Internet‐based ICT adoption among SMEs: Demographic versus benefits, barriers, and adoption intention

Factors of E-Business Adoption in Small and Medium Enterprises: Evidence from Saudi Arabia

The research was aimed at identifying and empirically investigating the factors influencing the adoption of e-business in SMEs of Saudi Arabia. The Technology-Organization-Environment (TOE) framework was complemented with the individual context elements to develop the conceptual model for the present study. The framework was developed based on the two-pronged strategy: an extant literature review and a focus group interview with panel of experts. Subsequently, a questionnaire-based survey was conducted, and data from 111 SMEs were collected. The researchers tested the model and related hypotheses, employing multiple regression analysis. The results indicate that the firm size, competitive pressure, entrepreneur’s innovativeness, and IT savviness significantly influence the e-business adoption in SMEs. The findings and conclusions of the study, as well the future research prospects, are discussed.

Development of IoT based data-driven agriculture supply chain performance measurement framework

Purpose

Performance measurement (PM) of any supply chain is prerequisite for improving its competitiveness and sustainability. This paper develops a framework for supply chain performance measurement (SCPM) for agriculture supply chain (ASC) based on internet of things (IoT). Moreover, this article explains the role of IoT in data collection and communication (SC visibility) based on the supply chain operation reference (SCOR) model.

Design/methodology/approach

This research identifies various key performance indicators (KPIs) and also their role in SCPM for improving its sustainability by using SCOR. Further, Shannon entropy is utilized for weighing the basic processes of SCPM and by using weights, fuzzy TOPSIS is applied for ranking of identified KPIs at metrics level 2 (deeper level).

Findings

“Flexibility” and “Responsiveness” have been reported as two most important KPIs in IoT based SCPM framework for ASC towards achieving sustainability.

Research limitations/implications

In this research, metrics are explained only at SCOR level 2. But, this research will guide the managers and practitioners of various organizations to set their benchmark for comparing their performance at different levels of business processes. Further, this paper has managerial implications to develop an effective system for PM of IoT based data-driven ASC.

Originality/value

By using IoT based data driven system, this article fills the gap between SCPM by measuring different SC strategies in their performance measurable form of reliable, responsive and asset management etc.

Push-pull-mooring framework for e-commerce adoption in small and medium enterprises

Purpose

The purpose of this paper is twofold: first, to develop a conceptual model using the push-pull-mooring (PPM) framework to understand the switching behavior of small- and medium-size enterprises (SMEs) of batik from adopting traditional marketing to e-commerce; and, second, to test whether the PPM variables prevent or lead to the switching behavior of SMEs of batik to adopt e-commerce.

Design/methodology/approach

This study uses a hypothesis which is drawn from related literature, quantifiable measures variables with a 1–5 Likert scale, hypothesis testing and draws the inference about a phenomenon of switching the behavior of SMEs from traditional marketing to e-commerce from the sample of 100 owners of batik SMEs, which are located in Yogyakarta, Solo and Pekalongan. The study used partial least square with the aid of the SmartPLS software program to test the hypothesis.

Findings

The result of hypothesis testing indicates that two factors significantly influence the switching behavior of batik SMEs from physical store retailing to e-commerce. The first factor is the desire of SMEs to support the information searching behavior of their customers, and the second factor is the perception that adopting e-commerce can provide value for the SMEs. However, this study fails to prove that the attractiveness of e-commerce can significantly pull the switching behavior of batik SMEs from physical store retailing to e-commerce. Moreover, related to mooring factors, the results show that the computer self-efficacy of the SME owners as a moderating effect is not supported.

Research limitations/implications

This study has several limitations. First, the samples were restricted to the SMEs of batik in three cities (Yogyakarta, Solo and Pekalongan). It is significant to conduct cross-sector, cross countries, cross-region or even cross-cultural investigations on this subject for better explanations of the results from a global perspective. Studies on cultural differences in switching behavior are supposed to accommodate to different individuals from the SME owner. Second, the study does not differentiate the sizes of enterprises; that is, no test was conducted for small-, medium- and large-size enterprises. The study only focuses on SMEs. Different empirical results may be obtained for different sizes because each enterprise size can have a different condition in e-commerce adoption. Second, this study pays more attention to the product categories of stamped batik and hand-drawn batik. Consumers can have dissimilar favorite channels to purchase other types of batik. Future research should also consider this issue.

