There is agreement that EC usage is more prominent in larger firms than in smaller firms (Burke, 2005; Sharma, Ahmed and Wickramasinghe, 2004) because SMEs generally have limited resources and technological capabilities (Thong, 2001).
The following is a summary of the major themes of research on EC adoption in SMEs:
1. Rate of adoption of EC in SMEs
EC adoption is relatively low (Lee, 2004), especially in developing countries (Karanasios and Burgess, 2006). In SMES, ICT usage is generally limited to simple communication and advertising functions like email and web presence, while e-commerce transactions is limited (Lawson et al., 2003).
2. Factors that determine EC adoption in SMEs:
Studies focused mainly on internal and external factors that influence adoption, wehich can be categorized into:
- Individual factors- ownership/management characteristics and support, and IT knowledge, capability and interest
- Organizational factors (Aguila-Obra and Padilla-Melendez, 2006)- size of the firm (Burke, 2005), the cost of implementation, industry sector and readiness of the firm to engage in EC
- Environmental factors- roles of government, pressure from partners, customers and competitors, and support from vendors and consultants
- Technological factors- security issues, perceived usefulness, competitive advantage, and compatibility.
Related to these are studies on the e-readiness of firms to adopt EC, especially factors that influence SMEs' decisions to adopt EC (Ramayah, Yan and Sulaiman, 2005; Raven, Huang and Kim, 2007).
Adoption factors like opportunities for international marketing and exporting (Chong, 2008; Kula and Tatoglu, 2003) and location of business (Bharawaj and Soni, 2007) have not been studied much.
3. The Extent of EC Diffusion and Impact on Firm Performance
The degree of assimilation of ICT has been studes in terms of
- The extent to which ICT pervades the firm's operations (Beck, Wigand and Konig, 2005; Migiro, 2006; Raymond et al., 2005; Al-Qirim, 2005; Al-Qirim, 2007)
- The impact on firm performance- in terms of financial aspects (Beck, Wigand anfd Konig, 2005; Johnston, Wade and McClean, 2007; Raymond et al., 2005), competitive aspects (Fisher et al., 2007; Maguire, Koh and Magrys, 2007; Teo, 2007), business efficiency and IS success (Calderia and Ward, 2003). Although these studies have found positive impact of EC usage in SMEs, the benefits are inconsistent in different sectors, regions and firms Johnston and Wright, 2004).
4. EC Adoption by SMEs in Different Regions
There has been considerable studies on EC adoption by SMEs in different regions including caparisons between developed and developing countries (Kula and Tatoglu, 2003; Molla and Licker, 2005; Karanasios and Burgess, 2006; Kartiwi and MacGregor, 2007).
The factors that affect EC adoption in SMEs differ across countries. Kartiwi and MacGregor found that organizational factors are the main barriers in developing countries compared to technical factors in developed countries.
Studies on EC adoption in South East Asian SMEs include countries like Singapore (Thong, 2001; Teo, 2007), Malaysia (Sulaiman, 2000; Ramayah, Yan and Sulaiman, 2005; Hashim, 2006; Sam and Leng, 2006; Hussin, Noor and Suhaimi, 2008), Indonesia (Kurnia, 2007)
References:
There has been considerable studies on EC adoption by SMEs in different regions including caparisons between developed and developing countries (Kula and Tatoglu, 2003; Molla and Licker, 2005; Karanasios and Burgess, 2006; Kartiwi and MacGregor, 2007).
The factors that affect EC adoption in SMEs differ across countries. Kartiwi and MacGregor found that organizational factors are the main barriers in developing countries compared to technical factors in developed countries.
Studies on EC adoption in South East Asian SMEs include countries like Singapore (Thong, 2001; Teo, 2007), Malaysia (Sulaiman, 2000; Ramayah, Yan and Sulaiman, 2005; Hashim, 2006; Sam and Leng, 2006; Hussin, Noor and Suhaimi, 2008), Indonesia (Kurnia, 2007)
References:
1. Aguila-Obra A.R.D. and Padilla-Melendez, A. (2006). Organizational Factors affecting Internet Technology Adoption. Internet Research, 16(1), 94-110.
