Critical Success Factors and Barriers for Business-to-Customer (B2C) E-Commerce: Evidence from Vietnam

Abstract

Small and Medium-sized Enterprises (SMEs) are well-known for playing a critical role in boosting the economy. Adoption of electronic commerce (EC) is perceived to be an important mechanism for providing a competitive tool for SMEs. However, there is a lack of appropriate evidence in the existing literature with regard to EC adoption in SMEs in frontier countries, such as Vietnam, due to less integration and globalisation of the economic standards. Many theoretical models have been proposed for investigating EC adoption phenomena in SMEs. Most of these models are based on studies conducted in developed countries. The measurement of EC adoption is largely operationalised as a dichotomous variable based on the users’ decision about whether to adopt or not to adopt. Thus, the existing research fails to understand the real behaviour of EC adoption amongst SMEs. The present study aims to address this gap in the existing literature by investigating the intentions to adoption EC activities amongst SMEs and the consequences of these adoptions. In order to evaluate the EC diffusion of SMEs, the conceptual framework developed is applied by combining various theoretical models, including the Diffusion of Innovation, the Technology-Organisation-Environment framework, and maturity models. The current study focuses on obtaining and analysing data from SMEs operating in Vietnam, particularly regarding the adoption of business-to-customer EC (B2C). The key goals of the research are to measure and determine the characteristics of EC adoption amongst Vietnamese SMEs, to identify barriers that prevent B2C EC adoption of SMEs, and to explore critical factors that enhance EC activities for SMEs. A multi-stage approach is implemented in this research. First, due to lack of evidence in the identified research context, a comprehensive search in the existing literature is conducted to identify relevant theories that explain B2C EC adoption and critical success factors (CSFs) in performing online business. Second, a pilot-based survey is conducted to confirm the structure of the questionnaire that is used for the in-depth survey. The findings from reviewing the literature and the pilot study are contextualised to identify the research concepts. Finally, primary data from an in-depth survey are collected to provide further evidence to support the research objectives. Linear models and regression-based models are used to evaluate the patterns of EC adoption and examine the relationships among proposed variables in the research models.