Challenges of E-Commerce Adoption Experienced by Pakistani SMEs: A Qualitative Analysis

Abstract

This study explores the various contextual challenges that SMEs face in adopting e-commerce in Pakistan. To satisfy the study aim, a qualitative method of research was selected, comprising semi-structured face-to-face and unstructured telephone interviews. Applying the Technology-Organization-Environment (TOE) framework, this study found several key challenges SMEs encountered during e-commerce adoption. Five major types of challenges that emerged during data analysis were technological, organizational, and environmental challenges, and challenges related to national (local) institutional support and to the entrepreneurial characteristics of owner-managers. This study shows the adoption of e-commerce in Pakistani SMEs is dynamic and, when enthusiastic owner-managers and other employees become interested in technology and are willing to engage in e-commerce projects, the chances of e-commerce adoption are greater. The findings of this study provide policymakers with a real-market overview (or contextual knowledge) to formulate e-commerce policies that will help new entrepreneurs in SMEs and improve their capacity for innovation.