A model for adoption of ICT and e-commerce in the developing countries : a pilot study of SMEs in Sri Lanka

For survival in a competitive global economy and staying abreast, it is apparent that Small and Medium Enterprises (SMEs) embrace Information and Communication Technologies (ICT) and e-commerce . This is becoming imperative for SMEs to gain competitive advantage and for stability in international markets. Yet, SMEs in developing countries, although they form the backbone of the economy are relatively slow in adopting ICT and e-commerce. Literature reveals many significant reasons contributing towards this reluctance. Various factors identified as causes for inhibition; can be broadly classified as Internal Barriers and External Barriers. The Internal barriers can be resolved within the organization by the organizations itself while the External barriers need to be addressed either by government intervention or by collaboration of SME organisations. In determining the factors for adoption, various researchers have adopted many different models. This paper presents a model for barriers to adoption of ICT and e-commerce collected from available literature along with the results of an exploratory case study done on the topic. While it initially looks into more in-depth information about the reasons why SMEs in Sri Lanka" a developing country in Asia, are reluctant to adopt ICT and e-commerce technologies, in the next stage of the study the author hopes to further validate the model by carrying our a through survey.