Factors that Influence an SME s Ability to Utilise E-Commerce

Chapter 8 - An Analysis of Factors that Influence the Ability of SMEs to Derive Benefit in Four Phases of Electronic Commerce: 34 Australian Case Studies
Managing IT in Government, Business & Communities
by Gerry Gingrich (ed)
Idea Group Publishing 2003

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Factors that Influence an SME's Ability to Utilise E-Commerce

The four-phase e-commerce Business Transformation Model categorises the utilisation of e-commerce by SMEs into four possible phases. The relative position of SMEs within each phase is influenced by a number of factors. This research presents a range of factors that are apparent from the data analysis. The factors can be broadly distinguished by two main sets. Those factors that are internal to the organisation, in which the organisation retains some control, and external factors that are external to the organisation, where the organisation has little control.

Table 1: Internal Factors Influencing the Potential to Derive E-Commerce Benefit

Organisational	Technological
Management MIS skills Leadership Qualities Enthusiasm and Support for EC	Technical Infrastructure EC Support/Development IT Experience IT Infrastructure
E-Commerce Driver Client driven Management Customer Service Communications Access New Markets Sales Business Efficiency	E-Commerce Application Independent Integrated Internet Platform Communication Oriented
E-Commerce Strategy Experimental Use of E-Commerce Strategic Use of E-Commerce Incremental Approach
Resources Capital to Invest in Technology Support for IT/ E-Commerce Investment

The internal factors can be divided into two categories relating to issues that are of an organisational nature and issues that are technologically-related. From an organisational perspective, the role of management, the reason why e-commerce is used, and the manner in which e-commerce is applied all influence the potential to derive benefit from e-commerce. These issues are further governed by the ability of the organisation to implement and support an e-commerce application, such as the amount of resources and technical expertise available.

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