A Study on E-commerce adoption by small retail businesses

Literature Review
Nikolaeva, (2006) Explained that in the past decades, studies on e-commerce adoption by small businesses have
attracted significant attention and mainly focused on the manufacturing, distribution and service sectors. E-
commerce technology adoption in SMEs and their online presence has added more advantages for step forward.
Studies also have been done in the SME retail sector realigning its significance to the economy. Different studies
have used different models and theories for E-commerce adoption. This paper attempts to discuss a conceptual
model with several influencing factors called technological, organisational, environmental, and sub-factors to better
understand e-commerce adoption procedures. The study also explained effective ways of e-commerce adoption.
The SME retail sector is the main focus issue in this study.
Al-Qirim, (2007) outlined in their study that B2C e-commerce will help businesses in developing countries to
reduce cost and to improve their access to a global market. Yet, developing countries are still some way from
success in their adoption of B2C e-commerce. This paper attempts to provide insights into the salient e-commerce
adoption issues by focusing on traditional Jordanian retailers. A focus group was conducted with traditional
retailers from various businesses types in Jordan. Five themes have emerged in the context of this paper: the
common understanding of e-commerce concepts, barriers, and drivers from retailers’ view, the readiness and
willingness towards e-commerce adoption, and potential solutions where e-commerce can take off and encourage
traditional retailers. Based on the findings, the study developed a conceptual model which attempts to illustrate the
essential requirements to help businesses successfully adopt e-commerce.
Lewis & Cockrill, (2002) Said that e-commerce has become a familiar retail channel for businesses in developed
countries, it is still considered an innovation in developing countries. Specifically, electronic commerce (e-
commerce) in Saudi Arabia is still in the first stage despite its advance and fast growth in ICT marketplace, the
highest increase in Internet penetration in the world, strong retail sector, and young population. This research study
aims to identify tangible barriers influencing consumers in Saudi Arabia to adopt e-commerce. An exploratory
research design sheds light on the tangible barriers Saudi consumers faces when shopping online. This research
study identified key tangible barriers and their relative importance for both e-commerce adapters and non-adapters
facing Saudi consumers when shopping online. Practical and managerial implications are discussed.
MacGregor & Vrazalic, (2006) highlighted in their study that Social media plays an important role in e-commerce
adoption. As an e-commerce medium, social media can be utilized by Small and Medium Enterprises (SMEs) to
promote and sell their product. Many of SMEs especially micro enterprises are still not utilizing e-commerce
adoption. The e-commerce adoption can be seen as an influenting factor towards business performance. This study
aims to determine the factors that influence micro enterprises who use social media in adopting e-commerce. This
study also aims to look at the effect of e-commerce adoption using social media towards business performance.
The study was conducted from 104 respondents in Jakarta Region which were taken by purposive sampling
method. Data were analyzed using structural equation modeling with Partial Least Square (PLS). The results
revealed that e-commerce adoption using social media conducted by micro enterprises is influenced by perceived
benefits and external environment. The results revelaed that the owner characteristics has no significant effect on e-
commerce adoption. It indicates that micro enterprises who adopt ecommerce using social media were influenced
by perceived benefits and external environtment but they were not infuenced by their characteristics of knowlegde
and skill in information technologies. The e-commerce adoption also proved to has a positive effect on business
performance of micro enterprises. Micro enterprises who adopt e-commerce using social media feel that profits are
increasing, the sales volume of products is growing and the area of marketing is expanding.
Offstein & Childers (2008) Explained that E-business benefit both large and small businesses. However, the
aggregate cost of successful online trading, including initial and recurring costs, continues to pose a great challenge
to micro-enterprises. For these willing businesses, the result is a mere web presence and for some, the thought of
trading online is a no-go area. Using a multi-case study qualitative approach, this study adopts the technology-
organisation-environment theoretical lens to explore empirically the strategies used by e-retail micro businesses to
potentially advance their e-business adoption. The findings revealed the actual cost of adoption, the technology-
organisation-environment strategies in use to lower the cost barrier, and how the pursuit of the cost barrier
simultaneously lowers some adoption barriers outside the cost factors. The study also highlighted the intrinsic
idiosyncratic nature of small firms’ ecosystems, and the fact that government resources and services provided by
companies, both private and public, could effectively reduce the costs associated with e-business adoption.
References
1. Nikolaeva, R. (2006). E‐commerce adoption in the retail sector: empirical insights. International Journal of
Retail & Distribution Management, 34(4/5), 369-387.
2. Al-Qirim, N. A. (2007). E-commerce adoption in small businesses: cases from New Zealand. Journal of
Information Technology Case and Application Research, 9(2), 28-57.
3. Lewis, R., & Cockrill, A. (2002). Going global—remaining local: The impact of e-commerce on small
retail firms in Wales. International journal of information management, 22(3), 195-209.
4. MacGregor, R. C., & Vrazalic, L. (2006). E-commerce adoption barriers in small business and the
differential effects of gender. Journal of Electronic Commerce in Organizations (JECO), 4(2), 1-24.
5. Offstein, E. H., & Childers Jr, J. S. (2008). Small Business E-Commerce Adoption througha Qualitative
Lens: Theory and Observations. Journal of Small Business Strategy (archive only), 19(1), 35-54.