The factors affecting e-commerce adoption by Jordanian SMEs

Abstract

Purpose – This paper aims to explore internal and external organizational factors affecting electronic commerce or e-commerce systems adoption by small- and medium-sized enterprises (SMEs) in Jordan. Design/methodology/approach – The authors developed a model containing factors that might support e-commerce adoption. The model was tested using confirmatory factor analysis and then used to explore the relationships between factors. The authors used qualitative and quantitative approaches, including interviews, to explore awareness and adoption of e-commerce systems by Jordanian SMEs. SMEs in Jordan were identified from the Annual Handbook Index of 2012, compiled by the Jordanian Chamber of Commerce, and 500 in the industrial and services sectors were randomly selected as the study sample. Findings – The effect of the adoption of e-commerce systems by SMEs is affected by both internal and external organizational factors, particularly readiness, strategy, managers’ perceptions and external pressure by trading partners. Readiness and external pressure are most important for achieving maximum benefit from e-commerce adoption. Research limitations/implications – The relative importance of factors affecting e-commerce adoption may vary depending on local business conditions. SME managers in Jordan who wish to benefit from e-commerce introduction must therefore invest in activities to improve SME readiness, especially information technology infrastructure. Originality/value – This study is the first to explore both internal and external organizational factors important for e-commerce adoption by Jordanian SMEs. It tells SME managers which factors are likely to affect e-commerce adoption.