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Factors Impacting the Adoption of the Internet among SMEs

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Author Info
Ruby Roy Dholakia ()
Nir Kshetri

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Abstract

The Internet can extend market reach and operational efficiency of small and medium enterprises (SMEs) and enhance their contributions to the U.S. economy. This paper reports an empirical study conducted to identify the factors that impact SMEs' involvement with the Internet. Internal and external variables such as firm size, self-efficacy, prior technology use, etc. are used to predict the level of Internet involvement. This involvement is examined in terms of ownership of a web site (adoption) and use of the Internet for selling purposes (routinization). Logistic regression is used to examine the relationships between internal and external factors and SMEs' involvement with the Internet. The results suggest that specific factors contribute to the SMEs' involvement with the Internet -- prior technology use and the customer service subscale of perceived competitive pressure influence both stages of Internet adoption. Moreover, the relative importance of some of these predictor variables decreases as the level of Internet involvement increases. Past media use does not explain SME behavior -- in terms of adoption or routinization. These findings can be used to develop strategies to build SME involvement with the Internet.

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Publisher Info
Article provided by Springer in its journal Small Business Economics.

Volume (Year): 23 (2004)
Issue (Month): 4 (November)
Pages: 311-322
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Handle: RePEc:kap:sbusec:v:23:y:2004:i:4:p:311-322

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Web page: http://www.springerlink.com/link.asp?id=100338

For technical questions regarding this item, or to correct its listing, contact: (Christopher F. Baum).

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  1. Irina Isaic-Maniu, 2008. "TERRITORIAL DISCREPANCIES CONCERNING SMEs PERFORMANCES IN ROMANIA," Romanian Journal of Regional Science, Romanian Regional Science Association, vol. 2(1), pages 108-126, June. [Downloadable!]
  2. Piergiuseppe Morone & Giuseppina Testa, 2005. "What Makes Small and Medium Enterprises Competitive," Quaderni DSEMS 18-2005, Dipartimento di Scienze Economiche, Matematiche e Statistiche, Universita' di Foggia. [Downloadable!]
  3. Heinz Hollenstein & Martin Woerter, 2007. "Inter- and Intra-Firm Diffusion of Technology: the Example of E-commerce : An Analysis based on Swiss Firm-level Data," Working papers 07-157, KOF Swiss Economic Institute, ETH Zurich. [Downloadable!]
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  4. Martin, Ludivine & Penard, Thierry, 2005. "Investing in a Website: A Top Dog or a Resource-Based Strategy for Firms?," MPRA Paper 2503, University Library of Munich, Germany. [Downloadable!]
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This page was last updated on 2008-11-1.


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