Commercial Internet adoption in China: comparing the experience of small, medium and large businesses

Abstract

Earlier research studies predicted that it would be small and medium‐sized businesses that were more likely to adopt and benefit from the use of the Internet because of their greater flexibility. Anecdotal evidence appears in the literature to support this claim; however, little systematic empirical research has been done among SMEs to test this speculation. A sample of 248 companies in Shanghai, China, was divided into small, medium and large groups. The statistical analysis indicates that there are significant differences between large and small companies. Large companies have benefited considerably more from the Internet than small companies not only in their increased sales (derived from the Internet) but also from cost savings. Although the whole sample confirms the main reason for establishing an Internet connection, to gain a competitive advantage, companies also think that the Internet does not work equally for all players.