Factors Affecting Entry-Level Internet Technology ... - CiteSeerX

1 downloads 0 Views 44KB Size Report
Factors Affecting Entry-Level Internet Technology Adoption by Small. Business In Australia: An Empirical Study. Jeanette van Akkeren. Angèle L.M. Cavaye*.
Factors Affecting Entry-Level Internet Technology Adoption by Small Business In Australia: An Empirical Study Jeanette van Akkeren Angèle L.M. Cavaye* Faculty of Business/Information Systems University of the Sunshine Coast Sippy Downs, Australia [email protected] *Department of Information Systems University of Southern Queensland Toowoomba, Australia [email protected]

Abstract The adoption of Internet technologies by the small business sector is important to their ongoing survival. Yet, given the opportunities and benefits that Internet technologies can provide it has been shown that Australian small businesses are relatively slow in adopting them. This paper develops a model from recent literature on the facilitators and inhibitors to the adoption of Internet technologies by small business. Cross-case analysis of findings from three case studies are presented which indicate that perceived lack of business benefit, mistrust of the IT industry and lack of time are the main inhibitors to Internet adoption. Keywords Internet, technology, small business, adoption

INTRODUCTION The adoption of Internet technologies by the small business sector is important to their ongoing survival. It improves the ability of small businesses to compete with larger organisations. It also enables the small business to operate on an international scale. In addition, Internet technologies provide a cost-effective way for small organisations to market their business, launch new products, improve communications, gather information, and identify potential business partners (Kaplan et al. 1997, Coccia 1997, Hawking 1997). Given the opportunities and benefits that Internet technologies can provide to small business, it has been shown that Australian small businesses are relatively slow in adopting them. In their study of countries that are adopting Internet technology, Forrester Research (1997) found that Australia could be rated as a 'straggler', falling behind other developed countries such as New Zealand, Sweden, Singapore, Japan, Canada, and the United States of America.

Proc. 10th Australasian Conference on Information Systems, 1999

1071

It would be difficult for a small business owner/manager to envisage the benefits associated with using Internet technologies without being familiar with the Internet and WWW. The Yellow Pages Small Business Index (1999) supports this with findings that the number one reason given by 49% of non-adopters of Internet technologies is their lack of interest, and perception of a lack of business benefit. One suggestion by Iacovau et al. (1995) is that future research should measure factors that explain adoption or non-adoption of EDI technologies. Issues concerning the adoption of prior Internet technologies could provide valuable knowledge in this area. Cragg and King (1993) also suggest that research needs to address IT growth in the small business sector, explaining the drivers and barriers of small-firm computing growth. Research into the adoption of entry-level Internet technologies instituted within an organisation prior to adopting more sophisticated Internet technologies has been largely ignored. The slow rate of adoption by Australian small businesses, particularly when compared with much higher adoption rates in comparable countries, underlines the importance of this research. The paper is structured as follows: firstly, recent literature is outlined on technology adoption by small business, and then specifically on Internet technology adoption and small business government and industry incentive schemes. The research issue and the method used to investigate the issue are then discussed. Detailed analysis of findings from cases is presented followed by cross-case analysis and conclusions.

SMALL BUSINESS AND INTERNET TECHNOLOGY ADOPTION This section outlines recent literature on the factors affecting the adoption of IT by small business. A discussion of research on Internet technology adoption by small business and the role of government and industry incentive schemes follow this. A model that summarises the literature and used in this research is then presented. Factors affecting IT adoption by small business Researchers have identified a variety of factors that affect technology adoption in small business (Julien and Raymond 1994, Brooksbank et al. 1992, Kirby and Turner 1993, Iacovou et al. 1995, Thong and Yap 1995, Harrison et al. 1997, Fichman and Kemerer 1993). All writers use differing models in determining factors of adoption. Many of the earlier adoption models looked at behavioural characteristics like perception and attitude, and often integrate innovation literature with other constructs to develop a new model. The Technology Acceptance Model (TAM) put forward by Davis (1986) addresses IT adoption, implementation and diffusion in terms of perceived ease of use and perceived usefulness. Gefen and Straub (1997) suggest that belief about the system, perceived use and perceived ease of use, directly affects attitudes toward use. However, a limitation of the TAM is that the model excludes the influence and personal control factors on behaviour. In addition, economic factors or outside influences (suppliers, customers, competitors) are not specifically addressed in this model. A model proposed by Kirby and Turner (1993) identify adoption factors as the computer literacy of the small business owner, lack of knowledge of benefits derived from IT, and dependency of the small customer on the supplier. However, constructs measuring technology adoption and acceptance are limited. Julien and Raymond (1994) use similar constructs and identify three other factors thought to influence new technology adoption in small business: • structural sophistication of the firm in terms of centralisation and complexity;

