Analysing the Relationship Between SMME Geographic Coverage and E-Commerce Adoption

This chapter examines South African SMMEs adoption of e-commerce. The chapter is concerned with four e-commerce adoption options: 1) customer payment by credit card through the SMME's website, 2) customer placing orders through the SMME's website, 3) providing customer services through the SMME's website, and 4) placing orders with suppliers over the internet. By using a sample of 400 conveniently sampled SMME owners, this chapter explores the adoption of the four e-commerce options in two geographic areas within South Africa, Durban and Pietermaritzburg. Specifically, the chapter seeks to establish the extent of the adoption of the four e-commerce options in both locations in relation to the SMMEs' business coverage. Findings revealed that although SMMEs from Durban and Pietermaritzburg have adopted all of the four e-commerce options to various degrees, such adoption is only significant for SMMEs whose business operations extend beyond the local level. Additionally, internet security was identified as a key impediment towards e-commerce adoption in both areas.