Investigating the E-Readiness of Informal Sector Operators to Utilize Web Technology Portal

Abstract

Information and Communication Technology (ICT) has been acknowledged to be an enabler of small businesses, including those in the informal sector. However, determining the relationship between the perception of technology by informal service providers and the readiness to use technology is critical. By adopting a survey research design, this study investigates how the perception of a web technology portal (WTP) by informal sector service providers in the Cape Town metropolitan area in South Africa affects their readiness to use WTP to support their businesses. The study involved a sampled population of 419 informal sector service providers within the Cape Town metropolis. A conceptual framework consisting of constructs from the self-efficacy theory (SET), the unified theory of acceptance and use of technology (UTAUT) and the technology readiness index (TRI) was used as the theoretical reference for the study. We used a semi-structured questionnaire based on a five-point Likert scale to collect data, which we analyzed using partial least squares structural equation modelling (PLS-SEM). The results showed that discomfort (p = 0.330), effort expectancy (p = 0.630), innovativeness (p = 0.620), optimism (p = 0.740), insecurity (p = 0.110), facilitating conditions (p = 0.160), and internal factors (p = 0.180) all had a non-significant positive influence on e-readiness. On the other hand, self-efficacy (p < 0.001), performance expectancy (p < 0.030), social influence (p < 0.001), and external factors (p < 0.001) had a significant positive influence on e-readiness. Gender and business type, the moderating variables for respondents’ e-readiness, were found to be insignificant (p > 0.005) for e-readiness for web portal technology utilization. This study identifies the key variables that could influence the readiness of informal sector operators to utilize web portal technology. It also provides a guide for designers and developers of digital platforms and government policymakers on critical factors germane to providing technology support for the informal business sector.