E-Commerce Usage and Perception of E-Commerce Issues among Small Firms: Results and Implications from an Empirical Study

Abstract

This paper details the results of an empirical study conducted to study the scope and effectiveness of e-commerce deployment in the Commonwealth of Pennsylvania as perceived by small business owners in the state. The methodology and results of this study may be applicable to several other states. In addition to a comprehensive survey of small businesses, a dozen businesses successful in deploying e-commerce were interviewed at great length. The results showed that main parts of an e-commerce infrastructure included (1) flow of information; (2) organizational image; (3) reaction to customer needs; (4) increased sales; and (5) access to new markets. The major reason for businesses to not engage in e-commerce is their perception that it is not strategically important for their business.Results pertaining to regional parameters, sales tax considerations, human resources infrastructure, and Internet security issues as well as policy recommendations are discussed in the paper.

The usage of digital marketing channels in SMEs

“…Even the starting point of digitization, broadband access, has been shown to bring significant opportunities to SMEs such as reaching new target audiences, increasing performance and efficiency, and improving growth and competitiveness (Galloway, 2007;Shideler and Badasyan, 2012;Spurge and Roberts, 2005). In addition, internet use can benefit SMEs by reducing costs (Chong and Pervan, 2007;Kaynak et al, 2005;Lohrke et al, 2006) and facilitating both internal and external communication (Bharadwaj and Soni, 2007;Chong and Pervan, 2007;Eriksson, Hultman and Naldi, 2008;Kaynak et al, 2005). More recent developments in digitization, namely the social aspects of the web (e.g.…”

IT and Fast Growth Small-to-Medium Enterprise Performance: An Empirical Study in Australia

“…For example, some studies (Bharadwaj & Soni 2007;Butler & Murphy 2008;Cragg et al 2011;Cragg et al 2013;Johnston et al 2007;Oh et al 2009;Wynn 2008;Zhang et al 2008) provide empirical support for a positive relationship between IT and SME performance through achieving business process competencies, enabling innovation, and increasing revenue and decreasing costs. Others (Cragg et al 2002;Hicks et al 2006) suggest that the impact of IT on SME performance is weak.…”

“…Dong et al (2009) argued that digital business is unlikely to become an integral part of the value chain when firms lack appropriate IT infrastructure to readily and efficiently distribute necessary information for digital operations. In relation to the SME context, empirical research (Bharadwaj & Soni 2007; Australasian Journal of Information Systems Bi, Davison & Smyrnios 2015, vol. 19, pp.…”

“…SMEs sharing important product planning and inventory information with value chain members on a regular and realtime basis are more likely to develop productive relationships than those who do not (Raymond & Bergeron 2008;Theyel 2013). In addition, an important precursor to effective and efficient inter-firm processes is the commitment of resources among value chain members to ensure that their business processes and systems are mutually compatible (Bharadwaj & Soni 2007). When the focal company's systems and online information repositories are integrated with those of its partners and suppliers, these parties are able to exhibit a greater commitment to…”

Local Shops vs. Online Retailers: Competition or Synergy?

“…Rural businesses can access a broader market as well as a wider selection of suppliers online (Bharadwaj & Soni 2007). Online retailing could therefore be an opportunity for small shops, not just a threat.…”