Electronic Commerce and Market Focus: some findings from a study of Swedish small to medium enterprises

Abstract

In the past, organisations relied on traditional quantitative metrics, such as return on investment (ROI) to make decisions when investing in technology. With the advent of electronic commerce (EC), these decisions are becoming less reliant on ROI measures. Instead different driving forces are taking precedence in the decision making process. This paper presents the findings of a study of 118 Swedish small to medium enterprises (SMEs) that have adopted EC. The results of the study suggest that improvements to customer service, internal efficiency and organisational competitiveness have become equally important when making EC investment decisions. The study also examined whether major market focus (local, regional, national or international) had an influence on the organisation’s decision to adopt EC. Findings indicate no associations between the market focus and the driving forces, however the existence of a fully developed plan for EC adoption and the size of the business were found to be highly associated with the development of new markets as an EC adoption criteria.