BREAKING DOWN THE BARRIERS:

IDENTIFYING THE FACTORS THAT

HINDER OR ENABLE SMES IN
BANGLADESH TO ADOPT E-
COMMERCE
 Table of Content
Chapter One: Introduction..........................................................................................................4
Chapter Two: Literature Review..............................................................................................10
Introduction..............................................................................................................................10
2.1 Evolution of subject matter................................................................................................10
2.2 The modern-day panorama of e-trade adoption amongst Small and Medium Enterprises
(SMEs) in Bangladesh:.............................................................................................................11
2.3 Key Barriers Hindering SMEs from Adopting E-Commerce in Bangladesh:...................12
2.4 Enabling Factors that Promote E-Commerce Adoption Amongst SMEs in Bangladesh:..14
2.5 Impact of Organizational Traits on E-Commerce Adoption:.............................................15
2.6 Relationship Between E-Commerce Adoption and Business Performance:......................17
2.7 Research Gap:....................................................................................................................19
Chapter 3: Methodology..........................................................................................................21
3.1 Introduction....................................................................................................................21
3.2 Research onion...............................................................................................................21
3.3 Rationale and research paradigm....................................................................................22
3.4 Research population.......................................................................................................23
3.5 Sample size and method.................................................................................................23
3.6 Research methods...............................................................................................................24
Research strategy..................................................................................................................24
Research design....................................................................................................................24
Data collection method.........................................................................................................24
Data analysis.........................................................................................................................25
3.7 Ethical issues and research standards.............................................................................25
3.8 Methodological limitations.............................................................................................26
3.9 Chapter summary............................................................................................................26
Chapter 4: Result and findings.................................................................................................27
Introduction..........................................................................................................................27
4.1Critical analysis of empirical data (survey).....................................................................27
4.2 Synthesising findings and relevant theory and literature...............................................52
4.3 Evaluation of findings in light of existing theory...........................................................55
4.4 Justifying findings from data..........................................................................................56
Chapter Summary.................................................................................................................58
Conclusion................................................................................................................................59
References................................................................................................................................61
Chapter One: Introduction

Bangladesh is one of the South Asian countries that get freedom in the year 1971 from
Pakistan. SME is one of the crucial income sources of the country. SME is helped the country
to achieve its final goal and enhance the economic condition of the country. It also helped the
country's people to enhance their lifestyle quality. By adopting e-commerce in the SME
operation, the companies enhanced their reach to the maximum number of people. In this
way, SME companies are increased their sales (Amin, 2023). The companies have also
increased their consumer base through attractive offers and discounts. Bangladesh SMEs can
be divided into 33 sub-sectors of products and services. The survey data shows that SMEs
constitute 50.91% of the microeconomic sector. Among the total number of workers in
Bangladesh, 35.41% of workers are associated with the SME industry (Bidisha, 2023). A
recent survey also shows that SMEs contribute 48.41% of Bangladesh's GDP. So, SMEs play
a crucial role in developing Bangladesh's overall economy. It is also essential for SMEs to
explore their products in specified and justify platforms to get maximum market benefit
market. The SME companies reach their accomplished target by implementing proper
marketing strategies in their operations (Odonkor, 2021).

1.1 Research Background

Online marketing is one of the most trending among consumers; the Bangladesh market is no
exception. Bangladesh SME market is the most promising market in the whole globe. It is
good for investors to invest in this market to get maximum benefits. It is also noticed in the
survey data that a maximum number of people are associated with SME companies. SME
companies are exploring t, their products through various e-commerce platforms (Abdin,
2023). It is difficult for SME organizations to integrate e-commerce operations into their
existing business modules. It is also difficult for SME managers to integrate the right
business modules in their company's operations to gain maximum benefits. Various
difficulties exist for these organizations to avoid such problems and integrate e-commerce
into their operation. It is also crucial for the organization to maintain a proper security policy
to prevent online marketing-oriented problems (Wing, 2022). To stay away from any
potential hazards or malicious attacks, companies must additionally safeguard transaction as
well as client-sensitive data. Furthermore, it's imperative for companies to effectively manage
their web pages to eliminate any potential safety weaknesses. It is a big challenge for SME
companies to maintain their websites and enhance their web technology to boost the
company's annual sales. In this way, companies enhance their market reputation and SME
company brand value. It is also crucial for consumers to secure their confidential information
to avoid any confidential information leakage. It is also difficult for SME companies to
develop their technology to develop their reach to consumers (Kamruzzaman, 2023).

1.2 Aims and Objectives

Aims

This quantitative studies dissertation aims to comprehensively investigate and examine the
elements that act as limitations or facilitators for Small and Medium Enterprises (SMEs) in
Bangladesh while adopting e-trade.

Objectives

 To observe the contemporary stage of e-trade adoption amongst SMEs in Bangladesh.

 To pick out the key barriers hindering SMEs from adopting e-trade in Bangladesh,

 To explore the permitting factors that promote e-trade adoption amongst SMEs in
Bangladesh,

 To examine the impact of organizational traits on e-commerce adoption,

 To investigate the relationship between e-commerce adoption and commercial enterprise

overall performance.

Research Questions

What is the contemporary stage of e-trade adoption amongst SMEs in Bangladesh?

What are the barriers hindering SMEs from adopting e-trade in Bangladesh?

What are the permitting factors that promote e-trade adoption amongst SMEs in Bangladesh?

What is the impact of organizational traits on e-commerce adoption?

