Prabandhan: Indian Journal of Management

Open Access Open Access  Restricted Access Subscription Access
Open Access Open Access Open Access  Restricted Access Restricted Access Subscription Access

MSMEs in Emerging Markets : An Exploration of the Stage Model of E-Commerce Adoption


Affiliations
1 Professor (Corresponding Author), Mittal School of Business, Lovely Professional University, Phagwara - 144 411, Punjab, India
2 Assistant Professor, Khalsa College, Garhdiwala, Hoshiarpur - 144 207, Punjab, India
3 Post-Doctoral Fellow, Indian Institute of Management Amritsar, G.T Road, Amritsar - 143 105, Punjab, India
     

   Subscribe/Renew Journal


Purpose : This paper aimed to develop a holistic e-commerce adoption model and explore the significant factors at various stages of e-commerce adoption in emerging markets in micro, small, and medium enterprises (MSMEs).

Design/Methodology/Approach : A research model was developed by combining the diffusion of innovation and technological-organizational-environmental models with a staged model. A purposive sampling method was followed, and 384 MSME units were selected. A quantitative approach was used with a structured questionnaire as a research instrument.

Findings : The factors that influence the adoption of e-commerce were observed in two ways; one is a sequential way where an enterprise starts with primary e-mail and, step by step, reaches the most advanced stage, which included not only online ordering but also online payment capabilities. Furthermore, while moving to advanced stages of e-commerce adoption, enterprises follow a nonsequential way, where an enterprise could skip some stages while moving to complex stages of e-commerce adoption.

Research Implications : Various stakeholders would understand the barriers faced by the MSMEs in emerging markets so that necessary steps could be initiated to tackle this issue.

Originality/Value : The study proposed a novel, holistic e-commerce adoption model and addressed the research gap by seeking to understand how MSMEs in India were adopting e-commerce by exploring their level and sequence of adoption.


Keywords

Micro, Small, and Medium Enterprises, Electronic Commerce, Information and Communication Technology, Diffusion of Innovation.

JELClassification Codes : L81, M31, O14

Paper Submission Date : September 25, 2022 ; Paper sent back for Revision : May 6, 2023 ; Paper Acceptance Date : July 10, 2023 ; Paper Published Online : August 16, 2023

User
Subscription Login to verify subscription
Notifications
Font Size

  • Ahmad, S. Z., Abu Bakar, A. R., Faziharudean, T. M., & Mohamad Zaki, K. A. (2015). An empirical study of factors affecting e-commerce adoption among small- and medium-sized enterprises in a developing country: Evidence from Malaysia. Information Technology for Development, 21(4), 555–572. https://doi.org/10.1080/02681102.2014.899961

  • Al-Somali, S. A., Gholami, R., & Clegg, B. (2015). A stage-oriented model (SOM) for e-commerce adoption: A study of Saudi Arabian organisations. Journal of Manufacturing Technology Management, 26(1), 2–35. https://doi.org/10.1108/JMTM-03-2013-0019

  • Al-Tit, A. A. (2020). E-commerce drivers and barriers and their impact on e-customer loyalty in small and medium-sized enterprises (SMEs). Business: Theory and Practice, 21(1), 146–157. https://doi.org/10.3846/btp.2020.11612

  • Arora, A. K., & Rathi, P. (2019). Determinants for the adoption of digitalization by manufacturing SMEs in India: An empirical study. Prabandhan: Indian Journal of Management, 12(8), 7–21. https://doi.org/10.17010/pijom/2019/v12i8/146410

  • Chauhan, V., Choudhary, V., & Mathur, S. (2016). Demographic influences on technology adoption behavior: A study of e-banking services in India. Prabandhan: Indian Journal of Management, 9(5), 45–59. https://doi.org/10.17010/pijom/2016/v9i5/92571

  • Chee, L. S., Suhaimi, B. A., & Quan, L. R. (2016). Understanding the determinants of e-Commerce adoption: Evidence from manufacturing sector in West Malaysia. Indian Journal of Science and Technology, 9(10), 1–8. https://doi.org/10.17485/ijst/2016/v9i10/88075

  • Dahbi, S., & Benmoussa, C. (2019). What hinder SMEs from adopting e-commerce? A multiple case analysis. Procedia Computer Science, 158, 811–818. https://doi.org/10.1016/j.procs.2019.09.118

  • Department of Industries & Commerce, Government of Punjab. (2021). Invest Punjab. https://pbindustries.gov.in/static/

