E-Business Adoption in SME-Models and Determinants: A Comparative Review of UK and KSA

E-Business Adoption in SME-Models and Determinants: A Comparative Review of UK and KSA

Mark Xu (University of Portsmouth, UK), Maher Alhindi (University of Portsmouth, UK), Alessio Ishizaka (University of Portsmouth, UK) and Martin Read (University of Portsmouth, UK)
DOI: 10.4018/978-1-4666-9787-4.ch033
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Literature Review- E-Business Adoption Models

The term “e-business” and “e-Commerce” and “Internet commerce” are often used interchangeably. In this paper, e-business refers to the incorporation of Internet technologies into an entire enterprise’s operations and management and beyond. E-commerce refers to essentially online transactions involving buying and selling. M-commerce is an extension of e-Commerce that transactions - buying, selling and payment are made using mobile devices.

Key Terms in this Chapter

E-Commerce: Using electronic/wireless network to conduct online transaction - buying, selling, online payment and delivery of goods and services. It extends to m-commerce where transactions are conducted via mobile devices.

SME: Small and medium enterprise (firm) that is independent, managed by owner and has a small market share (Bolton, 1971 AU36: The in-text citation "Bolton, 1971" is not in the reference list. Please correct the citation, add the reference to the list, or delete the citation. ). Various measures are used to define the firm size such as the number of employees, the turnover, balance sheet total and percentage of ownership. Definitions of SME vary according to sectors and countries. An example of SME by European Commission is illustrated in Table 2 in the Appendix ( DTI 2001 ).

Perceived E-Readiness Model (PREM): A model developed by Molla & Licker (2005) AU35: The citation "Molla & Licker (2005)" matches multiple references. Please add letters (e.g. "Smith 2000a"), or additional authors to the citation, to uniquely match references and citations. that can be used to assess the readiness for e-Business adoption and implementation. It is defined as an organization’s assessment of the e-commerce, managerial, organizational, and external situations in making decisions about adopting e-commerce. E-Readiness is measured from organisational, managerial, environmental, technical aspects.

E-Business: Sometime used interchangeably with the term e-commerce, is the conduction of business on the Internet, not only buying and selling, but also serving customers and collaborating with business partners. E-business is a generic term and encompasses the whole firm with the integration of all electronic processes from suppliers to consumers (Parazoglou 2006 AU33: The in-text citation "Parazoglou 2006" is not in the reference list. Please correct the citation, add the reference to the list, or delete the citation. ).

Technology Adoption Model (TAM): A model developed by ( Davis et al. 1989 ) to establish the relationships between the level of technology acceptance and users factors which include perceived usefulness, perceived ease of use, attitude toward using, and actual usage behaviour. The model has been used and extended by many researchers.

Diffusion of Innovations (DOI): Diffusion of innovation is a model developed by Rogers 1983, 1995, 2003) to illustrate the pattern of innovation or new technology adoption by users over the time. It categories users from innovators/early adopters to later adopters/laggards, and identifies five factors: relative advantage, compatibility, trialability, observability, and complexity that affect the level of adoption.

E-Commerce Adoption Ladder: The six-step E-commerce adoption model developed by UK Department of Trade and Industry (Dutta and Segev 1999 AU34: The in-text citation "Dutta and Segev 1999" is not in the reference list. Please correct the citation, add the reference to the list, or delete the citation. ). The six stages are used to measure e-commerce status within an organisation starting from very basic level e.g. using e-mail for messaging to the higher level e.g. having fully integrated e-business system. Each stage is defined by technical sophistication and online business types of the firm.

Technology-Organization-Environment Model (TOE): A model developed by Tornatzky and Fleischer (1990) AU37: The in-text citation "Tornatzky and Fleischer (1990)" is not in the reference list. Please correct the citation, add the reference to the list, or delete the citation. that consider the factors influencing technology adoption and implementation. The influential factors are rooted in organisational aspect and external environment aspect.

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