AbstractThe advancement in technological development is now altering the conventional order in the diffusion of Information Technology innovation from a top‐down approach (organization to employees) to a bottom‐up approach (employees to organization). This change is more notable in developed economies and has led to the bring your own device (BYOD) phenomenon, which promises increased productivity for employees and their organizations. There have been several studies on the corporate adoption of BYOD, but few have investigated this phenomenon from a small and medium enterprise (SME) perspective and from developing countries specifically. This study investigated the BYOD phenomenon in South African SMEs. The goal was to identify contextual factors influencing BYOD adoption. A conceptual framework using the Perceived EReadiness Model (PERM) was adopted. The study took an interpretive stance and was qualitative. Data was collected from SMEs using semi‐structured interviews and analyzed using a thematic analysis approach. The findings show that for BYOD to be adopted and institutionalized in an SME, there needs to be organizational and environmental readiness. Organizational readiness in terms of awareness, management support, business resources, human resources, employees' pressure, formal governance, and technological readiness. Environmental readiness in terms of market forces, support from industry, government readiness and the socio‐cultural factor. These readiness factors present both opportunities and challenges that SMEs in developing countries need to concentrate on as they prepare for and use BYOD.
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