A technology, organisation and environment framework analysis of information and communication technology adoption by small and medium enterprises in Pietermaritzburg

Abstract

Background: Information and communication technology (ICT) has been a major contributor to world economic growth. Information and communication technology has played a vital role when it comes to the growth of small and medium enterprises (SMEs). In developed countries, SMEs are making use of ICT to support their business functions, although this has not been the case in most developing countries. The Global Entrepreneurship Monitor argues that the survival rate of newly established businesses is generally poor, with SMEs in developing countries performing even worse than the standard survival rates.

Objectives: This study aims to investigate the determinants that influence the intention to adopt ICT by SMEs in developing countries using Pietermaritzburg in South Africa as an example to understand this phenomenon.

Method: The study made use of quantitative methods as its fundamental research approach. A total of 227 SMEs in Pietermaritzburg were surveyed using a close-ended questionnaire. The technology, organisation and environment framework was used as a lens to understand the study, and a structural equation modelling (SEM) approach was applied to analyse the data from respondents.

Results: The study revealed that the technology context is the most influential determinant with a regression weight of 0.975 and that both technology and organisation contexts (-0.221) are significant determinants that influence the intention to adopt ICT amongst SMEs in developing countries.

Conclusion: Based on the findings of the study, it is evident that SMEs need to pay particular attention to ICTs that are relevant to them, including the characteristics and resources of the organisation to successfully adopt these technologies.