A Study on E-Commerce Adoption and Its Impact on Revenue Growth of Indian Family Businesses in the SME Sector

In the era of rapid digitalization, e-commerce has emerged as a transformative force, particularly for Indian family-owned Small and Medium Enterprises (SMEs), which form a significant part of the national economy. This study investigates the extent to which e- commerce adoption influences revenue growth in such enterprises, while identifying key enablers, barriers, and the role of generational leadership. Using a quantitative research design and Partial Least Squares Structural Equation Modelling (PLS-SEM), the study analysed data from 283 respondents across Indian family-run SMEs. The findings highlight that key drivers—such as digital readiness, leadership support, and competitive pressure—strongly influence e-commerce adoption, while barriers like digital illiteracy and infrastructural gaps significantly hinder progress. Interestingly, the generational stage of the family business showed negligible influence on adoption levels or revenue outcomes. Although e-commerce adoption showed a weak direct impact on revenue growth, it played a significant mediating role in translating enablers into performance gains. The research enriches existing theoretical frameworks such as the Technology-Organization-Environment (TOE) model and the Technology Acceptance Model (TAM) by integrating family business dynamics. Practically, it provides actionable insights for policymakers, digital platforms, and SME stakeholders, emphasizing the need for strategic digital investments and barrier mitigation. Overall, the study addresses a critical gap in understanding how tradition-bound family businesses can adapt to digital commerce and sustain growth in a competitive landscape.