the problems Affecting electronic commerce Activities of smes
The basic problems affecting electronic commerce applications of SMEs are inadequacy of
cognitive learning and organizational strategy,financial and distribution problems specific to SMEs, restrictions in supply chain management,reluctance of organizational culture for electronic transformation, problems in the application of information technologies, lack of qualified personnel,resistance of top management against organizational transformation necessitated by applying information technologies, integration problem of new technologies with available systems,customers’ lack of trust towards electronic commerce, and their worries concerning privacy
Janenko (2003) believes that one of the most important problems SMEs face in electronic
commerce activities is “automatic success deception”.According to Janenko, many SMEs have automated several aspects of their work processes through websites and are convinced that success will come automatically (2003). Varianini and Vaturi (2000) have found out similar causes for the problems affecting digitalizing process of SMEs such as to sustain a fixed market information flow, not possessing a flexible organization
structure, not detecting clear targets, and lack of safety and integration. Farhoomand and Lovelock(2001) also, has discovered numerous negative elements affecting electronic commerce in SMEs such as poor income / outcome / profit model,
lack of competition advantage, insufficiency in providing benefits to customer, organizational problems, and the conflict between website and
current business partners.As stated by Kshetri problems affecting electronic
commerce negatively are mostly concentrated on economic and social areas (2007, p. 446).
Economic problems can be outlined as low level of information technology applications, inadequacy of Telecom infrastructure, lack of capital, low level of credit card usage. The social problems are low level of cognitive literacy, foreign language(mainly English) insufficiency, promotion and marketing problems of local websites.
According to Kshetri the problems affecting electronic commerce can be categorized
under three groups such as pre-electronic commerce,in electronic commerce processes,
and post-electronic commerce. Pre-electronic commerce problems are mostly related to the adequacy of a country’s cognitive infrastructure.Credit card usage nationwide and financial problems are observed in the electronic commerce process phase. Post-electronic commerce problems are distribution infrastructure and after-sales services. Within a macro point of view, Kshetri bases this grouping mostly to the technical problems associated with information infrastructure of countries. Peterson et al. classify problems in electronic commerce as financial, legal, infrastructure, safety, customer privacy, protection of intellectual and industrial rights, problems faced during delivery, and customs operations. Dornan (2001, p. 27) on the other hand groups problems affecting electronic commerce just like Peterson et al. While some authors point out that in electronic management activities of SMEs, efficiency of non-commercial based transformation will increase, traditional commerce will at the same
time affect / delay / repress the development of electronic commerce activities . Some authors advocate that the development of electronic commerce in the entire organization will be experienced faster at the end of e-commerce based transformation
process According to McGregor and Vrazalic in terms of adopting electronic commerce, SMEs can be categorized into two groups such as potential adopters and non-adopters. The non-adopter group cannot use electronic commerce due to internal
causes of enterprises and external causes related to technological, economic, politic, legal, social, and cultural problems (2006, p. 7). Kapurubandara and Lawson advocate that in overcoming these obstacles methodologically “decision taking” and
“adoption” processes take place (2006, p.2). Stockdale and Standing categorize all the factors under four main groups such as “lack of resources and data, skill levels of employees, safety issues and preparation of small enterprises” (2004). Kurnia and Johnson include supply chain structure in this grouping as well (2000). In Table 1, it is possible to summarize the different views mentioned above.In this study, we evaluate the problems affecting successful electronic commerce applications of SMEs – as it is widely accepted in relevant literature; under two groups such as cultural and
technical problems.