Factors Affecting E-Commerce Adoption by Handicraft SMEs of India

This study empirically investigates the factors affecting e-commerce adoption by small and medium-size enterprises producing handicrafts in India. The study is motivated by the fact, that even though the handicraft sector plays a vital role in the Indian economy in terms of exports and employment, it has not adopted e-commerce as one of the prominent sales channels. Survival in this new economy requires handicraft organizations to learn and adopt new technologies. Those who cannot or do not adopt this new business practice will become obsolete and will be left behind. This study proposes and utilizes technological, organizational, environmental and strategy model based on TOE (Technology, Organization and Environment) model. From a survey of 163 Indian small and medium-size enterprises, findings reveal that awareness, human resources, strategy and market forces e-readiness are the prime influencing constructs towards adoption of e-commerce by Indian small and medium-size enterprises.