Access eCommerce Research Briefs
Brief 2
Small business Internet commerce issues
In 1999 Information and Management published “An exploratory study of small business Internet commerce issues”. Authors Poon and Swatman report that although e-commerce consumes an enormous amount of time and energy (which may actually interfere with a company’s ability to engage in its core business), the number one reason that small businesses stay on the Internet is because of the promise of future opportunities. Businesses use the Internet to:
• communicate via e-mail,
• to control systems expenditures,
• to identify opportunities for innovation, and
• to manage risk while realigning their business in response to market conditions.
Poon et al. (1999) presents the findings of a multi-case study investigating the reasons why small businesses are online. This data provides a snapshot of how different types of businesses use the Internet. One hour personal interviews are conducted with firm directors* at twenty-three small Australian businesses. For a small businesses, the problem with e-commerce is that is consumes an enormous amount of time and energy--which is time taken away from the day-to-day running of the business. Conversely, the main reason that small businesses stay on the Internet is because of the promise it holds for future opportunities (business growth). Small businesses often lack systems integration (costs and lack of external pressure to integrate systems) and few use the Internet for the financial business transactions (lack of security, low transaction volume, lack of financial services support and no incentives to use online banking services). The nature of the business and type of product has an effect on how quickly they adopt technology upgrades. A leader within the organization needs to champion the adoption of information technology. The Internet helps entrepreneurs to identify future opportunities (to be innovative) and to capitalize on the outcome (to take risks).
Poon, S., & Swatman, P. M. C. (1999). An Exploratory study of small business Internet commerce issues. Information and Management 35, 9-18.
Research Briefs are provided by students in DHA 8170 Topics in Design, Housing and Apparel: Global E-commerce. Dr. Seung-Eun Lee, University of Minnesota
Access eCommerce Research Briefs
- Brief 1: How businesses are using the Internet
- Brief 2: Small business Internet commerce issues
- Brief 3: Four-stage e-commerce development model
- Brief 4: Benefits small businesses can gain from opening shop on the Internet
- Brief 5: The Internet as an information solution
- Brief 6: Determinants of the locus of global e-commerce
- Brief 7: Are there any economic incentives to engage in electronic commerce, or is it just a fad?
- Brief 8: Digital development in rural areas: potentials and pitfalls
- Brief 9: Digital divide and purchase intention: Why demographic psychology matters.
- Brief 10: Ethical issues in electronic commerce
- Brief 11: One brand, three ways to shop.
- Brief 12: The nature of and conditions for online trust
- Brief 13: E-shopping in a multiple channel environment
- Brief 14: The E-Marketing Mix: A Contribution of the E-Tailing Wars
- Brief 15: Consumers shop to acquire items, and they shop for fun.
- Brief 16: How companies use content and design features in their website.
- Brief 17: Conceptualizing consumer experiences in cyberspace.
- Brief 18: Cross-cultural and cognitive aspects of web site navigation
- Brief 19: Managerial issues for international Web-based electronic commerce
- Brief 20: Cultural context in multilingual website usability
- Brief 21: Using corporate websites for export marketing
- Brief 22: The measurement of web-customer satisfaction
- Brief 23: Developing and validating trust measures for e-commerce
- Brief 24: Designing effective cyber store user interface