What is the relation between e-commerce adoption and commercial enterprise overall
performance?
1.3 Research Rationale

Several research resources are present about the SME's operation. Several resources are also
present about the research topic to research these and get comprehensive knowledge for
further research. But the previous research works are not completely based on this particular
research topic (Raihan & Ahmed, 2023). So, these research papers are not helped future
researchers to get comprehensive knowledge and implement it in their research papers to get
effective outcomes (Hossain, et al, 2023). Through this particular research paper, the future
researcher gains useful information. In this way, the future researcher also understands the
present situation of the research and identifies the factors that influence SMEs' operation.

Identifying the factors that enable SMEs in Bangladesh to adopt the e-commerce market is
crucial. Identifying the problems and implementing a proper strategy to succeed in the e-
commerce market is essential. It is a serious challenge for SME companies to implement the
existing modules of the company's operation. It might damage the company's complete
operation otherwise enhance the product quality and reputation (Hasan, 2020). Through
identifying the issues, the country's government also take severe steps to implement it
properly in the SME operation. It is also important for Bangladesh SMEs to provide
managers with proper implementation of their business modules to gain maximum benefits
through e-commerce marketing. It is noticed in the survey report that SMEs are one of the
prime contributors to Bangladesh's GDP (Hendricks & Mwapwele, 2023). It is the duty of the
government also to boost the country's economy by implementing the right strategy for
SMEs. Technical advancement is also crucial for developing countries like Bangladesh to
implement e-commerce operations with SMEs. SMEs have increased their daily operation
and contribute more to the country's GDP. The country's people also enhance their lifestyle
quality and gain overall economic development (OECD, 2020).

1.4 Research Methodology

Research methodology is one of the crucial segments of the research. The researcher gains
comprehensive information about the study by selecting the perfect research methodology. In
this research, the researcher adopts an interpretivism research philosophy to explore the
subjective experiences and perceptions of SMEs in Bangladesh regarding e-commerce
adoption (Indeed Editorial Team, 2022). In this research, the researcher adopts an inductive
research approach to develop the theories regarding the research topic and hypothesis based
on the data collected from SME. Primary quantitative and qualitative data collection
processes are selected for this research. In this research, 30 participants were from different
SME owners in Bangladesh. The research survey is Google Forms. In this research, the cross-
sectional time horizon is more appropriate for collecting the data from SMEs in Bangladesh
at a single point in time. This research combines surveys and semi-structured interviews to
collect quantitative and qualitative data from SMEs in Bangladesh (Bouchrika, 2023). In this
research, the researcher uses a random sampling methodology to gain comprehensive
information about the research topic. In this research, the researcher uses descriptive statistics
and regression analysis to analyse primary quantitative data. The researcher also performed
thematic analysis for analysis of the preliminary qualitative data. The researcher also
maintains proper ethical considerations to conduct the research and maintains American
Psychological Association guidelines (Jansen & Warren, 2020). All participants' confidential
information is maintained properly to conduct the whole research. The data collected for this
research are secured properly and used for this research purpose to gain comprehensive
knowledge about the research.

1.5 Synopsis of the research

The research topic is discussed through several segments to gain comprehensive knowledge
about the research and provide effective outcomes about the research topic. The research is
divided into an introduction, literature review, research methodology, finding & analysis, and
conclusion.

Introduction- The introduction segment discusses appropriate and concise research

backgrounds. The aims and objectives of the research are also discussed in this research
paper. Research questions are also framed out from this research objectives. These research
objectives helped the researcher discover the research's prime aim. Research methodology is
also discussed in a concise form. Synopsis of the research means all chapters outlined are also
discussed through this research introduction chapter.

Literature Review- In this segment of the research, the researcher comprehensively

discussed all the objectives. The objectives are analyzed with the help of secondary research
resources. All the statistical data ent in these research papers and related to this research topic
are also analyzed critically. It also helps future researchers get comprehensive knowledge
about this research topic.

Methodology: Research methodology is the most crucial research segment of the research. In
this chapter research strategy, research philosophy, research method, data collection process,
data analysis process, and sampling methods are discussed comprehensively. Ethical
considerations and limitations of this research are also discussed to provide comprehensive
knowledge and information about the research. Proper research methodology helps the
researcher discover the related issues and gain information.

Analysis and Findings: The researcher critically analyses the empirical data collected
through survey questions and interviews. Analyzing this empirical data, the researcher gains
comprehensive information and knows which factors hinder or enable SMEs to adopt e-
commerce. It is crucial to identify these factors to gain success in this highly competition
market. It is only possible to analyze the primary finding data.

Conclusion- In the conclusion chapter, all the objectives are completely fulfilled and
discussed properly. The future scope of this research is also discussed with the
recommendation, overall conclusion, and linking with the objectives. It also helps future
researchers explore those things and gain valuable information about the factors hindering or
enabling SMEs to adopt e-commerce. Limitations of this research are also discussed to help
future researchers explore those things to get a more comprehensive idea for themselves and
other researchers.

1.6 Chapter Summary

It is crucial at present time to integrate e-commerce with SMEs to reach their product to the
maximum number of consumers. It also helps the company integrate innovative business
strategies into its existing business operation. It helps the company increase its brand image
and brand value in the global SME market. Attractive products at cheap rates help the
company to enhance its business. It also improves Bangladesh's economy and boosts the
country's GDP. In this way, many consumers explore various platforms before buying
products. It also increases competition in the market and enhances the SME's product quality.
Through this research, these companies and management also get comprehensive knowledge
about the factors that hinder or enable SMEs in Bangladesh to adopt e-commerce. The study
aims and objectives are discussed in the literature review segment with the help of secondary
research papers. This chapter also discusses the research rationale and background to get
comprehensive knowledge about the research. Research methodology in concise form is also
discussed in this chapter. The synopsis of this research is also analyzed critically to
understand the research topic comprehensively. Their many factors are responsible for
enhancing the importance of the e-commerce market in the SME industry of Bangladesh. For
this, choosing an e-commerce platform is also crucial for advertising and reaching the
maximum number of consumers. It is also crucial for SME companies to train their
employees properly about the market, and it is also crucial to analyse the market before
implementing the plan for their operation.
Chapter Two: Literature Review

