This study is an analysis of the factors that discourage Electronic Commerce(EC) growth even when the rapid growth of EC can be expected due to increased Internet use. The goal of this research is to identify Critical Failure Factors(CFFs) that discourage EC growth and to suggest possible strategies that overcome those obstacles. The research methodologies of CFFs are very similar to those of Critical Success Factors(CSFs) in MIS research. This paper investigates why EC sometimes fails to appeal to customers despite many promising plans. It analyzes the reasons through inverted CSFs called CFFs. For this study we searched for all possible obstacle factors of EC in the literature. A survey was performed using questionnaires. Several hypotheses were set up to determine which factors are critical failure factors that discourage EC growth. Finally, we suggest alternative strategies to encourage growth in electronic commerce.

Electronic Commerce, Critical Failure Factors, Enterprise Resource Planning.