Evaluating the Factors That Influence E-commerce Performance on SMEs in China

Abstract

This paper investigated the factors that influence the e-commerce performance of Chinese small and medium enterprises (SMEs). E-commerce provides a platform the fair competition between SMEs and large enterprises. In fact, within a decade, e-commerce has brought economic benefits to many SMEs. Hence a number of SMEs rapidly adopted this platform in recent years. SMEs are facing critical barriers to e-commerce application. First, there are e-commerce implementation and adoption decision issues. Second, there is a need to consider the key success factors and its relationship with other variables. Third, these is a dilemma on how to measure the effect on the firm of implementing e-commerce and the appropriate performance evaluation procedure. In this paper, theoretical and empirical explorations and critical research were conducted on e-commerce among SMEs in China. Considering the downward trend in the performance of SMEs and the existing theoretical models, this study presented relevant hypothesis. Past studies were also reviewed and organized to support the argument. This paper analyzed the factors that influenced e-commerce performance based on a number of research papers. Using the statistical SEM verification method, this study also discovered the critical success factors in doing business through e-commerce among SMEs. Two critical factors were verified from about 200 cases which are subjected to statistical processing. It was found that internal human resources and e-commerce strategies are the statistically significant success factors for e-commerce performance among Chinese SMEs.