Study on E-Commerce Adoption in SMEs Under the Institutional Perspective

Abstract

This article investigates and discusses the institutional factors influencing decisions of e-commerce adoption in Saudi small and medium enterprises (SMEs) from the temporal view. This article has been conducted in two phases: a full survey in 2013 and the follow-up targeted interviews in 2016. The analysis results demonstrated that there is a clear difference between initial e-commerce adoption and institutionalization in SMEs in terms of institutional predictors. When e-commerce was at its infant stage, governmental support and well-defined legal and regulations system were instrumental and served as mainly institutional forces to encourage firms to adopt e-commerce. As time went on and e-commerce became more business-driven, these effects become less important, even insignificant; instead of these, perceived market forces and perceived social awareness of e-commerce emerges as critical contributions to push SMEs to engage in e-commerce more sophisticatedly.