SCOTLAND E-COMMERCE AND SME

E-commerce adoption Scottish SME: an online survey investigation of motives for adoption using new institutional theory frameworks

E-commerce adoption Scottish SME: an online survey investigation of motives for adoption using new institutional theory frameworks

Introduction

Electronic commerce (E-commerce) is the buying and selling of goods, products and services while using the electronic system. All the financial transactions and communication in the e-commerce are carried via electronic devices. The e-commerce passes from three important stages vis-à-vis ordering, financial transaction and the delivery of the order. According to the Scotland law, the small enterprises comprise staff between 1 and 49. In the same way, medium enterprises have employees between 49 and 250. As of March 2012, the total number of private enterprises in Scotland is 341,360. The share of Small and Medium Enterprises (SMEs) is 339,110. In terms of percentage, the SMEs account 99.3% of overall private sector enterprises. The SMEs provides jobs to 1.09 million people, and this is the 54.5% share in the employment sector of Scotland. The online surveys show that the trend of online activities is increasing at very fast pace. People prefer to do business via online because of low operational cost, wide access of market, 24/7 opening and greater customer satisfaction. The institutional theories are also suggesting that the e-commerce is the essence in developed countries like Scotland. They have the availability of sound infrastructure, good local consumer base and the laws which define the terms and conditions.

Discussion

The adoption of e-commerce in an SME depends on four factors e.g. Characteristics of Technology, Organization, Environment and the Manager. The characteristics of technology in the context of e-commerce define the information and innovation system of an SME. It is also focusing on the ability and attitude of the SME towards the e-commerce and innovation. In the same way, the characteristics of organization define the overall physical position of the SME. It includes the number of employees, available resources, culture and the technological advancement of the SME. The environmental characteristics of an SME define the governmental policies, overall economy of the country and other cultural factors which are directly related to it. The managerial characteristics are also important in the context of e-commerce in the SME. These are the internal factors of an SME like the risk taking attitude, enthusiasm, support and the cultural profile. These four factors are driving the adoption of e-commerce in an SME.

In the United Kingdom, the Scotland is much behind as compare to other countries in the field of e-commerce. The UK is the leader in the world; its e-commerce industry is performing outstanding. There was 19 percent growth in between 2008 to 2010. The share of Scotland in the online sales is about £31 billion (Herald Scotland, 2012). The lack of proper policy and institutional work, the e-commerce in the Scotland has shown poor performance. All the other developed countries in the world have shown a significant growth. The Scotland has strong infrastructure of Information Industry ...