Dynamic contextual factors, individual agency and adoption of e-commerce in SMEs

Abstract

This article provides an explanation of how dynamic contextual factors and individual agency influence the adoption of electronic commerce (e-commerce) in small and medium-sized enterprises (SMEs) in Pakistan. Eight multiple qualitative case studies were undertaken, involving 24 face-to-face semi-structured interviews and were thematically analysed using NVivo. This study found that the Technology-Organization-Environment (TOE) factors and additional extended micro-level (individual agency) factors strongly influenced the adoption of e-commerce practices by the managers of Pakistani SMEs. Managers need to address factors such as digital readiness, recruiting of skilled ICT expertise, reluctance of customers to switch their preference from traditional business selling methods to e-commerce, obtaining government and local institutional support, and recognizing the characteristics and individual agency of their owner-managers. On top of these factors, there is a strong need to improve the Information and communication technology (ICT) infrastructure in order for manager to prepare for and to embrace the e-commerce practices in their respective companies. This article extends Tornatzky and Fleischer’s TOE framework by adding the micro-level context of individual agency. Additionally, this article proposes practical implications for policymakers, governments, and local business support agencies.