Drawing on existing research on e-business and the small firm, this article presents a review of the literature and the formulation of a conceptual framework of e-business development. Macro-level, industry sector, firm and managerial factors are examined, together with attitudes towards e-business and the benefits of and the barriers to its development. The research is positioned within a framework that adopts the Marketing/Entrepreneurship interface paradigm as an aid to understanding how combinations of formal and informal competencies contribute to competitive advantage. A series of in-depth interviews with company managers was carried out in Central Scotland. Results indicate that industry factors, customer influences, the degree of entrepreneurial orientation of the key decision maker and the level of competency development within the organization play important roles in the level of e-business development achieved. Also, some small firms only embrace e-business to a certain level and even revert to more conventional business practices.
Bell, J. D. (1995) ‘The Internationalization of Small Computer Software Firms , European Journal of Marketing29(8): 60-75 .
3.
Berryman, E. (1999) ‘Getting On With the Business of E-Business’, URL (consulted August 2000): http://e-business.pwcglobal.com
4.
Blackburn, R. and Athayde, R. (2000) ‘Making the Connection: The Effectiveness of Internet Training in Small Business’ , Education and Training42(4-5): 289-299 .
5.
Blackler, F. (1995) ‘Knowledge, Knowledge Work and Organisations, An Overview and Interpretation’ , Organisation Studies16(6): 1021-1046 .
6.
Bolton, J. E. (1971) Report of a Committee of Enquiry on Small Firms. London: HMSO .
7.
Boone, C., De Brabander, B. and Hellemans, J. (2000) ‘Research Note: CEO Locus of Control and Small Firm Performance’ , Organisation Studies21(3): 641-646 .
8.
Boyatzis, R. E. (1982) The Competent Manager: A Model for Effective Performance. New York: Wiley .
9.
Brown, C. (2005) ‘Subjectivity in Innovation Management of SMEs’ , paper presented at the 10th Annual Research Symposium of the Academy of Marketing Special Interest Group on Entrepreneurial and Small Business Marketing, University of Southampton, 5-7 January.
10.
Bryman, A. and Burgess, R. G. (1995) ‘Developments in Qualitative Data Analysis: An Introduction’, in A. Bryman and R. G. Burgess (eds) Analysing Qualitative Data. London: Routledge .
11.
Buchanan, D. and Body, D. (1992) The Expertise of the Change Agent: Public Performance and Backstage Activity. New York: Prentice Hall .
12.
Cabinet Office (1999) ‘E-commerce@its.best.uk’, The Performance and Innovation Unit Report, London.
13.
Carr, P. (2000) The Age of Enterprise: The Emergence and Evolution of Entrepreneurial Management. Dublin: Blackhall .
14.
Carson, D. (1990) ‘Some Exploratory Models for Assessing Small Firms’ Marketing Performance: A Qualitative Approach’ , European Journal of Marketing24(11): 1-51 .
15.
Carson, D. (1993) ‘A Philosophy for Marketing Education in Small Firms’ , Journal of Marketing Management9(2): 189-204 .
16.
Carson, D. (2004) ‘Toward a Research Agenda’ , report to the Special Interest Group Meeting of the Academy of Marketing SIG on Entrepreneurial and Small Business Marketing, University of Stirling, January.
17.
Carson, D. and Gilmore, A. (2000) ‘SME Marketing Management Competencies’ , International Business Review9(3): 363-382 .
18.
Carson, D. and Hill, J. (1992) ‘Marketing Education for Entrepreneurs’ , in Proceedings of the International Council for Small Business, 37th World Conference, Toronto, June, pp. 607-631 .
19.
Carson, D., Cromie, S., McGowan, P. and Hill, J. (1995) Marketing and Entrepreneurship in SMEs: An Innovative Approach. London: Prentice Hall .
20.
Chaston, I. (2001) ‘The Internet and E-Commerce: An Opportunity to Examine Organisational Learning in Progress in Small Manufacturing Firms?’ , International Small Business Journal19(2): 13-30 .
21.
Chaston, I., Badger, B., Mangles, T. and Sadler-Smith, E. (2003) ‘Relationship Marketing, Knowledge Management Systems and E-Commerce Operations in Small UK Accountancy Practices’ , Journal of Marketing Management19(1-2): 109-129 .
