A study of the nature and extent of Atlantic Canadian small and medium business e-commerce usage leading to the development and testing of a model to explain future adoption intentions

A study of the nature and extent of Atlantic Canadian small and medium business e-commerce usage leading to the development and testing of a model to explain future adoption intentions

This research examines the nature and extent of e-commerce use among Atlantic Canadian small and medium enterprises (SMEs), develops a model to explain future intentions to adopt more sophisticated e-commerce technologies and tests the model to determine if it explains current levels of e-commerce adoption.

A literature review evaluates previous research work in adoption of innovations, adoption of Information Technology (IT), e-commerce adoption, e-commerce adoption and use among Canadian and Atlantic Canadian SMEs, and on the characteristics of the Atlantic Canadian region. It was found that there were gaps in literature about factors that explain SMEs intentions to adopt more sophisticated e-commerce and their current level of e-commerce adoption. Furthermore it was discovered that almost no research existed on the nature and extent of e-commerce use among Atlantic Canada SMEs. A preliminary model was developed to examine both intentions to adopt more sophisticated technologies and current adoption levels.

Case study and survey research were adopted for this dissertation. Five case study interviews were used to reconfirm the preliminary model and to gain insight into the nature and extent of e-commerce use. A pre-test of the survey instrument with 31 respondents was then used to further reconfirm the research mode and to gather additional information on the current use of e-commerce. A telephone survey with 289 respondents statistically tested the model that posited that SME's current and future use of e-commerce can be explained by the decision makers' perception of performance and effort expectancy, social influence, top management/CEO innovativeness and IT knowledge, employee IT knowledge and business size. The survey also examined the nature and extent of e-commerce usage among Atlantic Canadian SMEs.

Significant findings from this research are, first, Atlantic Canadian SMEs are adopting basic e-commerce technologies but are not adopting or planning to adopt sophisticated technologies. This is in spite of evidence that suggests that SMEs that adopt e-commerce are likely to experience significant benefits. Second, decision makers in SMEs do not understand the general benefits of adopting e-commerce technology or furthering the extent of their adoption. Third, decision makers in SMEs appear to lack understanding about specific benefits of e-commerce use, are not convinced in their ability to use new e-commerce technologies and do not identify people in their peer group that will positively impact their decision to adopt. In addition while owners/CEOs appear to feel that they are somewhat innovative, have some degree of computer knowledge and that their staff also has some knowledge they are not over certain in their own or their staff's knowledge and skills. Fourthly, the model did explain a significant amount of SMEs' intentions to adopt additionally technology with performance expectancy, effort expectance and social influence being the most significant constructs. The model did not assist in understanding current usage of e-commerce among Atlantic Canadian SMEs.