E-commerce Adoption and Effects on South Korean SMEs During the Covid-19 Pandemic

Research objective: The aim of this research was to explore the underlying factors motivating e-commerce adoption among SMEs in South Korea during the Covid-19 pandemic, and the effects of the technology. The basis for the decisions made by these companies to adopt e-commerce during the Covid-19 pandemic is also described. Focus is placed on the advantages and disadvantages linked to the process. The research explores the reasons for e-commerce adoption and development during the Covid-19 pandemic, analyses the impact of e-commerce on SMEs’ marketing strategies during the pandemic, explores the benefits of e-commerce to SMEs during the pandemic, and determines the barriers to e-commerce adoption during the pandemic. Methodology: A qualitative research method was employed in this research to explore in-depth data for holistic description of e-commerce adoption phenomena in the context of SMEs in South Korea during the Covid-19 pandemic. Data was collected from three SMEs that had had a first-hand experience with e-commerce through interviews with their representatives. Setting and location: Republic of Korea. Findings: The primary rationale for implementing an e-commerce strategy differed among South Korean firms. In relatively big firms, the primary motive for adopting e-commerce was to improve efficiency in their internal processes. On the other hand, the smaller firms were more interested in improving their competiveness. Still, the drive for competitiveness and cost-efficiency proved essential in motivating the adoption of e-commerce. Essentially, commerce proved to be beneficial in terms of improving the performance in two fundamental ways: ensuring increased customer base and sales revenues, and reducing the cost of doing business. However, SMEs also encountered a number of barriers to adopting e-commerce. Cost factor was commonly mentioned to be a major barrier to the adoption of e-commerce. Knowledge gaps also dominated as a challenge to e-commerce adoption.