22.
Chisnall, P. M. (1986) Marketing Research. Maidenhead: McGraw-Hill .
23.
Churchill, G. A. (1992) Basic Marketing Research. London: Thomson Learning .
Collinson, E. and Shaw, E. (2001) ‘Entrepreneurial Marketing: A Historical Perspective on Development and Practice’ , Management Decision39(12): 1157-1163 .
26.
Colombo, M. G. (2001) ‘Technology-Based Entrepreneurs: Does Internet Make a Difference?’ , Small Business Economics16(3): 177-190 .
27.
Courtney, H. (2001) ‘Making the Most of Uncertainty’ , McKinsey Quarterly 4, URL (accessed February 2003): http://www.mckinseyquarterly.com.
28.
Coviello, N. and McAuley, A. (1999) ‘Internationalisation and the Smaller Firm: A Review of Contemporary Empirical Research’ , Management International Review39(3): 223-240 .
29.
Covin, J. G. (1991) ‘Entrepreneurial Versus Conservative Firms: A Comparison of Strategies and Performance’ , Journal of Management Studies28(5): 439-461 .
30.
Dandridge, T. (2000) ‘High-Tech Potential? An Exploratory Study of Very Small Firms’ Usage of the Internet’ , International Small Business Journal18(2): 81-91 .
31.
Daniel, E. (2003) ‘An Exploration of the Inside-Out Model: E-Commerce Integration in UK SMEs’ , Journal of Small Business and Enterprise Development10(3): 233-249 .
32.
Daniel, E., Wilson, H. and Myers, A. (2002) ‘Adoption of E-Commerce by SMEs in the UK’ , International Small Business Journal20(3): 253-270 .
33.
Day, G. S. and Wensley, R. (1988) ‘Assessing Advantages: A Framework for Diagnosing Competitive Superiority’ , Journal of Marketing52: 1-20 .
Doole, I. and Lowe, R. (1999) International Marketing Strategy. London: International Thomson Business Press .
36.
Drew, S. (2002) ‘E-Business Research Practice: Towards an Agenda’ , Electronic Journal on Business Research Methods1(1): 18-26 .
37.
Drew, S. (2003) ‘Strategic Uses of E-Commerce by SMEs in the East of England’ , European Management Journal21(1): 79-88 .
38.
Durkin, M. and McGowan, P. (2001a) ‘“Net Effect”: Views from the Periphery: Exploring the Role and Importance of the Internet on Marketing Activity in Entrepreneurial Firms’ , Irish Marketing Review14(1): 15-25 .
39.
Durkin, M. and McGowan, P. (2001b) ‘Exploring a More Complete Competency Spectrum in Entrepreneurial Small Firm Internet Marketing’ , paper presented at the Marketing and Entrepreneurship track at the AMA Summer Educators Conference, August, Washington DC.
40.
Ellsworth, J. H. and Ellsworth, M. V. (1995) The Internet Business Book. New York: John Wiley .
41.
Ellsworth, J. H. and Ellsworth, M. V. (1996) Marketing on the Internet: Multimedia Strategies for the WWW. New York: John Wiley .
42.
Evans, P. B. and Wurster, B. S. (1997) ‘Strategy and the New Economics of Information’ , Harvard Business Review75(5): 70-83 .
43.
Fillis, I. (2000) ‘An Examination of the Internationalisation Process of the Smaller Craft Firm in the United Kingdom and the Republic of Ireland’, PhD thesis, Stirling, Scotland, Department of Marketing, University of Stirling.
44.
Fillis, I. (2001) ‘Small Firm Internationalisation: An Investigative Survey and Future Research Directions’ , Management Decision39(9): 767-783 .
45.
Fillis, I. (2002) ‘An Andalusian Dog or a Rising Star: Creativity and the Marketing/Entrepreneurship Interface’ , Journal of Marketing Management18(3-4): 379-395 .
46.
Fuller, T. and Jenkins, A. (1995) ‘Public Intervention in Entrepreneurial Innovation and Opportunism: Short Cuts or Detours to the Information Superhighway?’ , in Proceedings of the Babson Entrepreneurship Conference. London.
47.
Gaglio, C. M. (2004) ‘The Role of Mental Simulations and Counterfactual Thinking in the Opportunity Identification Process’ , Entrepreneurship Theory and Practice28(6): 533-552 .
