A Study of Barriers to Initial and Post E-Commerce Adoption among Small Businesses in Sri Lanka

Abstract

Small businesses in Sri Lanka are considered the backbone of the economy, and e-commerce can be viewed as a ladder for business growth. However, Sri Lankan Small businesses are not adopting e-commerce to its full potential. This research examines potential barriers within the Technology-Organization-Environment (TOE) framework that affect the decision to adopt electronic commerce and post e-commerce adoption within small businesses in the Sri Lanka. The study employed a quantitative research approach, proportion-ate stratified random sampling procedures were used to select a sample of 453 firms in Hambantota District, Sri Lanka. Primary data were collected using a pre-designed and tested questionnaire. For analyzing the data derived from multiple regression. According to statistical analysis in this research the results indicates that, initial and post adoption by these businesses were found to be hindered by some of barriers existing within individual, technological, organizational, and environmental context including lack of knowledge and awareness of e-commerce, fear to change, lack of qualified personnel to develop and support ecom-merce, lack of popularity for online marketing and inadequate delivery networks, higher competition and indirect or hidden cost associated with e-commerce. The research findings will aid in developing more effective government policies and planning decisions to foster a more vibrant small business ecosystem in developing countries.