Exploring Internet Adoption Drivers in SMEs

Abstract

Government policy worldwide is to assist small and medium‐sized enterprises (SMEs) to become e‐enabled, yet it is unclear what impact this has. There is evidence that customers drive e‐adoption due to the need to integrate information in the supply chain. There is also evidence that SME owners drive adoption, primarily as a response to perceived benefits. However, there is little exploration of the role of government initiatives in influencing e‐adoption strategies in SMEs.

This paper uses network agency theory to investigate Internet adoption in SMEs. The research identifies five influence networks: expert – primarily in IT firms; industry‐led – SMEs working in collaboration with sector organizations; and customer‐led – driven by customer requirements. The drivers of these three networks are primarily strategic. The other two networks, ICT support and novice, are driven by the SME owner. The key difference is the maturity of internal IT.

This research demonstrates that government policies and strategies have little influence on Internet adoption. Further, competitor pressure has little influence while customer pressure is central. Additionally, IT suppliers may have a key influencing role. The implications for government are explored.

Keywords:

• Internet adoption strategy
• government policy
• SMEs