Previous research by Chau and Turner (2001b) proposed a Four Phase Model of E- Commerce Business Transformation. This model adapted the work of Venkatraman (1994) to explore the relationship between the degree of organisational transformation and potential benefits derived from SME e-Commerce. This paper reports in detail on the factors that influence SMEs ability to co-ordinate changes to organisational processes and derive benefit from e-Commerce. Examination of the qualitative data collected indicates factors both internal and external to the organisation influence SMEs’ ability to perform e-Commerce enabled business transformation. The paper discusses the nature of these internal factors (organisational and technological) and external factors (nature of supply chain, level of service provided by third party organisations, industry influence and government assistance).