Introduction

Within Bangladesh's Small and Medium Enterprises (SMEs), the rapid adoption of e-
commerce is crucial in the current globalised and digitally driven business landscape. Using
the potential of e-commerce is now essential for SMEs as customer behaviours change and
global markets become more accessible through online channels (Abtahi, Farhana & Hasan,
2023). The goal of this review of the literature is to explore the key elements that either
support or impede the adoption of e-trade by Bangladeshi SMEs. This analysis aims to
provide light on the potential and problems associated with e-trade integration by identifying
the barriers and facilitators.

2.1 Evolution of subject matter

The development of e-commerce adoption is a fascinating story that illustrates the dynamic
shifts in global business environments, particularly in emerging nations like Bangladesh. E-
commerce's journey has taken it from its early stages to being a major force behind modern
commerce over time. Around the world, e-commerce began to take shape in the late 20th
century, when families and businesses began to use the Internet (Arefin & Rahman, 2020). At
first, it was thought to be an innovative way for large companies to do online business. But as
technology developed, more people had access to the internet, and digital platforms were
more widely used, e-trade quickly became a complex phenomenon involving a wide range of
industries and sizes of businesses.

The history of e-commerce in underdeveloped nations like Bangladesh is defined by the use
of unique opportunities and difficult circumstances. restricted access to technology and
internet infrastructure, which initially led to a constrained rise in e-commerce. Still, e-
commerce began to seep into local marketplaces as cell phone generation multiplied and
digital connectivity grew. After being hindered for a long time by aid restrictions, SMEs in
Bangladesh discovered that e-trade offered them access to a greater market and fewer
geographic barriers (Al-Amin, 2020) . The track of e-trade has been dotted by paradigm shifts
in both local and global contexts. The landscape has generally progressed, starting with the
first online retail endeavours, and continuing through the cutting-edge dominance of online
marketplaces and the blending of modern technologies like blockchain and artificial
intelligence. Beyond financial transactions, e-commerce has an impact on marketing and
advertising, customer interaction, and supply chain efficiency. The evolution of e-trade
highlights how transformative it may be. Small firms are now able to compete with larger
ones thanks to the democratization of market access brought about by the growth of e-
commerce (Basu & Bhowmick, 2023). Technology has also altered how people connect with
firms by giving clients more power online. This evolution is crucial to understand in the
context of SMEs in Bangladesh. It provides information on how e-commerce has evolved
into a lifeline for communities aiming for growth and resilience. SMEs can make use of e-
trade's capacity to overcome conventional barriers, expand their customer base, and support
the country's economic growth as it continues to evolve (Oger, 2023). This development lays
the groundwork for investigating the variables that either prohibit or permit SMEs in
Bangladesh to fully integrate e-commerce into their business.

2.2 The modern-day panorama of e-trade adoption amongst Small and Medium
Enterprises (SMEs) in Bangladesh:

It is distinguished by both fantastic and new tendencies. Current research and documentation
offer significant insights into the level of e-commerce integration that the SME sector
currently enjoys, offering a nuanced understanding of the degree to which businesses have
adopted digital structures for their operations. The use of e-trade by SMEs in Bangladesh has
increased over the past few years, albeit gradually. Although there is a noticeable growing
trajectory, the penetration of e-trade isn't necessarily consistent across different sectors and
areas (Zia, Sajid & Siddique, 2022). A significant portion of SMEs, have started their journey
into the digital sphere by embracing e-commerce elements including online sales, virtual
advertising and marketing, and consumer engagement tactics. According to statistics, the
majority of SMEs' interest in e-commerce is focused in urban areas where access to
dependable internet infrastructure is more easily available. Urban SMEs have attested to the
greater expenses associated with having an online presence, using e-commerce platforms to
reach audiences outside geographic boundaries (Fatokun, 2023). Nonetheless, there is still a
lot of unrealized potential in rural places where access and virtual literacy are still problems.
SMEs in Bangladesh are adopting e-commerce due to a number of factors, such as the nature
of the business, the resources at their disposal, and the opportunities in their target market.
Several industries, most notably retail, fashion, and electronics, have been at the forefront of
e-commerce due to consumer demand for convenient online shopping (Nasrollahi, Ramezani
& Sadraei,, 2021). Conversely, industries with intricate supply chains and specialised services
have slower e-trade integration costs. Notwithstanding the progress, problems still exist.
SMEs face obstacles such as a lack of digital skills, concerns about online security, and
budgetary limitations that prevent them from fully integrating into the e-commerce landscape.
Tax issues and complicated regulations also have an impact on how easy it is to adopt e-trade.
SMEs in Bangladesh appear to be at the forefront of e-commerce adoption, which is typified
by a blend of challenging circumstances and achievements. The increasing virtual gap
between rural and urban areas emphasises the necessity of focused measures to ensure
inclusive adoption (Ramdani, Raja & Kayumova, 2022). Although the growing trend appears
positive, more work needs to be done to give SMEs the tools, assistance, and training they
need to fully utilise e-commerce prospects. Through an exploration of such patterns and
insights, this evaluation adds to a comprehensive understanding of the e-commerce landscape
among Bangladeshi SMEs.

