Barriers to adopting E-commerce with small to midsized enterprises-SMEs in developed countries: An exploratory study in Australia

Abstract

AbstractThe paper aims to provide an insight about barriers affecting e‐commerce adoption with small to midsized enterprises (SMEs) in Australia. The objective of this research is also to consolidate the factors and determine the level of influence, either positively or negatively from the adopter’s perspective, on the adoption decision. This study also examines the factors influencing e-commerce adoption decisions in small and medium enterprises (SMEs) in Australia. Three groups of factors influencing adoption decisions are identified, including organisational, technology and environmental barriers influencing e‐commerce adoption and implementation in Australia. This paper mainly has used secondary research data and methods to provide a broad investigation ofthe barriers inAustralia, howto overcome the hurdles inSMEs ofAustralia necessary for SMEs tohelpfacilitatee-commerceadoption.Theresearchis subjecttoacademic journal articles, projectreports,media articles, corporation based documents and other appropriate information. In future, questionnaire‐based survey and interview will be conducted with small to midsized businesses in Australia about e‐commerce adoption and implementation. The finding says that one of the most vivid implication sofe commerce for SMEs is the potential for external communication and information gathering for market and product research. However, the most common limitation of e-commerce in Australia is that ecommerce is mainly used for payment purposes only. The study has found that the historical relationship problems between Business Link and SMEs are still causing problems. Cost was not seen as an inhibitor to adopting e‐commerce. Some evidence is emerging that e‐commerce may be able to save failing or struggling businesses. Other unexpected outcomes are that e‐commerce had social benefits for SMEs’ owners in reducing working hours yet still increased sales. The findings also show that in Australia, organisations and manager’s characteristics, perceived benefits, organisational culture, organisational IT competence, technological competency, IT support, availability of financial support, management commitment/support, external pressure and cost of adoption are significant predictors of e-commerce acceptance in the SMEs and have significantrelationships with e-commerce adoption in Australia. Keywords: E-commerce, barriers, Internet, small to medium‐sized enterprises-SMEs, adoption, Australia