Relative Advantage and Competitive Pressure towards Implementation of E-commerce: Overview of Small and Medium Enterprises (SMEs)

Purpose In response to a turbulent industrial environment, especially for small and medium enterprises (SMEs), organizations have widely adopted e-business to improve their processes. This study aims to propose a model that encapsulates the determinants and outcomes of e-business adoption. Design/methodology/approach The determinants and outcomes of e-business adoption were tested using data gathered from 282 managers and analysed using structural equation modelling techniques. Findings The results indicated that owner support, perceived ease of use and government support were important determinants that influence e-business adoption. Attitude, competitive pressureand relative advantage were not significant. Regarding outcomes, e-business adoption had a major impact on SME functioning and operational progress; however, it had no influence on competitive advantage. Originality/value By ascertaining the determinants and outcomes of e-business adoption, the findings provide e-business practitioners and managers with guidelines that can encourage more efficient and effective e-business adoption within their organizations. The results also provide a basis for more precise e-business studies to be conducted in developing countries.

Download Full-text

E-commerce adoption in Malaysian Small and Medium Enterprises Practitioner Firms: A revisit on Rogers' model

Anais da Academia Brasileira de Ciências ◽

10.1590/0001-37652013103512 ◽

2013 ◽

Vol 85 (4) ◽

pp. 1593-1604 ◽

Cited By ~ 7

Author(s):

MEHDI M. POORANGI ◽

EDWARD W.S. KHIN ◽

SHOHREH NIKOONEJAD ◽

ARASH KARDEVANI

Keyword(s):

Diffusion Of Innovation ◽

Response Rate ◽

Small And Medium Enterprises ◽

Survey Methods ◽

Relative Advantage ◽

Five Factors ◽

Innovation Model ◽

Different Dimensions ◽

Medium Enterprises ◽

A Company

The current climate of business necessitates competitions that are often tough and unpredictable. All organizations, regardless their size and scope of operation, are facing severe competitive challenges. In order to cope with this phenomenon, managers are turning to e-commerce in their respective organizations. The present study hinges upon exploring and explaining the different dimensions of the adoption of e-commerce among Small and medium enterprises, based on the Five Factors of Diffusion of Innovation Model derived by Rogers. In this study, however, we employed the survey methods. A questionnaire was distributed to 1,200 managers and employees in the manufacturing, service and agricultural sectors by email; with a response rate of 10%. The results gleamed from this study posits that relative advantage is influential vis-à-vis e-commerce adoption. Trialability and Observability factors affect the level of confidence of management, which in turn, influences e-commerce adoption. Meanwhile, the existing culture of a company affects the resistance of employees, which in turn negatively effects the e-commerce adoption, while complexity does not significantly influence the e-commerce adoption.

Download Full-text

Prioritizing Technology Adoption Dynamics among SMEs

TEM Journal ◽

10.18421/tem93-21 ◽

2020 ◽

pp. 983-991

Author(s):

Mohammad Naushad ◽

Sulphey M. M

Keyword(s):

Information And Communication Technologies ◽

Small And Medium Enterprises ◽

Personal Characteristics ◽

Ease Of Use ◽

Relative Advantage ◽

Management Support ◽

Ict Adoption ◽

Information And Communication ◽

Medium Enterprises ◽

Relevant Factors

Though Small and Medium Enterprises (SMEs) are engines of growth, due to multiple reasons they are low in adoption of digitalization and technology. This paper seeks to provide a framework to prioritize the factors/dynamics towards adoption of information and communication technologies (ICT). Through review of literature and applying Analytical Hierarchy Process (AHP), relevant factors have been chalked out and arranged in terms of priority. The findings indicate SMEs adopt ICT to have a relative advantage over competitors. Affordability, ease of use, value creation and productivity are top priority reasons. Profitability and top management support are other prime factors that stimulate ICT adoption. Other relevant factors include technological self-efficacy and personal characteristics of entrepreneurs.