48.
Gilmore, A. and Carson, D. (1996) ‘Management Competencies for Services Marketing’ , Journal of Services Marketing10(3): 39-57 .
49.
Gilmore, A., Carson, D., Grant, K., Pickett, B. and Lancy, R. (2000) ‘Managing Strategic Change in Small and Medium-Sized Enterprises: How Do Owner-Managers Hand Over Their Networks?’ , Strategic Change9(7): 415-426 .
50.
Goffee, R. and Scase, R. (1995) Corporate Realities: The Dynamics of Large and Small Organisations. London: Routledge .
51.
Gronroos, C. (1997) ‘Value-Driven Relational Marketing: From Products to Resources and Competencies’ , Journal of Marketing Management13(5): 407-419 .
52.
Hackley, C. E. and Mumby-Croft, R. (1998) ‘Marketing Entrepreneurs as Creative Agents in a Social Matrix: Towards a Theoretical Framework for Marketing Entrepreneurship’ , in B. Hulbert, J. Day and E. Shaw (eds) Academy of Marketing/UIC/AMA Symposia on the Marketing and Entrepreneurship Interface, Proceedings 1996-1998, pp. 505-513 . Northampton: Faculty of Management and Business, Nene University College.
53.
Hamill, J. and Gregory, K. (1997) ‘Internet Marketing in the Internationalisation of UK SMEs’ , Journal of Marketing Management13(1): 9-28 .
54.
Hobley, C. (2001) ‘Just Numbers: Numbers on Internet Use, Electronic Commerce, IT and Related Figures for the European Community, January 2001’, European Commission’s Electronic Commerce Team , URL (accessed December 2001): http://www.drecommerce.com/justnumbers/
55.
Hodson, M. and Whitelock, J. (2003) ‘Owner-Managers, Identity and Innovation in Adoption and Early Stages of Internet Implementation in SMEs’ , paper presented to the Business Innovation in the Knowledge Economy Conference, Warwick, 1 July.
56.
Hofer, C. W. and Schendel, D. (1978) Strategy Formulation: Analytical Concepts. St Paul, MN: West Publishing .
57.
Hogarth-Scott, S., Watson, K. and Wilson, N. (1996) ‘Do Small Firms Have to Practise Marketing to Survive and Grow’ , Marketing Intelligence and Planning14(1): 6-18 .
58.
Hooley, G., Broderick, A. and Moller, K. (1998) ‘Competitive Positioning and the Resource-Based View of the Firm’ , Journal of Strategic Marketing6(2): 97-115 .
59.
Ihlstrom, C. and Nilsson, M. (2003) ‘E-Business Adoption by SMEs: Prerequisites and Attitudes of SMEs in a Swedish Network’ , Journal of Organizational Computing and Electronic Commerce13(3-4): 211-223 .
60.
Jennings, P. and Beaver, G. (1997) ‘The Performance and Competitive Advantage of Small Firms: A Management Perspective’ , International Small Business Journal15(2): 63-75 .
61.
Jones, C., Hecker, R. and Holland, P. (2003) ‘Small Firm Internet Adoption: Opportunities Forgone, A Journey Not Begun’ , Journal of Small Business and Enterprise Development10(3): 287-297 .
62.
Jutla, D., Bodorik, P. and Dhaliwal, J. (2002) ‘Supporting the E-Business Readiness of Small and Medium-Sized Enterprises: Approaches and Metrics’ , Internet Research: Electronic Networking Applications and Policy12(2): 139-164 .
63.
Kalakota, R. and Whinston, A. (1997) Electronic Commerce: A Manager’s Guide. Reading, MA: Addison-Wesley .
64.
Katsikeas, C. S. and Morgan, R. E. (1994) ‘Differences in Perceptions of Exporting Problems Based on Firm Size and Export Market Experience’ , European Journal of Marketing28(5): 17-35 .
65.
Kelly, K. (1998) New Rules for the New Economy: 10 Radical Strategies for the Connected World. New York: Penguin .
66.
Keogh, W., Jack, S. L., Bower, J. and Crabtree, E. (1998) ‘Small, Technology-based Firms in the UK Oil and Gas Industry: Innovation and Internationalisation Strategies’ , International Small Business Journal17(1): 57-68 .
