A Conceptual Framework for E-Commerce Innovation in Chinese SMEs

As E-Commerce (EC) is rapidly gaining popularity in China, EC innovation becomes a major growth strategy for many SMEs. Meanwhile, problems and challenges are hindering proliferation of EC innovation. The need exits for a theoretical model to forge EC innovation: a dynamic process with progressive stages of both internal and external e-readiness. Derived from theories and evidenced by the case studies from Hangzhou, China, our conceptual framework reveals top management, organizational learning, government support, market forces, and technology readiness as essential in each development stage, but with different emphasis. Implications of the framework are discussed.