Perceived barriers towards the use of e‐trade processes by Korean SMEs

Abstract

Purpose

E‐trade (or electronic trading) appears to offer increased efficiency in business processes, but only a limited number of small firms in Korea have adopted the new processes. The purpose of this paper is to try to establish the obstacles and the perceived barriers to the continuing use of e‐trade technologies by small Korean firms.

Design/methodology/approach

The literature was employed to develop a theoretical model that includes perceived risk and the environment. The model was operationalised in a questionnaire completed by 164 respondents. LISREL validated the instrument and the model. The data were analysed using structural equation modelling.

Findings

The authors found that information risk and business risk negatively affect adoption and use. The authors also tested the relationship between the environment of the organisation and adoption of e‐trade. The results show that the maturity of information technology and the innovation characteristics of the firm have positive influences on the adoption of e‐trade.

Research limitations/implications

This study uses data from existing users, so the findings extend the existing literature about decisions to adopt and use new processes. The data are, however, limited to the Korean context.

Practical implications

The study demonstrates the negative influence of perceptions about risk associated with innovative processes. Thus, this awareness and understanding of how barriers are perceived should help to increase the diffusion of e‐trade systems. The authors' findings indicate what has to be done for developing and extending the use of e‐trade.

Originality/value

The study is novel and contributes to the understanding of the adoption and use of new processes.

Citation

Oh, K., Anderson, A.R. and Cruickshank, D. (2012), "Perceived barriers towards the use of e‐trade processes by Korean SMEs", Business Process Management Journal, Vol. 18 No. 1, pp. 43-57. https://doi.org/10.1108/14637151211215000