Review of Al-Qirim’s edited book

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This is a book review of my first edited book conducted by Prof. Bill Doolin and appeared in the Journal of Systems & Information Technology(8), 2004, 40-42.

Al-Qirim, Nabeel A.Y. (ed.) (2004). Electronic Commerce in Small to Medium-Sized Enterprises: Frameworks, Issues and Implications. Hershey, PA: Idea Group Publishing (ISBN).
Bill Doolin, Auckland University of Technology, Auckland, New Zealand.

In this edited collection of research papers on electronic commerce in small and medium-sized enterprises (SMEs), Al-Qirim identifies and attempts to address several key themes. These themes, he suggests, are to an extent similar to those concerning SMEs and information technology more generally. They are (1) evidence of electronic commerce uptake or success in SMEs; (2) technological and organisational deficiencies or factors impeding adoption of electronic commerce by SMEs; and (3) the relatively late adoption of electronic commerce by SMEs. This latter theme underlies much of the research presented in this book. That is, a need to address why, despite the perceived opportunities offered by electronic commerce, its uptake and use in SMEs has been slower and less than expected.

The twenty chapters of the book have been organised into some nine sections. The first section serves as an introduction to the field, presenting two reflections on electronic commerce research in SMEs. The chapter by Al-Qirim picks up the central themes outlined above, suggesting that the opportunities provided to SMEs by electronic commerce are more apparent than actual, and that the adoption process is complex. Al-Qirim argues that prior research on electronic commerce and SMEs is fragmented anexploratory, and that it often lacks an understanding of the relevant issues from the perspective of SMEs themselves. A key point is that adoption of an electronic commerce technology does not necessarily imply effective utilisation of that technology or engagement in electronic commerce by SMEs. Al-Qirim concludes that there is a need to establish a theoretical foundation for the SME electronic commerce field. This seems to
be an appropriate objective against which to measure the contribution of this book, something I will return to later.

The second introductory chapter, by Poon and Huang, also highlights the lack of theory development in this area, and identifies some of the challenges involved in establishing a coherent and integrated body of knowledge on SMEs and electronic commerce. These include the difficulty in defining what constitutes an SME, national and cultural differences in SMEs’ electronic commerce experiences, and the rapidly changing nature of electronic commerce itself. Both these authors and Al-Qirim call for multidisciplinary and multi-method approaches to SME electronic commerce studies, in order to generate reliable and valid insights into this phenomenon.

This call is certainly answered by the studies present in this book. The fourteen empirically-based chapters contain a mix of survey, interview and case study approaches. The majority of studies presented in these chapters are multi-sector, and cover eleven countries from Europe, Asia-Pacific and North America. Unfortunately, “electronic commerce” is often ill-defined and varies between the studies – sometimes business-to-business or business-to-consumer, sometimes simply Internet usage or Web site development. Similarly, the definition of SME varies considerably across the studies – from less than 5 employees to up to 500 employees. Such variability makes it difficult for an editor or reader to synthesise a coherent body of knowledge on SMEs and electronic commerce.

The subsequent sections of the book include eight chapters that, in various ways, address the factors shaping electronic commerce adoption, diffusion and success among SMEs. Underlying much of this research is a deterministic treatment of the phenomenon we call electronic commerce. Many of the authors are concerned with measuring the “impacts” of electronic commerce and suggesting how SMEs will respond to these impacts. For example, Quayle and Christiansen provide a descriptive snapshot of reasons for electronic commerce adoption, barriers to implementation and impact on customer and supplier relationships in Denmark and the UK. Similarly, Ratnasingam identifies a range of perceived barriers to electronic commerce adoption from a survey of New Zealand and Australian SMEs, while Griffin presents a picture of Internet adoption and diffusion in Irish SMEs. The latter is complemented by a chapter from Golden et al., who tested a theoretical model of organisational characteristics, management issues and implementation issues contributing to the successful uptake of electronic commerce in
Irish SMEs.

Other chapters examine novel contexts or other dimensions of electronic commerce adoption. For example, Purcell et al. focus on various barriers and benefits of Internet adoption in Samoa, a small Pacific Island country. Key issues to emerge from the study are the effect of local culture, technical and financial infrastructure, and lack of electronic commerce expertise on electronic commerce adoption in that developing economy. In their contribution, Lertwongsatien et al. examine whether a range of factors hypothesized to influence electronic commerce adoption vary across early and late SME adopters in Thailand. The chapter by Elsammani et al. focuses on Web site implementation practices in UK SMEs, and on the role of change agents in the adoption process.

