Share:


Analyzing the determinants of e-commerce in small and medium-sized enterprises: a cognition-driven framework

    Ricardo M. R. Barroso Affiliation
    ; Fernando A. F. Ferreira Affiliation
    ; Ieva Meidutė-Kavaliauskienė Affiliation
    ; Nerija Banaitienė Affiliation
    ; Pedro F. Falcão Affiliation
    ; Álvaro A. Rosa Affiliation

Abstract

The increasing use of information technology in enterprises’ daily operations has led to multiple innovative ways to run a business, including electronic commerce (hereafter, e-commerce). However, firms with fewer resources, such as small and medium-sized enterprises (SMEs), are more reluctant to use electronic channels during transactions. This aversion to contemporary business models is a result of these companies’ lack of knowledge and capabilities regarding e-commerce. To improve their businesses, SMEs’ managers and decision makers could benefit from a methodological framework that fosters a deeper understanding of the determinants of e-commerce. This study sought to explore the use of fuzzy cognitive mapping to address this need. The results are grounded in the knowledge and experience of a panel of experts in e-commerce. The fuzzy cognitive map (FCM) developed shows that entrepreneur profile, market, operational management, marketing and promotions, website and digital platform, and products present the highest centrality indices as determinants of SME e-commerce. The findings offer a better understanding of the cause-and-effect relationships between these determinants. The advantages, limitations, and shortcomings of our constructivist proposal are also discussed.


First published online 10 April 2019

Keyword : small and medium-sized enterprises (SMEs), e-commerce, decision support systems, fuzzy cognitive map (FCM)

How to Cite
Barroso, R. M. R., Ferreira, F. A. F., Meidutė-Kavaliauskienė, I., Banaitienė, N., Falcão, P. F., & Rosa, Álvaro A. (2019). Analyzing the determinants of e-commerce in small and medium-sized enterprises: a cognition-driven framework. Technological and Economic Development of Economy, 25(3), 496-518. https://doi.org/10.3846/tede.2019.9386
Published in Issue
Apr 10, 2019
Abstract Views
4821
PDF Downloads
2547
Creative Commons License

This work is licensed under a Creative Commons Attribution 4.0 International License.

References

Ajzen, I. (1991). The theory of planned behaviour. Organizational Behavior and Human Decision Processes, 50(2), 179-211. https://doi.org/10.1016/0749-5978(91)90020-T

Azevedo, A., & Ferreira, F. (2017). Analyzing the dynamics behind ethical banking practices using fuzzy cognitive mapping. Operational Research: An International Journal. https://doi.org/10.1007/s12351-017-0333-6

Barney, J. (1991). Firm resources and sustained competitive advantage. Journal of Management, 17(1), 99-120. https://doi.org/10.1177/014920639101700108

Bell, S., & Morse, S. (2013). Groups and facilitators within problem structuring processes. Journal of the Operational Research Society, 64(7), 959-972. https://doi.org/10.1057/jors.2012.110

Belton, V., Ackermann, F., & Shepherd, I. (1997). Integrated support from problem structuring through to alternative evaluating using COPE and V.I.S.A. Journal of Multi-Criteria Decision Analysis, 6(3), 115-130. https://doi.org/10.1002/(SICI)1099-1360(199705)6:3<115::AID-MCDA140>3.0.CO;2-I

Carlucci, D., Ferreira, F., Schiuma, G., Jalali, M., & António, N. (2018). A holistic conception of sustainable banking: adding value with fuzzy cognitive mapping. Technological and Economic Development of Economy, 24(4), 1303-1322. https://doi.org/10.3846/20294913.2016.1266412

Carlucci, D., Schiuma, G., Gavrilova, T., & Linzalone, R. (2013). A fuzzy cognitive map based approach to disclose value creation dynamics of ABIs. Paper presented at the Proceedings of the 8th international forum on knowledge asset dynamics (IFKAD-2013), 12-14 June 2013, Zagreb, Croatia.

