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Ict and Business
ICT, E-BUSINESS AND SMEs

ORGANISATION FOR ECONOMIC CO-OPERATION AND DEVELOPMENT

FOREWORD

This report was undertaken by the Working Party on the Information Economy (WPIE), and carried out in co-operation with the Working Party on SMEs and Entrepreneurship. It was prepared for the second OECD Conference of Ministers Responsible for SMEs held in Istanbul 3-5 June 2004 and hosted by the Turkish Ministry for Industry and Trade The report sets out policy messages and recommendations from the work undertaken on this topic. These messages and recommendations provide material from which governments may draw in promoting innovative SMEs in the global economy. Graham Vickery and Ken Sakai, Inho Lee and Hagbong Sim of the OECD’s Directorate for Science, Technology and Policy prepared the report, with a contribution by Muriel Faverie, FORUM, Université Paris X, Nanterre, France. Preparation of the report received financial assistance from the French Government and from the United States Department of Commerce [e-Business Facilitation Initiative at the OECD]. It was initially issued under the code DSTI/IND/PME(2002)7/FINAL. This report is issued on the responsibility of the Secretary-General of the OECD. Views expressed are those of the authors and do not necessarily reflect those of the Organisation or its member governments.

Copyright OECD, 2004. Applications for permission to reproduce or translate all or part of this material should be made to: Head of Publications Service, OECD, 2 rue André Pascal, 75775 Paris Cedex 16, France.

2

TABLE OF CONTENTS

EXECUTIVE SUMMARY ............................................................................................................................ 4 Business environment ................................................................................................................................. 4 Network infrastructure



