In the mid to late 1980s, the rapid growth in computer networks and online services directed companies including agri-food industry to use information and communication technologies (ICT). As a result of this progress, in order to remain competitive in the rapidly changing business environment of the twenty-first century small and medium sized enterprises (SMEs) need to change through the use of Internet and Websites (CETIN et al. 2004)
Nowadays, ICT become the most important sector in the world. Technological changes, non-separated part of daily life as for significant effects of ICT in economic and social life, contribute particularly to the development degree, competing power, capacity and income level of the countries. ICT has evidently an impact on both global and local markets.
Electronic commerce, commonly known as e-commerce, is described as the use of online facilities for doing business. Online facilities include the Internet, intranets, extranets, private networks, and any other facility that enables buyers to communicate with suppliers. (SANG-BAE 2001) E-commerce is changing the way organizations perform their tasks, interact with their customers and do business, and is not only concerned with the buying and selling of products and providing services via electronic means, but it also involves all the other activities that support the business process (LU et al. 2001).
The evolutionary development and industry’s increasing interest in and recognition of importance of technology is increasing and this increase is exhibited by the use of Internet (WIGAND 1997, THOMAS and SPARKES 2000). The Internet is the new method of transportation; it supports the electronic delivery of information, software, and entertainment (WATSON and ZINKHAN. 1997). The emergence of e-commerce also significantly lowered barriers to entry in the selling of many types of goods; accordingly many SMEs are able to use the Internet to sell goods. SMEs’ existence and importance is gradually increasing and their contribution on economy, employment, and development can not be denied.
Companies should change their management practices when taking e-commerce into account, combining the real world with the virtual world so as to guarantee their competitive position in the market (LIMA et al. 1999).
Within Turkish economic system, e-commerce must be seen in the context of markets, the places of exchange. A market is where supply and demand meets, and conceived to consist of all firms, government agencies, and individuals purchasing the commodity. When the market is competitive, it is characterized by many buyers and sellers, homogeneous products, easy entrance to and departure from the market, low costs for consumers who wish to choose among suitable goods from competing firms, and the availability of perfect information (WIGAND 1997).
Because of the adoption of new information technology, transaction based commercial activities such as information gathering, shopping, trading, brokering, banking, accounting, auditing, auctioning, financing, negotiating, collaborating, marketing, supplying, partnering, training, meeting, scheduling, manufacturing, distributing, servicing, and retailing are experiencing rapid change (SHAW 2000)
All companies, either large or small, will face inevitable challenges brought about by the technologically enabled developments, which creates both risks and opportunities. E-commerce is in many ways an uncharted new frontier. Carefully thought-out business execution, strategy development, and research become important to understand all the rules and to identify rising opportunities to develop new competitive advantages. The information revolution is drastically reshaping global society and pushing the world toward an information-based economy. By effective usage of the Internet, these firms can be more innovative, have a faster response to environmental demands, and be able to adopt or change to attain a competitive advantage (KLEINDL 2000).
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