The Role of IT Factors and IT Governance in E-commerce Adoption and Performance among Chinese Manufacturing SMEs

Abstract

This study investigates the key IT factors influencing the adoption of E-commerce platforms in small and medium-sized manufacturing enterprises (SMEs) in China, and examines their subsequent effect on organizational performance and efficiency. The research also assesses the moderating role of IT governance in shaping these relationships. Utilizing a framework based on well-established technology adoption models, such as the Diffusion of Innovations (DOI), Technology Acceptance Model (TAM), and the Technology-Organization-Environment (TOE), the study identifies critical factors including relative advantage, compatibility, simplicity, IT knowledge, information security, and network security. The findings highlight the significant role of IT governance in maximizing the benefits of E-commerce adoption, demonstrating that strong IT governance practices can optimize technological investments and ensure alignment with business objectives. Empirical results suggest that the implementation of E-commerce platforms positively impacts organizational performance, especially through features such as direct payment systems, search functionalities for buyers and sellers, and enhanced marketing capabilities. Recommendations for both E-commerce developers and users emphasize the importance of secure, compatible, and innovative solutions that integrate seamlessly with existing organizational systems. Additionally, the study underscores the need for government support and tailored E-commerce solutions to accelerate adoption among SMEs. This research contributes to the body of knowledge on E-commerce adoption by providing empirical evidence on the factors that influence it and their impact on organizational performance, offering insights to enhance competitiveness and operational efficiency in China's manufacturing sector.