Practical implications

Within all the opportunities available through e-commerce (support the information searching behavior, save the travel time and travel cost, better service quality to their customer, a lower price to their customer as well, and increase their sales), the SMEs need to enhance e-commerce activities and put it in their strategy for moving forward. On the other side, the government should have a strong interest in helping and supporting the SME through several activities.

Social implications

The research confirms that e-commerce adoption may benefit SMEs. It may encourage more SMEs to move from the traditional physical store retailing to e-commerce.

Originality/value

Although this study uses the conceptual model from the study of Chang et al. (2017), significant differences exist between the two studies. This study uses the PPM framework in the context of the seller migratory decision, whereas in most studies, the PPM framework is used in the context of the consumer migratory decision. Moreover, most studies about the adoption of e-commerce by owners of SMEs use the theory of reasoned action, theory of planned behavior, technology acceptance model, technology, organization and environment, and unified theory of acceptance and use of technology as the framework.

An integrated Grey-DEMATEL approach for evaluating ICT adoption barriers in manufacturing SMEs

Purpose

The purpose of this paper is to propose an integrated gray-decision making trial and evaluation laboratory (Grey-DEMATEL) framework to evaluate the ICT adoption barriers in manufacturing small and medium enterprises (MSMEs) running in developing countries. The proposed model is also tested for Indian MSMEs.

Design/methodology/approach

The model consists of 16 potential ICT adoption barriers selected from existing literature and refined based on discussion with domain experts. While DEMATEL analyses causal relationship and prioritizes them, Grey approach tackles individual biases and data insufficiency.

Findings

The authors conclude that lack of awareness about benchmarking and lack of management vision are the most critical ICT adoption barriers in the case of Indian MSMEs.

Research limitations/implications

Outcomes of the present research are based on the experts’ inputs which are subject to the biases related to their experience and exposure. In India practices adopted by SMEs have geographical and political influence that is also neglected.

Originality/value

This study provides a model consisting of 16 ICT adoption barriers for MSMEs in developing country and a framework to analyze causal relationships among the barriers with the flexibility of data input from their own domain experts. The framework is also capable of dealing with expert biases and data insufficiency.

Determinants of Decision-Makers’ Attitudes toward Industry 4.0 Adaptation

Industry 4.0 could drastically change not only firms’ production sites, organization, operation, and marketing but also industrial competition rules. This study aims at investigating a real situation of firms’ willingness to adapt to Industry 4.0 and revealing the determinants of decision-makers’ attitudes toward Industry 4.0 adaptation, as well as factors that inhibit adaptation. The study, using statistical analysis and questionnaire survey data for quantitative observation, finds that firms required the following: fostering the positive attitude of decision-makers toward adapting Industry 4.0, enhancing decision-makers’ acquisition of appropriate knowledge, and complementing lack of resources such as skilled workers. Moreover, firms applying to adapt to Industry 4.0 as well as outsiders must participate in promoting it among manufacturing firms.

Predicting changing pattern: building model for consumer decision making in digital market

Purpose

Consumers have the multiple options to choose their products and services, which have a significant impact on the pattern of consumer decision making in digital market and further increases the challenges for the service providers to predict their buying pattern. In this sense, the purpose of this paper is to propose a structural hierarchy model for analyzing the changing pattern of consumer decision making in digital market by taking an Indian context.

Design/methodology/approach

To accomplish the objectives, the research is conducted in two phases. An extensive literature review is performed in the first phase to list the factors related to the changing pattern of consumer decision making in digital market and then fuzzy Delphi method is applied to finalize the factors. In the second phase, fuzzy analytic hierarchy process (AHP) is employed to find the priority weights of finalized factors. The fuzzy set theory allows capturing the vagueness in the data.

Findings

The findings obtained in this study shows that consumers are much conscious about innovative and trendy products as well as brand and quality; therefore, the service providers must think about these two most important factors so that they can able to retain their consumer in their online portal.

