A Framework for E-commerce Adoption by Smes in Developing Countries

The study for e-commerce adoption indicates viable and practical solutions from ecommerce for organizations to meet challenges of a changing economic environment to enhance competitiveness. Much of this research relates to developed countries ready to spring on new approaches. However, developing countries seem to fall far behind. The few available studies related to SMEs in developing countries reveal a delay or failure on the part of SMEs to adopt ICT and e-commerce technologies. Various factors identified as causes for this limitation can be broadly classified as Internal Barriers and External Barriers. An exploratory pilot study and interviews were conducted and results analyzed using frequency distribution tools, with a view to developing a framework that will eTransform SMEs in developing countries The study presents an eSME roadmap to determine the current stage of ICT sophistication and e-commerce adoption level for SMEs in developing countries. The road map also provides a guide to SMEs to plan and develop support activities and requirements for attaining a desired level of ICT and e-commerce adoption. Findings from this study reveal that a large number of SMEs have adopted ICT but at a rudimentary level, not a single SME has an e-commerce site where transactions are initiated and accomplished electronically. Lack of skills, lack of awareness of benefits of e-commerce and low return on investment were discovered as major barriers. The study recommends conscious effort by Government and other industry stakeholders to strategize and develop support measures for ICT and e-commerce adoption in developing countries.