Rural business use of information and communications technologies (ICTs): a study of the relative impact of collective activity in rural Scotland

Abstract

Abstract There has been limited systematic or comprehensive research on the use and impact of ICTs on rural small and medium size firms (SMEs), yet the use and take‐up of ICTs has been highlighted as an important strategic factor in the development of both rural firms and rural communities by a number of studies. Indeed, several empirical studies have found that rates of ICT adoption in SMEs lag behind those in larger businesses. This investigates the extent to which this can be seen to be the case in rural Scotland, and investigates the use of ICTs in rural firms. A review of the literature is undertaken and relevant recent policy developments considered. Quantitative data is used to determine the rate and extent of ICT take‐up in rural SMEs. Using both quantitative and qualitative methods, attempts are made to examine a novel support mechanism — the Internet forum — based on rural locality or rural locality‐specific industry. Contrary to previous literature, the survey evidence suggests that ICT use in business is high by small firms in rural areas, including utilizing on‐line sources for markets and suppliers. Internet forums appear to be significant for utilizing ICT‐related technologies for business growth, especially for increasing sales and accessing international markets. Internet forums may also have encouraged relatively high use of public sector sources of advice and support. Qualitative findings show that Internet business forums exist due to complicated reasons that are more related to local and individual human factors rather than market forces. That is, they have often arisen where local communities or local individuals have been able to raise funding, or where they have been the target of public sector initiatives and funding. This paper supports the view that the establishment of Internet‐based business forums can have beneficial advantages for local rural firms. However, it is recognized that where such forums exist it is likely that it is the more growth‐orientated firms that will join them and that strategies for sustainability of forums, while desirable, were not observed. Copyright © 2004 John Wiley & Sons, Ltd.