Adoption of Electronic Commerce by Organizations in India: Strategic and Environmental Imperatives

In recent years many developing nations have been exposed to significant externa l changes such as economic deregulation and globalization. Evidence suggests that this has resulted in the adoption of EC by organizations in these countries. It is important to understand the strategic and environmental imperatives for EC adoption. Such understanding is required for anticipating necessary changes in EC adoption, to keep in tune with the impending and emerging changes in the environment. It is also needed for formulating business strategies in alignment with the organization’s IS strategies and IT capabilities, and for addressing managerial challenges in EC adoption. This paper is based on a study of EC adoption in eighteen companies from eleven industries in India. It is aimed at examining the different factors, related to strategic and environmental imperatives, which lead to the adoption of EC by organizations in developing countries. The results, based on interviews with close to a hundred people in these organizations indicate that there are broadly three conditions under which an organization adopts EC. These are related to the external environment, organizational performance and specific internal management compulsions. Each of these conditions describes a specific aspect of EC adoption and leads to imperatives for changes in processes and products. These imperatives in turn, result in the adoption of EC in different critical organizational processes. This study is one of the first detailed empirical studies on EC adoption in Indian organizations.