2.3 Key Barriers Hindering SMEs from Adopting E-Commerce in Bangladesh:

The adoption of e-commerce by Small and Medium Enterprises (SMEs) in Bangladesh is

impeded by several challenging circumstances that prevent the smooth incorporation of
virtual technologies into their business operations. While losing some of the subtleties of the
complex environment that SMEs must negotiate to adopt e-trade, synthesising the present
literature provides insightful information on these fundamental constraints (Fatokun, 2023).
Technological Barriers: The biggest obstacle to SMEs in Bangladesh attempting to engage in
e-commerce is the presence of technological barriers. Many SMEs may not have access to the
modern technological resources and infrastructure needed to establish and maintain a strong
online presence. Numerous organisations, particularly those located in rural areas, face a high
learning curve due to poor software solutions, internet connectivity issues, and little
knowledge of e-trade platforms (Meng, Qamruzzaman & Adow, 2021). Financial Restraints:
For SMEs considering e-commerce adoption, financial restraints provide a significant
challenge. Particularly for SMEs with limited resources, the costs associated with creating
and managing e-trade websites, online stock management, virtual advertising and marketing,
and customer service can be prohibitive. The use of e-commerce solutions may be
discouraged by the impact on already tight finances caused by investments in the era,
personnel education, and continuous preservation. The regulatory landscape poses a
formidable obstacle for small and medium-sized enterprises (SMEs) looking to integrate
electronic commerce into their business operations. Complicated issues pertaining to online
pricing gateways, taxes, information security, and intellectual property rights often lead to
confusion and discourage SMEs from venturing into e-commerce. SMEs have additional
hurdles due to ambiguities in legal frameworks and compliance requirements. Security
Concerns another significant obstacle that SMEs encounter when considering the use of e-
trade is security concerns (Fernández-Stark, Bamber & Couto, 2022). Online transactions
raise concerns about identity theft, hacks, and statistics breaches because they entail the
gathering and delivery of private client information. Small and medium-sized businesses
(SMEs), especially those lacking cybersecurity expertise, may be discouraged from pursuing
e-commerce by the perceived risk of buyer agreement compromise caused by security flaws
(Karmaker, et al, 2023). Customer Trust and Reliability: For SMEs, developing trust and
credibility with online shoppers is a major undertaking. In an online economy with a plethora
of possibilities, customers are wary of doing business with odd online enterprises. SMEs
constantly struggle to convey their dependability, sincerity, and dedication to making things
enjoyable even when there are no physical encounters. Lack of Digital Skills: One major
obstacle to the adoption of e-commerce is the low level of virtual literacy and skills among
SME owners and their staff. Using e-trade systems effectively requires knowledge of online
customer engagement tactics, content management systems, data analytics, and virtual
advertising (Addae-Korankye & Aryee, 2021). The inability of SMEs to have a compelling
online presence may be caused by the lack of certain competencies. Amidst the increasing
global acceptance of e-commerce, these obstacles highlight the complex terrain that small
and medium-sized enterprises (SMEs) in Bangladesh must traverse. Overcoming these
difficult circumstances necessitates a multifaceted approach that includes policy support,
financial incentives, ability-building initiatives, and cooperation between governmental
agencies, business associations, and financial institutions. Ultimately, there are a variety of
interconnected barriers preventing SMEs in Bangladesh from embracing e-commerce. To
fully realise the revolutionary potential of e-trade for SMEs and enhance their market
penetration, competitiveness, and all-around contributions to the financial system, it is
imperative to tackle these obstacles (Jones & Maynard Jr, 2023). This overview offers a
comprehensive grasp of the obstacles that SMEs face in their pursuit of e-trade integration by
exploring those challenging scenarios.

2.4 Enabling Factors that Promote E-Commerce Adoption Amongst SMEs in

Bangladesh:

The path that Small and Medium Enterprises (SMEs) in Bangladesh are taking to
successfully integrate e-trade is driven by several enabling factors that are essential in helping
them adopt digital technology. Examining well-known academic publications reveals a
landscape full of chances and tactics that enable SMEs to successfully negotiate the
challenges of adopting e-trade (Subagja, 2023). Reliable Internet Infrastructure: Having
access to trustworthy Internet infrastructure is essential for the successful adoption of e-
commerce. In Bangladesh, SMEs can now create an online presence in both urban and rural
areas thanks to recent advancements in digital connection (Polas, et al, 2022). A dependable
internet connection enhances user experience by enabling faster website loading times,
smooth customer service, and environmentally friendly online transactions.

Training Programmes and Capacity Building: These days, training apps and potential-
building initiatives are essential instruments for giving SMEs the skills they need to succeed
in the digital world. Government agencies, nonprofits, and private establishments provide
training programmes on many aspects of e-commerce in addition to digital advertising,
internet site building, and cybersecurity. These initiatives provide SMEs with the tools they
need to properly manage their online operations and make well-informed decisions (Khayer,
et al, 2021).

Government Policies and Incentives: It is impossible to overestimate the influence of

presidential policies in creating an environment that is favourable to the adoption of e-trade.
Encouraging laws that reduce taxes for online transactions, simplify regulatory strategies, and
offer financial incentives motivate SMEs to enter the e-commerce market. In Bangladesh,
initiatives such as electronic pricing gateways and tax advantages for online businesses have
made the environment more favourable (Priambodo, et al, 2022).
 Collaborative networks and ecosystems, along with supportive networks: These are
essential for SMEs to start using e-commerce. SMEs can showcase their products, share
evaluations, and reach potential customers via platforms offered by business groups,
enterprise companies, and online marketplaces. By providing SMEs with a pre-existing
clientele, these networks lessen the difficulties involved in creating a logo from the ground
up.

