Abstract

This paper presents a critical analysis of prevailing innovation adoption theories and assesses the extent of their appropriateness for explaining SMEs e-commerce adoption in developing countries. The theories examined are Technology Acceptance Model (TAM); Unified Theory of Acceptance and Use of Technology (UTAUT); Diffusion of Innovation Theory (DOI); Technology Organisation Environment (TOE); Theory of Planned Behavior (TPB); Resource Based Theory (RBT). Our analysis revealed that none of these theoretical models individually is sufficient to describe the contextual characteristics of SMEs in developing countries. Therefore, we suggested the integration of the Perceived E-readiness Model (PERM) by Molla and Licker (2005) and the Technology Organisation Environment Framework (TOE) by Tornatzky and Fleischer (1990) serves as a theoretical foundation for understanding e-commerce adoption of SMEs in developing country.

Keywords: e-Commerce, Small and Medium Enterprises, Developing Countries, Conceptual Model

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