The Research On The Critical Successful Factors Of E-commerce Of SEMs

Nowadays, the information technology is becoming more and more necessity in InternationalTrade and the development of E-commerce provides SMEs with the capability of competingequally with large enterprises, including multinational corporations in global competition. SMEsfocusing on international trade can quickly react to the market and have a better understanding ofthe demand of the world through the Internet. It can also help enlarge their oversea market andincrease their chances of international trade. The use of E-commerce in the company reduces itstransaction cost and thus has positive effects on lowering prices. Therefore, E-commerce has beendeveloping quickly in SMEs. Some may have succeeded in doing business with E-commerce, whileothers may have failed, and some may even have yet developed E-commerce. SMEs often questionthemselves if they really need to use E-commerce or what they should pay more attention to in theprocess of E-commerce to insure its success. This paper focuses on the study of the above questionsby conducting realistic research and empirical research.It points out the importance and necessity of E-commerce by having a comprehensive study ofthe wide influence of E-commerce on SMEs, such as enlarging oversea market, decreasingtransaction cost and simplifying international trade process. Case studies are also conducted tosupport the argument. This paper analyzes some influencing factors based on enormous researchpapers and finally discovers the critical successful factors in doing business with E-commerce inSMEs by conducting SEM(Structural Equation Modeling). The purpose of this paper is to makesuggestions on how to develop E-commerce in SMEs and how governments can create a businessenvironment that enhances its development.