Role of Small-Business Strategic Alliances in the Perception of Benefits and Disadvantages of E-Commerce Adoption in SMEs

Despite the proclaimed advantages of small-business strategic alliances, little research has been carried out to determine whether these structures promote the benefits and/or “cushion” the disadvantages arising from ecommerce adoption for member businesses. There has also been a lack of research into comparing e-commerce use in those small businesses that are members of a strategic alliance to those that have opted to remain outside such arrangements. This chapter aims to correct the situation by presenting 2 MacGregor & Vrazalic Copyright © 2005, Idea Group Inc. Copying or distributing in print or electronic forms without written permission of Idea Group Inc. is prohibited. the findings of a study of 176 regional small businesses in Sweden that investigated the impact of strategic-alliance membership on the benefits and disadvantages associated with e-commerce adoption. The results of the study indicate that there are no significant differences between strategicalliance members and nonmembers where benefits of e-commerce are concerned. In contrast, e-commerce disadvantages are often dissipated through a strategic-alliance structure more easily than through a single self-directed unit. The study also shows that correlations between ecommerce benefits exist and that the benefits can be grouped according to three distinct factors: costs, efficiency, and sales or inventory.