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.
Highlights
Information and communication technology (ICT) is regarded as a core driver of economic growth (Kossaï & Piget 2014)
This study provided empirical evidence concerning the investigation of determinants that influence the adoption of ICT in SMEs in developing countries
The study used a conceptual framework whose core constructs were adopted from the TOE theoretical framework comprising the following constructs: technological context, organisational context and environment context, each of these has sub-constructs extracted from various studies and found to be suitable for this study: complexity, relative advantage, compatibility, top management support, financial resources, ICT knowledge, firm size, government support, competitive pressure and external support
Summary
Information and communication technology (ICT) is regarded as a core driver of economic growth (Kossaï & Piget 2014). According to Ying and Lee (2016:3), ‘ICT is defined as all those technologies that enable the handling of information and facilitate different forms of communication between human beings and electronic systems’. Information and communication technology gives rise to different strategies that organisations can use to gain more revenue whilst spending fewer resources. 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). 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
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