Abstract:
The growth of information technology in the business world is spreading at a phenomenal
rate. The success of a business organization stands at the usage of IT in their business. Growth
of E-Commerce is the new born business method, which has originated through an extensive usage
of IT in their business. SMEs under the BOI in Sri Lanka are far behind the fast moving
world of IT. Though E-Commerce is accelerating at a high pace, most of the SMEs are still at
the lower level compared to their competitors in business. This study will focus on the level of
adoption of E-Commerce in a population of 30 SMEs under the BOI, the relationship between firmbased
characteristics and the adoption of E-Commerce and also more importantly find out the
critical success factors and discover potential benefits of adoption of E-Commerce in SMEs.
The results on the Adoption of E- Commerce showed a significant relationship with the two
firm based characteristics. That is Management Involvement and Adoption of IT. The study also
identified E- Marketing and Supplier service as the critical success factors in adoption of ECommerce.
Therefore, this research is conducted to assess the readiness for E-Commerce among
the SME in Sri Lanka, and hopefully the research will help to convey the awareness among
the SME towards ecommerce and help them to speed up their involvement in e-business.