Financial Resources: For SMEs to invest in website development, virtual marketing, and e-
commerce infrastructure, they must have financial resources available to them. Financial
institutions and fintech companies are more and more providing SMEs with customised
financial services and solutions that enable them to obtain the necessary investment for e-
trade adoption (Hussain, et al, 2022). Project capital assistance, credit lines, and loans are
essential for closing the financial gap.

Customer Confidence and Digital Payment Methods: SMEs must prioritise building
customer consideration if they want to succeed in the digital market. Robust cybersecurity
protocols, encryption technology, and safe online pricing systems all contribute to fostering
consumer confidence. These components contribute to more seamless transactions and
improve overall customer satisfaction, which in turn encourages repeat business (Rahman, et
al, 2020).

Adaptive Entrepreneurial attitude: One crucial yet intangible factor in SMEs' effective
adoption of e-trade is an adaptive entrepreneurial attitude. Entrepreneurs and supervisors who
welcome collaboration, consistently update their digital skills and remain receptive to new
ideas tend to be more adept at navigating the rapidly changing e-commerce environment.

The enabling elements that promote e-commerce adoption among Bangladeshi SMEs create a
comprehensive environment that enables companies to set out on their virtual adventure
(Wirdiyanti, et al, 2022). A proactive mindset, dependable infrastructure, government rules,
educational programmes, networks of support, financial resources, and supportive networks
all contribute to the successful integration of e-commerce. By comprehending and utilising
those components, SMEs in the virtual technology sector can increase their growth,
competitiveness, and overall success.

2.5 Impact of Organizational Traits on E-Commerce Adoption:

Studies examining the connection between organizational advancements and e-trade adoption
provide light on the ways in which factors such as location, industry zone, and size
significantly affect SMEs' preparedness and capacity to represent virtual trade. Gaining
insight into how these patterns affect the adoption process will help you better understand the
dynamics that shape SMEs' e-commerce integration.

Organizational Length: One of the main factors influencing the adoption of e-commerce is
the size of the organization. Larger SMEs usually possess greater resources, financial
stability, and workforce to invest in developing and managing e-trade systems (Mukit, 2020).
Their additional expertise allows them to implement complex digital strategies, such as
integrating sophisticated buyer relationship control systems and creating fully functional
online stores. Conversely, smaller SMEs may also experience resource limitations that restrict
the scope of their e-commerce endeavours.

Industry Sector and Type of Business: An SME's e-trade adoption strategy is significantly
influenced by the enterprise zone in which it operates. Due to consumer demand for online
shopping, companies in industries with strong virtual presences—such as retail, electronics,
and fashion—are far more likely to give e-commerce adoption a top priority. In addition,
SMEs in industries with specialized offers or intricate supply chains may find it difficult to
modify their methods to fit within digital frameworks (Alim, et al, 2022).

Geographical Location: The pace and volume of e-trade adoption by SMEs are significantly
influenced by geographic location. Urban SMEs benefit from easier access to stable internet
connectivity, which is necessary for efficient e-commerce operations (Hossain, et al, 2022).
In fact, they have a larger customer base and are granted access to networks that support the
integration of e-commerce. However, rural SMEs could also experience connectivity issues
and a less developed e-commerce ecosystem, which could hinder their adoption attempts.

Customer Demographics and Preferences: An SME's approach to adopting e-commerce is

significantly shaped by the decisions and actions of its target customer base. Decisions about
the type of e-trade platform, pricing methods, and personal enjoy layout are informed by an
understanding of customer possibilities for online shopping, convenience, and virtual
interactions. SMEs should modify their approach to meet client expectations in order to exert
pressure for the successful adoption of e-trade (Fonseka, Jaharadak & Raman, 2022).

Adoption Resources and Complexity: Organizational dynamics have a complete impact on

how complex the adoption of e-trade is. Larger SMEs with more resources may afford to
invest in cutting-edge e-commerce solutions, such as specially designed websites and top-
notch data analytics equipment. Due to aid limits, smaller SMEs may opt for simpler
alternatives, such as 1/3-party e-trade platforms (Shahadat, et al, 2023).

Cultural and Behavioural characteristics: E-trade adoption is also influenced by cultural

and behavioral characteristics that are inherent to an employer. Employee digital literacy,
organizational culture, and management's attitude toward technology all have an impact on
how eager and able they are to embrace e-commerce techniques. Smoother adoption is likely
to be facilitated by a workforce that is open to digital change and leadership that is tech-savvy
(Hasan & Rahman, 2022).

Suffice it to say, organizational characteristics like duration, industry, and geography

significantly influence SMEs' e-commerce adoption tactics. SMEs can improve their
prospects of successful integration into the digital trade landscape by recognizing these
effects and adjusting their strategy to suit their circumstances. In addition, these insights can
be used by support organizations and governments to provide targeted assistance to SMEs
according to their unique needs and preferences.

2.6 Relationship Between E-Commerce Adoption and Business Performance:

A developing body of research delves into the complex courting between Small and Medium
Enterprises (SMEs) e-trade adoption prices and their overall business performance metrics.
Synthesizing those studies sheds mild on whether successful e-commerce integration indeed
correlates with advanced sales, multiplied market share, and more advantageous profitability
for SMEs.

Revenue Enhancement: Studies continuously propose a fantastic affiliation between e-trade

adoption and sales growth among SMEs. The accessibility of a much broader client base
enabled via e-trade systems often interprets elevated sales possibilities (Talapatra, et al,
2019). By breaking down geographical boundaries, SMEs can goal both home and
international markets, main to better transaction volumes and stepped forward sales streams.
This superb correlation underscores e-commerce's potential to enhance SMEs' pinnacle-line
boom.