Practical implications

The analysis shows that “innovative and trendy” is the first priority factor for the consumers followed by “brand and quality” and “fulfilment and time energy.” The proposed model can help the marketers and service providers in predicting customers’ preferences and their changing pattern efficiently under vague surroundings. The outcomes of this research work not only help the service provider to update their products and services according to consumers’ needs but can also help them to increase profit and minimize their risk.

Originality/value

This work contributes to consumer research literature focusing on problem evaluation in the context of changing pattern of consumer decision making in digital era.

Informationization of small-scale agribusinesses in rural areas of Korea

Despite the significance of IT for small-scale agribusinesses (SSAs) in rural areas, little work has been done to identify the determinants of their informationization. Prior studies also overlook the social influences of informationization among SSAs in rural areas. Therefore, this study presents a model to explore and describe the roles played by institutional forces in the informationization of rural SSAs. To empirically test the presented model, partial least squares (PLS) analysis was conducted using the survey responses of 180 ginseng farmers. The results show that mimetic forces related to other farmers’ successful adoption and usage of IT positively affect states of informationization and intentions towards future informationization among rural SSAs. Innovative SSAs are less likely to be affected by these forces, and normative forces from partners and customers are positively related to states of informationization. For the government, the results suggest that policy interventions should focus on mimetic forces rather than coercive forces to aid in creating more effective SSAs and foster rural development.

A study of how ICT capabilities can influence dynamic capabilities

Purpose

– Prior studies have argued that small firms with dynamic capabilities can revise and reconfigure their internal resources to meet the uncertainties of their business environment. However, there is a lack of understanding of how they can develop such critical capabilities. The purpose of this paper is to propose that small firms can employ information and communication technology (ICT) capabilities as a facilitator for developing dynamic capabilities. Thus, the study builds on resource-based view (RBV) literature and information systems (IS) literature by examining the influence of ICT capabilities on the dynamic capabilities of small firms.

Design/methodology/approach

– Several hypotheses were tested by analysing the survey data from 291 small high-technology firms in Sweden.

Findings

– The results reveal that ICT capabilities influence dynamic capabilities of small firms. More specifically, the ICT use for internal efficiency positively influences adoptive capabilities, collaborative use of ICT positively influences networking capabilities, and ICT use for communications positively influences both adaptive and innovation capabilities. Consequently, the results suggest that the different components of ICT capabilities facilitate the development of the different organizational capabilities that together represent dynamic capabilities and thus, can contribute to a small firm’s competitive advantage.

Practical implications

– This study has few implications for the managers and CEO’s of small high-technology firms. First, by prioritizing ICT capabilities, small firms can benefit from the development of dynamic capabilities that will support them to meet the challenges of turbulent business environment. Second, because small firms usually lack internal resources (i.e. financial resources and competence), the study provides more specific direction on how they can strategically invest and build different components of ICT that will positively influence their adaptive, absorptive, innovative, and network capabilities.

Originality/value

– The study provides an alternative view of how ICT capabilities influence the performance of small firms, and outlines how such capabilities influence the development of dynamic capabilities. Therefore, the study in hand contributes to the RBV and IS literature by specifically linking the components of ICT capabilities to dynamic capabilities and its related sub-capabilities.

Micro firms internet adoption patterns: the case of the Greek jewellery industry

Purpose

– The purpose of this paper is to investigate internet adoption of very small B2B firms in Greece. This study aims to construct a model which will classify companies according to internet activities undertaken and then to explore whether different adoption can be interpreted by business demographics and a limited number of perceived barriers.

Design/methodology/approach

– This empirical research was carried out by the means of survey focussing on the Greek jewellery industry. Data were submitted to a sequence of statistical analyses resulting to a model of Internet adoption. The model was then bench marked to representative domestic and international adoption patterns.

Findings

– Firms can be classified into three groups, ranging from non-adopters to relatively mature adopters, similarly to previous patterns of international B2B small to medium enterprises. Business size and type, international cooperation and knowledge with regards to internet proved to be significantly correlated to adoption status.

Research limitations/implications

– The paper focusses on one Greek business sector and thus the applicability of its results to cross-type international micro-businesses remains questionable.

