E-COMMERCE ADOPTION: A TOOL FOR SMALL AND MEDIUM-SCALE ENTERPRISES (SMEs) EMPOWERMENT THROUGH INTERNATIONALIZATION

Michael Addai, Bertha Ada Danso, Ann Dodor, Henry Asante Antwi

Abstract


In this era of globalization, economies all over the world have become increasingly international and competitive. This research therefore aims to establish E-Commerce as a tool for Small and Medium-Scale Enterprises (SMEs) empowerment through internationalization.  SMEs are job creation engines in countries worldwide, for example they account for 80% of China’s jobs, Chinese National Bureau of Statistics (2015), 67% of net new private sector jobs in US (Small Business administration, 2015) . Data was drawn from case studies of smaller businesses on Taobao and other stakeholders and was analyzed by the use of Statistca 7 program. Available literature supports the empirical data. The time frame for this study is a five year period, 2011–2015.

The findings of this study showed that irrespective of their small sizes, E-Commerce can be the vehicle as a tool to empower SMEs to compete favorably on the global business platform. The findings also established that E-Commerce can boost SMEs profitability as the year on year profitability ratios on ROA increased by an average of 10% from 2011 to 2015 period of employing e-commerce. There are, however, several barriers that limit SMEs progress to effectively employ e-commerce in their businesses but such challenges can be overcome with government and the private sector interventions.

Key words: Small and Medium-Scale Enterprises, E-commerce, Internationalization


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