An analysis of the factors affecting the adoption of electronic commerce by SMEs

Erdener Kaynak · Ekrem Tatoğlu · Veysel Kula

216 citations0/0 files storedInternational Marketing Review

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Technology Adoption and User Behaviour SMEs Development and Digital Marketing E-commerce and Technology Innovations

Abstract

Purpose The study investigates the internet‐based electronic commerce (EC) adoption profile of small and medium‐sized enterprises (SMEs) in Turkey as well as the factors affecting their willingness to adopt EC usage. Design/methodology/approach EC adoption is measured by a composite index of the usage frequency of 14 EC application tools. The study draws on the data obtained from a sample of 237 manufacturing SMEs with internet connection. Findings In was discovered that EC adoption was significantly influenced by its perceived benefits. However, the perceived limitations of EC applications were found to have no statistically significant effect on EC adoption. The analysis also showed that company and industry‐specific factors, with the exception of amount of resources allocated for export development, did not appear to have any significant impact on EC adoption. Research limitations/implications More efforts have to be made to remove or at least mitigate the impediments to a SME's willingness to adopt EC. The results of this study show that the lack of legal regulations is cited as one of the most serious limitations of EC and hence EC is rarely used for payment purposes. One of the most vivid implications of internet‐based EC for SMEs is the potential for external communication and information gathering for market and product research. Originality/value This study is significant for two reasons. First, it presents new data and insights into the internet‐based EC adoption of SMEs. Second, this study focuses on a relatively unexplored research area in an emerging market – Turkish SMEs.

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References

1979Review of Psychometric theory (2nd ed.).1999An exploratory study of small business Internet commerce issues 2002A literature review and classification of electronic commerce research 2004A Cross-Country Investigation of the Determinants of Scope of E-commerce Use: An Institutional Approach 2001E-Commerce Readiness: Institutional Environment and International Competitiveness 2004Benefits and barriers of electronic marketplace participation: an SME perspective 2000Internet adoption barriers for small firms in The Netherlands 2001Receptivity of Singapore's SMEs to electronic commerce adoption

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2019Revisiting international marketing strategy in a digital era 2020Digital marketing capabilities in international firms: a relational perspective 2012An empirical investigation of factors affecting e-collaboration diffusion in SMEs 2009Small firm e‐business adoption: a critical analysis of theory 2010E-Marketing-A literature Review from a Small Businesses perspective

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