Organizational factors affecting e-commerce adoption in small and medium enterprises in Colombo district

Abstract

Modern world organizations need to maintain some sort of Electronic Commerce (EC) utilization in order to ensure the long-term sustainability of the organization. Not only the large-scale businesses but also the Small and Medium Enterprises (SMEs) which is the target group of this study practice it. The usage of EC in SMEs has grown in significance as a research area in information systems. Governments have paid a lot of attention to encourage SMEs to use E- Commerce, but few research has been conducted to evaluate the optimal E-commerce adoption strategies for Small and Medium Scale Enterprises in developing countries, notably Sri Lanka. This study's primary objective was to assess the correlation between organizational elements and the EC adoption. Quantitative methods were taken into consideration in this research in order to figure out the major elements that contribute EC adoption in Small and Medium enterprises. The information used in the study was acquired through a survey of 150 SMEs in the Colombo District. The sample was chosen using a stratified random selection technique based on SME-businesses. Results of this study, which were based on correlation and Consistent Partial Least Square Method. Some factors were illuminating and made it easier to comprehend some organizational characteristics that affect the degree of EC adoption. Top management support was the biggest factor found. The findings of this research lend empirical evidence to the idea that organizational characteristics and SMEs' adoption level of E-commerce are positively associated. The degree of EC adoption in SMEs and employee gender were also found to be negatively correlated. It might be argued that a gender that encourages creativity and risk-taking would offer the necessary support for greater adoption of new technology. The firm's business practices are influenced by the top management’s views on innovation. Key Words: SMEs, Factors, E- Commerce, Adoption, Colombo District, Organization