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Factors Impacting the Adoption of the Internet among SMEs

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  • Ruby Roy Dholakia

    ()

  • Nir Kshetri

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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Bibliographic 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

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Cited by:
  1. Spyros Arvanitis & Marius Ley, 2013. "Factors Determining the Adoption of Energy-Saving Technologies in Swiss Firms: An Analysis Based on Micro Data," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 54(3), pages 389-417, March.
  2. 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.
  3. Martin, Ludivine, 2009. "Understanding the implementation of e-business strategies: Evidence from Luxembourg," MPRA Paper 13645, University Library of Munich, Germany.
  4. Chiara Verbano & Karen Venturini & Giorgio Petroni & Anna Nosella, 2008. "Characteristics of Italian art restoration firms and factors influencing their adoption of laser technology," Journal of Cultural Economics, Springer, vol. 32(1), pages 3-34, March.
  5. Quirós Romero, Cipriano & Rodríguez Rodríguez, Diego, 2010. "E-commerce and efficiency at the firm level," International Journal of Production Economics, Elsevier, vol. 126(2), pages 299-305, August.
  6. 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.
  7. 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," KOF Working papers 07-157, KOF Swiss Economic Institute, ETH Zurich.
  8. Rozenn Perrigot & Thierry Pénard, 2012. "Determinants of E-commerce adoption by franchisors: Insights from the U.S. market," Economics Working Paper Archive (University of Rennes 1 & University of Caen) 201206, Center for Research in Economics and Management (CREM), University of Rennes 1, University of Caen and CNRS.
  9. Tiago Oliveira & Maria Fraga O. Martins, 2011. "Understanding the determinant factors of Internet business solutions adoption: the case of Portuguese firms," Applied Economics Letters, Taylor and Francis Journals, vol. 18(18), pages 1769-1775, December.
  10. 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.

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