Carvalho, J. (2013). On semantics and the use of fuzzy cognitive maps and dynamic cognitive maps in social sciences. Fuzzy Sets and Systems, 214, 6-19. https://doi.org/10.1016/j.fss.2011.12.009

Castela, B., Ferreira, F., Ferreira, J., & Marques, C. (2018). Assessing the innovation capability of small- and medium-sized enterprises using a non-parametric and integrative approach. Management Decision, 56(6), 1365-1383. https://doi.org/10.1108/MD-02-2017-0156

Cegarra-Navarro, J., Jiménez, D., & Martínez-Conesa, E. (2007). Implementing e-business through organizational learning: an empirical investigation in SMEs. International Journal of Investigation Management, 27(3), 173-186. https://doi.org/10.1016/j.ijinfomgt.2007.01.001

Child, J., Hsieh, L., Elbanna, S., Karmowska, J., Marinova, S., Puthusserry, P., Tsai, T., Narooz, R., & Zhang, Y. (2017). SME international business models: the role of context and experience. Journal of World Business, 52(5), 664-679. https://doi.org/10.1016/j.jwb.2017.05.004

Choshin, M., & Ghaffari, A. (2017). An investigation of the impact of effective factors on the success of e-commerce in small- and medium-sized companies. Computers in Human Behavior, 66, 67-74. https://doi.org/10.1016/j.chb.2016.09.026

Cunha, A., & Morais, D. (2017). Problem structuring methods in group decision making: a comparative study of their application. Operational Research: An International Journal. https://doi.org/10.1007/s12351-017-0310-0

Davis, F. (1989). Perceived usefulness, perceived ease of use, and user acceptance of information technology. MIS Quarterly, 13(3), 319-340. https://doi.org/10.2307/249008

Eden, C. (2004). Analyzing cognitive maps to help structure issues or problems. European Journal of Operational Research, 159(3), 673-686. https://doi.org/10.1016/S0377-2217(03)00431-4

Eden, C., & Ackermann, F. (2001). SODA – The principles. In J. Rosenhead & J. Mingers (Eds.), Rational analysis for a problematic world revisited: problem structuring methods for complexity, uncertainty and conflict. Chichester: John Wiley & Sons.

Ferreira, F. (2013). Measuring trade-offs among criteria in a balanced scorecard framework: possible contributions from the multiple criteria decision analysis research field. Journal of Business Economics and Management, 14(3), 433-447. https://doi.org/10.3846/16111699.2011.631744

Ferreira, F. (2016). Are you pleased with your neighborhood? A fuzzy cognitive mapping-based approach for measuring residential neighborhood satisfaction in urban communities. International Journal of Strategic Property Management, 20(2), 130-141. https://doi.org/10.3846/1648715X.2015.1121169

Ferreira, F., & Jalali, M. (2015). Identifying key determinants of housing sales and time-on-the-market (TOM) using fuzzy cognitive mapping. International Journal of Strategic Property Management, 19(3), 235-244. https://doi.org/10.3846/1648715X.2015.1052587

Ferreira, F., & Monteiro-Barata, J. (2011). A snapshot of the Portuguese e-banking activity: insights and a conceptual framework to allocate strategic hindrances. International Journal of Electronic Business, 9(3), 238-254. https://doi.org/10.1504/IJEB.2011.042544

Ferreira, F., Ferreira, J., Fernandes, C., Meidutė-Kavaliauskienė, I., & Jalali, M. (2017). Enhancing knowledge and strategic planning of bank customer loyalty using fuzzy cognitive maps. Technological and Economic Development of Economy, 23(6), 860-876. https://doi.org/10.3846/20294913.2016.1213200

Ferreira, F., Jalali, M., & Ferreira, J. (2016). Integrating qualitative comparative analysis (QCA) and fuzzy cognitive maps (FCM) to enhance the selection of independent variables. Journal of Business Research, 69(4), 1471-1478. https://doi.org/10.1016/j.jbusres.2015.10.127

