E-Business Adoption and Strategies in New Zealand SMEs: A Descriptive Study

E-business is touted as a key technology for developing the competitiveness of small and medium sized enterprises (SMEs) in New Zealand because it can help overcome the barriers of distance and limited resources that challenge these companies. However, it is important to know exactly where SMEs are in the adoption process. Such knowledge is critical to providing support and incentives for further adoption (Ivis, 2000). The purpose of the current study is to provide a relatively comprehensive description of SMEs’ e-technology adoption. We also examine strategies SMEs use to create competitive advantage through e-business. Findings reveal that medium-sized companies are poised to transact business and restructure business processes in the electronic medium. Strategies pursued by such enterprises include both low cost and differentiation. Micro and small companies lag behind medium-sized ones in embracing e-business and require support and incentives to achieve the “website” stage of adoption.