Obstacles for SMEs for E-Adoption in the Asia Pacific Region

Abstract

The e-commerce revolution has affected all organizations. Of particular interest is its effect on small and medium-sized enterprises (SMEs), because we can observe an interesting duality, where these companies are most likely to benefit from the opportunities afforded by e-commerce (because through e-commerce, it is possible to level the playing field), and yet they appear to be slowest in embracing many of these e-commerce possibilities. On several social and economic grounds, SMEs are of overwhelming importance in most of the Asia Pacific/Pacific region. In fact, they comprise well over 90% of all enterprises in this region and provide employment for over half of the region’s workforce (Wattanapruttipaisan, 2002; APEC, 2001). Typically, the SME sector accounts for upwards of 90% of all firms outside the agricultural sector of East and Southeast Asia, and of Japan as well (Alphonso, 2001; Regnier, 2000; Tambunan, 2000; Wattanapruttipaisan, 2002; A Report Prepared for Asia Pacific Foundation, 2002).