Download Full-text

Adoption of Industrial IoT (IIoT) in Auto-Component Manufacturing SMEs in India

Information Resources Management Journal ◽

10.4018/irmj.2019040103 ◽

2019 ◽

Vol 32 (2) ◽

pp. 52-75 ◽

Cited By ~ 3

Author(s):

Brijesh Sivathanu

Keyword(s):

Small And Medium Enterprises ◽

Control Variable ◽

Relative Advantage ◽

Primary Data ◽

Management Support ◽

Industrial Iot ◽

Component Manufacturing ◽

The Government ◽

Medium Enterprises ◽

Auto Component

This article investigates the adoption of Industrial Internet-of-Things (IIoT) in Auto-Component Manufacturing SMEs (ACM SMEs) in the context of a developing country like India by using the Technology-Organization-Environment (TOE) framework. This research surveyed Information & Communication Technology (ICT) officers, managers and owners of 320 ACM SMEs in India using a structured questionnaire to understand the adoption of IIoT. The primary data was analyzed using the PLS-SEM technique. It was found that IIoT expertise, IIoT infrastructure, relative advantage, compatibility, cost, security, organizational readiness, top management support, competitive pressure, and support from technology vendors are factors that affect the adoption of IIoT. This article considered organization size as the control variable. The results show that it does not have a significant effect on the adoption of IIoT. ACM SMEs are one of the important sectors adopting IIoT. This article provides valuable insights to their managers and IIoT vendors. It also suggests key inputs to the government officials involved in the ‘Make in India' initiative of Government of India (GoI) and Ministry of Micro, Small and Medium Enterprises (MSME).

Download Full-text

The Determinants of Adoption of Cloud-Based ERP of Nigerian's SMES Manufacturing Sector Using Toe Framework and Doi Theory

International Journal of Enterprise Information Systems ◽

10.4018/ijeis.2019070102 ◽

2019 ◽

Vol 15 (3) ◽

pp. 27-43 ◽

Cited By ~ 8

Author(s):

Usman Musa Zakari Usman ◽

Mohammad Nazir Ahmad ◽

Nor Hidayati Zakaria

Keyword(s):

Enterprise Resource Planning ◽

Small And Medium Enterprises ◽

Manufacturing Sector ◽

Resource Planning ◽

Relative Advantage ◽

Research Model ◽

Adoption Factors ◽

Innovation Characteristics ◽

Operational Issues ◽

Medium Enterprises

Adoption factors relating to enterprise resource planning (ERP) have been studied quite extensively over the years. Most of the earlier studies on cloud ERP have focused only on technical and operational issues. A few studies have addressed the adoption of cloud ERP from the user's perspective, mostly assessing the effects of the innovation characteristics or the contextual factors. Very few studies to date have conducted a holistic evaluation of both the direct and indirect effects of the determinants on cloud ERP adoption in manufacturing SMEs. Therefore, this study aims to explore and gain an understanding of the determinants of adoption factors for cloud ERP and its relative advantage to small and medium enterprises (SME) organisations. The manufacturing SMEs in Nigeria are specifically targeted. This study also seeks to develop a research model that integrates the innovation characteristics and technology-organisation-environment (TOE) perspectives that underlie its adoption.

Download Full-text

Adoption of Industrial IoT (IIoT) in Auto-Component Manufacturing SMEs in India

Research Anthology on Small Business Strategies for Success and Survival ◽

10.4018/978-1-7998-9155-0.ch036 ◽

2021 ◽

pp. 719-746

Author(s):

Brijesh Sivathanu

Keyword(s):

Small And Medium Enterprises ◽

Control Variable ◽

Relative Advantage ◽

Primary Data ◽

Management Support ◽

Government Officials ◽

Component Manufacturing ◽

The Government ◽

Medium Enterprises ◽

Auto Component

This article investigates the adoption of Industrial Internet-of-Things (IIoT) in Auto-Component Manufacturing SMEs (ACM SMEs) in the context of a developing country like India by using the Technology-Organization-Environment (TOE) framework. This research surveyed Information & Communication Technology (ICT) officers, managers and owners of 320 ACM SMEs in India using a structured questionnaire to understand the adoption of IIoT. The primary data was analyzed using the PLS-SEM technique. It was found that IIoT expertise, IIoT infrastructure, relative advantage, compatibility, cost, security, organizational readiness, top management support, competitive pressure, and support from technology vendors are factors that affect the adoption of IIoT. This article considered organization size as the control variable. The results show that it does not have a significant effect on the adoption of IIoT. ACM SMEs are one of the important sectors adopting IIoT. This article provides valuable insights to their managers and IIoT vendors. It also suggests key inputs to the government officials involved in the ‘Make in India' initiative of Government of India (GoI) and Ministry of Micro, Small and Medium Enterprises (MSME).

