Adoption of E-Commerce by Small and Medium Enterprises in Nepal

Abstract

This study examines the adoption of e-commerce by small and medium enterprises in Nepal. The dependent variable is adoption of e-commerce by SMEs. Similarly, the selected independent variables are technological readiness, perceived compatibility, government support, competitor pressure, social media influence and security concern. The primary source of data is used to assess the opinions of the respondents regarding the technological readiness, perceived compatibility, government support, competitor pressure, social media influence and security concern for adoption of e-commerce by small and medium enterprises in Nepal. The study is based on primary data of 159 respondents. To achieve the purpose of the study, structured questionnaire is prepared. The correlation coefficients and regression models are estimated to test the adoption of e-commerce by small and medium enterprises in Nepal. The study showed that technological readiness is positively correlated to e-commerce adoption by SMEs. It means that increase in technological readiness leads to increase in adoption of e-commerce by SMEs. Likewise, perceived compatibility is positively correlated to adoption of e-commerce by SMEs. It implies that increase in perceived compatibility leads to increase in level adoption of e-commerce by SMEs. Similarly, government support has a positive relationship with e-commerce adoption by SMEs indicating that increase in government support lead to increase in adoption of e-commerce by SMEs. Furthermore, competitor pressure has a positive relationship with adoption of e-commerce by SMEs. It implies that competitor pressure leads to increase in adoption of e-commerce by SMEs. Likewise, social media influence is positively correlated to the adoption of e-commerce by SMEs indicating that social media influence leads to increase in adoption of e-commerce by SMEs. Similarly, security concerns have a negative relationship with adoption of e-commerce by SMEs indicating that increase in security concerns lead to decrease in adoption of e-commerce by SMEs.