Evaluating the critical determinants for adopting e‐market in Australian small‐and‐medium sized enterprises

Abstract

Purpose

The purpose of this paper is to present an empirical investigation of the critical determinants for the adoption of e‐market in Australian small‐and‐medium sized enterprises (SMEs) within the technology‐organization‐environment (TOE) framework.

Design/methodology/approach

A conceptual model is proposed for better understanding the adoption of e‐market in Australian SMEs. Structural equation modelling is used for testing and validating the proposed conceptual model based on the survey data collected from Australian SMEs. A logistic regression analysis is conducted for identifying the relationship between the critical determinants and the adoption of e‐market in Australian SMEs.

Findings

A positive relationship is identified between the perceived direct benefit, top management support, external pressure, trust and the adoption of e‐market in Australian SMEs. The top management support emerges as the most critical determinant. The perceived indirect benefit, size and organization readiness, however, do not show a significant influence on the adoption of e‐market in Australian SMEs.

Research limitations/implications

This study focuses on the investigation of the critical determinants in the adoption of e‐market in Australian SMEs. In order to gain an holistic understanding of the e‐market adoption in Australian SMEs, the impact of adopting e‐market on the performance of SMEs should be examined. Furthermore, this study does not distinguish the adoption of e‐market in SMEs between Australian metropolitan and rural areas. SMEs located in rural areas by the nature and location own specific characteristics such as a limited access to resources and less influenced by external pressure. The issues of their concern in the adoption of e‐market might be different from those located in metropolitan areas.

Originality/value

This study contributes to the e‐market adoption research in proposing and validating a research model for the e‐market adoption within the TOE framework, and by highlighting the criticality of the determinants of adopting e‐market in Australian SMEs.

Citation

Duan, X., Deng, H. and Corbitt, B. (2012), "Evaluating the critical determinants for adopting e‐market in Australian small‐and‐medium sized enterprises", Management Research Review, Vol. 35 No. 3/4, pp. 289-308. https://doi.org/10.1108/01409171211210172