E-business adoption costs and strategies for retail micro businesses

Abstract

E-business benefit both large and small businesses. However, the aggregate cost of successful online trading, including initial and recurring costs, continues to pose a great challenge to micro-enterprises. For these willing businesses, the result is a mere web presence and for some, the thought of trading online is a no-go area. Using a multi-case study qualitative approach, this study adopts the technology organisation-environment theoretical lens to explore empirically the strategies used by e-retail microbusinesses to potentially advance their e-business adoption. The findings revealed the actual cost of adoption, the technology-organisation-environment strategies in use to lower the cost barrier, and how the pursuit of the cost barrier simultaneously lowers some adoption barriers outside the cost factors. The study also highlighted the intrinsic idiosyncratic nature of small firms’ ecosystems, and the fact that government resources and services provided by companies, both private and public, could effectively reduce the costs associated with e-business adoption.