DETERMINANTS OF E-COMMERCE ADOPTION: EVIDENCE FROM SMALL AND MEDIUM-SIZED ENTERPRISES IN INDIA

Information technology (IT) is driving the business world in contemporary times. Large, medium, and small organisations in developed and developing countries are trying to adopt electronic commerce (e-commerce). Small and medium-sized enterprises (SMEs) are abundant in India, which is a rapidly developing country. Despite enormous efforts to adopt e-commerce, SMEs must address many hurdles. The major objective of this paper is to investigate the determinant factors that influence the adoption of e-commerce in SMEs. In this study, three categories and a three-stage model were used to demonstrate the various factors and stages that are involved in the adoption of e-commerce. A structured survey was conducted and data was collected from 148 firms in Coimbatore, a major industrial city in India. The data was analysed using binomial logistic regression to determine a significant relationship between a set of independent variables and the dependent variable. The results indicated that Top Management Support, Learning Orientation, Receptivity towards Change, Strategic Orientation, IT Readiness, Cost, and Relative Advantage as statistically significant determinants of e-commerce adoption. This study provides insight to the managers of organisations who are responsible for implementing e-commerce, and it will help to spread e-commerce use across SMEs in India.