Download Full-text

AN EMPIRICAL ANALYSIS OF FACTORS INFLUENCING INTERNET/E-BUSINESS TECHNOLOGIES ADOPTION BY SMES IN CANADA

International Journal of Information Technology & Decision Making ◽

10.1142/s0219622011004543 ◽

2011 ◽

Vol 10 (04) ◽

pp. 731-766 ◽

Cited By ~ 85

Author(s):

PRINCELY IFINEDO

Keyword(s):

Diffusion Of Innovation ◽

Small And Medium Enterprises ◽

External Pressure ◽

Government Support ◽

Relative Advantage ◽

Management Support ◽

Research Model ◽

Complexity Management ◽

Business Operations ◽

Medium Enterprises

Small and medium enterprises (SMEs) around the world engage in e-commerce and e-business to support business operations as well as to enhance revenue generation from nontraditional sources. Internet and e-business technologies (IEBT) are the pillars of e-commerce and e-business. Despite the universal appeal of IEBT, it has been reported that the adoption of such technologies by SMEs is influenced by contextual imperatives. The objective of this research is to investigate factors impacting the adoption of IEBT in SMEs based in the Maritime region of Canada. A research model based on the diffusion of innovation (DIT) and the Technology–Organization–Environment (TOE) frameworks was used to guide the discourse. Such factors as relative advantage, compatibility, complexity, management support, organizational readiness, external pressure, and government support were used to develop relevant hypotheses. Questionnaires were mailed to key informants in SMEs. Data analysis was performed using the partial least squares (PLS) technique. Predictions related to relative advantage, management support, and competition's pressure were confirmed. The study did not support the constructs of compatibility, complexity, government support, customers' and partners' pressures as significant predictors of IEBT adoption by the SMEs in the region.

Download Full-text

THE INFLUENCE OF ATTITUDINAL FACTORS OF SME OWNER-MANAGERS ON ADOPTION OF FINANCIAL PRODUCTS

Malaysian Management Journal ◽

10.32890/mmj.21.2017.9051 ◽

2020 ◽

Author(s):

Rabia Rasheed ◽

Maria Abdul Rahman ◽

Rashid Bhutta

Keyword(s):

Small And Medium Enterprises ◽

Research Direction ◽

Financial Behavior ◽

Relative Advantage ◽

Screening Process ◽

Financial Products ◽

Intention To Adopt ◽

Attitudinal Factors ◽

Medium Enterprises ◽

Perceived Complexity

Given the key role of owner managers in the decision making process, understanding socio-psychological factors of small and medium enterprises (SMEs) financial behavior has often been prescribed as an important research direction. In accordance with the above, present study in context of Pakistan investigated the attitudinal factors of SMEs owner-managers’ towards adoption of financial products. The attitudinal factors are depicted as perceived relative advantage, perceived compatibility and perceived complexity. The proposed model has been adapted, which is composed of decomposed theory of planned behavior (DTPB) and decomposed attitudinal factors of SMEs owner-manager to investigate their intention to adopt financial products in Pakistan. Relying on a survey research design, and following stratified sampling method, after screening process 285 owner-managers responses have been considered for further analysis. The findings revealed that perceived relative advantage and perceived compatibility possess significant positive relationships with owner-manager attitude towards adoption of financial product which further significantly predicts behavioral intention. Moreover, perceived complexity has negative but significant relationship with SMEs owner-manager attitude towards adoption of financial products. SMEs owner-managers exhibit serious concern towards formal financial products adoption, the policy makers are suggested to focus on creating specialized products which are useful, compatible and easy to understand for SMEs owner-manager in Pakistan.

