Digital channels diminish SME barriers: the case of the UK

Ivana Stankovska,Saso Josimovski,Christopher Edwards

doi:10.1080/1331677x.2016.1164926

Abstract

This article investigates the usage of digital channels by UK small- and medium-sized enterprises (SMEs) and assesses the impact caused on their strategic marketing position. The research is based on statistical analysis of 66 surveyed SMEs in the context of the digital era. Despite indications from the relevant literature about the reluctance of SMEs to adopt advances in technological communication, the research reported indicates a high level of usage of digital channels, especially social media (SM). The web 2.0 technologies that facilitate the new digital channels are standardised, interactive, ubiquitous and cheap. These features change the way how companies communicate and shift fundamental marketing and business concepts. Due to this shift, the SMEs’ barriers for technology adoption, including lack of financial resources, knowledge and skills, are diminishing. The latter, supported also by the research findings, increases the impact of SMEs bringing them closer to the large corporations in the global marketplace. The study is significant because it extends previous knowledge on technology adoption, with findings about the adoption of digital channels by SMEs, but more importantly, it opens up a novel insight into strategic literature for SMEs.

Highlights

The importance of small and medium-sized enterprises (SMEs) for the economic growth of every country is widely acknowledged
According to many authors researching prior to the web 2.0 era, information technology is considered as a strategic tool for SMEs (Child, 1987; Levy, Powell, & Yetton, 2001; Porter & Millar, 1985)
In the digital era barring some specific market-oriented technologies that can be a potential for competitive advantage, information and communication technology (ICT) for the SMEs may act as cost-reducing or efficiency-enhancing tool (Anon Higon, 2012)

Summary

Introduction

The importance of small and medium-sized enterprises (SMEs) for the economic growth of every country is widely acknowledged. There is no shortage of literature and research studies that observe different aspects of the SMEs. In particular, the adoption of information and communication technology (ICT), or more general, the digital technology, has been explored in detail (Brown & Locket, 2004; Fink, 1998; Mehrtens, Cragg, & Mills, 2001). The acceptance of the Internet by the SMEs before 2004 is found to be very similar to the adoption of EDI (Mehrtens et al, 2001). Since this literature was published, over the last decade we have witnessed a digital revolution. The web 2.0 technologies, a term which is often synonymous with new digital technologies, have transformed fundamental m arketing and business concepts. The new channels of distribution change when, how and by whom

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