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Factors Influencing e-Commerce Adoption among Sri Lankan Small and Medium Enterprises (SMEs): An Empirical Study Using the Technology-Organization-Environment Framework

I. P. K. Dilki Madushani(1), H. M. Malinda Nayanajith Herath(2),


(1) University of Kelaniya
(2) University of Kelaniya
Corresponding Author

Abstract


This study examines the factors influencing e-commerce adoption among small and medium-sized enterprises (SMEs) in Sri Lanka using the Technology-Organization-Environment (TOE) framework. A quantitative cross-sectional survey was conducted among registered SMEs across all 25 districts of Sri Lanka. From 220 distributed questionnaires, 155 valid responses were obtained and analyzed using Partial Least Squares Structural Equation Modelling (PLS-SEM). The model explained 57.0% of the variance in e-commerce adoption. Competitive pressure, top management attitude, and perceived complexity significantly influence e-commerce adoption, while perceived benefits and government support are not significant predictors. SME e-commerce adoption in Sri Lanka is driven mainly by competitive dynamics and managerial commitment rather than perceived benefits or institutional support.

Keywords


Competitive pressure; e-commerce adoption; Industry; TOE framework; Top management attitude.

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