Barriers and Factors Affecting the E-Commerce Sustainability of Thai Micro-, Small- and Medium-Sized Enterprises (MSMEs)

Abstract

It is anticipated that e-commerce will contribute to achieving the 17th Sustainable Development Goal, which seeks to improve implementation mechanisms and revitalize global partnerships for sustainable development. However, MSMEs still face a digital gap compared to large enterprises, which affects their e-commerce sustainability. The study’s objective is to examine the factors and barriers affecting the e-commerce sustainability of Thai micro-, small- and medium-sized enterprises (MSMEs) based on a survey of retail and food and beverage (F&B) service MSMEs in metropolitan Bangkok. Estimations confirm the significance of the TOE framework for Thai MSMEs. Internal e-commerce tools (i.e., smartphones and websites) and external e-commerce platforms (i.e., social media, e-marketplaces, and food delivery platforms) can enhance e-commerce sustainability. However, the age of firms and owners (CEOs) affects e-commerce sustainability negatively. Exports, B2B e-commerce, and e-commerce experience can promote the e-commerce sustainability of Thai MSMEs. However, they perceive that many consumers are still not literate in using e-commerce. In addition, Thailand still has insufficient security to prevent hacking and malware. Therefore, Thai entrepreneurs’ e-commerce literacy is insufficient to enhance their e-commerce sustainability. On the other hand, sustainable e-commerce can increase customer satisfaction, loyalty, and trust through customer support, leading to more long-term online shopping. Hence, this study focuses on e-commerce sustainability-based economic dimensions, as measured by the percentage of e-commerce sales to total sales (e-commerce utilization/intensity).

Level of e-commerce application by micro, small and medium enterprises (MSMEs) in San Jose, Occidental Mindoro

“…Correspondingly, Yusgiantoro et al (2019) opined that MSMEs with older owners tend to detain the adoption of e-commerce. This was also concurred by Amornkitvikai et al (2022) who concluded that the owner's age can significantly affect MSMEs' adoption of IT and e-commerce. They also posited that older owners are less likely to adopt e-commerce than younger ones because of their limitations in implementing new technologies for their companies.…”

Adoption of Web 2.0 Social Media eCommerce in SMEs: Conceptualising Theories and Factors for Zambia

“…[30] examined the factors and barriers affecting the eCommerce sustainability of Thai retail and food and beverage (F&B) service SMEs in metropolitan Bangkok by applying the TOE framework. The findings by Amornkitvikai et al, [40] are that internal eCommerce tools (i.e. smartphones and websites) and external eCommerce platforms (i.e.…”

“…In Thai context, Amornkitvikai et al, [40] noted that SMEs are still facing serious challenges in eCommerce development as compared with large enterprises. [30] examined the factors and barriers affecting the eCommerce sustainability of Thai retail and food and beverage (F&B) service SMEs in metropolitan Bangkok by applying the TOE framework.…”

Intensity of the creative economy agency and partnership in empowering micro and small enterprises

“…The E-commerce adoption by Thailand's small and medium enterprise exporters has no significant positive impact on export intensity (Ueasangkomsate, 2015), but business-to-business (B2B) e-commerce can increase Thailand's small and medium enterprise exports, while older small and medium enterprise entrepreneurs tend to ignore e-commerce (Amornkitvikai et al, 2022). Meanwhile, Hasan et al (2021) found a low level of e-commerce adoption, where most businesses use conventional patterns to sell goods and services to small and medium enterprises in Indonesia.…”