Adoption of e‐commerce applications in SMEs

TLDR

The study investigates how technology, organization, and environment factors influence SMEs’ adoption and extent of electronic commerce and the adoption or non‑adoption of specific EC applications. A survey of 235 Iranian manufacturing SME managers was analyzed using factorial, multiple, and logistic regression to test TOE‑based hypotheses. Adoption is driven by perceived relative advantage, compatibility, CEO innovativeness, information intensity, buyer/supplier pressure, vendor support, and competition, and the study identifies determinants for both adoption and non‑adoption of various EC applications. The cross‑sectional design limits causal inference over time.

Abstract

Abstract Purpose – The purpose of this paper is to examine the factors within the technology‐organization‐environment (TOE) framework that affect the decision to adopt electronic commerce (EC) and extent of EC adoption, as well as adoption and non‐adoption of different EC applications within small‐ and medium‐sized enterprises (SMEs). Design/methodology/approach – A questionnaire‐based survey was conducted to collect data from 235 managers or owners of manufacturing SMEs in Iran. The data were analyzed by employing factorial analysis and relevant hypotheses were derived and tested by multiple and logistic regression analysis. Findings – EC adoption within SMEs is affected by perceived relative advantage, perceived compatibility, CEO's innovativeness, information intensity, buyer/supplier pressure, support from technology vendors, and competition. Similarly, description on determinants of adoption and non‐adoption of different EC applications has been provided. Research limitations/implications – Cross‐sectional data of this research tend to have certain limitations when it comes to explaining the direction of causality of the relationships among the variables, which will change overtime. Practical implications – The findings offer valuable insights to managers, IS experts, and policy makers responsible for assisting SMEs with entering into the e‐marketplace. Vendors should collaborate with SMEs to enhance the compatibility of EC applications with these businesses. To enhance the receptiveness of EC applications, CEOs, innovativeness and perception toward EC advantages should also be aggrandized. Originality/value – This study is perhaps one of the first to use a wide range of variables in the light of TOE framework to comprehensively assess EC adoption behavior, both in terms of initial and post‐adoption within SMEs in developing countries, as well adoption and non‐adoption of simple and advanced EC applications such as electronic supply chain management systems.