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Strategies to address the barriers to eBusiness adoption by SMEs. The adoption
of electronic business (eBusiness) has been a matter ...
... needed are some industry-wide strategies that help ... to-face interviewing techniques
to address the research ... companies to overcome the barriers of implementation ...
Submitted by friendri1982 on May 16, 2007
Category: Technology
Words: 2185 | Pages: 9
Views: 198
Popularity Rank: 61,915
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The adoption of electronic business (eBusiness) has been a matter of concerned for most businesses since 1980 (Fink 1998), and it has emerged as a crucial way of conducting business activities in a competitive global environment (Lewis & Cockrill 2002). Significant benefits, such as enhanced consumer relationship, wider market reach, and operational efficiency, can be realised by the adoption of eBusiness solution (Dholakia & Kshetri 2004; Daniel & Wilson 2002; Beck et al. 2005). Despite such benefits, the adoption rate of eBusiness by small-to-medium enterprises (SMEs) has not been significant (Santarelli & D'Altri 2003; Mehrtens et al. 2001) due to adoption barriers (for example, see MacGregor & Vrazalic 2005). This paper will draw on research evidences from journal articles to identify both the barriers to eBusiness adoption and the effective strategies useful to overcome the barriers identified.
For successful adoption of eBusiness, SMEs need an ongoing supply of adequate financial resources (Iacovou et al. 1995). In accordance to Iacovou et al. (1995), financial resources are needed to cover for the installation costs, maintenance, and other ongoing expenses that might occur during the entire course of the system operation. However, not all SMEs have adequate financial resources needed to support the adoption of eBusiness system (Iacovou et al. 2005; Quayle 2002; Riquelme 2002) and such financial constraint becomes the barrier to eBusiness adoption (Rao et al. 2003). An empirical survey of 164 small businesses in Australia was carried out by MacGregor and Vrazalic (2005, p.518) in which 71 percent from the 139 non-adopters have identified financial constraint as one of the reasons not to adopt eBusiness.
According to Jutla et al (2002), government can increase the diffusion of eBusiness adoption by SMEs with the introduction of its support funding. This is supported by Wagner et al. (2003, p.344) in which they found that UK...
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