Factors Impacting on E-Business Adoption and Development in the Smaller Firm

Globalisation and technology effects appear to have spurred smaller firms around the world to embrace e-business practices. However, there is considerable variability in adoption and usage from country to country. Drawing on existing research on e-business and conventional business and marketing in the smaller firm, this paper formulates a conceptual framework of reasons behind adoption and non-adoption in the smaller firm. Macro dimensions, industry sector and firm-level factors are analysed, together with owner/manager motivations and attitudes towards e-business adoption. A conceptual framework is constructed and research propositions are then developed in order to focus attention on sets of internal and external factors which impact on smaller firm e-business usage. Recommendations for future theory development are presented, together with implications for industry bodies involved in supporting the SME sector. (Publisher abstract)