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The purpose of this paper it to examine Electronic commerce (e-commerce) practices of Iranian business organizations, as a “traditional” business culture, as it compares to a “developed” business culture such as the one existing in business organizations in the USA.

Executives from a sample of 50 business organizations in Iran were interviewed and asked to complete the research questions pertaining to e-commerce practices in their organizations. A factor analysis procedures with varimax rotations is used to analyze the data collected from these organizations.

Comparing the result of this study with an earlier study on a sample of business organization in the USA shows more similarities than differences. Based on the results of the study, it appears that e-commerce practices and related technology present similar opportunities and challenges to organizations regardless of their business culture. Lack of appropriate technological hardware and software, however, is identified as a hindering factor preventing Iranian business organizations from reaching their e-commerce potentials.

This research provides a rare insight into the Iranian business culture. The collection of data through personal interviews and the empirical nature of the study represent a unique opportunity to validate findings from other business cultures. This allows for a better practical understanding of the opportunities and constraints associated with e-commerce adoption.