INFLUENCE OF IT FACTORS AND IT GOVERNANCE ON E-COMMERCE ADOPTION AND PERFORMANCE IN CHINESE MANUFACTURING SMES

Abstract

This study explores the critical IT factors that influence the adoption of E-commerce platforms in small and medium-scale manufacturing enterprises (SMEs) in China and examines the subsequent impact on organizational effectiveness and performance. It also explores the moderating role of IT governance in this relationship. using a comprehensive analysis of relative advantage, compatibility and simplicity, IT knowledge, information security, and network security, the study develops a theoretical framework rooted in established technology adoption theories such as the Diffusion of Innovations (DOI), Technology Acceptance Model (TAM), and the Technology-Organization-Environment (TOE) framework. The findings reveal the critical role of IT governance in enhancing the benefits derived from E-commerce adoption, suggesting that comprehensive IT governance strategies can optimize technological investments and align them with organizational goals. The empirical results indicate that E-commerce platform application positively influences organizational effectiveness and performance, particularly through features like direct payments, buyer and seller search options, and marketing capabilities. Recommendations for E-commerce solution developers and users emphasize the importance of innovative, secure, and compatible solutions that integrate smoothly with existing systems and processes. Moreover, the study highlights the need for government support and tailored E-commerce solutions to foster greater adoption among SMEs. This research contributes to the literature by providing empirical evidence on the determinants of E-commerce adoption and their impact on performance, offering valuable insights for enhancing competitiveness and operational efficiency in the Chinese manufacturing sector.