Electronic commerce adoption by SMEs in Singapore

Abstract

The study surveys the receptivity of Singaporean small and medium-sized enterprises (SMEs) to the adoption of electronic commerce. Utilising a portion of E.M. Rogers' (1995) model of innovation diffusion as the framework and treating electronic commerce (EC) as a form of new innovation, we analyse factors affecting EC diffusion. A multiple regression analysis is carried out, with the five attributes of innovation highlighted by Rogers, to determine the attributes that affect the willingness to adopt. Of the five factors affecting adoption of electronic commerce by SMEs, only relative advantage, compatibility and trialability appear significant, with the overall regression explaining around 36 per cent of willingness to adopt.

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