Barriers to Adopting Electronic Commerce for Small and Medium-sized Enterprises in Emerging Economies

Authors

  • Muhammad Arsalan Nazir Bahria University Islamabad Campus
  • Muhammad Azam Roomi Prince Mohammad Bin Salman College of Bus. & Entr. (MBSC)

DOI:

https://doi.org/10.5195/emaj.2020.203

Keywords:

SMEs, Entrepreneurship, E-commerce, Technology, Emerging Economies

Abstract

With the availability of the Internet as an Information and Communication Technology (ICT) tool, electronic commerce (e-commerce) has received much attention in many Western and developed countries. However, it has been given little attention in emerging economies, and therefore e-commerce adoption has been particularly difficult for Small and Medium-sized Enterprises (SMEs). The purpose of this review paper is to explore several types of barriers that influence the adoption of e-commerce by SMEs in emerging economies. An exhaustive review of the literature was conducted on the subject. It further evaluates and extends Tornatzky and Fleischer’s (1990) Technology-Organization-Environment (TOE) framework by adding a micro-level context - that of the ‘entrepreneurial (individual) characteristics of owner-managers’ to examine various contextual challenges SMEs face in adopting e-commerce in emerging economies. The paper examines a number of new dynamic and contextual barriers identified in the study, grouping them into four themes: technological, organizational, environmental and extended ‘entrepreneurial (individual) characteristics of owner-managers’. The paper sets up a new conceptual framework and has established a holistic view of contextual barrier themes for the coming years. In addition, this theoretical model provides us with the new barriers related to ‘entrepreneurial (individual) characteristics of owners/managers’ and ‘local business institutions in supporting e-commerce’ that influences the adoption of e-commerce by SMEs in emerging economies. Based on this extended framework, future areas of research can be determined, and owner-managers of SMEs, new entrepreneurs and government authorities in emerging economies will be able to identify emerging concepts in e-commerce.

Author Biography

Muhammad Arsalan Nazir, Bahria University Islamabad Campus

My name is Dr. Muhammad Arsalan Nazir. I have completed a PhD in Entrepreneurship from Teesside University Business School, UK. I have also completed a Master's degree from the University of Bedfordshire and a Postgraduate Certificate in Business from Cardiff Metropolitan University, UK. I have a specialty in the field of entrepreneurship, SMEs, innovation and business venturing. I am a permanent faculty member and currently, teaching at Bahria University Business School, Islamabad, Pakistan as an Assistant Professor.

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Published

2021-04-27

Issue

Vol. 10 No. 2 (2020)

Section

Articles

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