Discriminant Analysis of Technology Adoption Behavior: A Case of Internet Technologies in Small Businesses

Abstract

The adoption of information technology represents a problem of magnitude to small business entrepreneurs. Comparing to larger corporations with abundant resources, small business owners are facing different challenges. Thus, the technology adoption behavior seems to be different for them. This study reports on antecedent drivers of Internet technologies' adoption in small businesses. A behavioral model was developed based on prior research on innovation adoption in small businesses. The model posits relationships of the relative advantage of using IT, compatibility, ease of use, computer self-efficacy, financial slacks of the firm, innovativeness of the firm, image of IT, and competitive pressure against adoption of four different Internet technologies – email, business homepage, e-sales and e-procurement. The results confirm the strong association of computer self-efficacy, compatibility, image, financial slack and relative advantage with Internet technology adoption. Different patterns of adoption behavior across different technologies were revealed. Theoretical and practical implications are discussed.

• Small business
• information technology adoption
• innovation adoption
• Internet technology
• Internet adoption
• technology acceptance
• technology adoption
• retail