IDEAS home Printed from https://ideas.repec.org/p/unm/umamer/2002033.html
   My bibliography  Save this paper

The adoption of e-business technology by SMEs

Author

Listed:
  • Berranger, Pascale de

    (MERIT)

Abstract

The paper examines the key factors influencing the adoption ofe-business technology by SMEs. To this end, the paper draws on a rangeof literatures on the diffusion of new information and communicationtechnologies (ICTs), many of which have hitherto been treated asseparate. The reasons for this are two-fold. First, e-businesstechnologies are the latest in a line of new ICT technologies. Whenexploited successfully, ICTs have increased firm competitiveness eitherby raising the efficiency of internal communication and organisationand/or supply chain relationships, or by facilitating the development ofnew/improved products and services. Second, it is hypothesised that manyof the factors affecting the successful adoption of new technologies aregeneric in nature. With regards to SMEs specifically, consideration ofearlier research may assist us in identifying a set of enablers andbarriers to e-business adoption. Hence, by explicitly acknowledging thecontext and prior history of research in the area, we are able to mapout the dimensions of future theoretical and empirical research ine-business adoption by SMEs. In addition to drawing together factors identified by existing research,the paper highlights the implications of network externalities for thetiming of technology investments and the returns that accrue to earlyand late adopters. It also draws attention to a number of problemsassociated with the analytical concept of ‘the SME’ when it is appliedto this area. The research proceeds by clearly defining thetechnological and organisational characteristics of the e-business modeland a brief consideration of the trends in adoption in the UK vis-à-visadoption in the other G7 countries. Together these set up a detailedconsideration of the internal and external factors influencing adoption.A qualitative approach, in the form of a detailed case study, is thenused to explore the potential usefulness of the factors that have beenidentified. The results of these findings are then drawn together in theconcluding section of the paper.

Suggested Citation

  • Berranger, Pascale de, 2002. "The adoption of e-business technology by SMEs," Research Memorandum 033, Maastricht University, Maastricht Economic Research Institute on Innovation and Technology (MERIT).
    • Handle: RePEc:unm:umamer:2002033
    as