A welcome exception to the determinism inherent in the studies discussed above is the chapter by Castleman on SMEs as social formations. Castleman explores how the social contexts within which SMEs are embedded shape the diverse rationalities with which they approach electronic commerce. She argues that SME operators are rational in a complex way that reflects not just an instrumental economic rationality, but alternative social or value-oriented rationalities. These rationalities revolve around issues of identity, family, relationships and control. The insights offered by Castleman’s research are an important step towards a more informed approach to policy and support for SM electronic commerce adoption.

Six of the book’s chapters examine a range of topics around electronic commerce in the supply chain of SMEs. Jeffcoate et al. present a useful analytical framework that evaluates the impact of electronic commerce on SMEs’ value chains. From a series of interviews with SMEs in seven European countries, the authors identify a number of factors around the value chain that potentially influence electronic commerce adoption. These include the type of industry value chain participated in, its relative stability, the extent of electronic linkages within the value chain, and the role of value activity interactions. Based on a number of case studies of Danish SMEs, Svensson and Malis describe how product models can be applied to support knowledge distribution for mass customisation in networks of SME suppliers and manufacturers. Auer and Franz utilise an action research approach to understand the process of electronic commerce adoption in Austrian SMEs.

Ravarini et al. focus on the concept of industrial districts as a possible influence on the development of e-procurement solutions involving SMEs. They develop six theoretical models that serve as possible strategies for implementing e-procurement in different industrial contexts. Fife and Pereira use a comparative case study method to examine the challenges facing SMEs wishing to re-engineer their core business processes in order to engage in electronic commerce. Davidrajuh discusses a methodology for developing an electronic commerce tool to design and develop collaborative supply chain management for SMEs.

The final four chapters comprise some interesting work that discusses emerging roles for electronic commerce in SMEs. Sharma et al. consider a range of factors that hinder SME participation in a knowledge-based economy. Based on their analysis, they present a series of ten guidelines that they believe will help SMEs accomplish this transition.

Tatnall et al. examine the use of community and regional Web portals by Australian SMEs. They conclude that while there are a number of significant benefits available to SMEs from these portals, there is still scope to develop these benefits further. Weerakkody et al. analyse the risks for SMEs utilising application service provision (ASP) solutions for key electronic commerce applications. Based on a UK survey, they present SMEs’ perceived issues in utilising ASP under four categories of ASP performance measurement: delivery and enablement, management and operations, business transformation, and client/vendor relationship. The authors then classify the
fourteen risks identified according to their perceived impact on SMEs. Yao et al. also discuss the potential risks (and benefits) for SMEs engaging in an ASP relationship. The authors then present a conceptual stage model for ASP selection and relationship development that they believe will assist SMEs in establishing a successful ASP collaboration. Although untested, this model provides a useful perspective from which to conduct empirical research on the SME ASP phenomenon.

The strength of this book is the quantity and variety of empirical findings on SME electronic commerce from a considerable number of countries. What the book lacks is a concluding chapter that attempts to draw together the various findings presented and to synthesise the sort of theoretical contribution identified as necessary by the editor in his introductory chapter. This is probably too much to ask – after all, no one else has yet managed it in this area. However, if the study of electronic commerce and SMEs is to progress further, we need more theory building. This is also essential if we are to provide meaningful assistance to SMEs trying to secure the potential benefits we suggest exist in electronic commerce applications. One way forward may be for researchers to focus on meta-analyses of specific, well-defined aspects of SME engagement with electronic commerce.

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Other Testimonials of Al-Qirim’s first edited book

1. Al-Qirim, Nabeel A.Y. (ed.) (2004). Electronic Commerce in Small to Medium-Sized Enterprises: Frameworks, Issues and Implications. Hershey, PA: Idea Group Publishing (ISBN).

The following reviews and testimonials were taken from IGP’s Web site for my first edited book.

This book provides important information about various issues faced by SMEs in adopting electronic commerce. It covers a comprehensive range of topics and serves as a useful resource for researchers and practitioners interested in the challenges faced by SMEs in leveraging electronic commerce for business efficiency and competitiveness. It is a must read for those interested in SMEs and electronic commerce. It also helps to synthesize current research on electronic commerce and SMEs with contributions from many countries around the world.
- Thompson Teo, National University of Singapore

2. "In the aftermath of the hype surrounding Electronic Commerce in previous years, it is encouraging to see worldly, yet theoretically robust, works addressing the present and future of Electronic Commerce in an objective manner. The book addresses an area of eCommerce application that has been largely overlooked and under-researched in previous literature: how can small and medium enterprises exploit eCommerce capabilities to reap benefits comparable to those enjoyed by successful eCommerce implementations in large organizations. The book will be extremely useful to managers seeking to understand critical success factors, as well as barriers to adoption, of eCommerce by SMEs, and to researchers investigating the future of eCommerce in the small sector economy".
- Dr. George M. Giaglis, Athens University of Economics and Business, Greece