Factors Influencing E-Commerce Adoption on Sustainability of MSME, a Multiple Holistic Approach

Abstract

The following research questions have therefore been formulated to guide this study: What are the factors that affect adoption of e-commerce among MSMEs? How has e-commerce impacted on the sustainability of MSMEs? The study adopted a Multiple Holistic approach. A cross-sectional survey of 450 MSMEs identified that 89% had implemented e-commerce in some manner, and that 44% were at mid-level of integration and a further 22% at an advanced integration level. The results revealed that technological readiness had the strongest relation to e-commerce adoption, followed by organizational capabilities, environmental context, and societal influences, in that order, and therefore the hypotheses testing involved a regression analysis, out of which only technological readiness, organizational capabilities, environment, and social factors have statistically significant influence, with standardized regression coefficients of 0. 35, 0. 25, 0. 20, and 0. 15 The operational efficiency was found to be increased due to the adoption of e-commerce channel with a significant coefficient of 0.40, χ2 = 681.95, p < 0.001, the market reach enhancement, 0.30, χ2 = 680.95, p < 0.001, and reduction in the operating cost having a coefficient of 0.20, χ2 = 678.95, p The following technological barriers were also supported by the accumulated data: technological impediments, organizational revelations, and the need for regulatory intervention. Government suggestions include increasing investments in the area of development of technology, offering fund incentives, creating skills development programs, reducing barriers and addressing the issue of trust in digital commerce platforms. Through this multifaceted approach, it will seek to promote the digitization process of MSMEs to ensure a steady and strong growth in the market.