New PIJM now accepts submissions exclusively via the Editorial Scholar portal — a dedicated submission & review system.
Go to Editorial Scholar →
Associated Management Consultants Pvt. Ltd. | COPE Member
Scopus Q2 UGC-CARE |
Prabandhan: Indian Journal of Management logo

Prabandhan: Indian Journal of Management

ISSN: 0975-2854 Frequency: Monthly Peer Review: Double-blind Published since: 2008 Language: English
A publication of AMCPL
amcon.co.in
New Delhi, India
Indexed in: Scopus Q2 UGC-CARE Group II Google Scholar J-Gate NISCAIR Crossref Cabell's Journalytics

MSMEs in Emerging Markets : An Exploration of the Stage Model of E-Commerce Adoption

Open Access Original Article

MSMEs in Emerging Markets : An Exploration of the Stage Model of E-Commerce Adoption

Pawan Kumar1,  Harpreet Kaur2,  Gursimranjit Singh3

1 Professor , Mittal School of Business, Lovely Professional University, Phagwara - 144 411, Punjab

2 Assistant Professor, Khalsa College, Garhdiwala, Hoshiarpur - 144 207, Punjab

3 Post-Doctoral Fellow, Indian Institute of Management Amritsar, G.T Road, Amritsar - 143 105, Punjab

Volume 16
Issue 8
Pages 8–23
Year 2023
Received: Sept. 25, 2022 Accepted: July 10, 2023 Published: Aug. 31, 2023
Abstract

Purpose : This paper aimed to develop a holistic e-commerce adoption model and explore the significant factors at various stages of e-commerce adoption in emerging markets in micro, small, and medium enterprises (MSMEs).

Design/Methodology/Approach : A research model was developed by combining the diffusion of innovation and technological-organizational-environmental models with a staged model. A purposive sampling method was followed, and 384 MSME units were selected. A quantitative approach was used with a structured questionnaire as a research instrument.

Findings : The factors that influence the adoption of e-commerce were observed in two ways; one is a sequential way where an enterprise starts with primary e-mail and, step by step, reaches the most advanced stage, which included not only online ordering but also online payment capabilities. Furthermore, while moving to advanced stages of e-commerce adoption, enterprises follow a nonsequential way, where an enterprise could skip some stages while moving to complex stages of e-commerce adoption.

Research Implications : Various stakeholders would understand the barriers faced by the MSMEs in emerging markets so that necessary steps could be initiated to tackle this issue.

Originality/Value : The study proposed a novel, holistic e-commerce adoption model and addressed the research gap by seeking to understand how MSMEs in India were adopting e-commerce by exploring their level and sequence of adoption.

Keywords Micro Small and Medium Enterprises Electronic Commerce Information and Communication Technology Diffusion of Innovation
How to Cite

Pawan Kumar, Harpreet Kaur, Gursimranjit Singh (2023). MSMEs in Emerging Markets : An Exploration of the Stage Model of E-Commerce Adoption. Prabandhan: Indian Journal of Management, 16(8), 8–23. https://doi.org/10.17010/pijom/2023/v16i8/173062

