PurposeMany firms have attempted to adopt e‐commerce to upgrade their formidable competitive capabilities and thereby build their own competitive advantages. However, some firms have achieved great performance, whereas others have failed in competitive outcomes. How can the differences in firms' e‐commerce adoption be explained? This question remains largely unanswered. The purpose of this paper is to help fill this literature gap by developing a framework that incorporates factors determining firms' adoption of e‐commerce.Design/methodology/approachThrough literature review, this paper summarizes ten factors which determine firms' adoption of e‐commerce.FindingsThe paper summarizes ten factors which determine firms' adoption of e‐commerce and four significant factors are especially highlighted, including managerial attitudes, corporate strategies, external pressures and firms' technology strengths.Originality/valueThe framework developed by this article provides a conceptual basis for further quantitative analysis. It can also guide firms' implementation of e‐commerce strategy. Moreover, this paper should be of great value to the policy makers who encourage firms to build up their competitiveness through e‐commerce adoption.

The digital gap of e-commerce adoption among countries is widening. To better understand this phenomenon, this article reviews the latest research on the key factors of firm's e-commerce adoption and proposes a comprehensive framework as part of addressing the current literature gap. Based on this, managerial implications and future research directions are also discussed.