67.
Kinnear, T. C. and Taylor, J. R. (1987) Marketing Research: An Applied Approach. New York: McGraw-Hill .
68.
Kleindl, B. (2000) ‘Competitive Dynamics and the New Business Models for SMEs in the Virtual Marketplace’ , Journal of Developmental Entrepreneurship5(1): 73-85 .
69.
Knight, G. and Cavusgil, S. T. (1996) ‘The Born Global Firm: A Challenge to Traditional Internationalisation Theory’, in S. T. Cavusgil and T. K. Madsen (eds) Advances in International Marketing, 8, pp. 11-26. London: JAI Press .
70.
Lauder, G. and Westall, A. (1997) ‘Small Firms Online’, Commission on Public Policy on British Business , No. 6.
71.
Lawson, R., Alcock, C., Cooper, J. and Burgess, L. (2003) ‘Factors Affecting Adoption of the Electronic Commerce Technologies by SMEs: an Australian Study’ , Journal of Small Business and Enterprise Development10(3): 265-276 .
72.
Leadbeater, C. (2000) Living on Thin Air: The New Economy, London: Penguin .
73.
Levitt, T. (1983) ‘The Globalisation of Markets’ , Harvard Business Review61(3, May-June): 2-11 .
74.
McAuley, A. (1999) ‘Entrepreneurial Instant Exporters in the Scottish Arts and Crafts Sector’ , Journal of International Marketing7(4): 67-82 .
75.
McKay, J., Prananto, A. and Marshall, P. (2000) ‘E-Business Maturity: The SOG E-Model’, URL (accessed December 2000): http://www2.fit.edu.au/ACIS2000
76.
Maclaran, P. and McGowan, P. (1999) ‘Managing Service Quality for Competitive Advantage in Small Engineering Firms’ , International Journal of Entrepreneurial Behaviour and Research5(2): 35-47 .
77.
Middleton, B. and Long, G. (1990) ‘Marketing Skills: Critical Issues in Marketing Education and Training’ , Journal of Marketing Management5(3): 325-343 .
78.
Miles, M. P., Covin, J. G. and Heeley, M. B. (2000) ‘The Relationship Between Environmental Dynamism and Small Firm Structure, Strategy and Performance’ , Journal of Marketing Theory and Practice8(2): 63-78 .
79.
Morris, M. H. and Lewis, P. S. (1995) ‘The Determinants of Entrepreneurial Activity - Implications for Marketing’ , European Journal of Marketing29(7): 31-48 .
80.
O’Donnell, A., Gilmore, A., Carson, D. and Cummins, D. (2002) ‘Competitive Advantage in Small to Medium-Sized Enterprises’ , Journal of Strategic Marketing10(3): 205-223 .
81.
O’Keefe, R.M., O’Connor, G. and Kung, H.-J. (1998) ‘Early Adopters of the Web as a Retail Medium: Small Company Winners and Losers’ , European Journal of Marketing32(7-8): 629-643 .
82.
Patton, M. Q. (1980) ‘Making Methods Choices’ , Evaluation and Program Planning3(4): 219-228 .
83.
Poon, S. (1998) ‘Small Business Internet Commerce: A Study of the Australian Experience’, PhD thesis, School of Information Management and Systems, Monash University, Melbourne.
84.
Poon, S. and Swatman, P. M. C. (1997) ‘Small Business Use of the Internet: Findings from Australian Case Studies’ , International Marketing Review14(5): 385-402 .
85.
Poon, S. and Swatman, P. M. C. (1999) ‘An Exploratory Study of Small Business Internet Commerce Issues’ , Information and Management351: 9-18 .
86.
Porter, M. (1985) Competitive Advantage. New York: The Free Press .
87.
Putterill, L. G. (2003) ‘The E-Commerce Race: Another Aesop’s Fable?’ , paper presented at Business Innovation in the Knowledge Economy, IBM Warwick, July.
88.
Quayle, M. (2002) ‘E-Commerce: The Challenge for UK SMEs in the Twenty-First Century’ , International Journal of Operations and Production Management22(10): 1148-1161 .
89.
Quelch, J. A. and Klein, L. R. (1996) ‘The Internet and International Marketing’ , Sloan Management Review37(3): 60-75 .
