# Barriers to Canadian SME Adoption of Internet Solutions for Procurement and Supply Chain Interactions

> MeRC Working Paper #5 by Archer, Wang and Kang, August 2003: a telephone survey of 173 Canadian SMEs on barriers to online B2B procurement and sales.

Page URL: https://merc-mcmaster.ca/working-papers/barriers-to-canadian-sme-adoption-of-internet-solutions-for-procurement-and-supply-chain-interactions/

Working Paper #5 by Norm Archer, Shan Wang, and Claire Kang, August 2003.

## Background

- SMEs had fewer than 500 employees.
- Costs, low volumes and integration needs slowed SME innovation.

## Survey

- A telephone survey covered B2B procurement and sales solutions.
- 173 Canadian independent SMEs were stratified by size and sector.

## Findings

- 78% of companies were linked to digital networks for business.
- Online share: 5.3% of B2B purchasing and 4.6% of sales.
- 75% of medium and 55% of small firms used the Internet for information.
- 56% of medium and 37% of small firms bought some items online.
- 25% of medium and 15% of small manufacturers sold some online.

## Perceived barriers

- Difficulty procuring and selling products online.
- Not knowing the right kind of online solution.
- Employees preferring the old ways of doing business.
- Little competitive pressure to go online.
- Customers not particularly interested in online interaction.
- Suppliers not promoting online solutions.
- Seeing the company as too small to benefit.
- Local-only firms did not see the value of Internet solutions.