Potential of critical e-applications for engaging SMEs in e-business: a provider perspective

Abstract

Against a background of the low engagement of SMEs in e-business this paper investigates the emergence of, and potential for, critical e-applications defined as "an e-business application, promoted by a trusted third party, which engages a significant number of SMEs by addressing an important shared business concern within an aggregation." By a review of secondary data and empirical investigation with service providers and other intermediaries the research shows that such applications can facilitate the e-business engagement of SMEs. There are three key findings, namely: the emergence of aggregation specific e-business applications; the emergence of collaboratively based "one to many" business models; and the importance of trusted third parties in the adoption of higher complexity e-business applications by SMEs. Significantly this work takes a deliberately provider perspective and complements the already considerable literature on SME IT adoption from a user and network perspective. In terms of future research the importance of a better conceptual understanding of the impact of complexity on the adoption of IT by SMEs is highlighted.

The Use of Hosted Enterprise Applications by SMEs: A Dual Market and User Perspective

“…ASPs have successfully positioned themselves as 'trusted third parties' to remove this concern. Hence, the research confirms the importance of the role of intermediaries identified earlier by Swan and Newell (1995) and Brown and Lockett (2004). In terms of SMEs decision to adopt, from a strategic perspective, the interviews confirmed that there is no common model of adoption.…”

“…Other influencing factors are business sector and nature (Poon and Swatman, 1999;Fillis et al, 2004;Windrum and Berranger, 2002), owner's enthusiasm and growth ambition (Cragg and King, 1993;Poon and Swatman, 1999;Fillis et al, 2004), and location (Windrum and Berranger, 2002). The role of the intermediary as a means of facilitating the diffusion of complex ICT has been observed by a number of other authors (Swan and Newell, 1995;Newall et al, 2000;Brown and Lockett, 2004). A recent study by Levy and Powell (2003) Furthermore, a contingent model was developed incorporating these factors and the level of business value and business growth.…”

“…In the main the above literature is viewed from a user perspective. In the case of SMEs the provider perspective is also important since the delivery of high complexity e-business applications can prove unprofitable for providers and many choose not to supply (Brown and Lockett, 2004). In the specific context of ASPs the business model underpinning horizontal ASPs appears more robust than vertical industry specific applications, since the same applications, such as accounting, are used by a wide range of businesses.…”

Priorities, policies and practice of e-government in a developing country context: ICT infrastructure and diffusion in Jamaica

“…These measures are frequently manifested as expressions of the 'digital-divide'. The divide, however, is not restricted to individual access but is also reflected between large and small firms (Brown & Lockett, 2004) and in non-technology-related areas such as income and education. Clearly, there is no sense in governments creating online services that cannot be utilised by users, citizens and businesses due to lack of access attributed to prohibitive costs or poor infrastructure.…”

Agribusiness networks in Bulgaria: Design and creative problem-solving

“…In networks, when compared with chain, interactions are governed not only by the market or through formal mechanisms, but through the use of informal and mutual mechanisms (Brown, Locket, 2004) perceive the network as a highly developed form of collaboration, which has a high degree of structure and integration.…”