    Download full text from publisher

    File URL: https://www.merit.unu.edu/publications/rmpdf/2002/rm2002-033.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Egbert Wever & Erik Stam, 1999. "Clusters of High Technology SMEs: The Dutch Case," Regional Studies, Taylor & Francis Journals, vol. 33(4), pages 391-400.
    2. Adam B. Jaffe & Manuel Trajtenberg & Rebecca Henderson, 1993. "Geographic Localization of Knowledge Spillovers as Evidenced by Patent Citations," The Quarterly Journal of Economics, Oxford University Press, vol. 108(3), pages 577-598.
    3. David Keeble & Frank Wilkinson, 1999. "Collective Learning and Knowledge Development in the Evolution of Regional Clusters of High Technology SMEs in Europe," Regional Studies, Taylor & Francis Journals, vol. 33(4), pages 295-303.
    4. Windrum, Paul & Swann, Peter, 1999. "Networks, Noise and Navigation: Sustaining Metcalfe’s Law through Technological Innovation," Research Memorandum 009, Maastricht University, Maastricht Economic Research Institute on Innovation and Technology (MERIT).
    5. Premkumar, G. & Roberts, Margaret, 1999. "Adoption of new information technologies in rural small businesses," Omega, Elsevier, vol. 27(4), pages 467-484, August.
    6. Windrum, Paul & Tomlinson, Mark, 1999. "Knowledge-intensive services and international competitiveness: a four country comparison," Research Memorandum 023, Maastricht University, Maastricht Economic Research Institute on Innovation and Technology (MERIT).
    7. Eric von Hippel, 1994. ""Sticky Information" and the Locus of Problem Solving: Implications for Innovation," Management Science, INFORMS, vol. 40(4), pages 429-439, April.
    8. Yap, Cs & Soh, Cpp & Raman, Ks, 1992. "Information systems success factors in small business," Omega, Elsevier, vol. 20(5-6), pages 597-609.
    9. Louis Raymond & Nadia Magnenat-Thalmann, 1982. "Information Systems in Small Business: Are They Used in Managerial Decisions?," Entrepreneurship Theory and Practice, , vol. 6(4), pages 20-26, April.
    10. Frank Moulaert & Faridah Djellal, 1995. "Information Technology Consultancy Firms: Economies of Agglomeration from a Wide-area Perspective," Urban Studies, Urban Studies Journal Limited, vol. 32(1), pages 105-122, February.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Ganlin Pu & Md. Qamruzzaman & Ahmed Muneeb Mehta & Farah Naz Naqvi & Salma Karim, 2021. "Innovative Finance, Technological Adaptation and SMEs Sustainability: The Mediating Role of Government Support during COVID-19 Pandemic," Sustainability, MDPI, vol. 13(16), pages 1-27, August.
    2. Meng‐chun Liu & Gee San, 2006. "Social Learning and Digital Divides: A Case Study of Internet Technology Diffusion," Kyklos, Wiley Blackwell, vol. 59(2), pages 307-321, May.
    3. Platero Jaime, Manuel & Benito Hernández, Sonia & Rodríguez Duarte, Antonio, 2017. "The moderator effect of training in the adoption of ICT in microenterprises," Cuadernos de Gestión, Universidad del País Vasco - Instituto de Economía Aplicada a la Empresa (IEAE).
    4. Heinz Hollenstein & Martin Woerter, 2004. "The Decision to Adopt Internet-based E-Commerce. An Empirical Analysis Based on Swiss Firm-level Data," KOF Working papers 04-89, KOF Swiss Economic Institute, ETH Zurich.
    5. Novick, Marta & Roitter, Sonia & Yoguel, Gabriel & Borello, José Antonio & Milesi, Darío, 2004. "Information and knowledge: the diffusion of information and communication technologies in the Argentine manufacturing sector," Revista CEPAL, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL), April.
    6. Oyelaran-Oyeyinka, Banji & Lal, Kaushalesh, 2004. "Sectoral Pattern of E-business Adoption in Developing Countries," UNU-INTECH Discussion Paper Series 2004-07, United Nations University - INTECH.
    7. Hollenstein, Heinz, 2004. "Determinants of the adoption of Information and Communication Technologies (ICT): An empirical analysis based on firm-level data for the Swiss business sector," Structural Change and Economic Dynamics, Elsevier, vol. 15(3), pages 315-342, September.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Windrum, Paul & Berranger, Pascale de, 2003. "Factors affecting the adoption of intranets and extranets by SMEs: a UK study," Research Memorandum 026, Maastricht University, Maastricht Economic Research Institute on Innovation and Technology (MERIT).
    2. Scaringella, Laurent & Radziwon, Agnieszka, 2018. "Innovation, entrepreneurial, knowledge, and business ecosystems: Old wine in new bottles?," Technological Forecasting and Social Change, Elsevier, vol. 136(C), pages 59-87.
