The Barriers to the Adoption of E-commerce by Micro Businesses, Small Businesses and Medium Enterprises
With the advent of Internet technologies and its increasing adoption and use,
numerous businesses have explored opportunities online. However, many small
to medium enterprises (SMEs) fail to follow their larger counterparts, citing
significant barriers to e-commerce adoption. This thesis explores these barriers and the extent to which they affect micro, small, and medium enterprises.
Consolidation of the literature, and publications by government bodies and SME
associations resulted in the development of a comprehensive model that depicts
the key barriers to e-commerce adoption by SMEs. Case study investigations
have assisted in determining whether these theoretical barriers existed in
practice, and if they actually existed, the extent to which the barriers affect
e-commerce adoption in the SME. Such knowledge has been obtained by
semi-structured interviews with micro business, small business, and medium
enterprise owner/managers, and interview transcripts have been subject to
thematic analysis. To gain a broader understanding, similarities and differences between barriers of the different SME types has been noted, as well as the importance of the delineation between micro, small and medium enterprises for this topic of interest. With this knowledge, it is hoped that this leads to a greater number of successful e-commerce adoption cases by SMEs, and stimulate support schemes and initiatives that focus on combating these issues.
Findings indicate that the most prevalent barriers are sectoral barriers, internal barriers (security, lack of technical knowledge, and the lack of time and resources) and external barriers (lack of government support). Furthermore,
although interview transcripts expose common themes, there are fundamental
differences in the attitudes of micro, small and medium business
owner/managers. This indicates that the delineation of SME types is important for this topic. However, this can be confirmed with a greater number of case studies.
Keywords: e-commerce, adoption, SME, barriers
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Christine Van Toorn
Director BIT/ISM Programs & Lecturer, School of Information Systems |
Dr Deborah Bunker
University of New South Wales
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Ms Karen Yee
University of New South Wales
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Dr Stephen Smith
University of New South Wales
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Ref: M06P0663