  • Dlodlo, N., & Dhurup, M. (2013). Drivers of e-marketing adoption among small and medium enterprises (SMEs) and variations with age of business owners. Mediterranean Journal of Social Sciences, 4(14), 53–66. https://doi.org/10.5901/mjss.2013.v4n14p53

  • Economic and Statistical Organisation, Department of Planning, Government of Punjab (2020). Punjab Economic Survey 2019-20. https://www.esopb.gov.in/Static/PDF/EconomicSurvey-2019-20.pdf

  • Hassen, Y. A., & Svensson, A. (2014). The role of e-commerce for the growth of small enterprises in Ethiopia. Electronic Journal of Information Systems in Developing Countries, 65(1), 1–20. https://doi.org/10.1002/j.1681-4835.2014.tb00463.x

  • Herzallah, F., & Mukhtar, M. (2016). The effect of technology, organization factors on e-commerce adoption among Palestinian SMEs. Indian Journal of Science and Technology, 9(38), 1–4. https://doi.org/10.17485/ijst/2016/v9i38/101279

  • IAMAI. (2019). India Internet 2019. https://cms.iamai.in/Content/ResearchPapers/d3654bcc-002f-4fc7-ab39-e1fbeb00005d.pdf

  • Internet World Stats. (2022). Internet 2022 usage in Asia. https://www.internetworldstats.com/stats3.htm

  • Kabanda, S. K., & Brown, I. (2015). E-commerce enablers and barriers in Tanzanian small and medium enterprises. Electronic Journal of Information Systems in Developing Countries, 67(1), 1–24. https://doi.org/10.1002/j.1681-4835.2015.tb00485.x

  • Kilangi, A. M. (2012). The determinants of ICT adoption and usage among SMEs: The case of the tourism sector in Tanzania (Doctoral Dissertation, Vrije Universiteit Amsterdam). https://hdl.handle.net/187140121

  • KPMG & Google. (2017). Impact of internet and digitisation on SMBs in India. https://assets.kpmg/content/dam/kpmg/in/pdf/2017/01/Impact-of-internet-and-digitisation.pdf

  • Kurup, A. J., & Jain, P. (2018). Effect of e-loyalty cues on repurchase behavioural intentions among online shoppers. Indian Journal of Marketing, 48(11), 7–22. https://doi.org/10.17010/ijom/2018/v48/i11/137982

  • Kusumaningtyas, N., & Suwarto, D. H. (2015). ICT adoption, skill and use differences Among small and medium enterprises managers based on demographic factors. Procedia - Social and Behavioral Sciences, 169, 296–302. https://doi.org/10.1016/j.sbspro.2015.01.313

  • Madhava Priya, D., Prashanth, J., & Indira, A. (2019). Sustainability of small merchants through digital technologies. Prabandhan: Indian Journal of Management, 12(1), 8–20. https://doi.org/10.17010/pijom/2019/v12i1/141424

  • Makame, W. H., Kang, J., & Park, S. (2014). Factors influencing electronic commerce adoption in developing countries: The case of Tanzania. South African Journal of Business Management, 45(2), 83–96. https://doi.org/10.4102/sajbm.v45i2.126

  • Ochola, P. B. (2013). E-commerce adoption among micro, small and medium sector in Nairobi county, Kenya (Thesis). School of Business, Kenyatta University. https://erepo.usiu.ac.ke/11732/476

  • Oluyinka, S., Shamsuddin, A., Wahab, E., Ajagbe, M. A., & Enegbuma, W. I. (2014). A study of electronic commerce adoption factors in Nigeria. International Journal of Information Systems and Change Management, 6(4), 293–315. https://doi.org/10.1504/IJISCM.2013.060974

  • Osorio-Gallego, C., Londoño-Metaute, J., & López-Zapata, E. (2016). Analysis of factors that influence the ICT adoption by SMEs in Colombia. Intangible Capital, 12(2), 666–732. https://dx.doi.org/ 10.3926/ic.726

  • Punjab: Jio launches 5G services in tricity. (2022, December 28). The Indian Express. https://indianexpress.com/article/cities/chandigarh/punjab-jio-launches-5g-services-in-tricity-8349356/

  • Qashou, A., & Saleh, Y. (2018). E-marketing implementation in small and medium-sized restaurants in Palestine. Arab Economic and Business Journal, 13(2), 93–110. https://doi.org/10.1016/j.aebj.2018.07.001

  • Rahayu, R., & Day, J. (2015). Determinant factors of e-commerce adoption by SMEs in developing country: Evidence from Indonesia. Procedia - Social and Behavioral Sciences, 195, 42–150. https://doi.org/10.1016/j.sbspro.2015.06.423

  • Rogers, E. M. (2010). Diffusion of innovation (4th ed.). Free Press.

