Entrepreneurs'' attitude towards the computer and its effect on e-business adoption

This paper presents research exploring further the concept that many SMEs do not adopt computer based technologies due to decision maker's negative attitudes towards computers generally. Importantly, by assessing the entrepreneur's belief structure, we provide quantitative evidence how SMEs, particularly micros, are affected. Earlier research that addresses technology acceptance model (TAM) suggests that TAM parameters are particularly influential factors of e-commerce adoption, as perceived by top managers of SMEs. The model we develop is tested using a sample of 655 enterprises. The information was gathered, via a telephone survey of UK SMEs, from decisions makers in the enterprise. Technically, the paper uses k-means cluster analysis to segment respondents using the TAM perceptions, ease of use, usefulness and enjoyment. Based on two determined segments we look at the differential rate of adoption of internet, and the potential adoption of new e-collaborative technologies like video conferencing and electronic whiteboards. The diffusion of internet for low IT utility (LIT) segments was considerably slower than in the high utility segment (HIT). Similarly, the anticipated adoption of e-collaboration technologies was much lower for LIT than HIT. Interestingly, we find that LIT is populated by more micro SMEs than HIT. The results we present are limited however as our sample is considerably underweight in micro SMEs, suggesting that the problem may be much larger in the economy than our model predicts. For policy makers, this research confirms the value of knowledge transfer programs to SMEs in the form of technology support. Our research shows that organisations which have dedicated IT support will tend to be more advanced technologically than those that do not. The implication for entrepreneurs is if they can be persuaded that a technological route is beneficial to them, and that suitable support can be provided via KT, then operational efficiency gains could be made. This paper contributes to knowle

How Organisational Characteristics Explain the Adoption of e-Commerce by the SMEs in Bangladesh?

The exponential growth of internet population fosters the adoption rate of e-commerce in different parts of the globe. In order to utilize the opportunities in developing the economy Bangladesh government has also initiated many programmes and provides different facilities to promote the adoption of the technology in various sectors. This study investigates the effects of organisational characteristics on the adoption of e-commerce by administering a descriptive research design in the context of SMEs in Bangladesh. A survey instrument was utilised to gather data. In total 222 organizations were surveyed which were selected through disproportionate stratified random sampling technique. A regression model was estimated to anticipate the adoption of e- commerce where size of the company, company’s business experience, internet usage experience, number of computer literate officers, revenue earnings, and profit percentage of the company considered as explanatory variables while e-commerce adoption as explained variable. The model estimation shows that all of the variables except company’s business experience have significant contribution in explaining the adoption of e-commerce by the SMEs in Bangladesh. The model further shows that the number of employees and company’s business experience are negatively related to the adoption of e-commerce. The study outlines some policy implications for SMEs in Bangladesh

Theoretical Approaches to Study SMEs eBusiness Progression

It has been suggested that the adoption of Internet technologies by SMEs follows an ordered sequence of stages and staged models to describe it. These models postulate that businesses move in stages from basic use of the Internet to the full integration of business systems and redesign of business processes. The European Union and the UK government appear to believe in such models and have used them in their e-business adoption encouragement policies for SMEs. However, despite the efforts of governments and the various support programs, the attainment of the advanced stages of e-commerce by SMEs is very low. Indeed, several studies into the state of e-business in the UK report a decline in the number of SMEs implementing e-trading and even using website and e-mail. Hence, perhaps these adoption models need to be questioned and even revised. There are a number of authors that have already critized these models suggesting that they are too general and do not take into account the diversity of SMEs. Therefore, the aim of this paper is to conduct an analysis of the Stages of Growth model looking at its weaknesses and strengths in the context of the progression of Internet technologies adoption by SMEs in the UK. In addition, alternative explanations of e-business progression will be presented and an interpretative multi-theoretical framework to study this evolution will be suggested

Factors influencing internet based ICT adoptions intention among SMES in Malaysia