References
  1. Ahmad, S. Z., Abu Bakar, A. R., Faziharudean, T. M., & Mohamad Zaki, K. A. (2015). An empirical study of factors affecting e-commerce adoption among small- and medium-sized enterprises in a developing country: Evidence from Malaysia. Information Technology for Development, 21(4), 555–572. https://doi.org/10.1080/02681102.2014.899961
  2. Al-Somali, S. A., Gholami, R., & Clegg, B. (2015). A stage-oriented model (SOM) for e-commerce adoption: A study of Saudi Arabian organisations. Journal of Manufacturing Technology Management, 26(1), 2–35. https://doi.org/10.1108/JMTM-03-2013-0019
  3. Al-Tit, A. A. (2020). E-commerce drivers and barriers and their impact on e-customer loyalty in small and medium-sized enterprises (SMEs). Business: Theory and Practice, 21(1), 146–157. https://doi.org/10.3846/btp.2020.11612
  4. Arora, A. K., & Rathi, P. (2019). Determinants for the adoption of digitalization by manufacturing SMEs in India: An empirical study. Prabandhan: Indian Journal of Management, 12(8), 7–21. https://doi.org/10.17010/pijom/2019/v12i8/146410
  5. Chauhan, V., Choudhary, V., & Mathur, S. (2016). Demographic influences on technology adoption behavior: A study of e-banking services in India. Prabandhan: Indian Journal of Management, 9(5), 45–59. https://doi.org/10.17010/pijom/2016/v9i5/92571
  6. Chee, L. S., Suhaimi, B. A., & Quan, L. R. (2016). Understanding the determinants of e-Commerce adoption: Evidence from manufacturing sector in West Malaysia. Indian Journal of Science and Technology, 9(10), 1–8. https://doi.org/10.17485/ijst/2016/v9i10/88075
  7. Dahbi, S., & Benmoussa, C. (2019). What hinder SMEs from adopting e-commerce? A multiple case analysis. Procedia Computer Science, 158, 811–818. https://doi.org/10.1016/j.procs.2019.09.118
  8. Department of Industries & Commerce, Government of Punjab. (2021). Invest Punjab. https://pbindustries.gov.in/static/
  9. Dlodlo, N., & Dhurup, M. (2013). Drivers of e-marketing adoption among small and medium enterprises (SMEs) and variations with age of business owners. Mediterranean Journal of Social Sciences, 4(14), 53–66. https://doi.org/10.5901/mjss.2013.v4n14p53
  10. Economic and Statistical Organisation, Department of Planning, Government of Punjab (2020). Punjab Economic Survey 2019-20. https://www.esopb.gov.in/Static/PDF/EconomicSurvey-2019-20.pdf
  11. Hassen, Y. A., & Svensson, A. (2014). The role of e-commerce for the growth of small enterprises in Ethiopia. Electronic Journal of Information Systems in Developing Countries, 65(1), 1–20. https://doi.org/10.1002/j.1681-4835.2014.tb00463.x
  12. Herzallah, F., & Mukhtar, M. (2016). The effect of technology, organization factors on e-commerce adoption among Palestinian SMEs. Indian Journal of Science and Technology, 9(38), 1–4. https://doi.org/10.17485/ijst/2016/v9i38/101279
  13. IAMAI. (2019). India Internet 2019. https://cms.iamai.in/Content/ResearchPapers/d3654bcc-002f-4fc7-ab39-e1fbeb00005d.pdf
  14. Internet World Stats. (2022). Internet 2022 usage in Asia. https://www.internetworldstats.com/stats3.htm
  15. Kabanda, S. K., & Brown, I. (2015). E-commerce enablers and barriers in Tanzanian small and medium enterprises. Electronic Journal of Information Systems in Developing Countries, 67(1), 1–24. https://doi.org/10.1002/j.1681-4835.2015.tb00485.x
  16. Kilangi, A. M. (2012). The determinants of ICT adoption and usage among SMEs: The case of the tourism sector in Tanzania (Doctoral Dissertation, Vrije Universiteit Amsterdam). https://hdl.handle.net/187140121
  17. KPMG & Google. (2017). Impact of internet and digitisation on SMBs in India. https://assets.kpmg/content/dam/kpmg/in/pdf/2017/01/Impact-of-internet-and-digitisation.pdf
  18. Kurup, A. J., & Jain, P. (2018). Effect of e-loyalty cues on repurchase behavioural intentions among online shoppers. Indian Journal of Marketing, 48(11), 7–22. https://doi.org/10.17010/ijom/2018/v48/i11/137982
