A Model of the Level of E-commerce in SMEs

E-commerce provides both opportunities and risks to SMEs. The objective of this study is to identify the state of use of e-commerce and the factors that influence the level to which SMEs use e-commerce. A research model is postulated that contains eight potential independent variables and hypotheses under three broad categories - technological, organizational and environmental characteristics. The dependent variable, level of e-commerce, is measured as the degree of adoption of e-commerce by the firm. The model is tested with data from 156 firms. The results of data analysis indicate that five factors in the conceptual model are important determinants that will influence the level of adoption of e-commerce activity in SMEs.