Al-Qirim, N.A.Y. (2005). An Empirical Investigation of an E-Commerce Capability Model in Small Businesses in New Zealand. Electronic Markets. 15(4), 418-437.
2. Al-Qirim, N.A.Y., (2007). The Adoption of eCommerce Communications and Applications Technologies in Small Businesses in New Zealand. Electronic Commerce Research and Applications, 6(4), 462-473.
Al-Qirim, N.A.Y. (2005). An Empirical Investigation of an E-Commerce Capability Model in Small Businesses in New Zealand. Electronic Markets. 15(4), 418-437.
2. Al-Qirim, N.A.Y., (2007). The Adoption of eCommerce Communications and Applications Technologies in Small Businesses in New Zealand. Electronic Commerce Research and Applications, 6(4), 462-473.
2. Beck, R., Wigand, R.T., abd Konig, W. (2005). The Diffusion and Efficient Use of E-Commerce among SMEs: In International Three-Industry Survey. Electronic Markets. 13 (1), 38-52
3. Bharadwaj, P.N., and soni, R.G. (2007). E-Commerce Usage and Perception of E-Commerce Issues among Small Firms: Results and Implications from an Empirical Study. Journal of Small Business Management, 45(4), 501-521
4. Burke, K. (2005). The Impact of Firm Size on Internet Use in Small Businesses. Electronic Markets. 15 (2), 79-93.
5. Caldeira, M. r. M. and Ward, J.M. (2003). Using Resource-based Theory to Interpret the Successful Adoption and Use of Information Systems and Technology in Manufacturing Small and Medium-Sized Enterprises. European Journal of of Information Systems, 12, 127-141.
6. Chong, S. (2008). Success in Electronic Commerce Implementation: A Cross-country Comparison of Small and Medium Sized Enterprises. Journal of enterprise Information Management, 21(5), 468-492.
7. Fisher, J., Craig, A., abd Bentley, J. (2007). Moving from a Web Presence to E-Commerce: The Importance of a Business Web Strategy for Small Business Owners. Electronic Markets, 17(4), 253-262.
8. Grandon, E.E. and Pearson, J.M. (2004). Electronic Commerce Adoption: An Empirical Study of Small and Medium US Businesses. Information and Management, 42(1), 197-216.
9. Hashim, N.A. (2006). SMEs and E-commerce: An Exploratory Study of Effectiveness of Government ICT Assistance Programmes. SME-Entrepreneurship Global Conference 2006, 17-18 October, Kuala Lumpur
10. Hussin, H., Noor, R.M., and Suhaimi, M.A. (2008). Perceived Attributes of E-Commerce and the Adoption Decision: The Case of Malaysian SMEs. Jurnal Teknologi Maklumat and Multimedia, 5, 107-125.
11. Jeon, B.N., Han, K.S., and Lee, M.J. (2006). Determining Factors for the Adoption of e-Buisness: the Case of SMEs in Korea. Applied Economics. 38(16), 1905-1916.
12. Johnston, D.A., Wade, M., and McClean, R. (2007).Does eBusiness Matter to SMEs? A Comparison of the Financial Impacts of Internet Business Solutions on European and North American SMEs. Journal of Small Business Management. 45(3), 354-361.
13. Johnston, D.A. and Wright, L. (2004). The E-Business Capability of Small and Medium Sized Firms in International Supply Chains. Information Systems and eBusiness Management. 2(2-3), 223-240.
14. Karanasios, S. S. and Burgess, S. (2006). Exploring the Internet Use of Small Tourism Enterprises: Evidence from a Developing Country. Electronic Journal of Information Systems in Developing Countries, 27(3), 1-21.
15. Kartiwi, M. and MacGregor, R.C. (2007). electronic Commerce Adoption Barriers in Small to Medium Sized Enterprises (SMEs) in Developed and Developing Countries: A Cross-country Comparison. Journal of Electric Commerce in Organizations, 5(3), 35-51
16. Kula, V., and Tatoglu, E. (2003). An Exploratory Study of Internet Adoption by SMEs in an Emerging Market Economy. European Business Review, 15(5), 324-333.
