Barriers to Adopting Electronic Commerce for Small and Medium-sized Enterprises in Emerging Economies

Muhammad Arsalan Nazir, Muhammad Azam Roomi
2021 Emerging Markets Journal  
With the availability of the Internet as an Information and Communication Technology (ICT) tool, electronic commerce (e-commerce) has received much attention in many Western and developed countries. However, it has been given little attention in emerging economies, and therefore e-commerce adoption has been particularly difficult for Small and Medium-sized Enterprises (SMEs). The purpose of this review paper is to explore several types of barriers that influence the adoption of e-commerce by
more » ... of e-commerce by SMEs in emerging economies. An exhaustive review of the literature was conducted on the subject. It further evaluates and extends Tornatzky and Fleischer's (1990) Technology-Organization-Environment (TOE) framework by adding a micro-level context - that of the 'entrepreneurial (individual) characteristics of owner-managers' to examine various contextual challenges SMEs face in adopting e-commerce in emerging economies. The paper examines a number of new dynamic and contextual barriers identified in the study, grouping them into four themes: technological, organizational, environmental and extended 'entrepreneurial (individual) characteristics of owner-managers'. The paper sets up a new conceptual framework and has established a holistic view of contextual barrier themes for the coming years. In addition, this theoretical model provides us with the new barriers related to 'entrepreneurial (individual) characteristics of owners/managers' and 'local business institutions in supporting e-commerce' that influences the adoption of e-commerce by SMEs in emerging economies. Based on this extended framework, future areas of research can be determined, and owner-managers of SMEs, new entrepreneurs and government authorities in emerging economies will be able to identify emerging concepts in e-commerce.
doi:10.5195/emaj.2020.203 doaj:0aea37018b33447ab20b218ef9468093 fatcat:agak34mcp5axnebnh4sedrlika