Exploring E-Business in Indian Smes: Adoption, Trends and the Way Forward

Abstract

We identify the key factors that influence the adoption and use of E-Business technologies by small and medium enterprises. Amongst the key influencers are owner-manager characteristics, technology factors, organizational factors and institutional influences. While the capabilities of technologies are an important driver, the other influencers play a key role as well. Owner-managers are the key facilitators. Organizational readiness reflects a firm's technological capabilities. SMEs also adopt technologies due to the pressure exerted by their key customers, competitors, government regulations, industry standards or suppliers. These institutional pressures are classified as mimetic, coercive and normative. Mimetic pressures cause SMEs to react to competitors' actions. Coercive pressures are those exerted by firms on which the SME is dependent. Normative pressures arise from the need to keep up with industry standards. We analyse these factors in the context of a rapidly growing E-Business sector in India.