17. Kurnia, S. (2007). Identifying e-Commerce Adoption Driving Forces and Barriers: The Case of the Indonesian Grocery Industry. CollECTeR (Collaborative Electronic Commerce Technology and Research) 2007, 9-11 December, Adelaide, Australia
18. Lal, K. (2002). E-business and Manufacturing Sector: A Study of Small and Medium Sized Enterprises in India. Research Policy, 31(7), 1199-1211.
19. Maguire, S., Koh, S.C.L. and Magrys, A., (2007). The Adoption of E-Business and Knowledge Management in SMEs. Benchmarking: An International Journal. 14(1), 37-58.
20. Migiro, S.O. (2006). Diffusion of ICTs and E-Commerce Adoption in Manufacturing SMEs in Kenya. South African Journal of Library and I nformation Science 72(1), 35-44.
21. Molla, A. and Licker, P.S. (2005). Perceived E-Readiness Factors in E-Commerce Adoption: An Empirical Investigation in a Developing Country. International Journal of Electronic Commerce, 10(1), 83-110.
22. Ramayah, T., Yan, L.C. and Sulaiman, M. (2005). SME e-readiness in Malaysia: Implications for Planning and Implementation. Sasin Journal of Management. 11(1), 103-120.
23. Raymond, L., Bergeron, F. o., and Blili, S. (2005). The Assimilation of e-Business in Manufacturing SMEs- Determinants and Effects on Growth and Internationalization. Electronic Markets. 15(2), 106-118.
24. Raven, P.V., Huang, X., and Kim, B.B. (2007). E-Business in Developing Countries: A Comparison of China and India. International Journal of E-Business Research, 3(1), 91.
25. Sam, T.L. and Leng, A.-C. (2006). Adoption of Electronic Commerce amongst Small and Medium Enterprise. Knowledge Management International Conference and Exhibition 2006, Kuala Lumpur.
26. Sharma, S.K., Ahmed, N., and Wickramasinghe, N. (2004). E-Commerce Adoption in Small and Medium Enterprises (SMEs) in Asia: a Study of the Early Stages of E-commerce Uptake. International Journal of Internet and Enterprise Management, 2(3), 1.
27. Sulaiman, A. (2000). The Status of E-commerce Applications in Malaysia. Information technology for Development, 9, 153-161.
28. Teo, T. S. H. (2007). Organizational Characteristics, Modes of Internet Adoption and Their Impact: A Singapore Perspective. Journal of Global Information Management, 15(2), 91-117.
29. Thong, J. Y. L., (2001). Resource Constraints and Information Systems Implementation in Singaporean Small Businesses. Omega, 29(2), 143-156.
5. Caldeira, M. r. M. and Ward, J.M. (2003). Using Resource-based Theory to Interpret the Successful Adoption and Use of Information Systems and Technology in Manufacturing Small and Medium-Sized Enterprises. European Journal of of Information Systems, 12, 127-141.
6. Chong, S. (2008). Success in Electronic Commerce Implementation: A Cross-country Comparison of Small and Medium Sized Enterprises. Journal of enterprise Information Management, 21(5), 468-492.
7. Fisher, J., Craig, A., abd Bentley, J. (2007). Moving from a Web Presence to E-Commerce: The Importance of a Business Web Strategy for Small Business Owners. Electronic Markets, 17(4), 253-262.
8. Grandon, E.E. and Pearson, J.M. (2004). Electronic Commerce Adoption: An Empirical Study of Small and Medium US Businesses. Information and Management, 42(1), 197-216.
9. Hashim, N.A. (2006). SMEs and E-commerce: An Exploratory Study of Effectiveness of Government ICT Assistance Programmes. SME-Entrepreneurship Global Conference 2006, 17-18 October, Kuala Lumpur
10. Hussin, H., Noor, R.M., and Suhaimi, M.A. (2008). Perceived Attributes of E-Commerce and the Adoption Decision: The Case of Malaysian SMEs. Jurnal Teknologi Maklumat and Multimedia, 5, 107-125.
