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Journal Article

e‑Commerce Investments from an SME perspective: Costs, Benefits and Processes  pp45-56

Sandra Cohen, Georgila Kallirroi

© Nov 2006 Volume 9 Issue 2, Editor: Dan Remenyi, pp45 - 104

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Abstract

The scope of this paper is to investigate whether SMEs take into consideration the cost dimensions (tangible and intangible, direct and indirect) and follow the investment appraisal techniques proposed in literature as relevant and suitable in relation to e‑commerce adoption. More specifically, we analyse the importance placed by the EC adopters on specific cost elements, types of budgets and investment appraisal techniques in relation to EC decision. Furthermore, we aim at understanding the reasons, both quantitative and qualitative, that drive SMEs to embark on such an investment. Our empirical evidence is based on the responses to questions found on a structured questionnaire answered by Greek firms that have already adopted EC. Our findings indicate that cost, in general, is not a major issue for Greek SMEs when deciding to implement EC, while the strategic benefits they aim at gaining from EC applications play a critical role in the adoption decision.

 

Keywords: e-commerce, IT investment, SMEs, IT costs, IT investment appraisal, Greece

 

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