In Malaysia, SMEs play a vital role and important in Malaysian economy. It is considered to be the backbone of industrial development in the country. SMEs plays important role in generating employment, enhancing the quality of human resources, nurturing a culture of entrepreneurship, supporting the large scale industries and opening up new business opportunities. Currently Malaysian SMEs account for 59% of employments and their contribution to exports is at 19% , and this is expected to grow to 62% of employments with 25% exports contribution by 2020 (Borneo Post, 2012) The emergence of information and communications technologies (ICTs) has affected many industries and organizations. It is undeniable that ICT are transforming the industries and fueling the growth of the global economy. In its effort to transform Malaysia economy from a commodity-based producing nation to being a manufacturer of industrial products and more recently knowledge based economy, the government is putting greater emphasis on ICT. Notwithstanding the many efforts undertaken by Malaysian governments to promote ICT adoption among SMEs across different types of industries, many of them failed to reap this benefit evenly. This problem is prevalent among the SMEs in the Asia Pacific region and Malaysia is no exception. Realizing the prominence of SMEs as a main contributor to the country’s GDP and employment as well as the ICT as an enabler to leapfrog Malaysia to achieve Vision 2020, this study sought to understand and identify the factor that influences the SMEs towards Internet-based ICT adoption in Malaysia. Therefore this study presents extended Technology Acceptance Model (TAM) that integrates Theory of Planned Behavior (TPB) into the research model to examine what determines Internet-based ICT adoption among Malaysian SMEs. The proposed model was empirically tested using data collected from a survey conducted. The study involved 103 SME businesses throughout the state in Malaysia using questionnaire survey instrument. The result of this study supports the theoretical framework as well as clarifies and extend it. The findings also includes some suggestion and recommendation to further promote Internet-based ICT adoption among the SME

Internet Marketing Adoption by Iranian Distribution Industry: An Attempt to Understand the Reality

Although the internet has become a significant platform for the advancement of marketing strategies and developments, there have been inadequate empirical research efforts concerning its adoption for conducting internet marketing in developing countries, specifically in the Middle East, and more particularly in Iran. Previous studies investigated internet marketing adoption and acceptance extensively, by employing different theories of new technology adoption in developed countries. However, there have been inadequate empirical research efforts concerning its adoption in developing countries. It is recognised widely that the adoption of internet marketing can offer substantial opportunities for Small and Medium Sized Enterprises (SMEs). In developing countries, internet marketing opportunities can be a meaningful approach for SMEs to be able to compete with large businesses and to access, with lowest possible costs, targeted customers. This study aims to investigate the factors which influence SMEs’ adoption of internet marketing and the relation between such adoption of Internet Marketing and Marketing Performance of SMEs. In order to accomplish this objective, the researchers investigated previous studies in order to identify the different research gaps within the literature regarding the adoption of internet marketing amongst SMEs. Additionally, the researchers integrated existing theories of new technology adoption in order to develop a conceptual framework for the determinants of the adoption of internet marketing in the SMEs sector in Iran. Within this regard, the researchers reviewed the Decomposed Theory of Planned Behaviour (DTPB), Diffusion of Innovation (DOI); Technology–Organisation–Environment (TOE) Model; Social Cognitive Theory (SCT),Institutional Theory, Motivational Model and Model of PC utilisation(MPCU) to examine the major factors influencing the adoption of new technology in Small, Medium organisations. The approach adopted for the research is a semi-structured interview with 26 owner/mangers of Iranian SMEs in distribution sector. These data are qualitative in nature and involve sample of 300-400 of mangers/owners, retailors and suppliers of Iranian SMEs in distribution sector. The study will provide great benefits for practitioners, researchers, and educators

Adoption of B2B e-commerce by the SMEs in Bangladesh

Like many other countries around the world Bangladesh's SMEs play strong role in employment generation as well as ensuring country's economic development. Although SMEs have the potentials, at the rapidly increasing age of internet, to utilise the newly emerged technology dependent communication and transaction medium, e-commerce, in acquiring their competitiveness, the slow rate of adoption is evident. The paper looks at the adoption of B2B electronic commerce by the SMEs exploring diversified factors and measures the effects of those factors in explaining the adoption rate. A descriptive research study was designed with the data collected from 222 SMEs through a self administered structured questionnaire. A multiple regression model was estimated to asses the factors influencing the adoption of e-commerce and estimate their effects, where adoption intention is considered as explained variable and business experience, internet usage, number of computer literate officer and revenue of company have been added with six attributes of innovation, relative advantage, compatibility, complexity, trialability, observability, and uncertainty are considered as explanatory variables. The study reports the effects of perceived compatibility, complexity, observability and uncertainty, company internet usage and number of computer literate officer appear as significant with the overall regression explaining 34.2% of willingness to adopt e-commerce. The paper concludes with some policy implications. Keywords: B2B; E-Commerce; SME

