Going global—remaining local: the impact of e-commerce on small retail firms in Wales

The authors conclude that the Welsh retail sector is partially failing to capitalise on the opportunities that e-commerce presents, which in turn may lead to future job losses, and prosperity being eroded by e- commerce competition from overseas.

Abstract

This research paper outlines the findings of a multiple research study among 25 small and micro retail companies throughout Wales regarding e-commerce usage. The key aim of the research has been to establish the level of e-commerce usage among these companies, in accordance with the Connectivity Indicator and E-commerce Adoption Model, developed by the UK Department of Trade and Industry. Moreover, an assessment of the strategies used to implement e-commerce by these companies has been made, which includes an examination of the question whether these businesses, through their use of e-commerce, are focusing on global, local or other markets. This research has focused only on retailers who are new channel experimenters, i.e. companies augmenting their main business with experimental electronic commerce. Transactional e-commerce is emphasised, since significant growth in this arena is anticipated in the next 5 years. The authors conclude that the Welsh retail sector is partially failing to capitalise on the opportunities that e-commerce presents, which in turn may lead to future job losses, and prosperity being eroded by e-commerce competition from overseas. The authors also note that there appears to be a conflict between business structures aimed at supplying local markets and attempts of reaching global markets with inadequate means.