Market Share Expansion: E-commerce enables SMEs' potential to reach and engage with a
broader customer base, as a result influencing marketplace percentage. The online realm
provides a platform for SMEs to show off their products and services to an international
target audience, probably attracting new clients and competition shoppers. Enhanced
visibility, coupled with powerful advertising strategies, contributes to extended marketplace
share. However, factors along with quarter competitiveness and product differentiation also
play a role (Kilay, Simamora & Putra, 2022).

Profitability Upswing: The link between e-commerce adoption and profitability is nuanced.
While e-trade can lessen operational expenses by streamlining strategies and automating
transactions, the direct effect on profitability varies. Factors inclusive of pricing techniques,
aggressive pressures, and preliminary investments in the era must be taken into consideration
(Siddik, Yong & Rahman, 2023). Nonetheless, SMEs that efficaciously align their e-
commerce strategy with green operations and pricing approaches tend to experience
improved profitability through the years.

Customer Loyalty and Engagement: E-trade's impact extends beyond instant economic
metrics. Customer loyalty and engagement, reinforced through customized reviews and green
online offerings, contribute to lengthy-term enterprise sustainability. Engaged online clients
are more likely to come to repeat customers and logo advocates, in addition to influencing
sales and profitability growth (Abtahi, Farhana & Hasan, 2023).

Innovative Business Models: E-commerce adoption regularly activates SMEs to innovate

their commercial enterprise fashions. The integration of digital platforms can result in the
creation of recent sales streams, consisting of subscription offerings, online marketplaces, or
cost-added digital services. These modern tactics can lead to revenue diversification and
greater profitability (Emon & Nahid, 2023).

Sector Variability: The relationship between e-commerce adoption and commercial

enterprise overall performance may be motivated by the world in which SMEs perform.
Industries characterized by fast technological advancements and customer call for online
offerings, inclusive of retail and hospitality, may additionally enjoy greater suggested
upgrades in sales, market proportion, and profitability. In contrast, sectors with longer income
cycles or complicated value chains may look at slower influences (Hossain, et al, 2022).

Long-Term Impact: While immediate impacts are frequently located in phrases of sales and
market proportion, the long-time period benefits of e-trade adoption are extra profound.
SMEs that consistently deliver high-quality online reviews tend to construct enduring client
relationships, fostering sustainable increases through the years. The connection between e-
trade adoption and SMEs' commercial enterprise overall performance metrics is complex and
multidimensional. While e-trade can drastically contribute to enhanced sales, marketplace
share, and profitability, its effects are prompted by way of numerous inner and outside
elements (Haque, et al, 2022). Successful integration requires strategic alignment between e-
commerce tasks and usual enterprise desires, ensuring that the potential benefits are
maximized even as addressing challenges efficaciously.

2.7 Research Gap:

Despite the enormous research performed on e-commerce adoption among SMEs in diverse
contexts, there stays a superb gap in understanding the nuanced demanding situations and
possibilities confronted by SMEs in Bangladesh. Existing literature frequently offers insights
from advanced economies, which won't accurately capture the specific socio-financial,
technological, and regulatory dynamics of Bangladesh. Additionally, whilst a few studies
discuss e-trade adoption boundaries and facilitators, few offer a comprehensive exam of the
interplay between organizational developments and e-commerce integration (Islam, et al,
2021). This research ambitions to bridge those gaps by offering contextually relevant insights
into the unique factors hindering or allowing e-commerce adoption among SMEs in
Bangladesh. By examining how organizational traits intersect with the demanding situations
and opportunities inherent in e-commerce integration, this examination seeks to contribute
precious insight that can tell strategies to beautify SMEs' virtual transformation inside the
Bangladeshi context.

2.8 Theoretical implementation

Implementation of the Technological Acceptance Model (TAM) within Bangladeshi SME

adoption of e-commerce can provide key insight into understanding and overcoming any
potential barriers they face when adopting this form of commerce. TAM can assess users'
perception and acceptance of new technology, giving valuable information that will inform
effective implementation strategies (Karim, Chowdhury & Haque, 2022). TAM may be
conducted using surveys and interviews within SME communities in Bangladesh in order to
gauge perceptions about the e-commerce technology used. Such analysis could uncover
specific concerns related to ease-of-use or perceived usefulness that SMEs encounter when
adopting it for business needs, such as ease-of-use/perceived usefulness of platforms.
Findings from TAM can inform targeted interventions. For instance, if the perceived
complexity of e-commerce technology is an impediment to use, training programs designed
to increase digital literacy and user-friendliness could be designed (Hossan, et al, 2022). If
security concerns are at the forefront, efforts could focus on providing robust payment
systems online. Government and industry stakeholders could utilize TAM insights in shaping
policies and incentives by understanding factors influencing SME adoption of e-commerce -
using this understanding; policymakers could craft supportive regulations or financial
incentives designed to address any security or safety concerns they identify from these
insights to develop supportive regulations or incentives which address concerns from these
concerns by understanding those factors which hinder adoption using these insights from
TAM findings (Herrero-Crespo, et al, 2022).

