Demand for e-business support services among New Brunswick SMES

Abstract

SMEs that are adopting Internet technologies and e-business solutions often require business support services. This paper summarizes the results of a survey of New Brunswick SMEs discusses characteristics of New Brunswick SMEs in terms of “pain points” - perceived barriers to growth and desired capabilities. Key points are: • The most extensive users of Internet technologies or e-business solutions are larger SMEs. • However, microenterprises lead in adoption of business models relying on Internet-based sales, and small SMEs lead in matters of Internet-based exporting. • Two-thirds of SMEs report having plans for further investments in Internet technologies and e-business solutions. • New Brunswick SMEs that have adopted Internet technologies and e-business solutions in varying degrees report a broad range of benefits from their engagement in e-business. • Domestic market development is the principal motivation for adoption of Internet technolo-gies and e-business solutions. • Personalized expert services are the most highly desired support service. Six possible sets of drivers of demand for nine e-business support services are investigated. The six postulated influencers of demand are firm size, growth orientation, e-Business technological capabilities, desired business capabilities solutions to business problems, and intensity of competition. The nine e-buisness support services are directory of support organizartions, interactive questionnaire to help define an e-commerce strategy; online sector-specific seminars on e-commerce; classroom-based sector-specific seminars about e-commerce; personalized, expert advice on e-commerce; examples or case studies of businesses using e-commerce success-fully; recommendations about e-commerce solutions; statistics and graphics about e-commerce adoption and use among different sizes or types of companies in New Brunswick; visits to successful companies. Tests of differences of means between firms expressing interest in particular support services show that problem solving, use of e-Business technologies, and strategic development of business capabilities are much more strongly associated with demand for services than size of firm, growth orientation, or intensity of competition.