11. Jeon, B.N., Han, K.S., and Lee, M.J. (2006). Determining Factors for the Adoption of e-Buisness: the Case of SMEs in Korea. Applied Economics. 38(16), 1905-1916.
12. Johnston, D.A., Wade, M., and McClean, R. (2007).Does eBusiness Matter to SMEs? A Comparison of the Financial Impacts of Internet Business Solutions on European and North American SMEs. Journal of Small Business Management. 45(3), 354-361.
13. Johnston, D.A. and Wright, L. (2004). The E-Business Capability of Small and Medium Sized Firms in International Supply Chains. Information Systems and eBusiness Management. 2(2-3), 223-240.
14. Karanasios, S. S. and Burgess, S. (2006). Exploring the Internet Use of Small Tourism Enterprises: Evidence from a Developing Country. Electronic Journal of Information Systems in Developing Countries, 27(3), 1-21.
15. Kartiwi, M. and MacGregor, R.C. (2007). electronic Commerce Adoption Barriers in Small to Medium Sized Enterprises (SMEs) in Developed and Developing Countries: A Cross-country Comparison. Journal of Electric Commerce in Organizations, 5(3), 35-51
16. Kula, V., and Tatoglu, E. (2003). An Exploratory Study of Internet Adoption by SMEs in an Emerging Market Economy. European Business Review, 15(5), 324-333.
17. Kurnia, S. (2007). Identifying e-Commerce Adoption Driving Forces and Barriers: The Case of the Indonesian Grocery Industry. CollECTeR (Collaborative Electronic Commerce Technology and Research) 2007, 9-11 December, Adelaide, Australia
18. Lal, K. (2002). E-business and Manufacturing Sector: A Study of Small and Medium Sized Enterprises in India. Research Policy, 31(7), 1199-1211.
19. Maguire, S., Koh, S.C.L. and Magrys, A., (2007). The Adoption of E-Business and Knowledge Management in SMEs. Benchmarking: An International Journal. 14(1), 37-58.
20. Migiro, S.O. (2006). Diffusion of ICTs and E-Commerce Adoption in Manufacturing SMEs in Kenya. South African Journal of Library and I nformation Science 72(1), 35-44.
21. Molla, A. and Licker, P.S. (2005). Perceived E-Readiness Factors in E-Commerce Adoption: An Empirical Investigation in a Developing Country. International Journal of Electronic Commerce, 10(1), 83-110.
22. Ramayah, T., Yan, L.C. and Sulaiman, M. (2005). SME e-readiness in Malaysia: Implications for Planning and Implementation. Sasin Journal of Management. 11(1), 103-120.
23. Raymond, L., Bergeron, F. o., and Blili, S. (2005). The Assimilation of e-Business in Manufacturing SMEs- Determinants and Effects on Growth and Internationalization. Electronic Markets. 15(2), 106-118.
24. Raven, P.V., Huang, X., and Kim, B.B. (2007). E-Business in Developing Countries: A Comparison of China and India. International Journal of E-Business Research, 3(1), 91.
25. Sam, T.L. and Leng, A.-C. (2006). Adoption of Electronic Commerce amongst Small and Medium Enterprise. Knowledge Management International Conference and Exhibition 2006, Kuala Lumpur.
26. Sharma, S.K., Ahmed, N., and Wickramasinghe, N. (2004). E-Commerce Adoption in Small and Medium Enterprises (SMEs) in Asia: a Study of the Early Stages of E-commerce Uptake. International Journal of Internet and Enterprise Management, 2(3), 1.
27. Sulaiman, A. (2000). The Status of E-commerce Applications in Malaysia. Information technology for Development, 9, 153-161.
28. Teo, T. S. H. (2007). Organizational Characteristics, Modes of Internet Adoption and Their Impact: A Singapore Perspective. Journal of Global Information Management, 15(2), 91-117.
29. Thong, J. Y. L., (2001). Resource Constraints and Information Systems Implementation in Singaporean Small Businesses. Omega, 29(2), 143-156.
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