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Empirical Study of Barriers to Electronic Commerce Uptake by SMEs in Developing Economies

Author

Listed:
  • Edwin M. Agwu

    (Faculty of Business and Law, Middlesex University Business School, London, UK)

  • Peter J. Murray

    (Greenwich School of Management, London, UK)

Abstract

Electronic commerce (E-commerce) is a technological innovation that enables small to medium enterprises (SMEs) to compete on the same level with their larger counterparts. And it has the potential to improve efficiency and productivity in many areas and, therefore, has received significant attention in many countries of the world. A thorough analysis of the impact of the internet and e-commerce across firms, industries and economies is necessary to separate hype from reality. However, several researchers have called for the investigation of the association between the perceptions of e-commerce and the barriers to its adoption in developing countries. It is however on record that SMEs the world over are faced with significant challenges that compromise their ability to function and to contribute optimally to the respective economies where they operate. This study was conducted in three states of Nigeria (Lagos, Abuja and Enugu states) with the use of interviews to gather relevant data; the aim of which was to understand the challenges which serve as barriers to E-Commerce adoption by small and medium scale enterprises in the Nigerian context. Findings indicates that small and medium scale online present is at best unknown. The most common e-Commerce applications used by most SMEs include but not limited to the use of e-mails for communication purposes and a simple website for basic product information – information contained are usually outdated as most of these websites are hardly updated. Findings revealed, among others, that lack of and total absence of a regulatory framework on e-Commerce security, as well as technical skills, and basic infrastructures are some of the barriers to electronic commerce adoption. The findings however, provide a constructive insight to financial practitioners, governments as well as other stakeholders on the need to give e-commerce a place in all aspects of e-commerce activities.

Suggested Citation

  • Edwin M. Agwu & Peter J. Murray, 2015. "Empirical Study of Barriers to Electronic Commerce Uptake by SMEs in Developing Economies," International Journal of Innovation in the Digital Economy (IJIDE), IGI Global, vol. 6(2), pages 1-19, April.
  • Handle: RePEc:igg:jide00:v:6:y:2015:i:2:p:1-19
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    Cited by:

    1. Sunday Olutayo Fakunle & Bukunmi Kehinde Ajani, 2021. "Peculiarities of ICT adoption in Nigeria," Insights into Regional Development, VsI Entrepreneurship and Sustainability Center, vol. 3(4), pages 51-61, December.
    2. Olakunle Jayeola & Shafie Sidek & Azmawani Abd Rahman & Anuar Shar Bali Mahomed & Hu Jimin, 2020. "Contextual Factors and Strategic Consequences of Cloud Enterprise Resource Planning (ERP) Adoption in Malaysian Manufacturing SMEs: A Conceptual Framework," International Journal of Economics & Business Administration (IJEBA), International Journal of Economics & Business Administration (IJEBA), vol. 0(3), pages 176-201.
    3. Sunday Olutayo Fakunle & Bukunmi Kehinde Ajani, 2021. "Peculiarities of ICT adoption in Nigeria," Post-Print hal-03584028, HAL.

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