Determinants Impacting the Assimilation Stages of E-commerce in SMEs: A Modified TOE Framework

Abstract

This article aims to examine the factors affecting e-commerce assimilation in Indian SMEs. It proposes a research model based on the technology, organization, and Environment (TOE) framework that includes technological, organizational, environmental, and individual determinants of e-commerce adoption and assimilation. Survey data from 384 SMEs in North India reveals that technological, organizational, environmental, and individual (TOEI) determinants explain e-commerce adaptation. The results show that although Indian SMEs are adopting e-commerce, they cannot reach the final integration stage. Although all factors significantly influence the e-commerce assimilation in SMEs, technological factors have emerged as the most influential predictors of e-commerce adoption among the other elements, viz. The technological context directly affects e-commerce adaptation through organizational, environmental, and individual compatibility. In contrast, technological cost and perceived risk are the most crucial factors inversely impacting e-commerce adaptation. Therefore, managers, policymakers, and government should focus on developing technical infrastructure and providing technical support to SMEs to promote e-commerce integration. It will help them to take advantage of the opportunities that e-commerce offers.