Adoption and use of e-commerce in SMEs

Authors:
Saeed Solaymani;Kiomars Sohaili;Esmaeil Akhlaghi Yazdinejad
Affiliations:
Post Graduate Office, University of Malaya, Kuala Lumpur, Malaysia 50603;Department of Economics, Faculty of Social Science, Razi University, Kermanshah, Iran;Department of Accounting, Faculty of Management and Economics, Shahid Bahonar University of Kerman, Kerman, Iran
Venue:
Electronic Commerce Research
Year:
2012

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Abstract

In this study, nonlinear Logit and probit models are used to analyse the important factors that impact on the tendency of small- and medium-sized enterprises (SMEs) to use electronic commerce in one of the industrial parks in Kermanshah province of Iran. Furthermore, it identifies the major barriers of e-commerce adoption in these SMEs. The Sample of the study includes 35 SMEs in this province. The results of probit and Logit models suggest that a lower level of the internet service costs, motivates firms to adopt e-commerce. In addition, if the government provides free e-commerce facilities for SMEs, it can encourage SMEs to adopt e-commerce. Furthermore, the results show that due to uncertainty in the e-commerce, producing high-quality products and traditional exports cannot raise the tendency of sample firms to adopt e-commerce.