Barriers to Electronic Commerce Adoption Among Small Businesses in Iran

This research examines potential barriers within the Technology-Organization-Environment (TOE) framework that affect the decision to adopt Electronic Commerce (EC) and extent of EC adoption within Small Businesses (SBs) in the context of developing countries. This research also signifies the discriminators of adoption and non-adoption of different EC applications. Through a questionnaire-based survey of 268 owners or managers of Iranian manufacturing SBs, initial and post EC adoption by these businesses were found to be hindered by some of barriers existing within technological, organizational, and environmental context including cost of EC, lack of EC compatibility, perceived risk of EC, lack of EC awareness, lack of knowledge, family intervention, lack of external support, lack of government support, and lack of business partners’ EC readiness. Similarly, this study provides discussions on determinants of adoption and non-adoption of different EC applications. Theoretical contribution and managerial implications of this research are discussed which is believed to offer valuable insights to managers, EC experts, and policy makers regarding institutionalization of EC within SBs of developing countries. DOI: 10.4018/978-1-4666-3622-4.ch013