Ferreira, F., Jalali, M., Ferreira, J., Stankevičienė, J., & Marques, C. (2016). Understanding the dynamics behind bank branch service quality in Portugal: pursuing a holistic view using fuzzy cognitive mapping. Service Business, 10(3), 469-487. https://doi.org/10.1007/s11628-015-0278-x

Fonseca, M., Ferreira, F., Fang, W., & Jalali, M. (2018). Classification and selection of tenants in residential real estate: a constructivist approach. International Journal of Strategic Property Management, 22(1), 1-11. https://doi.org/10.3846/ijspm.2018.317

Glykas, M. (2013). Fuzzy cognitive strategic maps in business process performance measurement. Expert Systems with Applications, 40(1), 1-14. https://doi.org/10.1016/j.eswa.2012.01.078

Grandón, E., Nasco, S., & Mykytyn, P. (2011). Comparing theories to explain e-commerce adoption. Journal of Business Research, 64(3), 292-298. https://doi.org/10.1016/j.jbusres.2009.11.015

Gray, S., Gagnon, A., Gray, S., O’Dwyer, B., O’Mahony, C., Muir, D., Devoy, R., Falaleeva, M., & Gault, J. (2013). Are coastal managers detecting the problem? Assessing stakeholder perception of climate vulnerability using fuzzy cognitive mapping. Ocean & Coastal Management, 94, 74-89. https://doi.org/10.1016/j.ocecoaman.2013.11.008

Grillo, C., Ferreira, F., Marques, C., & Ferreira, J. (2018). A knowledge-based innovation assessment system for small- and medium-sized enterprises: adding value with cognitive mapping and MCDA. Journal of Knowledge Management, 22(3), 696-718. https://doi.org/10.1108/JKM-08-2017-0332

Hester, P. (2015). Analyzing stakeholders using fuzzy cognitive mapping. Procedia Computer Science, 61, 92-97. https://doi.org/10.1016/j.procs.2015.09.159

Kang, B., Deng, Y., Sadiq, R., & Mahadevan, S. (2012). Evidential cognitive maps. Knowledge-Based Systems, 35, 77-86. https://doi.org/10.1016/j.knosys.2012.04.007

Kim, H., & Lee, K. (1998). Fuzzy implications of fuzzy cognitive map with emphasis on fuzzy causal relationship and fuzzy partially causal relationship. Fuzzy Sets and Systems, 97(3), 303-313. https://doi.org/10.1016/S0165-0114(96)00349-1

Kok, K. (2009). The potential of fuzzy cognitive maps for semi-quantitative scenario development, with an example from Brazil. Global Environmental Change, 19(1), 122-133. https://doi.org/10.1016/j.gloenvcha.2008.08.003

Kosko, B. (1986). Fuzzy cognitive maps. International Journal of Man-Machine Studies, 24(1), 65-75. https://doi.org/10.1016/S0020-7373(86)80040-2

Koulouriotis, D. (2004). Investment analysis & decision making in markets using adaptive fuzzy causal relationships. Operational Research: An International Journal, 4(2), 213-233. https://doi.org/10.1007/BF02943610

Lip-Sam, T., & Hock-Eam, L. (2011). Estimating the determinants of B2B e-commerce adoption among small & medium enterprises. International Journal of Business and Society, 12(1), 15-30.

MacGregor, R., & Vrazalic, L. (2006). The effect of small business clusters in prioritising barriers to e-commerce adoption in regional SMEs. Journal of New Business Ideas and Trends, 4(1), 24-44.

Mackenzie, A., Pidd, M., Rooksby, J., Sommerville, I., Warren, I., & Westcombe, M. (2006). Decision aiding: wisdom, decision support and paradigms of decision making. European Journal of Operational Research, 170(1), 156-171. https://doi.org/10.1016/j.ejor.2004.07.041

Mazlack, L. (2009). Representing causality using fuzzy cognitive maps. In Proceedings of the annual meeting of the north American fuzzy information processing society (NAFIPS-2009), 14-17 June 2009, Cincinnati, Ohio, USA. https://doi.org/10.1109/NAFIPS.2009.5156434

