AN INVESTIGATION ON FACTORS AFFECTING THE ADOPTION OF E-COMMERCE FOR SMALL BUSINESSES IN SRI LANKA

Abstract

This research focuses on investigating the factors affecting the E-Commerce adoption for small businesses in Sri Lanka which is very important during the current COVID 19 pandemic. Main objectives of the research are to identify the factors and to identify the level of impact from each identified factor for the E-Commerce adoption for small businesses in Sri Lanka. Data gathering of the research done through a questionnaire distributed online among the participants and using phone calls due to the pandemic situation. The Observed data was analyzed to obtain results using Multiple Linear Regression model. As per the results, Computer/internet skills, Willingness of the owner and Customer Readiness identified as major factors affecting the Ecommerce adoption for small businesses in Sri Lanka. All three factors showed positive relationship with the dependent variable. Adoption Cost and Security risks of online transactions didn’t identify as major factors for E-Commerce adoption and the significance levels of those factors were not satisfactory. The findings obtained through the research shall be used by the government or relevant authorities to promote E-Commerce for small businesses in Sri Lanka and the factors identified shall be addressed by formulating strategies, national level policies and Ecommerce adoption roadmaps. As the Ecommerce has become the best way of doing business in many countries throughout the globe, Sri Lanka shall strengthen their economy by moving the small businesses sector to adopt E-Commerce since their contribution to the economy is high and the survival of the small businesses during a pandemic situation like this shall be ensured .