References: Baldwin, J.R. and D. Sabourin (2002), “Impact of the Adoption of Advanced ICTs on Firm Performance in the Canadian Manufacturing Sector”, STI Working Papers 2002/1, OECD, Paris (available at www.oecd.org/sti/). Bitler, M. P. (2001), “Small Businesses and Computers: Adoption and Performance”, preliminary draft, October. Bricklin, D. (2001), “What’s Been Successful in B2C” (available at http://www.bricklin.com/b2csuccess.htm). Bricklin, D. (2002), “Small Business and Web Sites” (available at http://www.bricklin.com/smallbusiness.htm). Central Cooperative Bank for Commerce and Industry (Shoko Chukin Bank Of Japan) (2001), 2001 Survey on Internet Use by SMEs, Tokyo, November. Council of the European Union (2000), eEurope 2002 Action Plan, June (available at http://europa.eu.int/information_society/eeurope/index_en.htm). Department of Industry, Tourism and Resources (ITR), Australia (2002), The Internet’s Impact on Global Supply Chains: the Opportunities and Challenges for Australian Industry, March (available at http://www.itr.gov.au). Ernst & Young (commissioned by the National Office for the Information Economy (NOIE) of Australia) (2001), Advancing with E-Commerce, (available at http://www.noie.gov.au). European Commission (2002a), The 2001 ENSR Survey on SMEs: the Seventh Observatory of European SMEs, DG Enterprise, Brussels. European Commission (2002b), Benchmarking National and Regional E-Business Policies: Benchmarking Report, DG Enterprise, Brussels. Eurostat (2002), The European Community Survey on E-Commerce. Faverie, M. (2004), “E-Business and SMEs in seven non-OECD countries: South Africa, Brazil, Chile, China, India, Russia and Singapore, report prepared for OECD. Gertner, R.H. and R.S. Stillman (2001), “Vertical Integration and Internet Strategies in the Apparel Industry”, The Journal of Industrial Economics, December, pp. 417-440. Heartland Information Research, Inc (2001), “E-Commerce’s Impact on the Travel Agency Industry”, research submitted to Office of Advocacy, U.S. Small Business Administration, October. 44 Iskandar, B.Y., S. Kurokawa and L.J. Leblanc (2001), “Business-to-Business Electronic Commerce From First- and Second-Tire Automotive Suppliers’ Perspectives: a Preliminary Analysis for Hypotheses Generation”, Technovation, Vol. 21, pp. 719-731. Japan Automobile Manufacturers Association (JAMA) (2000), “JNX: Japanese automotive Network eXchange”, JAMAGAZINE, March (in Japanese). Langdon, S. (2001), “The Influence of Information Technology on the Growth of the Microbusiness”, paper presented at the 24th ISBA National Small Firms Policy and Research Conference. Love, P.E.D., Z. Irani et al. (2001), “An Empirical Analysis of the Barriers to Implementing E-Commerce in Small-Medium Sized Construction Contractors in the State of Victoria, Australia”, Construction Innovation, Vol. 1, pp. 31-41. Mehrtens, J., P. B. Cragg and A. M. Mills (2001), “A Model of Internet Adoption by SMEs”, Information & Management, Vol.39, pp.165-176. Ministry of Economy, Trade and Industry of Japan (METI) (2001), White Paper on Small and Medium Enterprises in Japan, SME Agency of Japan (available at http://www.chusho.meti.go.jp/hakusyo/h13/download/2001eibunzennbun.pdf). Moodley, S. (2002), “E-Business in the South African Apparel Sector: a Utopian Vision of Efficiency?”, The Developing Economics, March, pp. 67-100. OECD (2001a), Science, Technology and Industry Outlook: Drivers of Growth: Information Technology, Innovation and Entrepreneurship, OECD, Paris. OECD (2001b), “Broadband Infrastructure Deployment: the Role of Government Assistance”, OECD, Paris. OECD (2001c), “The Development of Broadband Access in OECD Countries”, DSTI/ICCP/TISP(2001)2/FINAL, OECD, Paris (available at http://www.oecd.org). OECD (2002a), “The Impacts of Electronic Commerce on Business: Summary”, DSTI/ICCP/IE(2002)5/FINAL, OECD, Paris. OECD (2002b), Information Technology Outlook 2002, OECD, Paris. OECD (2002c), Measuring the Information Economy, OECD, Paris. OECD (2002d), “Alternative Dispute Resolution (ADR) online mechanisms for SME cross-border disputes: progress report”, DSTI/IND/PME(2002)7/ANN/FINAL, OECD, Paris. OECD (2002e), “Guidelines for the Security of Information Systems and Networks: Towards a Culture of Security”, OECD, Paris. OECD (2002f), “Guidelines for Protecting Consumers from Fraudulent and Deceptive Commercial Practices Across Borders”, OECD, Paris. OECD (2003a), “Broadband driving growth: policy responses”, DSTI/ICCP(2003)13/FINAL, OECD, Paris. 45 OECD (2003b), OECD Communications Outlook, Paris. OECD (2004), “Recommendation of the Council on Broadband Development”, C(2003)259/FINAL, OECD, Paris. Phillips, B.D. (2002), “Home-Based Firms, E-Commerce, and High-Technology Small Firms: Are They Related? ”, Economic Development Quarterly, Vol. 16. No. 1, February. Sakai, K. (2002), “Global Industrial Restructuring: Implications for Small Firms”, STI Working Papers 2002/4, OECD, Paris (available at http://www.oecd.org/sti/working-papers). Scally, T., M. Stansfield and K. Grant (2001), “An Investigation into the Use of the Internet and E-Business among SMEs in Lanarkshire”, Computing and Information Systems, Vol. 8, pp. 58-66. Scupola, A. (2002), “Adoption Issues of Business-to-Business Internet Commerce in European SMEs”, in Proceedings of the 35th Hawaii International Conference on System Sciences 2002 (available at http://www.hicss.hawaii.edu/diglib.htm). Smith, M. D. and E. Brynjolfsson (2001), “Consumer Decision-Making at an Internet Shopbot: Brand Still Matters”, The Journal of Industrial Economics, December, pp. 541-558. Statistics Canada (2001), The 2000 Survey of Electronic Commerce and Technology. Statistics Canada (2002), The 2001 Survey of Electronic Commerce and Technology. Tigre, P.B. and D. O’Connor (2002), “Policies and Institutions for E-commerce Readiness: What Can Developing Countries Learn From OECD Experience?” Technical Papers No.189, Development Centre, OECD, Paris (available at http://www.oecd.org/dev/technics). Tigre, P.B. (2003), “E-commerce Readiness and Diffusion: the Case of Brazil”, GEC Project, CRITO, Irvine University, www.crito.uci.edu. Wong, P.-K. and Y.-P. Ho (2004), “E-Commerce in Singapore: Impetus and Impact of Globalization”, GEC Project, CRITO, Irvine University, www.crito.uci.edu. World Bank (2003), World Development Indicators Database, August 2003. Zixiang, A.T. and O. Wu (2004), “Diffusion and Impacts of the Internet and E-Commerce in China”, GEC Project, CRITO, Irvine University, www.crito.uci.edu. 46

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