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Abstract

This study examines the effect of five factors on the adoption of electronic commerce among small and medium enterprises in Brunei Darussalam. A review of the literature shows that owner characteristics such as lack of perceived relative advantage, lack of knowledge, and perceived lack of trust are significant inhibitors while environment characteristics such as competitive pressure and, government support are significant motivators of electronic commerce in Brunei Darussalam. A questionnaire survey was conducted in 360 small and medium enterprises. A total of 184 valid responses were obtained. Stratified random sampling was adopted over other techniques to enhance representativeness. Data analysis shows that significant relationship exists between each of the five variables and electronic commerce adoption among small and medium enterprises in Brunei Darussalam. This study concludes that the five factors explain more than fifty percent of the variation in small and medium enterprises adoption. Competitive pressure emerged as the most important factor in terms of relative importance. This factor is followed by IT knowledge, relative advantage, security and government support.

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