Factors Affecting Intention to Adopt E-Commerce in the Handicraft Industry in Sri Lanka

Abstract

Aims: The study aims to examine the key determinants influencing Sri Lankan handicraft artisans’ intention to adopt e-commerce platforms, using an integrated framework combining the Technology Acceptance Model (TAM) and the Technology–Organization–Environment (TOE) framework. Study Design: This study adopted a cross-sectional quantitative research design. Place and Duration of Study: The study was conducted among handicraft entrepreneurs and artisans located in three provinces of Sri Lanka with high handicraft density—Western, Central, and Southern Provinces. Methodology: A structured survey questionnaire was administered to handicraft entrepreneurs and artisans. A total of 385 usable responses were collected and analyzed using SPSS. Multiple regression analysis was employed to examine the effects of relative advantage, perceived ease of use, organizational readiness, perceived cost, and government support on intention to adopt e-commerce platforms. Results: The results of the multiple regression analysis indicate that relative advantage, perceived ease of use, and organizational readiness have significant and positive effects on artisans’ intention to adopt e-commerce, while perceived cost has a significant negative effect. Government support shows only a very small influence compared to other determinants. The model explains a substantial proportion of variance in intention to adopt e-commerce (R² = 0.672). The findings highlight the importance of reducing cost barriers, strengthening readiness through skills and infrastructure, and improving platform usability to accelerate e-commerce adoption in Sri Lanka’s handicraft sector. Conclusion: The study concludes that e-commerce adoption in Sri Lanka’s handicraft industry is primarily driven by perceived usefulness, ease of use, and organizational readiness, while high perceived costs act as a major barrier. Government support alone appears insufficient unless it directly addresses artisans’ practical constraints. Targeted interventions focusing on affordability, skills development, infrastructure, and user-friendly platforms are essential to promote sustainable e-commerce adoption among handicraft artisans.