    3. Lori Rosenkopf & Paul Almeida, 2003. "Overcoming Local Search Through Alliances and Mobility," Management Science, INFORMS, vol. 49(6), pages 751-766, June.
    4. Liming Zhao & Haihong Zhang & Wenqing Wu, 2019. "Cooperative knowledge creation in an uncertain network environment based on a dynamic knowledge supernetwork," Scientometrics, Springer;Akadémiai Kiadó, vol. 119(2), pages 657-685, May.
    5. Martin Andersson & Börje Johansson, 2008. "Innovation Ideas and Regional Characteristics: Product Innovations and Export Entrepreneurship by Firms in Swedish Regions," Growth and Change, Wiley Blackwell, vol. 39(2), pages 193-224, June.
    6. Roberta CAPELLO, 2012. "Regional economics: theoretical achievements and challenges," Timisoara Journal of Economics, West University of Timisoara, Romania, Faculty of Economics and Business Administration, vol. 5(18), pages 313-335.
    7. Jeroen Content & Nicola Cortinovis & Koen Frenken & Jacob Jordaan, 2022. "The roles of KIBS and R&D in the industrial diversification of regions," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 68(1), pages 29-64, February.
    8. Beugelsdijk, S. & Cornet, M., 2001. "How far do They Reach? The Localization of Industrial and Academic Knowledge Spillovers in the Netherlands," Other publications TiSEM 303b1186-e227-43ce-a118-0, Tilburg University, School of Economics and Management.
    9. Myriam Mariani, 2002. "Next to Production or to Technological Clusters? The Economics and Management of R&D Location," Journal of Management & Governance, Springer;Accademia Italiana di Economia Aziendale (AIDEA), vol. 6(2), pages 131-152, May.
    10. McCann, Philip & Arita, Tomokazu, 2006. "Clusters and regional development: Some cautionary observations from the semiconductor industry," Information Economics and Policy, Elsevier, vol. 18(2), pages 157-180, June.
    11. Christophe Carrincazeaux & Frédéric Gaschet, 2006. "Knowledge and the diversity of innovation systems: a comparative analysis of European regions," Post-Print hal-00257384, HAL.
    12. Dirk Czarnitzki & Hanna Hottenrott, 2009. "Are Local Milieus The Key To Innovation Performance?," Journal of Regional Science, Wiley Blackwell, vol. 49(1), pages 81-112, February.
    13. Grillitsch, Markus & Nilsson , Magnus, 2013. "Technological competencies and firm performance: Analyzing the importance of internal and external competencies," Papers in Innovation Studies 2013/24, Lund University, CIRCLE - Centre for Innovation Research.
    14. Feldman, Maryann P. & Kogler, Dieter F., 2010. "Stylized Facts in the Geography of Innovation," Handbook of the Economics of Innovation, in: Bronwyn H. Hall & Nathan Rosenberg (ed.), Handbook of the Economics of Innovation, edition 1, volume 1, chapter 0, pages 381-410, Elsevier.
    15. Heide Fier & Andreas Pyka, 2014. "Against the one-way-street: analyzing knowledge transfer from industry to science," The Journal of Technology Transfer, Springer, vol. 39(2), pages 219-246, April.
    16. Gong, Guan & Keller, Wolfgang, 2003. "Convergence and polarization in global income levels: a review of recent results on the role of international technology diffusion," Research Policy, Elsevier, vol. 32(6), pages 1055-1079, June.
    17. Walter Powell & Kenneth Koput & James Bowie & Laurel Smith-Doerr, 2002. "The Spatial Clustering of Science and Capital: Accounting for Biotech Firm-Venture Capital Relationships," Regional Studies, Taylor & Francis Journals, vol. 36(3), pages 291-305.
    18. Karlsson, Charlie & Johansson, Börje, 2006. "Regional Development and Knowledge," Working Paper Series in Economics and Institutions of Innovation 76, Royal Institute of Technology, CESIS - Centre of Excellence for Science and Innovation Studies.
    19. Estolatan, Eric & Geuna, Aldo, 2019. "Looking forward via the Past: An Investigation of the Evolution of the Knowledge Base of Robotics Firms," Department of Economics and Statistics Cognetti de Martiis LEI & BRICK - Laboratory of Economics of Innovation "Franco Momigliano", Bureau of Research in Innovation, Complexity and Knowledge, Collegio 201904, University of Turin.
    20. Miguélez, Ernest & Moreno, Rosina, 2015. "Knowledge flows and the absorptive capacity of regions," Research Policy, Elsevier, vol. 44(4), pages 833-848.

    More about this item

    Keywords

    economics of technology ;

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:unm:umamer:2002033. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Leonne Portz (email available below). General contact details of provider: https://edirc.repec.org/data/meritnl.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.