  19. Kusumaningtyas, N., & Suwarto, D. H. (2015). ICT adoption, skill and use differences Among small and medium enterprises managers based on demographic factors. Procedia - Social and Behavioral Sciences, 169, 296–302. https://doi.org/10.1016/j.sbspro.2015.01.313
  20. Madhava Priya, D., Prashanth, J., & Indira, A. (2019). Sustainability of small merchants through digital technologies. Prabandhan: Indian Journal of Management, 12(1), 8–20. https://doi.org/10.17010/pijom/2019/v12i1/141424
  21. Makame, W. H., Kang, J., & Park, S. (2014). Factors influencing electronic commerce adoption in developing countries: The case of Tanzania. South African Journal of Business Management, 45(2), 83–96. https://doi.org/10.4102/sajbm.v45i2.126
  22. Ochola, P. B. (2013). E-commerce adoption among micro, small and medium sector in Nairobi county, Kenya (Thesis). School of Business, Kenyatta University. https://erepo.usiu.ac.ke/11732/476
  23. Oluyinka, S., Shamsuddin, A., Wahab, E., Ajagbe, M. A., & Enegbuma, W. I. (2014). A study of electronic commerce adoption factors in Nigeria. International Journal of Information Systems and Change Management, 6(4), 293–315. https://doi.org/10.1504/IJISCM.2013.060974
  24. Osorio-Gallego, C., Londoño-Metaute, J., & López-Zapata, E. (2016). Analysis of factors that influence the ICT adoption by SMEs in Colombia. Intangible Capital, 12(2), 666–732. https://dx.doi.org/ 10.3926/ic.726
  25. Punjab: Jio launches 5G services in tricity. (2022, December 28). The Indian Express. https://indianexpress.com/article/cities/chandigarh/punjab-jio-launches-5g-services-in-tricity-8349356/
  26. Qashou, A., & Saleh, Y. (2018). E-marketing implementation in small and medium-sized restaurants in Palestine. Arab Economic and Business Journal, 13(2), 93–110. https://doi.org/10.1016/j.aebj.2018.07.001
  27. Rahayu, R., & Day, J. (2015). Determinant factors of e-commerce adoption by SMEs in developing country: Evidence from Indonesia. Procedia - Social and Behavioral Sciences, 195, 42–150. https://doi.org/10.1016/j.sbspro.2015.06.423
  28. Rogers, E. M. (2010). Diffusion of innovation (4th ed.). Free Press.
  29. Sin, K. Y., Osman, A., Salahuddin, S. N., Abdullah, S., Lim, Y. J., & Sim, C. L. (2016). Relative advantage and competitive pressure towards implementation of e-commerce: Overview of small and medium enterprises (SMEs). Procedia Economics and Finance, 35, 434–443. https://doi.org/10.1016/S2212-5671(16)00054-X
  30. Socrates Kwadwo, M., Twumasi Martinson, A., Teddy Evans, T., & Esther, A. (2016). Barriers to e-commerce adoption and implementation strategy: Empirical review of small and medium-sized enterprises in Ghana. Journal of Economics, Management & Trade, 13(1), 1–13. https://doi.org/10.9734/BJEMT/2016/25177
  31. Tomar, J. S. (2017). State of IT adoption in SMEs in India. Prabandhan: Indian Journal of Management, 10(1), 40–53. https://doi.org/10.17010/pijom/2017/v10i1/109102
  32. UN-DESA. (2020). Micro-, small and medium-sized enterprises (MSMEs) and their role in achieving the Sustainable Development Goals. https://sdgs.un.org/publications/micro-small-and-medium-sized-enterprises-msmes-and-their-role-achieving-sustainable
  33. Villa, E., Ruiz, L., Valencia, A., & Picon, E. (2018). Electronic commerce: Factors involved in its adoption from a bibliometric analysis. Journal of Theoretical and Applied Electronic Commerce Research, 13(1), 39–70. https://doi.org/10.4067/S0718-18762018000100104
  34. Yadav, R., & Mahara, T. (2018). Ecommerce adoption: An empirical investigation in wooden handicraft SMEs of Saharanpur, Uttar Pradesh. Prabandhan: Indian Journal of Management, 11(8), 20–33. https://doi.org/10.17010/pijom/2018/v11i8/130642
Editorial Scholar

Submit your Research to PIJM

Submit your Manuscript → Author Guidelines