Factors Affecting E-commerce Adoption of Small and Medium Enterprises in Sri Lanka: Evidence from Retail Sector
Asian Journal of Advanced Research and Reports,
Purpose: There is a resistance in the adoption of e-commerce in certain parts of the world even though most successful businesses in the world has successfully adopted e-commerce to their businesses gained an increasing success. The study aims to find the crucial factors affecting to the adoption of e-commerce by using the evidence of retail sector in Sri Lanka as a developing nation.
Methods: The targeted population for the study was the retail sector registered as Small and Medium Enterprises in Colombo District. Adopting stratified simple random sampling technique, the study selected 200 SMEs in Colombo District who are engaged in retail sector. A structured questionnaire was used to collect data. Five dimensions namely adoption of e-commerce, perceived benefits, computer literacy, government support and technology infrastructure were measured by using a Likert scale measurement items, acknowledging the prior studies.
Findings: The results revealed that computer literacy, government support and technology infrastructure had significance influence on e-commerce adoption of SMEs in Sri Lanka even though perceived benefits had less impact on e-commerce adoption.
Implication: It has been realized that Sri Lankan government support and intervention is necessary to build speedy technology infrastructure in order to encourage the usage of e-commerce as government support and technology infrastructure share a significant correlation with e-commerce adoption.
- retail sector
- multiple regressions
- developing context
How to Cite
Lawrence JE, Usman AT. Barriers to E-commerce in developing countries. Information, Society and Justice. 2010;3 (1):23-35
Chee LS, Suhaimi BA, Quan LR. Understanding the Determinants of e-Commerce Adoption. Evidence from manufacture sector in West Malaysia, Indian Journal of Science and Technology. 2016;9(10):1-8.
Garg AK, Choeu T. The adoption of electronic commerce by small and medium enterprises in Pretoria East. The electronic Journal of Information Systems in Developing Countries. 2016;68(1):1-23.
Abeysekara UGDL. E-commerce adoption in Sri Lankan small and Tourism enterprises; Evaluation pf Strategic Use; 2011.
Kapurubandara M, Lawson R. Barriers to adopting ICT and e-commerce with SMEs in developing countries: An exploratory study in Sri Lanka, Proceedings of the 2006 Collector Conference on Electronic Commerce, Adelaide, Australia; 2006.
Zaki KAM, Ahmad SZ, Bakar ARA, Faziharudean TM. An empirical study of factors affecting E-commerce adoption among small and medium-sized enterprises in a developing country: Evidence from Malaysia, Information Technology for Development. 2015;21(4): 1-18
Rahayu R, Day J. Determinant factors of E-commerce adoption by SMEs in developing country. Evidence from Indonesia. Procedia - Social and Behavioral Sciences. 2015;195:142–150.
Ministry of Industry and Commerce. National policy framework for Small and Medium Enterprises (SMEs) development. Action Plan, Colombo, Sri Lanka; 2016.
Arawwala S, Gunawardena KD. Challenges and barriers of implementing E-commerce technology among SMEs in Sri Lanka. International Journal of Trend in Research and Development. 2017;4(6): 482-486
Xiao B, Benbasat I. E-commerce product recommendation agents: Use, characteristics and impact. Mis Quarterly. 2008;31(1):137-209.
Wen I, Bai B, Law R. The impact of website quality on customer satisfaction and Purchase Intentions: Evidence from Chinese online visitors. International Journal of Hospitality Management. 2004; 27(3):391–402.
Kaewkitipong L, Brown D. Adoption and evaluation of e-business in Thai SMEs: A process perspective, Conference Proceeding, Learning from the past & charting the future of the discipline. 14th Americas Conference on Information Systems, AMCIS. Toronto, Ontario, Canada; 2008.
Industry and Retail Report Sri Lanka. Sri Lanka's rapidly growing retail sector attracts new entrants; 2016.
Chong, S. Success in electronic commerce Implementation, A cross-country study of small and medium-sized enterprises, Journal of Enterprise Information Management. 2008;21(5):468-492
Rainer K, Cegielski C. Introduction to information systems: Enabling and transforming business. 3rd Edition.
John Wiley & Sons Inc; 2011.
Rayport JF, Jaworski BJ. Introduction to e-commerce (2nd Ed), Mc Graw Hill, Singapore; 2002.
Agwu EM, Murray PJ. Empirical study of barriers to electronic commerce adoption by small and medium scale businesses in Nigeria. International Journal of Innovation in the Digital Economy. 2015;6(2):1-19
Forbes.E-commerce Set for Global Domination -- But At Different Speeds; 2018.
Daily News. Sri Lanka’s e-commerce segment records 34% growth; 2018.
Ivanov D. The impact of e-commerce on small-size companies in Sweden; 2012.
IFC. Scaling-Up SME access to financial services in the Developing World, International Finance Corporation, World Bank Group, Washington D.C; 2010.
Yeng K, Osman A, Haji-Othman, Safizal M. E-commerce adoption in Small and Medium Enterprises (SMEs) in Nothern State of Malaysia. Mediterranean Journal of Social Sciences. 2015;6(5):37-43.
Park S, Makame WH, Kang J. Factors influencing electronic commerce adoption in developing countries: The case of Tanzania. South African Journal of Business Management. 2014;45(2):83-96
Priyanath HMS, Premaratne SP. Government SME development programs in Sri Lanka: A review in the lens of transaction cost economics. Journal of University of Sabaragamuwa. 2014;13:59-81.
Laudon K, Traver CG. E-commerce. 7th Edition. London, UK. Prentice Hall. Looi, H.C. E-commerce adoption in Brunei Darussalam: A quantitative analysis of factors influencing its adoption. Communications of the Association for Information Systems. 2005;15:61-81
Mugenda OM. Research methods: Quantitative and qualitative approaches. Nairobi: Act press; 2003.
Prananto A, McKay J, Marshall P. A study of the progression of e-business maturity in Australian SMEs: Some evidence of the applicability of the stages of growth for e-business model. Proceedings of the PACIS, Adelaide. 2003;68–80.
Kraemer KL, Dedrick J, Dunkle D. E-commerce: A mile wide and an inch deep, Globalization and E-Commerce project of the Center for Research on Information Technology and Organizations (CRITO) at the University of California, Irvine; 2002.
Jamali SK, Marthandan G, Khazaei M, Samadi B, Fie DYG. Conceptualizing model of factors influencing electronic commerce adoption in Iranian family SMEs. Asian Social Science. 2015;11(10): 256-262.
Abstract View: 2745 times
PDF Download: 1287 times