2.9 Chapter Summary:

In this literature overview, the complex panorama of e-commerce adoption amongst SMEs in
Bangladesh has been explored. The evolution of e-trade adoption, its cutting-edge level inside
us of a key barrier, enabling elements, the impact of organizational traits, and the relationship
between e-trade adoption and business performance were critically examined. The assessment
underscores the significance of e-commerce as a transformative pressure for SMEs, outlining
the challenges they face even as highlighting capability pathways for success. These insights
function the bedrock for the subsequent chapters of this dissertation. With a focus on
understanding the dynamics precise to Bangladesh, the research aims to offer actionable
pointers that may enhance e-commerce adoption among SMEs. The subsequent chapters will
delve into empirical studies methods, records evaluation, and the method of strategic
guidelines, contributing to a deeper understanding of how SMEs in Bangladesh can navigate
the e-trade landscape to attain sustained growth and competitiveness.
Chapter 3: Methodology

3.1 Introduction

There are different factors that create significant impact on the activities of SME and
influence e-commerce activities. Using effective methods of data collection can help to
improve the research context and enhance understanding about e-commerce. This research on
identifying factors to adopt e-commerce needs to collect information or data to investigate the
relationship between e-commerce adoption and commercial enterprise performance. This
chapter has focused on methods and tools of collecting and analysing data from primary and
secondary sources to understand the use of e-commerce processes in different SMEs.
However, research paradigm and design have also been considered to guide the entire
research.

3.2 Research onion

Research onion is a metaphorical framework that is used in methodology to illustrate the

layers included in a research. In order to accumulate information from different sources, a
researcher needs to analyse each layer in a proper manner (Abdar et al. 2021). From the
outermost layers to the innermost layer, research onion includes philosophical assumption,
research approach, research strategy, time horizon, data collection, sampling, data
analysis and findings. However, understanding of this research onion, researchers can
conceptualise the entire research process by using the series of interconnected layers. This
research has also used this research onion in terms of collecting information about key
barriers hinder and factors influence organisational activities to improve E-commerce.
 Figure 1: Research onion
(Source: Alturki, 2021)

3.3 Rationale and research paradigm

The research paradigm represents the philosophical framework that guides the appropriate
approach of conducting a study. However, the different types of research paradigms such as
positivism, interpretivism, realism and pragmatism (Ikram & Kenayathulla, 2022). Selecting
an appropriate research paradigm can reflect the beliefs of the researcher about the
knowledge, reality and process of the entire research (Bosnjak, et al, 2022). This research has
used “positivism philosophy” in order to manage objectivity and Discover universal truth
through empirical observation. Positivism is basically epistemological stands that focus on
empirical information or observation in order to gain Real world knowledge about the
research context (Alturki, 2021). In order to break down the barriers of SMEs it is important
to gain Real world knowledge about The E-Commerce activities and SMEs of Bangladesh.
Positivism also provides a strong emphasis on systematic observation and generalisation of
data by eliminating personal bias. As per the view of Alharahsheh & Pius (2020), positivism
also helps a research study to collect subjective experience from valid sources of knowledge.
Using positivism philosophy, this research has also been collected from surveys by
conducting primary practical research work. Other paradigms are not applicable due to their
incapabilities of focusing on valid source and empirical evidence. Hence, due to this factor,
this positivism paradigm has proved justified in this research to understand contemporary
stages of e-commerce adoption in Bangladesh (Rahman, et al, 2022).

3.4 Research population

Research population is essential in order to accumulate information about the research

context and draw conclusions. Research population refers to the entire group or individuals
that are the main interest area of research study and help to generate findings (Miller, Chng &
Cheah, 2022). In order to accumulate primary information, it is important to select a specific
research population. This research has selected the owners of SMEs in Bangladesh in order
to understand their concept about E-commerce adoption. Target population can ensure the
valid and relevant findings for analysing the research concept. Since this research has focused
on E-Commerce Adoption in the SMEs of Bangladesh, it is important to include the owners
of SMEs to collect relevant information (Sanchez, et al, 2022). Toys of research population
and sampling is aligned with research objectives to maintain flow in a research study.
However, 30 research participants have been selected from this target population to
understand the situation of SMEs. Therefore, this population has been proved justified to
accumulate relevant information about research context.

3.5 Sample size and method

Sample size and sampling method influence the data collection from different data sources to
knowledge about research phenomena. This research has used the simple random sampling
technique in order to select participants and accumulate data from them. As per the view of
Liu & Pontius (2021), simple random sampling can help to randomly select data from
different research populations. Simple random sampling can also mitigate the bias throughout
the discharge by randomly selecting participants (Rahman, et al, 2022). In that context, this
technique has been proved justified in order to conduct surveys and take responses from
them.
Using this simple random sampling technique, this research has selected 30 participants as
the population of the survey to understand factors for enabling SMEs to adopt e-commerce.
As per the view of Kang (2021), choosing appropriate sample size is essential to accumulate
sufficient data for drawing conclusions about the research context. However, this size of 30
participants is effective or appropriate to figure out the solution for this research problem.
Therefore, due to this reason, this sampling is appropriate in this research.
3.6 Research methods

Research strategy

Strategy is an important part of research that provides the guidelines of accumulating findings
and improving research understanding. There are two types of research strategies such as
quantitative and qualitative. This research has used quantitative strategy in terms of
accumulating numerical information about the trend of using e-commerce, limitation of e-
commerce, challenges of SMEs, and trend of e-business. As per the view of Mehrad &
Zangeneh (2019), quantitative research strategies involve the specific measurement of
variables and help to accumulate statistical information from larger sample sizes.
Quantitative strategy in data collection provides a structured way or plan to collect common
data and draw conclusions. In this research quantitative strategy allows the presentation of
information in a numerical form such as chart, graph, table and statistical summaries to
accumulate in-depth view. On the other hand, the qualitative strategy provides description-
based information for research. In that context, this quantitative strategy has proved
beneficial (Karim, et al, 2022).

Research design

Using specific research design is essential in order to analyse the relationship between
variables. This research has used descriptive Research Design in order to address all the
factors in a descriptive manner behind adopting e-commerce. As per the view of Doyle et al.
(2020), descriptive design can produce non quantified issues and help to gather data in a
quick manner. Using descriptive design, this research has also described different factors
such as training programs, government policies, collaborative network, financial resources,
customer confidence in the case of promoting e-commerce in SMEs. Since this design has
helped to describe the research elements in a detailed manner, descriptive design has proved
justified (Mishra & Alok, 2022).

