An Exploratory Comparison of Electronic Commerce Adoption in Large and Small Enterprises

TLDR

This study compares the reasons why small and large companies are adopting electronic commerce and the benefits realized by each group. Two contemporaneous surveys of UK small and large companies on e‑commerce use provided the empirical basis. Smaller businesses are more driven by competition response, enhanced customer service, and supplier relations, while larger firms focus more on operational efficiency; overall, smaller firms report greater benefits across all areas examined.

Abstract

This study compares the reasons why small and large companies are adopting electronic commerce (e-commerce) and compares the benefits realized from the adoption of e-commerce by these two groups of companies. Two surveys that were undertaken contemporaneously on the use of e-commerce by small and large companies in the UK were used as the empirical basis for this study. The study found that the use of e-commerce for responding to competitors, providing enhanced customer services and improving relations with suppliers was driving the uptake by smaller businesses to a greater extent than by their larger counterparts. Only in the area of improved operational efficiency did larger businesses express greater interest in adopting e-commerce. The study also found that smaller businesses believed that they had achieved greater benefits from their e-commerce services than had the larger firms in all areas explored.