Factors impacting on e‐business adoption and development in the smaller firm

Abstract

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.