Data collection method

This research has used a primary quantitative Data Collection method in order to accumulate
information about the impact of organisational traits on E-Commerce adoption. There are
different factors such as market trends, use of Advanced technology, social distancing has
created opportunities of using e-commerce systems. In order to gather knowledge about these
factors and hindrance in the way of E-Commerce adoption, this research has accumulated
data from the target population by conducting primary research. As per the view of Dolnicar
(2020), primary quantitative data can be collected from reliable sources which also maintain
accuracy in findings. Survey has been conducted among 30 owners of SMEs in Bangladesh.
This specific group of participants has provided authentic information and responses from
their experience in SMEs to adopt e-commerce systems. 25 close ended questionnaires have
been used in this research in order to accumulate quantitative information from participants.
As per the view of Chen et al. (2020), close-ended questionnaires can provide standardised
response options and make the analysis of responses easier. Based on research objectives,
close-ended questionnaires have been established to gain specific responses. Survey sheet has
also been sent through email along with providing an information sheet. Therefore, it can be
stated that primary quantitative data collection has been justified for collecting reliable and
valid information.

Data analysis

Using appropriate data analysis techniques is essential to enhance transparency and reliability
of data. This research has considered statistical analysis techniques to analyse numerical
information to draw findings. As per the view of Wu et al. (2020), statistical analysis can
illustrate research data by using statistical facts, charts, graphs and other elements. Moreover,
Excel has also been used to understand facts and perspectives in a detailed way.

3.7 Ethical issues and research standards

This research has focused on ethical standards in order to conduct an entire study for
understanding the relationship between small and medium sized Enterprises and e-commerce
systems. Moreover, the research has also followed certain rules and regulations implemented
by the University of Chester. No participants have been forced to provide any sensitive or
personal data about their Enterprises. Informed consent has also been obtained from the
participants before involving them in the study. Participants will not face any damage or
potential risks throughout the entire research. Moreover, privacy and confidentiality of
information has also been implemented by securing personal and confidential information.
Data has also been secured in a cloud-based device with third party access control.
Anonymity will be maintained throughout the entire research study to maintain the general
principle of research. Academic integrity has also been implemented by avoiding plagiarism
and data manipulation. This research has also followed the rules implemented by “General
Data Protection Regulations” by the Government of UK (). No data has been misinterpreted
throughout the statistical analysis section. Moreover, the research also has compliance with
the rules and regulations of academic research. It has also ensured that participants can
withdraw their responses at any time throughout the research. No bias has been considered in
this research when selecting participants. Therefore, in this way, this research has
implemented transparency and reliability.

3.8 Methodological limitations

This research has used quantitative Data Collection methods in order to provide numerical
information about E-Commerce System Adoption in SMEs of Bangladesh. No qualitative
data has been included in the findings for that created a little limitation in the Methodology.

3.9 Chapter summary

As per the above mentioned discussion it can be concluded that use of proper data collection
and analysis tools can help to analyse the research context in a proper manner. This research
has used primary quantitative data in order to analyse the trend of adopting e-commerce
within the company. Positivism philosophy has been implemented to guide the quantitative
data collection from surveys of participants. Along with that, descriptive Research Design has
been used to describe the variables such as factors to hinder and enable SMEs to adopt e-
commerce and break down the barriers. Based on the research onion, effective data analysis
techniques have also been used to figure out appropriate findings about the use of e-
commerce systems. The statistical analysis technique has been used by implementing Excel
to illustrate graphs and charts of information. Moreover, the simple random sampling
technique has been used in order to select research participants to accumulate quantitative
information or response to surveys. Moreover, ethics has also been implemented throughout
the entire research to protect data confidentiality and academic integrity.
Chapter 4: Result and findings

Introduction

Understanding the specific difficulties and benefits of adopting e-commerce among SMEs in
Bangladesh requires more research on the topic. It can help guide plans to expand access to
technology, increase employment opportunities, and boost economic development. It can also
help enterprises adjust to shifting customer preferences and international market conditions.
Therefore, the author has surveyed 30 SME owners in Bangladesh to get real-time data and
comprehensive insights. The findings have been analyzed and evaluated using relevant theory
and literature studies. The author has also justified the findings obtained from the survey data.

4.1Critical analysis of empirical data (survey)

Q1 How long have you been involved with the SME sector of Bangladesh?

Options Percentage Respondents Total Participants

5 to 7 years 16.67 5 30

10 to 20 years 43.33 13 30

20 to 40 years 6.66 2 30

40 to 60 years 23.33 7 30

More than 60 years 10 3 30

Table 1: involvement with the SME sector of Bangladesh

 Figure 1: involvement with the SME sector of Bangladesh

The findings from Q1 indicate that 43.33% have been involved with the SME sector in
Bangladesh for 10-20 years.

Q2 Have you already implemented any form of e-commerce in your business operation
when working in Bangladesh?

Options Percentage Respondents Total Participants

Yes 50 15 30

Neutral 30 9 30

No 20 6 30

Table 2: form of e-commerce in your business operation when working in Bangladesh

Figure 2: form of e-commerce in your business operation when working in Bangladesh

Q3 Do you agree that e-commerce is essential for the growth of your business or any
kind of small business?

Options Percentage Respondents Total Participants

Agree 20 6 30

Strongly agree 40 12 30

Neutral 36.66 1 30

Disagree 30 9 30

Strongly disagree 6.66 2 30

Table 3: Whether e-commerce is essential for the growth of your business