Misthos, L., Messaris, G., Damigos, D., & Menegaki, M. (2017). Exploring the perceived intrusion of mining into the landscape using the fuzzy cognitive mapping approach. Ecological Engineering, 101, 60-74. https://doi.org/10.1016/j.ecoleng.2017.01.015

Ngai, E., & Wat, F. (2002). A literature review and classification of electronic commerce research. Information & Management, 39(5), 415-429. https://doi.org/10.1016/S0378-7206(01)00107-0

Nisar, T., & Prabhakar, G. (2017). What factors determine e-satisfaction and consumer spending in e-commerce retailing? Journal of Retailing and Consumer Services, 39, 135-144. https://doi.org/10.1016/j.jretconser.2017.07.010

Organization for Economic Cooperation and Development. (2004). Promoting entrepreneurship and innovative SMEs in a global economy: towards a more responsible and inclusive globalization. In Second OECD Conference of Ministers Responsible for Small and Medium-sized Enterprises (SMEs). Retrieved from https://www.oecd.org/cfe/smes/31919590.pdf

Organization for Economic Cooperation and Development. (2013). Electronic and mobile commerce. OECD Digital Economy Papers, 228, 1-41.

Olazabal, M., Chiabai, A., Foudi, S., & Neumann, M. (2018). Emergence of new knowledge for climate change adaptation. Environmental Science and Policy, 83, 46-53. https://doi.org/10.1016/j.envsci.2018.01.017

Olazabal, M., & Pascual, U. (2016). Use of fuzzy cognitive maps to study urban resilience and transformation. Environmental Innovation and Societal Transitions, 18(1), 18-40. https://doi.org/10.1016/j.eist.2015.06.006

Özesmi, U., & Özesmi, S. (2004). Ecological models based on people’s knowledge: a multi-step fuzzy cognitive mapping approach. Ecological Modelling, 176(1/2), 43-64. https://doi.org/10.1016/j.ecolmodel.2003.10.027

Pinto, S., & Ferreira, F. (2010). Technological dissemination in the Portuguese payments system: an empirical analysis to the region of Santarém. International Journal of Human Capital and Information Technology Professionals, 1(4), 55-75. https://doi.org/10.4018/jhcitp.2010100104

Pires, A., Ferreira, F., Jalali, M., & Chang, H.-C. (2018). Barriers to real estate investments for residential rental purposes: mapping out the problem. International Journal of Strategic Property Management, 22(3), 168-178. https://doi.org/10.3846/ijspm.2018.1541

Rahayu, R., & Day, J. (2015). Determinant factors of e-commerce adoption by SME in developing country: evidence from Indonesia. Procedia – Social and Behavioral Sciences, 195, 142-150. https://doi.org/10.1016/j.sbspro.2015.06.423

Ramos, J., Ferreira, F., & Monteiro-Barata, J. (2011). Banking services in Portugal: a preliminary analysis to the perception and expectations of front office employees. International Journal of Management and Enterprise Development, 10(2/3), 188-207. https://doi.org/10.1504/IJMED.2011.041549

Reis, J., Ferreira, F., & Monteiro-Barata, J. (2013). Technological innovation in banking services: an exploratory analysis to perceptions of the front office employee. Problems and Perspectives in Management, 11(1), 34-49.

Ribeiro, M., Ferreira, F., Jalali, M., & Meidutė-Kavaliauskienė, I. (2017). A fuzzy knowledge-based framework for risk assessment of residential real estate investments. Technological and Economic Development of Economy, 23(1), 140-156. https://doi.org/10.3846/20294913.2016.1212742

Salmeron, J. (2012). Fuzzy cognitive maps for artificial emotions forecasting. Applied Soft Computing, 12(12), 3704-3710. https://doi.org/10.1016/j.asoc.2012.01.015

Savrul, M., Incekara, A., & Sener, S. (2014). The potential of e-commerce for SMEs in a globalizing business environment. Procedia – Social and Behavioral Sciences, 150(15), 35-45. https://doi.org/10.1016/j.sbspro.2014.09.005

