An Electronic Readiness Assessment Model for More Efficient Electronic Commerce Adoption by Iranian Small and Medium Contractors

More than 90% of companies in Iran construction Industry are small and medium sized contractors. Only 5% of them are using the electronic commerce services and facilities for their businesses. SMCs must re-evaluate every aspect of their strategies and quickly move to a working model where the e-commerce is essential for their success. The concept of electronic readiness assessment for SMCs has received limited attention in the literature. This paper proposed developing a valid model for assessing the capacity and capability of SMCs to adopt e-commerce in Iran construction industry. The research involved a comprehensive review of related literature and the collection of data to identify the indicators and criteria by means of documentary analysis and using a combination of more frequent e-readiness factors in current models and SMCs obstacles in e-commerce implementation. Focus discussion group was conducted by using interviews with SMCs’ stakeholders for e-commerce to understand the contextual factors that influence the norms and attitudes prevailing in SMCs that affect their adoption of e-commerce. To test the conceptual model, a questionnaire was used to collect data from larger sample of SMCs in Iran. The collected data were analysed using a combination of “hermeneutical analysis” and Structured Equation Modelling. The findings confirmed that IT infrastructure, human resources, financial investment, owners or top management attitudes and cultural issues were the most important indicators that measure in detail the level of the e-readiness of SMCs to adopt e-commerce in Iran construction industry.