Perceived barriers towards the use of e-trade processes by Korean SMEs

Purpose – E-trade, electronic trading appears to offer increased efficiency in business processes, but only a limited number of small firms have adopted the new processes. The purpose of this paper is to try to establish the obstacles, the perceived barriers, to the continuing use of e-trade technologies by small Korean firms. Design/methodology/approach – The literature was employed to develop a theoretical model that includes perceived risk and the environment. The model was operationalised in a questionnaire completed by 164 respondents. LISREL validated the instrument and the model. The data were analysed using Structural Equation Modelling. Findings – We found that information risk and business risk negatively affect adoption and use. We also tested the relationship between the environment of the organisation and adoption of e-trade. Our results show that the maturity of information technology and the innovation characteristics of the firm have positive influences on the adoption of e-trade. Research limitations/implications – This study uses data from existing users, so our findings extend the existing literature about decisions to adopt and use new processes. The data are, however, limited to the Korean context. Practical implications – The study demonstrates the negative influence of perceptions about risk associated with innovative processes. Thus this awareness and understanding of how barriers are perceived should help to increase the diffusion of e-trade systems. Our findings indicate what has to be done for developing and extending the use of e-trade. Originality/value –.The study is novel and contributes to our understanding of the adoption and use of new processes