A taxonomy of e‐business adoption and strategies in small and medium sized enterprises

Abstract

Abstract Contemporary research has shown the need for a strategic approach when undertaking a new investment such as e‐business (Pleitner, 1989; Schindehutte and Morris, 2001; Whipp, 1996). In this context, small and medium enterprises (SMEs) face special problems as they are often dependent on larger enterprises where they are suppliers of products (goods or services) or buyers of products (Kalakota and Robinson, 1999; Mehrtens et al., 2001). They also tend to neglect strategies more than large enterprises and cannot adopt the strategies of large enterprises because of their different situation (Curran and Blackburn, 2001; Beaver, 2002; Jones and Tilley, 2003). This paper examines the e‐business adoption of SMEs and their attitude towards the use of strategies when adopting e‐business technology. A comprehensive literature review shows that research in this area is deficient. While the subjects of SMEs, e‐business and strategy are adequately covered in the academic literature, there is not sufficient research available linking all three subjects. A taxonomy that describes e‐business adoption and the use of business strategies and e‐business strategies of SMEs should be used as a starting point for further research. Copyright © 2004 John Wiley & Sons, Ltd.