What is Push-Pull Effect

This chapter introduces the challenges that SMEs face while starting e-commerce activity in the Northern Finland context. Based on the project results, six interviews, and the preliminary outcomes of the questionnaire, this study focuses on push-pull effects to start e-commerce activities. Following this framework, the structure of this study is twofold. At first, the authors ask why a firm, which already has an existing traditional brick-and-mortar shop, would develop its business exploiting digital solutions and e-commerce. In other words, what is the attainable incremental value for this kind of firm via e-commerce? Second, what kinds of attractive possibilities will e-commerce provide for the business of the firm? Both of these perspectives are concentrated on the phase in which the firm takes in the use e-commerce activities. The authors study this phase, basing the analysis on the literature review, questionnaire, and six interviews of SME entrepreneurs. The outcomes of this chapter show the relevance of push-pull perspective in the studies about the first steps of e-commerce.