Skip to main content
Log in

Adoption and use of e-commerce in SMEs

A case study

  • Published:
Electronic Commerce Research Aims and scope Submit manuscript

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.

This is a preview of subscription content, log in via an institution to check access.

Access this article

Price excludes VAT (USA)
Tax calculation will be finalised during checkout.

Instant access to the full article PDF.

Institutional subscriptions

Similar content being viewed by others

Notes

  1. Grandón et al. [21].

  2. Hamshahri newspaper, 2008. Slow e-commerce in Iran. http://hamshahrionline.ir/print-68065.aspx.

  3. See footnote 2.

  4. Internet World States, Usage and population statistics (2011). Internet Usage in the Middle East http://www.internetworldstats.com/stats5.htm.

  5. Karmanshah province is one of the 31 provinces of Iran in year 2010 which is located in the west of Iran. This province is neighbor of Iraq from west.

  6. For a full discussion of these models see econometric books such as Greene [22], Econometric Analysis, and Gujarati [24], Basic Econometrics.

  7. For example, abnormality distribution of U i ’s, heteroscedasticity of U i s and low values of R 2. Note that in this models the condition E(Y i |X i ) should be between zero and one. For more information see Gujarati [24] Basic Econometrics.

  8. The address of this website is as http://www.sme.ir/?lang=en.

References

  1. Abbasi, M. R., Sarlak, M. A., Ghorbani, A., & Abbaasi, H. E. (2010). CSFs of e-commerce admission in small and medium size enterprises (SMEs). Africa Journal of Business Management, 4(16), 3480–3490.

    Google Scholar 

  2. Antoniou, G., & Batten, L. (2011). E-commerce: protecting purchaser privacy to enforce Trust. Electronic Commerce Research, 11, 421–456.

    Article  Google Scholar 

  3. Baer, A. G., & Brown, C. (2007). Adoption of e-marketing by direct-market farms in the Northeastern United States. Journal of Food Distribution Research, 38(2), 1–11.

    Google Scholar 

  4. Beheshti, H. M., & Salehi, S. E. (2007). The benefits of e-business adoption: an empirical study of Swedish SMEs. Service Business, 1, 233–245.

    Article  Google Scholar 

  5. Burgess, L., Parish, B., & Alcock, C. (2011). To what extent are regional tourism organisations (RTOs) in Australia leveraging the benefits of web technology for destination marketing and e-Commerce? Electronic Commerce Research, 11, 341–355.

    Article  Google Scholar 

  6. Cette, G., Mairesse, J., & Kocoglu, Y. (2005). ICT diffusion and potential output growth. Economics Letters, 87, 231–234.

    Article  Google Scholar 

  7. Chau, S. (2003). The use of E-commerce amongst thirty-four Australian SMEs: an experiment or a strategic business tool? Journal of Systems and Information Technology, 7(1–2), 49–66.

    Article  Google Scholar 

  8. Chipika, S., & Wilson, G. (2006). Enabling technological learning among light engineering SMEs in Zimbabwe through networking. Technovation, 26(8), 969–979.

    Article  Google Scholar 

  9. Colecchia, A., & Schreyer, P. (2002). ICT investment and economic growth in the 1990s: is the United States a unique case? A comparative study of nine OECD countries. Review of Economic Dynamics, 5, 408–442.

    Article  Google Scholar 

  10. Dehkordi, L. F., Shahnazari, A., & Noroozi, A. (2011). A study of the factors that influence the acceptance of e-commerce in developing countries: a comparative survey between Iran and United Arab Emirates. Interdisciplinary Journal of Research in Business, 1(6), 44–49.

    Google Scholar 

  11. Drew, S. (2003). Strategic uses of e-commerce by SMEs in the east of England. European Management Journal, 21(1), 79–88.

    Article  Google Scholar 

  12. Dyerson, R., Harindranath, G., & Barnes, D. (2009). National survey of SMEs’ use of IT in four sectors. Electronic Journal of Information Systems Evaluation, 12(1), 39–50.

