: E-commerce becomes important factor of success for both large organizations and
Small and Medium Enterprises (SMEs) as it helps to reduce transaction cost, approach larger
untapped markets and avoid intermediaries. However, the published research has mainly
focused on the role of e-commerce in large organizations compared with SMEs. Based on a
comprehensive review of the past literature, we have highlighted the importance of e-commerce
in the SMEs, especially how it is important in the setting of developing countries and its potential
role in the SMEs of Pakistan. Given the lack of scholarly discussion on the topic, the present
paper will enhance the understanding on the importance of e-commerce in SMEs of Pakistan.
Recommendations for future research are proposed.