  • Sin, K. Y., Osman, A., Salahuddin, S. N., Abdullah, S., Lim, Y. J., & Sim, C. L. (2016). Relative advantage and competitive pressure towards implementation of e-commerce: Overview of small and medium enterprises (SMEs). Procedia Economics and Finance, 35, 434–443. https://doi.org/10.1016/S2212-5671(16)00054-X

  • Socrates Kwadwo, M., Twumasi Martinson, A., Teddy Evans, T., & Esther, A. (2016). Barriers to e-commerce adoption and implementation strategy: Empirical review of small and medium-sized enterprises in Ghana. Journal of Economics, Management & Trade, 13(1), 1–13. https://doi.org/10.9734/BJEMT/2016/25177

  • Tomar, J. S. (2017). State of IT adoption in SMEs in India. Prabandhan: Indian Journal of Management, 10(1), 40–53. https://doi.org/10.17010/pijom/2017/v10i1/109102

  • UN-DESA. (2020). Micro-, small and medium-sized enterprises (MSMEs) and their role in achieving the Sustainable Development Goals. https://sdgs.un.org/publications/micro-small-and-medium-sized-enterprises-msmes-and-their-role-achieving-sustainable

  • Villa, E., Ruiz, L., Valencia, A., & Picon, E. (2018). Electronic commerce: Factors involved in its adoption from a bibliometric analysis. Journal of Theoretical and Applied Electronic Commerce Research, 13(1), 39–70. https://doi.org/10.4067/S0718-18762018000100104

  • Yadav, R., & Mahara, T. (2018). Ecommerce adoption: An empirical investigation in wooden handicraft SMEs of Saharanpur, Uttar Pradesh. Prabandhan: Indian Journal of Management, 11(8), 20–33. https://doi.org/10.17010/pijom/2018/v11i8/130642


Abstract Views: 174

PDF Views: 0




  • MSMEs in Emerging Markets : An Exploration of the Stage Model of E-Commerce Adoption

Abstract Views: 174  |  PDF Views: 0

Authors

Pawan Kumar
Professor (Corresponding Author), Mittal School of Business, Lovely Professional University, Phagwara - 144 411, Punjab, India
Harpreet Kaur
Assistant Professor, Khalsa College, Garhdiwala, Hoshiarpur - 144 207, Punjab, India
Gursimranjit Singh
Post-Doctoral Fellow, Indian Institute of Management Amritsar, G.T Road, Amritsar - 143 105, Punjab, India

Abstract


Purpose : This paper aimed to develop a holistic e-commerce adoption model and explore the significant factors at various stages of e-commerce adoption in emerging markets in micro, small, and medium enterprises (MSMEs).

Design/Methodology/Approach : A research model was developed by combining the diffusion of innovation and technological-organizational-environmental models with a staged model. A purposive sampling method was followed, and 384 MSME units were selected. A quantitative approach was used with a structured questionnaire as a research instrument.

Findings : The factors that influence the adoption of e-commerce were observed in two ways; one is a sequential way where an enterprise starts with primary e-mail and, step by step, reaches the most advanced stage, which included not only online ordering but also online payment capabilities. Furthermore, while moving to advanced stages of e-commerce adoption, enterprises follow a nonsequential way, where an enterprise could skip some stages while moving to complex stages of e-commerce adoption.

Research Implications : Various stakeholders would understand the barriers faced by the MSMEs in emerging markets so that necessary steps could be initiated to tackle this issue.

Originality/Value : The study proposed a novel, holistic e-commerce adoption model and addressed the research gap by seeking to understand how MSMEs in India were adopting e-commerce by exploring their level and sequence of adoption.


Keywords


Micro, Small, and Medium Enterprises, Electronic Commerce, Information and Communication Technology, Diffusion of Innovation.

JELClassification Codes : L81, M31, O14

Paper Submission Date : September 25, 2022 ; Paper sent back for Revision : May 6, 2023 ; Paper Acceptance Date : July 10, 2023 ; Paper Published Online : August 16, 2023


References





DOI: https://doi.org/10.17010/pijom%2F2023%2Fv16i8%2F173062