Hong-Cheong Looi A Model of Factors Influencing Electronic Commerce Adoption among SMEs in Brunei Darussalam 72 A Model of Factors Influencing Electronic Commerce Adoption among Small and Medium Enterprises in Brunei Darussalam

This study aims to develop a model of factors motivating and inhibiting electronic commerce adoption among small and medium enterprises (SMEs) in Brunei Darussalam. Recent statistics show that total number of businesses employing web sites in Brunei Darussalam is very small compared to those in Singapore and Malaysia. Organizations are coming under increasing pressure to adopt electronic commerce as part of the need to be efficient and competitive and to play a greater role in driving the economy. With the new century, the continued prosperity of Brunei Darussalam can no longer be taken for granted. Qualitative research method, in the form of semi-structured interviews, was used to identify factors that are important and relevant to encourage willingness to adopt. Findings indicate that owner characteristics like lack of perceived benefits, lack of knowledge and skill, perceived lack of trust are significant inhibitors while environment characteristics like competitive pressure, government support and infrastructure are significant motivators of electronic commerce in Brunei Darussalam. The model forms a basis for further research as further quantitative study, in the form of survey, can be carried out to assess the model’s validity and provide further insights into the relationships among the factors. Keyword: Electronic Commerce, Diffusion of Innovation, Adoption, Small and Medium Enterprises