Download Full-text

Determinants of Blockchain Technology Adoption in Supply Chains by Small and Medium Enterprises (SMEs) in India

Mathematical Problems in Engineering ◽

10.1155/2021/5537395 ◽

2021 ◽

Vol 2021 ◽

pp. 1-14

Author(s):

Amit Kumar Bhardwaj ◽

Arunesh Garg ◽

Yuvraj Gajpal

Keyword(s):

Technology Adoption ◽

Supply Chains ◽

Technology Acceptance ◽

Small And Medium Enterprises ◽

Perceived Usefulness ◽

Relative Advantage ◽

Equation Modeling ◽

Integrated Technology ◽

Blockchain Technology ◽

Medium Enterprises

In recent times, organizations are increasingly adopting blockchain technology in their supply chains due to various advantages such as cost optimization, effective and verified record-keeping, transparency, and route tracking. This paper aims to examine the factors influencing the intention of small and medium enterprises (SMEs) in India to adopt blockchain technology in their supply chains. A questionnaire-based survey was used to collect data from 216 SMEs in the northern states of India. The study has considered an integrated technology adoption framework consisting of the Technology Acceptance Model (TAM), Diffusion of Innovation (DOI), and Technology-Organization-Environment (TOE). Using this integrated TAM-TOE-DOI framework, the study has proposed eleven hypotheses related to factors of blockchain technology adoption. Confirmatory factor analysis (CFA) and structural equation modeling (SEM) have been used to test the hypotheses. The results show that relative advantage, technology compatibility, technology readiness, top management support, perceived usefulness, and vendor support have a positive influence on the intention of Indian SMEs to adopt blockchain technology in their supply chains. The complexity of technology and cost concerns act as inhibitors to the technology adoption by SMEs. Furthermore, the three factors, namely, security concerns, perceived ease of use, and regulatory support, do not influence the intention to adopt the technology. The study contributes to filling a significant gap in the academic literature since only a few studies have endeavored to ascertain the technology adoption factors by supply chains of SMEs in a developing country like India. The study has also proposed a novel integrated technology adoption framework that can be employed by future studies. The findings are expected to enable SMEs to understand important factors to be considered for adopting blockchain technology in their supply chains. Furthermore, the study may benefit the blockchain technology developers and suppliers as they can offer customized solutions based on the findings.

Download Full-text

Benefits and challenges in adopting social media for SMEs: A case from Bangladesh

Journal of Sustainable Tourism and Entrepreneurship ◽

10.35912/joste.v2i3.783 ◽

2021 ◽

Vol 2 (3) ◽

pp. 171-185

Author(s):

Most. Tahura Pervin ◽

◽

Bipul Kumar Sarker ◽

Keyword(s):

Social Media ◽

Small And Medium Enterprises ◽

Field Studies ◽

Relative Advantage ◽

Innovative Management ◽

Toe Framework ◽

Use Of Social Media ◽

Medium Enterprises ◽

Structured Questionnaire ◽

Significant Factors

Abstract Purpose: The purpose of this study was to identify the challenges, Benefits, and various determinants which play an important role in adopting social media among small and medium-sized enterprises (SMEs) in Bangladesh, based on the (Technology-Organization-Environment) TOE Model. The TOE framework seeks to understand the significant factors influencing the decision to adopt social media in SMEs in Bangladesh. Research methodology: In the study, a random sampling method was used to select a representative sample from the existing active SMEs in different regions of Bangladesh. A structured questionnaire was designed to measure constructs such as relative advantage. Preliminary data were collected from 365 small and medium enterprises through field studies. Then the survey data were analyzed using logistic regression (L.R.) of the independent variables included in the TOE framework Results: The outcomes of the study found that only 5 variables: relative advantage, complexity, consistency, top management's assistance, and innovative management factors significantly influence SMEs' decisions to adopt social media. Limitations: The busy schedules of the respondents are key limitations for the study along with the study area. If the study could explore more districts besides Dhaka city, then the study outcomes would be more extensive. Contribution: The results from this study will help SME foundations, research institutes, and government policymakers to formulate strategies for optimal use of social media in SMEs.

Download Full-text