    Google Scholar 

  13. Eikebrokk, T. R., & Olsen, D. H. (2007). An empirical investigation of competency factors affecting e-business success in European SMEs. Information & Management, 44, 364–383.

    Article  Google Scholar 

  14. Elahi, S., & Hassanzadeh, A. (2005). A framework for evaluating electronic commerce adoption in Iranian companies. International Journal of Information Management, 29, 27–36.

    Article  Google Scholar 

  15. Elmazi, I., Vukaj, H., Gega, E., & Elmazi, L. (2011). Information technology and its effects in SME. The case of Albania. International Journal Management Cases, 291–298.

  16. Farhoomand, A. F., Tuunainen, V. K., & Yee, L. (2000). Barriers to global electronic commerce: a cross-country study of Hong Kong and Finland. Journal of Organization Computing Electronic Commerce, 10(1), 23–48.

    Article  Google Scholar 

  17. Gajsek, B., & Pucihar, A. (2004). Factors facilitating successful adoption of e-marketplace by SMEs: the case in Slovenia. In 17th Bled eCommerce conference eGlobal, Bled, Slovenia, June 21–23.

    Google Scholar 

  18. Ghobakhloo, M., Arias-Aranda, D., & Benitez-Amado, J. (2011). Adoption of e-commerce applications in SMEs. Industrial Management & Data Systems, 111(8), 1238–1269.

    Article  Google Scholar 

  19. Gilaninia, S., Mousavian, S. J., Ghorbani, S. G. B., Najafpour, A., Najibzadeh, M., Esmaeili, H., Babaei, M., & Zadbagher, F. S. (2011). Challenges application of e-commerce in Iran. Institute of Interdisciplinary Business Research. Interdisciplinary Journal of Contemporary Research in Business, 3(8), 497–507.

    Google Scholar 

  20. Grandon, E. E., & Pearson, J. M. (2004). Electronic commerce adoption: an empirical study of small and medium US businesses. Information & Management, 42, 197–216.

    Article  Google Scholar 

  21. Grandón, E. E., Nasco, S. A., & Mykytyn, P. P. Jr. (2011). Comparing theories to explain e-commerce adoption. Journal of Business Research, 64, 292–298.

    Article  Google Scholar 

  22. Greene, W. H. (2002). Econometric Analysis. New York: Prentice Hall.

    Google Scholar 

  23. Gregg, D. G., & Walczak, S. (2010). The relationship between website quality, trust and price premiums at online auctions. Electronic Commerce Research, 10, 1–25.

    Article  Google Scholar 

  24. Gujarati, D. N. (2004). Basic econometrics (4th edn.). New York: McGraw-Hill.

    Google Scholar 

  25. Hadaya, P. (2006). Determinants of the future level of use of electronic marketplaces: the case of Canadian firms. Electronic Commerce Research, 6, 173–185.

    Article  Google Scholar 

  26. Hodgkinson, A., & McPhee, P. (2002). SME information sourcing for innovation and export market developments: from local or external networks. WP 02-08, Department of Economics, University of Wollongong.

  27. Hunaiti, Z., Masa’deh, R., Mansour, M., & Al-Nawafleh, A. (2009). Electronic commerce adoption barriers in small and medium-sized enterprises (SMEs) in developing countries: the case of Libya. IBIMA Business Review, 2, 37–45.

    Google Scholar 

  28. Ifinedo, P. (2011). Internet/e-business technologies acceptance in Canada’s SMEs: an exploratory investigation. Internet Research, 21(3), 255–281.

    Article  Google Scholar 

  29. Islam, A. (2006). Marketing planning: concepts, patterns, structures, strategies, experiments and documents. Tehran: Bazargani.

    Google Scholar 

  30. Jalava, J., & Pohjola, M. (2008). The roles of electricity and ICT in economic growth: case Finland. Explorations in Economic History, 45, 270–287.

