Critical determinants for electronic market adoption

Abstract

PurposeUnderstanding the critical determinants for the adoption of electronic markets (e-markets) is significant for the development of sustainable electronic business. The purpose of this paper is to investigate the critical determinants for the adoption of e-markets in Australian small- and medium-sized enterprises (SMEs) for electronic business.Design/methodology/approachA comprehensive review of the related studies is conducted. That leads to the development of a conceptual model for exploring the critical determinants for the adoption of e-markets in Australian SMEs. Such a model is then tested and validated using structural equation modelling on the survey data collected, leading to the identification of the critical determinants for e-market adoption in Australian SMEs.FindingsThe study reveals that perceived direct benefit, perceived trust, top management support and external pressures are critical for the adoption of e-markets in Australian SMEs. Perceived indirect benefit and organization readiness are insignificant for the adoption of e-markets.Originality/valueThis paper contributes to existing electronic business research by enriching the understanding of the critical determinants for the adoption of e-markets in Australian SMEs. Such a study provides government departments, e-market operators and SMEs with practical guidelines for the better use of e-markets in electronic business.