Barriers to Adopting ICT and e-commerce with SMEs in Developing Countries: An Exploratory study in Sri Lanka

Research indicates that e-commerce offers a promising way for organizations to meet challenges of an ever-changing environment. However, the few available studies related to SMEs in developing countries reveal that they lag behind and are skeptical about adopting the technologies irrespective of their effectiveness. Literature reveals many significant reasons contributing towards this reluctance. The various factors identified as causes for the reticence can be broadly classified as Internal Barriers and External Barriers. Internal Barriers can be resolved within the organization by the organization itself, while External Barriers need to be addressed either by government intervention or by collaboration of SMEs. This paper presents a model for barriers to adoption of ICT and e-commerce, collected from the available literature and the results of an exploratory pilot studies and subsequent survey. In addition to the barriers facing SMEs, this research identifies the relevant support required by SMEs in a developing country, Sri Lanka. The methodology and initial issues found in the study are also discussed. Keyword: E-commerce, SMEs, adoption, developing countries, factors, barriers, model