A preliminary study into strategies for determining the level to start e-commerce adoption for success in SMMEs

Abstract

E-commerce improves value chain integration, enables customisation and also provides smaller companies opportunity to reach customers worldwide. However e-commerce poses challenges to companies, including how to approach e-commerce to gain competitive advantage. Although a number of studies report on e-commerce adoption, these do not provide clear guidelines to determine how SMMEs should progress or move into e-commerce adoption. The aim of this research study is to examine the various available approaches and propose a model to assist SMMEs to determine how to start e-commerce adoption. Findings from this research study indicate that a small percentage of SMMEs are selling online in the Western Cape and realizing benefits derived from ecommerce adoption. The SMMEs interviewed followed an “adoption ladder” approach to e-commerce adoption, however, some had the perception that with maturity of e-commerce, a “managed strategic” approach would be possible. In conclusion the research study proposes a model to assist SMMEs to progress into e-commerce adoption, illustrating two available approaches.