    Article  Google Scholar 

  31. Jennex, M. E., Amoroso, D., & Adelakun, O. (2004). E-commerce infrastructure success factors for small companies in developing economies. Electronic Commerce Research, 4, 263–286.

    Article  Google Scholar 

  32. Kartiwi, M., & MacGregor, R. C. (2008). Electronic commerce adoption barriers in small to medium-sized enterprises (SMEs) in developed and developing countries: a cross-country comparison. New York: IGI Global (Chap. 5.23).

    Google Scholar 

  33. Kiani, K. H. (2005). The impact of e-commerce on GDP and labor productivity in Iran. Peyke Noor Journal, 2(4), 128–157.

    Google Scholar 

  34. Kiani, K. H., & Tayefi, Z. (2006). The analysis of e-commerce impact on value—added and total factor productivity of the industrial sector in Tehran province. Peyke Noor Journal, 4(2), 60–78. http://www.sid.ir/En/ViewPaper.asp?ID=198022&varStr=18;KIANI%20K.H.,TAYEFI%20Z.;PEYKE%20NOOR%20JOURNAL;SUMMER%202006;4;2%20%28%20ECONOMICS%202%29;60;78.

    Google Scholar 

  35. Kshetri, N. (2007). Barriers to e-commerce and competitive business models in developing countries: a case study. Electronic Commerce Research and Applications, 6, 443–452.

    Article  Google Scholar 

  36. Lal, K. (2004). E-business and export behavior: evidence from Indian firms. World Development, 32(3), 505–517.

    Article  Google Scholar 

  37. Le, T. T., & Koh, A. C. (2002). A managerial perspective on electronic commerce development in Malaysia. Electronic Commerce Research, 2, 7–29.

    Article  Google Scholar 

  38. MacGregor, R. C. (2003). Strategic alliances and perceived barriers to electronic commerce adoption in SMES. Journal of Systems and Information Technology, 7(1–2), 27–48.

    Google Scholar 

  39. McFarlane, D., Chembezi, D., & Befecadu, J. (2003). Internet adoption and use of e-commerce strategies by agribusiness firms in Alabama. In The Southern agricultural economics association annual meeting, Mobile, AL, February 1–5. http://ageconsearch.umn.edu/bitstream/35021/1/sp03mc03.pdf.

    Google Scholar 

  40. Nasco, S. A., Toledo, E. G., & Mykytyn, P. P. (2008). Predicting electronic commerce adoption in Chilean SMEs. Journal of Business Research, 61, 697–705.

    Article  Google Scholar 

  41. Nathan, R. J., & Yeow, P. H. P. (2011). Crucial web usability factors of 36 industries for students: a large-scale empirical study. Electronic Commerce Research, 11, 151–180.

    Article  Google Scholar 

  42. Nurmilaakso, J.-M. (2009). ICT solutions and labor productivity: evidence from firm-level data. Electronic Commerce Research, 9, 173–181.

    Article  Google Scholar 

  43. Patton, M. A., & Jøsang, A. (2004). Technologies for trust in electronic commerce. Electronic Commerce Research, 4, 9–21.

    Article  Google Scholar 

  44. Purcell, F., & Toland, J. (2004). Electronic commerce for the South Pacific: a review of e-readiness. Electronic Commerce Research, 4, 241–262.

    Article  Google Scholar 

  45. Rasoolian, M. (2010). Iranian e-commerce challenge in global village. In 5th WSEAS international conference on economy and management transformation (Vol. I). http://www.wseas.us/elibrary/conferences/2010/TimisoaraW/EMT/EMT1-20.pdf.

    Google Scholar 

  46. Sam, T. L., & Eam, L. H. (2011). Estimating the determinants of B2B e-commerce adoption among small & medium enterprises. International Journal of Business and Society, 12(1), 15–30.

    Google Scholar 

  47. Sanayei, A., & Rajabion, L. (2009). Critical successful factors contributing to e-commerce adoption among Iranian SMEs. International Journal of Information Science and Management, 7(2), 57–66.