Practical implications

– The findings of this study can assist company owners to plan their internet strategy, software vendors to target firms by offering tailored solutions and governmental authorities to implement initiatives aiming to confront the highlighted internet adoption disablers.

Originality/value

– This is one of a few information and communication technology studies that focus on very small companies and perhaps the only one providing an empirical classification model of internet adoption for this business size.

What Are the Most Important Factors for Accounting Information Quality and Their Impact on AIS Data Quality Outcomes?

The accounting information system (AIS) is one of the most critical systems in any organization. Data quality plays a critical role in a data-intensive, knowledge-based economy. The objective of this study is to identify the most important factors for accounting information quality and their impact on AIS data quality outcomes. The article includes an extensive literature review and summarizes studies in quality management, data quality, accounting information systems, and enterprise planning in helping to identify a set of critical success factors for data quality. The study uses empirical data to answer the research question and test the research hypothesis. Study results show that the top three most important factors that affect accounting information systems’ data quality are top management commitment, the nature of the accounting information systems (such as the suitability of the systems), and input controls. The article further uses regression analysis to test the effect of those factors on AIS data quality, finding that there is a significant positive relationship between the perceived performance of the three most important factors and perceived AIS data quality outcomes.

Effect of precipitating events on information system adoption and use behaviour

Purpose

– There were numerous models that were developed with the explicit purpose of predicting the information system (IS) adoption behaviour. However, these models are criticized for the fact that they do not accurately capture the effect of external factors (unforeseen events) on individual intention, which may inhibit the act of adopting and using IS. The purpose of this paper is to investigate these external factors among entrepreneur(s) and measure how the individual's propensity to use affects the adoption and use of IS innovation. This paper will also attempt to investigate the key determinants of the adoption of IT innovation among entrepreneurs in Klang Valley, Malaysia.

Design/methodology/approach

– Based on the research model, a questionnaire was developed, and data collected from entrepreneurs based in Klang Valley Malaysia. In all, 326 responses were collected, and the research model was applied using the structural equation modelling technique.

Findings

– The performance expectancy and the propensity to act are salient determinants of behavioural intention to adopt and use IS innovation. An individual's pervasive decision to use IS innovations are strong factor that influences individual intention and behaviour prediction. Furthermore, precipitating events were determined to be the underlying factor that influences the behavioural intention for an adopter to actually adopt IS innovation(s). The finding(s) demonstrates that the probability of an intention actually translating into actual usage is higher if the precipitating events occur in their respective businesses.

Research limitations/implications

– It is important to evaluate this study's results and contributions in light of its limitations. This is an initial test for this model, and it should be subjected to further testing and refinement, particularly with regards to the precipitating events construct. One should be aware that an entrepreneur is exposed to various events and challenges that could involve their personal, family, career, and business life. Certain events related to these factors would impact the entrepreneurs differently, which might require different coping mechanisms. Future research should focus on the precipitating events related to their personal, family, career and business life, and which of these precipitating events are most prominently affecting their decision to actively use IS innovation.

Practical implications

– End-users, particularly, as this study reveals, do prefer new IS innovation, but they may not use it as often. Thus, developers and or inventors of IS innovation need to understand factors that can influence users’ decision to adopt and use IS innovation. As for entrepreneurs, understanding factors that influence them to use IS innovation would enhance their sense on the relative importance of using the system. Furthermore, this study provides evidence concerning the role of precipitating events, which encourages or inhibits entrepreneurs towards IS related innovation adoption behaviour. This study makes clear that government policy and environmental factors, as well as work situation significantly influences an entrepreneur's intention in using IS innovation.

Originality/value

– This study extends the Unified Theory of Acceptance and Use of Technology (UTAUT). Some aspects of the Entrepreneurial Potential Model are incorporated into UTAUT, with the express purposes of capturing external variables. Additionally, the role of the volitional aspect of an entrepreneur's intention towards IS innovation are also taken into due consideration. This model assist the researchers in measuring the effect of pervasive decision and external factors on technology acceptance, and will provide essential information that explains the promotion of IS innovation adoption, usage and hindrance.