Design of an innovation platform for manufacturing SMES

This paper reports on the conception of a collaborative, internet-based innovation platform with semantic capabilities, which implements a new methodology for the adoption of a systematic innovation process in globally-acting networked SMEs. The main objective of the innovation platform is to stimulate the generation of ideas, the selection of good ideas and their ultimate implementation. The platform will support SMEs to manage and implement the complex innovation processes arisen in a networked environment, taking into account their internal and external links, by enabling an open multi-agent focused innovation system, facilitating customer, provider, supplier and employee- focused innovation. The solution is specifically focused on the needs of manufacturing SMEs and will observe product, process and management innovation. The paper presents the key elements of the innovation model and makes references to a novel approach concerning the development of a robust and flexible Central Knowledge Repository for the innovation platform

The Impact of Business Networking and Internet Adoption on SME performance in Sri Lanka

Many scholars have identified the importance of the Small and Medium Enterprises (SMEs) in order to achieve a sustainable economic growth in developing countries. Practitioners and the governments in such countries have also taken steps towards strengthening the sector with the vision of sustainable economic growth yielding from the SME sector. The objective of the journal article is to identify and verify the contribution by Business Networking and Internet based ICT adoption in strengthening the performance of the SME sector. Building up alliances and the usage of new technology is deemed be vital factors in supporting the growth of SMEs. This paper flows through an analysis of the most recent literatures on the topic to construct a conceptual framework that is proposed to be utilized in the future research work together with the findings of model being empirically tested in Sri Lanka to validate the relevance of the proposed model to developing countries such as Sri Lanka. The paper also verifies the findings using statistical analysis of the data collected from a sample of SMEs in Sri Lanka covering all nine provinces. Variables in the model includes constructs of Business Networking; Competition, Necessity, Reciprocity, Stability, Legitimacy, Efficiency and constructs for Internet Adoption are business orientation, benefits, new work practice adoptability, ICT costs and  complexity. Keywords: Business Networking, Internet adoption, ICT, SME Performanc

Towards a Stage Model for E-Business Adoption Among SMEs: Preliminary Results for Manufacturing and Service Firms

The ubiquity of the Internet has allowed companies of any size to engage in e-business. However, e-business adoption among Small and Medium sized Enterprises (SMEs) is limited because of resource constraints and a failure to understand the strategic value of e-business. In an effort to better understand the value of e-business to SMEs, this paper examines the use of over 100 e-business applications by over 400 SMEs in five different industries. Cluster analysis suggests a three stage model for e-business evolution in which firms progress from making only nominal use of the Internet to convey company information, to supply chain and order management applications in a transitional stage, to more extensive and integrated use in subsequent stages. Evidence of differences in use is also presented for firms that are manufacturers versus service providers

Assessment of Effect on ICT Adoption in Small Medium Enterprises Performance: A Case of Tanga District.

The study on impact of ICT adoption on SMEs performance was conducted in Tanga urban. The study intended to assess the factors affecting adoption of ICT, the effect of ICT adoption to SMEs performance, examine the status of ICT adoption in SMEs performance and the challenges facing adoption of ICT in performance of SMEs. The study was guided by Technology Acceptance Model (TAM) developed by Davis in 1989. The study employed quantitative research approach applying a descriptive research design. Total respondents were 100 who included SMEs owners and leaders who were selected through purposive and simple random sampling techniques. Data were gathered through Questionnaires and interviews. Statistical Package for Social Sciences (SPSS) 20th version tool coupled with descriptive analysis technique was used in data analysis. The study findings revealed that majority of the respondents use ICT software such as Tigo pesa, M-pesa, Airtel money and internet in ordering product, processing transaction and extending market share and profit. In deed the adoption of ICT in SMEs positively affect the performance of SMEs as it increase access to market, increase productivity and improve sales. On the other hand the study findings revealed that majority 61(61%) of the respondents use mobile phone in advertising their products and few use Internet. However, lack of ICT knowledge, financial constraints, unreliable power; lack of ICT training coupled with inadequate internet services are emerged challenges that hinder effective and the actual usage of ICT SMEs. The study recommended that the SMEs should install continued power supply and provide regular training of ICT use so as to increase the rate of ICT use among SMEs. Keywords: Information and Communication Technology, Small and Medium-Sized Enterprise