    Google Scholar 

  48. Shah-Alam, S., Ali, Md. Y., & Jani, M. F. M. (2011). An empirical study of factors affecting electronic commerce adoption among SMEs in Malaysia. Journal of Business Economics and Management, 12(2), 375–399.

    Article  Google Scholar 

  49. Sharma, S. K., Gupta, J. N. D., & Wickramasinghe, N. (2006). A framework for designing the enterprise-wide e-commerce portal for evolving organizations. Electron Commerce Research, 6, 141–154.

    Article  Google Scholar 

  50. Sismeiro, C., & Bucklin, R. E. (2004). Modeling purchase behavior at an e-commerce web site: a task-completion approach. Journal of Marketing Research, XLI, 306–323.

    Article  Google Scholar 

  51. Smith, R., & Shao, J. (2007). Privacy and e-commerce: a consumer-centric perspective. Electron Commerce Research, 7, 89–116.

    Article  Google Scholar 

  52. Stansfield, M., & Grant, K. (2003). An investigation into issues influencing the use of the internet and electronic commerce among small-medium sized enterprises. Journal of Electronic Commerce Research, 4(1), 15–33.

    Google Scholar 

  53. Statistical Center of Iran (SCI) (2009). Survey of Internet users (pp. 6–14). http://www.amar.org.ir/Default.aspx?tabid=123&ArticleType=ArticleView&ArticleID=83.

    Google Scholar 

  54. Tan, J., Tyler, K., & Manica, A. (2007). Business-to-business adoption of eCommerce in China. Information & Management, 44, 332–351.

    Article  Google Scholar 

  55. Terzi, N. (2011). The impact of E-commerce on international trade and employment. Procedia Social and Behavioral Sciences, 24, 745–753.

    Article  Google Scholar 

  56. The World Bank, Iran’s Metadata. http://data.worldbank.org/country/iran-islamic-republic.

  57. Tiessen, J. H., Wright, R. W., & Turner, I. (2001). A model of e-commerce use by internationalizing SMEs. Journal of International Management, 7, 211–233.

    Article  Google Scholar 

  58. Vaithianathan, S. (2010). A review of e-commerce literature on India and research agenda for the future. Electronic Commerce Research, 10, 83–97.

    Article  Google Scholar 

  59. Vu, Khuong M. (2011). ICT as a source of economic growth in the information age: empirical evidence from the 1996–2005 periods. Telecommunications Policy, 35, 357–372.

    Article  Google Scholar 

  60. Yanga, B., & Lester, D. (2005). Gender differences in e-commerce. Applied Economics, 37, 2077–2089.

    Article  Google Scholar 

  61. Yazdani, M. Z., & Khosravipour, B. (2011). Effective Factors in Adopting E-Commerce by the SMEs In Agricultural Sector. Roshd-E-Fanavari January, 25(7), 59–64. http://www.sid.ir/En/ViewPaper.asp?ID=193956&varStr=8;YAZDANI%20ZANGENEH%20MARYAM,KHOSRAVIPOUR%20BAHMAN;ROSHD-E-FANAVARI;JANUARY-MARCH%202011;7;25;59;64.

    Google Scholar 

  62. Zeng, D. D. (2001). Managing flexibility for inter-organizational electronic commerce. Electronic Commerce Research, 1, 33–51.

    Article  Google Scholar 

Download references

Author information

Authors and Affiliations

Authors

Corresponding author

Correspondence to Saeed Solaymani.

Rights and permissions

Reprints and permissions

About this article

Cite this article

Solaymani, S., Sohaili, K. & Yazdinejad, E.A. Adoption and use of e-commerce in SMEs. Electron Commer Res 12, 249–263 (2012). https://doi.org/10.1007/s10660-012-9096-6

Download citation

  • Published:

  • Issue Date:

  • DOI: https://doi.org/10.1007/s10660-012-9096-6

Keywords

Navigation