Limitations of E-commerce implementation in developing countries: Case study of Iran

Electronic Commerce (E-Commerce) is well-accepted in the developed world and is playing a vital role in economic development. The less-developed and developing nations are far behind in this regard, despite of the fact that the governments have had attempted to encourage ECommerce. This paper explores the factors which can act as constraints to the development of E-Commerce in Iran. A qualitative and quantitative study was conducted in Sistan Baluchestan province of Iran. In the procedure, the professionals were interviewed while the responses of the business experts were elicited by questionnaire. According to our findings, technical infrastructure, managerial-organizational factors have supported the E-Commerce in Iran. However, social-cultural backgrounds were identified as the main barriers to E-Commerce implementation in the country. The results show that, low IT literacy rates, insignificant demand for on-line business and e-trust among the traditional traders are the major limitation aspects. In order to improve the state of E-Commerce in the country, the cultural barriers will need to be overcome. This can be achieved through mass education people to understand and accept the new technologies including IT and E-Commerce.