Managing E-Commerce Adoption Challenges for SMEs in Developing Countries

Managing E-Commerce Adoption Challenges for SMEs in Developing Countries

Rajmohan Panneerselvam (Annamalai University, India)
DOI: 10.4018/978-1-4666-9787-4.ch089

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2. Challenges In E-Commerce Adoption

Based on the well-established studies (Bingi et al.,2000; Ndyali,2013; Shemi & Procter, 2013) on e-commerce adoption among SMEs in developing countries context, the challenges in the adoption process have been classified into three major categories such as:

  • 1.

    Human Centric Challenges,

  • 2.

    Technology Centric Challenges, and

  • 3.

    Organization Centric Challenges.

These challenges have been observed to be hampering the adoption process resulting in either non-adoption or inappropriate adoption of e-Commerce practices among the potential SMEs. While non-adoption of e-Commerce practice is not a potential challenge in short run operations of the SMEs, the inappropriate adoption of e-commerce practices will lead to serious challenges for the enterprises in short run operations; leaving unsatisfied customers and agitated partners.

Key Terms in this Chapter

Small and Medium Sized Enterprises (SMEs): SMEs are the formal enterprises that employ less than 250 employees with annual turnover, in U.S. dollar terms, of between 10 and 1000 times the mean per capita gross national income, at purchasing power parity, of the country in which it operates.

Developing Countries: Developing countries are those countries with a Gross National Income (GNI) per capita per year of US $ 11,905 and less. Based on this criterion, the International Statistical Institute has listed 137 countries in the developing countries chart that is valid till 31 st December 2015.

Organization Centric Challenges: Insufficiencies on the part of the organization’s business model to adopt e-Commerce practice.

Technology Centric Challenges: The difficulties that an Organization could face on technology related issues due to its adoption of e-Commerce practice.

Human Centric Challenges: The difficulties that an Individual could face due to the adoption of e-Commerce Practices by a specific organization.

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