Thesis (M.B.A.) - Asian Institute of Technology, 2002

A thesis submitted in partial fulfillment of the requirements for the degree of Master of Business Administration, School of Management

With the advent of the Internet, one could state that it is the best of times for SMEs. The internet has changed the competition and helped to level the playing field. The new business environment brought by the e-commerce revolution favours the small and the fast, and it is anticipated that the software companies in Thailand, particularly the small and medium-sized would respond positively in embracing the e-commerce as their marketing solutions. However, there are negative implications to be considered. Firstly, the costs associated in implementing the technology, its continual development and in acquiring the appropriate manpower skills are some factors that would put smaller firms in an unfavorable situation compared to its larger counterparts. E-commerce is therefore better deployed to the "high and mighty" when it comes to availability of expertise and finances. For the manufacturers, e-commerce gives them an opportunity to reduce their dependence on their intermediaries. These follow the concept of disintermediation, or the removal of business process layers. It was for this assumption that this thesis study have been conducted. It examined the general pros and cons of e-commerce adoption and applied it to the small and medium sized software intermediaries, and the implications of e-commerce to the software industry' supply chain. The data collection aimed to understand the extent to which these software resellers have adopted e-commerce in their businesses and the critical factors for adoption of e-commerce particularly in the Thai software reselling business. The issues that emerged in the study shows that compared with larger companies, it is found that small and medium-sized software resellers have generally lagged behind in exploiting the advantages of e-commerce to improve their productivity and competitiveness. A perceived lack of market potential, inefficiencies of the system, lack of cooperation at the lower hierarchical level during the implementation, and the costs involved not only in acquiring the technology but also in its continuous development are some of the contributing factors for the slower pace of e-commerce applications among the small and medium-sized software resellers. It is therefore concluded that these software resellers are not ready yet to jump on the "e-commerce revolution bandwagon". This study therefore provides a basis for these intermediaries in formulating their marketing strategies integrating the benefits of electronic commerce. Finally, and in the light of the significant role played by the Thai Government in promoting and developing the country's e-commerce infrastructure, the author has made some recommendations on how their policies can help small and medium-sized resellers in the software industry successfully and effectively integrate e-commerce in their marketing strategies and eventually, the reselling business across different industries.