Perception of Barriers to E-Commerce Adoption in SMEs in a Developed and Developing Country: A Comparison Between Australia and Indonesia

Perception of Barriers to E-Commerce Adoption in SMEs in a Developed and Developing Country: A Comparison Between Australia and Indonesia

Robert C. MacGregor (University of Wollongong, Australia) and Mira Kartiwi (University of Wollongong, Australia)
Copyright: © 2010 |Pages: 22
DOI: 10.4018/jeco.2010103004
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Abstract

Despite the proven potential of e-commerce in the small business sector, studies have shown that larger businesses have reaped the benefits, with SME adoption remaining relatively low by comparison. This slow growth of e-commerce adoption in SMEs has been attributed to various adoption barriers that are faced by small business owners/managers. These barriers have been well documented in numerous research studies. While these studies have gone some ways to determine the nature and role of barriers to e-commerce adoption, there is a suggestion that as most have been conducted in developed economies, their value for developing economies remains in question. This article compares the perception of barriers to e-commerce adoption in a developed and a developing economy. Two hundred forty-seven non-adopters in Australia are compared to 96 non-adopters in Indonesia. The data shows that the perception of importance of barriers to e-commerce adoption differs across the two locations.
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Defining An Sme

There are a number of definitions of what constitutes an SME. Some of these definitions are based on quantitative measures, while others employ a qualitative approach. Meredith (1994) suggests that any definition of an SME must include a quantitative component that takes into account staff levels, turnover and assets together with financial and non-financial measurements, but that the description must also include a qualitative component that reflects how the business is organised and how it operates.

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