Seyal, A., & Rahman, M. (2003). A preliminary investigation of e-commerce adoption in small & medium enterprises in Brunei. Journal of Global Information Technology Management, 6(2), 6-26. https://doi.org/10.1080/1097198X.2003.10856347

Sila, I. (2013). Factors affecting the adoption of B2B e-commerce technologies. Electronic Commerce Research, 13(2), 199-236. https://doi.org/10.1007/s10660-013-9110-7

Sin, K., Osman, A., Salahuddin, S., Abdullah, S., Lim, Y., & Sim, C. (2016). Relative advantage and competitive pressure towards implementation of e-commerce: overview of small and medium enterprises (SMEs). Procedia – Economics and Finance, 35, 434-443. https://doi.org/10.1016/S2212-5671(16)00054-X

Stylios, C., & Groumpos, P. (1998). The challenge of modelling supervisory systems using fuzzy cognitive maps. Journal of Intelligent Manufacturing, 9(4), 339-345. https://doi.org/10.1023/A:1008978809938

Sutanonpaiboon, J., & Pearson, A. (2006). E-commerce adoption: perceptions of managers/owners of small- and medium-sized enterprises (SMEs) in Thailand. Journal of Internet Commerce, 5(3), 53-82. https://doi.org/10.1300/J179v05n03_03

Tegarden, D., & Sheetz, S. (2003). Group cognitive mapping: a methodology and system for capturing and evaluating managerial and organizational cognition. Omega – The International Journal of Management Science, 31(2), 113-125. https://doi.org/10.1016/S0305-0483(03)00018-5

Tolman, E. (1948). Cognitive maps in rats and men. The Psychological Review, 55(4), 189-208. https://doi.org/10.1037/h0061626

Tsadiras, A. (2008). Comparing the inference capabilities of binary, trivalent and sigmoid fuzzy cognitive maps. Information Sciences, 178(20), 3880-3894. https://doi.org/10.1016/j.ins.2008.05.015

Turban, E., Lee, J., King, D., McKay, J., & Marshall, P. (2008). Electronic commerce 2008: a managerial perspective. Upper Saddle River: Prentice Hall.

Vajjhala, N., & Thandekkattu, S. (2017). Potential and barriers to adoption of B2B e-commerce in SMES in transition economies: case of Albania. Management, 12(2), 155-169. https://doi.org/10.26493/1854-4231.12.155-169

Venkatesh, V., Morris, M., Davis, G., & Davis, F. (2003). User acceptance of information technology: toward a unified view. MIS Quarterly, 27(3), 425-478. https://doi.org/10.2307/30036540

Vidal, R. (2004). Guest editor’s introduction. European Journal of Operational Research, 152(3), 529. https://doi.org/10.1016/S0377-2217(03)00055-9

Walker, J., Saffu, K., & Mazurek, M. (2016). An empirical study of factors influencing e-commerce adoption/non-adoption in Slovakian SMEs. Journal of Internet Commerce, 15(3), 189-213. https://doi.org/10.1080/15332861.2016.1191049

Wisen, F., Mey, Y., Lauwers, L., Passel, S., Vancauteren, M., & Wauters, E. (2013). Cognitive mapping: a method to elucidate and present farmers’ risk perception. Agricultural Systems, 122, 42-52. https://doi.org/10.1016/j.agsy.2013.08.003

Yaman, D., & Polat, S. (2009). A fuzzy cognitive map approach for effect-based operations: an illustrative case. Information Sciences, 179(4), 382-403. https://doi.org/10.1016/j.ins.2008.10.013

Zavadskas, E., & Turskis, Z. (2011). Multiple criteria decision making (MCDM) methods in economics: an overview. Technological and Economic Development of Economy, 17(2), 397-427. https://doi.org/10.3846/20294913.2011.593291

Zhang, C., & Dhaliwal, J. (2009). An investigation of resource-based and institutional theoretic factors in technology adoption for operations and supply chain management. International Journal of Production Economics, 120(1), 252-269. https://doi.org/10.1016/j.ijpe.2008.07.023