Electronic Commerce Adoption and SME Growth: A Conceptual and Empirical Review

Abstract

Electronic commerce (e-commerce) has emerged as one of the most transformative forces shaping the operating environment of small and medium enterprises (SMEs) across both developed and developing economies. By enabling firms to market, sell, and deliver products through digital channels, e-commerce lowers the traditional barriers of geography, capital intensity, and information asymmetry that have historically constrained SME expansion. This article presents a conceptual and empirical review of the relationship between e-commerce adoption and SME growth, drawing on established technology-adoption theories, including the Technology-Organization-Environment (TOE) framework, the Technology Acceptance Model (TAM), and the Diffusion of Innovation (DOI) theory. The review synthesizes findings from multiple country contexts, including Malaysia, Jordan, Uganda, and South Africa, to identify the technological, organizational, environmental, and demographic determinants that shape adoption decisions. It further examines the principal barriers to adoption, the mediating role of digital payment infrastructure and social media marketing, and the extent to which government policy accelerates or constrains diffusion. The article concludes that while e-commerce adoption is consistently associated with improved SME performance, the strength of this relationship is moderated by infrastructural readiness, managerial capability, and regulatory support, and it offers implications for practitioners, policymakers, and future researchers.