ES Adoption in Chinese SMEs: Policy Effects on Users and Providers

The main literature on Enterprise Systems (ES) focuses on large Western firms and has resulted in theoretical models to explain adoption, largely from the perspective of the adopting company. In contrast ES research, and in particular on SMEs in China, is limited. This research examines ES engagement in Chinese SMEs from the joint perspectives of both the SME and the ES technology provider in the context of government policies. The research is based on four cases in Shenz hen, PRC and an extended analysis of relevant government policies at central and local levels. Using King et al's (1994) institutional analysis it argues for the need of theory to specifically recognise institutional policies. It recognises also, however, that the problems of policy implementation are significant and suggestions for practice are offered.