Comparison of E-Commerce Practices between Large Enterprises and Small to Medium Enterprises

Abstract

E-commerce becomes an important element of the business strategy for both small and medium enterprises (SMEs) and large enterprises as online business and cyber market space continue to expand its size and volume. E-commerce has a particularly important implication for SMEs because it can help SMEs overcome many handicaps of the SMEs, such as the economies of scale, and compete against the large enterprises on the level ground. The two groups of business firms, large enterprises and SMEs, are often different in not only their sizes but also their business practices. This may also extend to how they use e-commerce in their business. This paper is to study whether there are differences in using e-commerce between large enterprises and SMEs, and what are the differences and why the differences are made. We compare the two groups of business firms in two aspects, format of implementation and their performance. Data used for the study is collected from a group of Korean firms.

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