cultural characteristics among the SMEs and the level of e-commerce adoption. Also, hierarchy cultural characteristic showed a negative correlation with the level of e-commerce adoption in SMEs. An argument can be made out that a culture promoting innovation and risk acceptance would provide the needed support for higher levels of adoption of new technologies. Top managers' opinion towards innovation also influences the way of doing business by the firm.
Organizational Factors Affecting E-commerce Adoption - Research Publications 2011
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The use of e-commerce in SMEs has become an important topic in information systems research. Despite the enormous attention given to encourage SMEs to adopt e-commerce by governments, research undertaken to identify strategies of e-commerce adoption for SMEs in developing countries, especially in Sri Lanka is minimal. The primary objective of this study was to examine the relationship between organizational factors and ecommerce adoption to understand the factors that contribute to e-commerce adoption. Quantitative approaches were considered in this research. The study draws on the data obtained from a sample of 200 SMEs in Colombo District using a postal survey. The sample was chosen using a stratified random sampling technique based on business type of the SMEs. Based on correlation, regression and cluster analysis, the findings of this research were revealing and facilitated the understanding of certain organizational factors that influence the level of e-commerce adoption. The main factor identified was organizational culture. The results of this study show empirical evidence that there is a positive correlation between the adhocracy cultural characteristics among the SMEs and the level of e-commerce adoption. Also, hierarchy cultural characteristic showed a negative correlation with the level of e-commerce adoption in SMEs. An argument can be made out that a culture promoting innovation and risk acceptance would provide the needed support for higher levels of adoption of new technologies. Top managers' opinion towards innovation also influences the way of doing business by the firm.
Universiti Teknologi MARA Shah Alam, 2020
Technology has played a significant role in the development of business to business (B2B) or business to consumers' (B2C) electronic commerce (or e-commerce) over the recent decades. The purpose of this study is to empirically examine determinants of e-commerce adoption among small-and medium sized enterprises (SMEs) in the business services sector in a progressively developing nation. This study tested six hypotheses focusing on organizational, technological and environmental factors that may affect e-commerce adoption. Using judgemental sampling approach, a total of 110 feedback were gathered via online questionnaire based survey. The study employed SmartPLS 3.0 (Partial Least Square) structural equation modelling statistical software to confirm the hypotheses of this study. Structural model analysis was conducted and it was revealed that perceived relative advantage, perceived compatibility, e-commerce knowledge and expertise, external change agent and competitors' pressure have positive and significant influence on the SMEs respondents' e-commerce adoption. The study found that the most significant factors influencing e-commerce adoption among SMEs in Selangor was perceived relative advantage, to which managers or small and medium-sized enterprises see the potential advantage of e-commerce. The implication of this study is that SMEs need more exposure on the benefit of technolgy and intervention to guide them to change from traditional business to online business.
Determinants of E-Commerce Adoption amongst SMMEs in Durban, South Africa
In South Africa, the increasing number of cellphone internet users coupled with the growth of online shopping behaviour indicates that more South Africans are able to access the internet with the prospects of engaging with online businesses. Using the Diffusion of Innovation Theory (DOI), this paper examines the determinants of e-commerce adoption by South African SMMEs in the Durban area. The persuasion variables of the DOI (relative advantage, compatibility and complexity) were tested against four (4) e-commerce options namely, customers payment by credit card through the SMME's website, customers placing orders through the SMME's website, providing customer services through the SMME's website and placing orders with suppliers over the internet. Using convenience sampling, data was collected by means of a survey questionnaires administered to 200 SMME owners/managers. Usable responses were collected from 180 SMME owners/managers. This represents a 90% response rate. A Chi square test of independence was used to test the significance of association between the DOI variables and e-commerce adoption. Findings reveal that relative advantage and compatibility are the only DOI variables that significantly influence the decision to adopt e-commerce in Durban. Specifically, improving information exchange with customers, easier access to international markets, expansion of business reach, reduction of costs of maintaining up to-date company information and improving information exchange with suppliers are significant factors that inform the decision to adopt e-commerce in Durban. In addition, compatibility with existing company's technology infrastructure and compatibility with company values significantly affect SMMEs' decision to place orders with suppliers through the internet. Interestingly, the adoption of the other e-commerce options (online payment by credit card, online ordering and online customer services) is not significantly influenced by compatibility. The findings imply that in order to increase SMMEs' e-commerce adoption, SMMEs need to be better acquainted with the benefits that derive from its adoption. Moreover, a stepwise approach to e-commerce adoption is advised, starting with e-commerce options that are compatible with SMMEs technology infrastructure and values then gradually moving to more sophisticated e-commerce options.
Journal of Electronic Commerce in Organizations, 2007
Today, electronic commerce (e-commerce) has been utilised as a rapid vehicle to transform the world into an information society. In the business environment, e-commerce has made considerable inroads not only into large organisations but also the small and medium-sized enterprises (SMEs). However, SMEs are not adopting e-commerce with same speed as their larger counterparts. This slow growth has been attributed to various adoption barriers, which have been well documented in numerous research studies. While several recent studies have begun examining the relationship between the perceptions of adoption barriers in developed economies, the relationship between the perceptions of these barriers has not been fully examined in developing economies. This paper examines the correlation and underlying factors of barriers to e-commerce (as perceived by SME owner/managers) in a developing economy (Indonesia). It then compares these with SME owner/manager perceptions from a developed economy (...