Benifits of E-Business and Barriers

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BIMA Publishing Communications of the IBIMA Vol. 2011 (2011), Article ID 791778, 11pages DOI: 10.5171/2011.7917780

Experienced Benefits and Barriers of e-Business Technology Adoption by SME suppliers Ali Abu Abid1, Md Mahbubur Rahim2, and Helana Scheepers3
1 2

faculty of Computer Sciences, Abha, Saudi Arabia

Caulfield School of IT, Monash University, Australia

Swinburne University of Technology, Australia


_____________________ Abstract E-business technologies present unique opportunities and challenges for businesses, and Small & Medium Enterprises (SMEs) are no exception. However, there is a rich body of the e-business literature concentrates on adoption concerns from SMEs buyers’ viewpoint, little research has so far been reported from the viewpoint of SME suppliers. Participation of SME suppliers needs to be ensured in order to use the full potential of e-business technologies. This study was thus initiated to identify the experienced and expected benefits and barriers to adoption of ebusiness technologies from the viewpoint of group SME suppliers. In general, the findings designate that the SME suppliers have experienced numerous impediments that they need to overcome for the successful implementation of e-business technologies. The suppliers also have a broader view of e-business benefits than just cost saving. Keywords: SME supplier, Adoption, Benefits, Barriers, experienced, E-business. ____________________________________________________________

__________________________________________________ current technical infrastructure and eIntroduction business technologies (NOIE, 2000). E-business is defined as a business model which enables buyers and sellers to exchange information and services using a range of electronic technologies (Davies & Garcia-Sierra, 1999). It allows businesses to adjust to novel markets and trade opportunities by increasing their sales, reducing their cost of transactions (Tan et al., 2010) and increasing flexibility in communicating with business partners (Tan et al., 2010; Heung, 2003). Nevertheless, significant difficulties exist for adoption of e-business technologies such as the lack of compatibility between There exists a rich body of literature on ebusiness for the SME context. However, studies on e-business have not differentiated the benefits and barriers between SME buyers and suppliers. As the business processes associated with fulfillment of suppliers are different from those of ordering and procurement of buyers (Kim, and Shunk, 2004), it is argued that SME suppliers are likely to have different concerns regarding e-business benefits and barriers. Current e-business literature does not report much about the e-business adoption concerns from SME

Copyright © 2011 Ali Abu Abid, Md Mahbubur Rahim and Helana Scheepers. This is an open access article distributed under the Creative Commons Attribution License unported 3.0, which permits unrestricted use, distribution, and reproduction in any medium, provided that original work is properly cited. Contact author: Ali Abu Abid. E-mail:

Communications of the IBIMA


suppliers’ viewpoint. Furthermore, little has been reported about a comparison of expected and realized benefits/barriers from SME viewpoint. This study was thus initiated to better understand the perceptions of SME suppliers about ebusiness technology adoption benefits and barriers by administrating an online survey among a group of SME suppliers which are registered with a large city council located in the estate of Victoria, Australia. Understanding their views is important because participation of SME suppliers is essential if full potential of e-business technologies need to be harnessed. The overall findings indicate that the impact of e-business technologies adoption is seen in a positive light...
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