90.
Ramsey, E., Ibbotson, P., Bell, J. and Gray, B. (2003) ‘E-Opportunities of Service Sector SMEs: An Irish Cross-Border Study’ , Journal of Small Business and Enterprise Development10(3): 250-264 .
91.
Roth, K. and Morrison, A. J. (1992) ‘Business-Led Competitive Strategy: A Contingency Link to Internationalisation’ , Journal of Management18(3): 473-487 .
92.
Scase, R. and Goffee, R. (1980) The Real World of the Business Owner. London: Croom Helm .
93.
Schein, E. H. (1987) The Clinical Perspective in Fieldwork. Sage, CA: Newbury Park .
94.
Schuppel, J., Muller-Stewwen, G. and Gomez, P. (1998) ‘The Knowledge Spiral’, in G. von Krogh, J. Roos and D. Kleine (eds) Knowing in Firms. London: Sage .
95.
Shearman, C., Easton, G., Burrell, G. and Rothschild, R. (1993) Managers and Competition. Oxford: Blackwell .
Sterne, J. (1995) World Wide Web Marketing: Integrating The Internet Into Your Marketing Strategy. New York: Wiley .
98.
Sterrett, C. and Shah, A. (1998) ‘Going Global on the Information Superhighway’ , SAM Advanced Management Journal63(1): 43-48 .
99.
Stokes, D. (2002) ‘Entrepreneurial Marketing in the Public Sector: The Lessons of Head-teachers as Entrepreneurs’ , Journal of Marketing Management18(3-4): 379-396 .
100.
Storey, D. J. (1997) Understanding the Small Business Sector. London: International Thompson Business Press .
101.
Stroud, D. (1998) Internet Strategies: A Corporate Guide to Exploiting the Internet. London: Macmillan Press .
102.
Tapscott, D. (1996) The Digital Economy: Promise and Peril in the Age of Networked Intelligence. New York: McGraw-Hill .
103.
Taylor, C. (2001) ‘Windows of Opportunity’ , People Management7(5): 32-36 .
104.
Tetteh, E. and Burn, J. (2001) ‘Global Strategies for SME-business: Applying the SMALL Framework’ , Logistics Information Management, 14 (1-2): 171-180 .
105.
Thong, J. Y. L. (2001) ‘Resource Constraints and Information Systems Implementation in Singaporean Small Businesses’ , Omega: The International Journal of Management Science29(2): 143-156 .
106.
Tse, T. and Soufani, K. (2003) ‘Business Strategies for Small Firms in the New Economy’ , Journal of Small Business and Enterprise Development10(3): 306-320 .
107.
Wai-Pun, M., Farhoomand, A. and Tuunainen, V. (1997) ‘A Preliminary Investigation of Business Opportunities on the Internet in Asia Pacific’ , in Proceedings of the 1st Pacific-Asia Workshop on Electronic Commerce, 5th April, Queensland University of Technology, Brisbane.
108.
Walczuch, R., Van Braven, G. and Lundgren, H. (2000) ‘Internet Adoption Barriers for Small Firms in The Netherlands’ , European Management Journal18(5): 561-572 .
109.
Wallace, P. (2000) ‘Just Wait for the Gold Rush to End’ , New Statesman (21 February): 8-9 .
110.
Webb, B. and Sayer, R. (1998) ‘Benchmarking Small Companies on the Internet’ , Long Range Planning31(6): 815-827 .
111.
Weiber, R. and Kollman, T. (1998) ‘Competitive Advantages in Virtual Markets: Perspectives of “Information-based Marketing” in Cyberspace’ , European Journal of Marketing32(7-8): 603-615 .
112.
Whitely, D. (2000) E-commerce: Strategy, Technologies and Applications. London: McGraw-Hill .
113.
Wynarczyk, P. R., Storey, D., Short, H. and Keasey, K. (1993) The Managerial Labour Market in Small and Medium Sized Enterprises. London: Routledge .
114.
Zineldin, M. (2000) ‘Beyond Relationship Marketing: Technologicalship Marketing’ , Marketing, Intelligence and Planning18(1): 9-23 .
115.
Zwass, V. (1994) ‘Electronic Commerce: Structures and Issues’ , International Journal of Electronic Commerce1(1): 3-23 .
