Evaluation of Barriers in the Adoption of E-Commerce Technology in SMEs: A Fuzzy DEMATEL Approach

Evaluation of Barriers in the Adoption of E-Commerce Technology in SMEs: A Fuzzy DEMATEL Approach

Honey Yadav, Umang Soni, Shubham Gupta, Girish Kumar
Copyright: © 2022 |Pages: 18
DOI: 10.4018/JECO.292472
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Abstract

The main purpose of this study is to examine barriers towards e-commerce platforms in developing countries using specific analytic techniques. The present empirical analysis has its main objectives of detailed study of barriers that keep deferring them to adopt an e-commerce platform. To achieve this, the barriers were selected from an extensive literature review and expert advice from this field. Then the responses were studied using a fuzzy DEMATEL approach. The causal relationship graphs provide detailed structural interdependencies of the barriers. In this exploratory study benchmarking has come out to be the most influential barrier that needs to be practiced while adopting an e-commerce platform. Furthermore, a lack of top management commitment has also been a significant barrier in the organization while initiating an online real-time business. The result also showed that higher turnover and poor planning are the most influenced barrier among the other parameter, the sensitivity analysis of the method is conducted to validate the robustness of the results.
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1. Introduction

The Internet has modernized the way people used to carry out business operations and provided a far-reaching platform to socialize with the real world. Information technology solutions can broadly be defined as a combination of software, hardware, telecommunication, and information management techniques and applications that can be used to create, produce, analyses, process, package, distribute, receive, retrieve, store and interpret information (Barba-Sánchez et al., 2007). E-commerce has created a new platform for organizations to spread awareness about their product and services. Organizations adopting e-commerce technologies have a competitive advantage over the market, making existing companies improve their strategies. E-commerce technology has become more popular in recent years, earning large revenues and better business opportunities. An organization must understand that the emerging era of e-commerce technology attracts a huge percentage of online users. Hence, E-commerce technology adoption can provide a potential profit for the organization to extend its boundaries beyond the traditional walls. In India electronic commerce can be broadly categorized as business-to-consumer (B2C) e-commerce, business-to-business (B2B) e-commerce, and consumer-to-consumer (C2C) e-commerce. The convenience of customers to shop 24×7 at home and availability of a wide variety of products with an accurate description with lower prices has provided a large interactive online market (Farag et al., 2007; Childers et al., 2001). Therefore, the implementation of the e-commerce platform involves significant decision-making for policymakers and higher-level management. This study examines the barriers or parameters and identifies the correlation among the parameters in adopting e-commerce technology in India, focusing on small and medium-sized enterprises.

Valmohammadi and Dashti (2016) showed that a “lack of awareness regarding the benefits and nature of e-commerce” is the most prominent barrier to e-commerce implementation. Studies have suggested further examine the dependency among the different barriers and interaction between them. It has been founded that limited research has been done regarding the interaction among the barriers. Therefore, the present study aims to fill the gap in the literature, offering a more comprehensive model determining the interaction between the barriers. An integrated fuzzy DEMATEL approach is employed to perform the qualitative analysis (Bashardoost et al., 2018). Mohan and Ali (2019) concluded that MSMEs plays an indispensable role in the economic development of the nation, and like SMEs, these dynamic business platforms can help the Indian economy to boom at a faster pace; hence existing literature has not led enough attention to the reasons behind Why Indian SMEs are lagging behind other developed economies in adopting digital platforms. Different studies conducted in this context incorporated different barriers in their studies. A total of 15 barrier have been identified in this proposed study. However, any inadequacy in understanding these barriers may also increase the complexity while executing the adoption of E-commerce in the Indian context. Researchers played a vital role in addressing various crucial barriers to evaluate and understand the nitty-gritty while proposing a framework to overcome this problem. The present research framework seeks to attain the objective mentioned as - Understanding and evaluating barriers in the adoption of E-commerce from the Indian perspective. The above mentioned objective has been designed based on the fact that the Indian SMEs are still lagging behind other developed economies in adopting digital platforms (National report on e-commerce development in India, 2019). Hence quite important for SMEs to incorporate E-commerce. Therefore, to resolve this difficulty in the adoption of eCommerce by SME (Indian context. This research raises two analysis questions, as follows:

  • • What are the barriers need to be considered in the successful adoption of E-commerce in SMEs from the Indian perspective.

  • • How the causal relations among the identified barriers in the successful adoption of E-commerce in SMEs should be determined?

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