41 A Category: Electronic Commerce INTRODUCTION Just because e-commerce technologies seem like useful tools that may assist a do its business better, it does not necessarily follow that these technologies will be adopted by this business. The implementation of an e-commerce system in an SME ne- cessitates change in the way the business operates, and so it should be considered as an innovation and studied using innovation theory. how computers, information systems and communications technologies can be used by people to improve the ways in which they do business. As e-commerce necessarily involves interactions of people and technology, any study of how it is used by a small business must be considered in a socio-technical context. Although there is no universal consensus on what constitutes e-commerce, it must be considered to contain elements of information systems, computer hardware technology, business processes, com- munications technologies, and people. The complexity of studies in e-commerce is due, to a considerable degree, to the interconnected parts played by human actors and by the multitude of non-human entities involved. Small business managers, sales people, staff involved in procurement and warehouse operations, computers, software, Web browsers, are only some of the many heterogeneous components of an e-commerce system. BACKGROUND: ADOPTION OF E-COMMERCE BY AN SME In this article we will argue that the decision to adopt, or not to adopt a new technology is not a straightforward one and has more to do with the interactions and associations of both human and non-human actors involved in the project than with Information systems are complex socio-technical entities, and research into their implementation needs to take account of this complexity, which will only be seen if it is reported in all its “ implementation and operation of these systems needs to take regard to both their human and non-human aspects. One view of the adoption of an electronic commerce innovation by a small to medium enterprise suggests that decisions are made primarily based on perceptions, by business managers, of the characteristics of the technology involves consideration of the “essential” characteristics of approach and is based upon the following elements:  characteristics of the innovation itself,  the nature of the communications channels,  the passage of time,  and the social system. Another approach that has recently gained prominence - gested by previous research studies that relate to cognition and effectiveness:  perceived usefulness and  perceived ease of use to which are sometimes added attitude toward using tech- nology and behavioral intention. TAM then attempts to use these factors to explain technology adoption. e-commerce technology to be adopted, and the perceptions, attitudes, advantages, and problems associated with its use. The next step would be to suggest that the adoption, or rejection, of this technology by an SME was due largely to these characteristics. We contend that while there may be some validity in such an approach, it is unlikely to provide due to inter-personal and intra-business interactions, and to the backgrounds of the people involved. Adoption of E-Commerce in SMEs Arthur Tatnall Victoria University, Australia Stephen Burgess Victoria University, Australia Copyright © 2009, IGI Global, distributing in print or electronic forms without written permission of IGI Global is prohibited.