A Framework to e-Transform sMEs in developing countries

Abstract

Research into e-commerce and eTransformation indicates viable and practical solutions from e-commerce for organizations to meet challenges of a predominantly changing economic environment. Much of this research relates to developed countries ready to pounce on new approaches. However, developing countries seem to fall far behind. The few available studies related to SMEs in developing countries reveal a delay or failure on the part of SMEs to adopt ICT and e-commerce technologies. Various factors identified as causes for this reticence can be broadly classified as Internal Barriers and External Barriers. Exploring the identified barriers further, with an exploratory pilot study and interviews, this paper answers the question how barriers for adoption of e-commence impact the SMEs at different stages of sophistication. The paper also presents a framework to determine the current stage of an SME on a roadmap, which tracks eTransformation, and assists in overcoming barriers for moving between stages. Proceeding further, it identifies barriers predominant at various levels for different SMEs on the roadmap. Accordingly, SMEs at discrete stages need to be supported differently to suit requirements pertaining to level of ICT Sophistication. The proposed framework is a pointer in this direction to assist SMEs, policy makers and other stakeholders in addressing issues impeding adoption of e-commerce technologies in SMEs in developing countries.