Guidance for SMEs with the adoption of technology: A conceptual framework

Abstract

When starting up a new small or medium sized company, it is crucial to understand what the requirements are in terms of Information and communication technologies (ICT). Bentellis and Boufaïsa (2008) note that over the last twenty years the markets have been changing fast, which has led to the evolution of the business environment. In many instances companies cannot keep up with the change occurring in the ICT arena. Entering the market as a small competitor, you need to ensure that you implement ICT that will support your business strategies. This paper presents the findings of a qualitative research study done to determine how SMEs cope with the adoption of technology. The paper explores the typical problems and challenges faced by SMEs, within South Africa, with regard to ICT and propose a conceptual framework to support managers in their decision making on ICT implementation. As such, this framework supports them in choosing the relevant technology, as well as supporting them with the effective application of the chosen technologies.

The Adoption and Impact of ICT in South African SMEs

“…We also noted a relationship between ICT compatibility and age of the firm, shown by a Kruskal–Wallis coefficient of p ≤0.02 (see Appendices A and B). Consistent with these results, Steyn and Leonard () also found ICT compatibility with a user's job functions to be an important factor in the adoption and use of ICT. Looking at the relationship between the educational levels of the owner‐managers and ICT compatibility in the firms, 22 of the owner‐managers with a tertiary qualification (17% of respondents) and 21 having a degree or above (16% of respondents) reported that adopted ICT was compatible with existing organizational systems.…”

Drivers of E-Marketing Adoption among Small and Medium Enterprises (SMEs) and Variations with Age of Business Owners

“…This sector tends to differ from large enterprises in that they stimulate competition, bring about a diversity of products and services, have increased flexibility in their internal and external systems and possess hands-on managerial style, which facilitates faster decision-making (Kendall et al, 2001). Adoption of e-marketing strategies can go a long way in representing the small business sector in the national economy in order stay ahead and maintain a competitive advantage (Steyn & Leonard, 2012). However, in South Africa alone, SMEs contribute 37 percent to employment (Soontiens, 2002;Barry & Milner, 2002).…”

Effect of evaluation on SMMEs’ new technology decision-making processes

“…SMMEs usually act on gut feeling and are easily influenced by current trends in the environment without paying attention to the functionality and appropriateness of the technology to their business. Steyn and Leonard (2012) reveal that many SMME owners often seek the assistance of friends, relatives or other SMME owners in the initial process of adopting new technology. Giving the lack of adequate ICT knowledge and limited exposure to new technology from the people consulted for advice, SMMEs do not necessarily adopt suitable technology because of their ignorance of the potential value and use of technology (Abulrub et al 2012;Palvalin et al 2013).…”