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Keywords Small firms, Internet, Purchasing, Supplier relations

Abstract This article explores the awareness and level of implementation of e-commerce in UK small and medium-sized enterprises (SMEs). Results of a survey of 298 smaf firms suggest that issues of leadership and waste management are of greater importance to SMEs than development of e-commerce capability. Those SMEs which have developed e-commerce capability have not done so strategically and have yet to enjoy significant cost and time savings. The survey also identifies the challenges faced by SMES. Finally, paths are suggested, which might be followed by such firms in seeking to enhance their Performance in e-commerce.

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Introduction

There is a UK government strategy for e-commerce. Primarily the strategy has six strands. These are:

(1) to establish a brand in e-commerce both domestically and internationally;

(2) to transform existing business;

(3) to foster e-commerce creation and growth;

(4) to expand the e-commerce talent pool;

(5) to provide leadership in international e-commerce policy development; and

(6) that government online should be a priority.

There is evidence of government online e-commerce. Generally, however, there is a great deal of "hype" about e-commerce and SME survivability. Indeed, there is evidence that those SMEs that have tried to implement e-commerce solutions (perhaps using the gut-feel approach) are dissatisfied with both the concept and the service providers (O'Brien, 2000). Some are already predicting an imminent collapse of e-commerce (Wallace, 2000)! The rest of the world, however, appears to have made progress in implementing e-commerce. Anecdotally, the USA, Canada and Australia are the leaders (Norton, 2000). In Western Europe, Scandinavia lead Germany, Italy, Spain and France; in Eastern Europe, Poland, the Czech Republic and Hungary are progressing but Internet access remains expensive. The Japanese, perhaps surprisingly, see the Internet as unreliable, preferring mobile phone commerce (m-commerce), where credit cards are not used and transactions are simply added to the monthly bill.

Local economies in the UK contain a significant percentage of small and medium-sized enterprises (SMEs) - in many cases as much as 80 per cent or 90 per cent (CBI, 2000). While these SMEs are viewed with interest as suppliers by customer firms who have coherent supplier development...

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