1072

• the level of assertiveness, rationality and interaction in business decision processes; • size, sector, and status of the firm (independent or affiliated). Again this model is limited with many factors not included in the research design, for example, perception, attitude, and economic factors. An alternative is suggested by Iacovau et al. (1995) who focuses on perceived benefits and impact of technology as adoption factors. In addition, they identified the following as affecting technology adoption: organisational readiness (financial and technological resources of the firm), and external pressure to adopt (from competitors and trading partners). Behavioural and attitudinal factors, and firm characteristics in terms of size, sector, status and complexity, are not clearly addressed in this study as determinants of technology adoption in small business. In contrast, the Thong and Yap (1995) model uses two main categories of factors influencing IT adoption in small business. They include individual characteristics (CEO innovativeness, attitude towards adoption of IT, and IT knowledge), and organisational characteristics (business size, competitiveness of environment, information intensity). However, perceived control of IT adoption (an important factor for the owner/manager), and structural sophistication of the firm (its ability to incorporate new technologies into its work practices) are ignored in this study. Zinatelli et al (1997) found in their study that lack of internal computing training and expertise, lack of support, and financial constraints were the greatest factors inhibiting adoption and end-user sophistication. However this study did not address many of the other factors identified in studies as impacting adoption, focusing more on end-user computing sophistication, rather than adoption of Internet technologies. More recently Harrison et al. (1997) developed a model using similar factors to the Thong and Yap (1995) study to explain and predict a small business executive's decision to adopt information technology. They include decision processes based on attitude; subjective norm; perceived control regarding IT adoption; firm size, sector and status; and individual characteristics. However a limitation of this model and the Thong and Yap (1995) study is that neither included return on investment. Financial issues are vitally important to owner/managers and often drive technology adoption in small firms. An innovative small business owner may recognise all the benefits to his firm in adopting IT in terms of both a short- or long-term investment. However, without sufficient funding the owner cannot adopt. Return on investment is addressed by Economics of Technology (EOT) theory which is based on the returns on investing in an innovation for a firm. Fichman and Kemerer (1993) discuss the effects of IT investment in terms of four determining characteristics: prior technology drag, irreversibility of investments, sponsorship, and expectations. However, EOT theory does not capture firm characteristics (external pressures to adopt, the sector and status of the organisation) or the perceptions of the owner/manager. Since empirical studies have determined these factors as influencing technology adoption in small business, they need to be included in a general IT adoption model. Many different factors have been identified in the prior studies as affecting IT adoption by small firms. The factors identified in the studies outlined above can be separated into two main categories: owner/manager characteristics and firm characteristics, with the addition of return on investment as an influencing factor. Figure 1 summarises published findings about IT adoption factors relevant to small business.

1073

• • • • •

Owner/Manager Characteristics Perceived benefits Computer literacy Assertiveness Perceived control Subjective norm

Return on Investment

Firm Characteristics • Organisational readiness • External pressure to adopt • Customer/supplier dependency • Structural sophistication of the firm • Size, sector, status • Information intensity

IT adoption in Small Business

Figure 1: Factors identified from literature as affecting technology adoption in small businesses

The current research investigates to what extent these factors are relevant to the adoption of Internet technologies. Hence, the model provides the basis for empirical investigation of the research issue in this study. Factors affecting Internet technologies by small business Implementation of Internet technologies in Australian small business has been slow. The Yellow Pages Small Business Index (1999) reports that as late as May 1999, 52% of Australian small businesses were not connected to the Internet. Of those connected, only 18% have a Web Site, 35% use Web browsers, and only 43% use email. Australia has traditionally been very quick in its uptake of new technology and ideas, yet has not been as entrepreneurial with Internet technologies. Many small businesses resist using Internet technologies and instead continue to use printed materials to market themselves, and use more traditional means to search for information and communicate with others. Many studies capturing statistics focus on sophisticated Internet technologies like the use of ecommerce by small business. However, Internet technologies range from entry-level (Web browsers, Web sites, email) through to sophisticated (eCommerce, video-conferencing). Small business owners/managers are unlikely to adopt sophisticated Internet technologies if they are not familiar with the more basic ones. Hence, there is a strong argument for researchers to focus studies of small business use of the Internet on the adoption of entry level technologies. Once small business has adopted Internet technologies at entry level, they can get familiar and comfortable with the Internet and, in time, move on to adoption of more sophisticated Internet technologies like e-commerce. Even entry-level Internet technologies can provide tangible benefits to small business users. There is little literature available about the adoption of basic Internet technologies such as Web presence, Web browsers, and e-mail, but the research findings that are available indicate that small business owners can easily incorporate entry-level Internet technologies into the business and derive benefits. Sillince et al (1998) conducted a survey of small firm email use in the United Kingdom. Their findings indicate that only 20 percent of companies with less than 100 employees had adopted email. The most important factors inhibiting email adoption in this study are: • customers, suppliers and other organisations with which respondents needed to communicate did not use email, • expense of installation and maintenance, and

1074



email too technical.

Government and Industry Incentive schemes for Internet technology adoption Both industry and government bodies have a role to play in promoting and supporting small business networking and information technology. Australian government initiatives for small business have been developed to provide national information infrastructures, using the Internet as a global information model, encompassing all aspects of telecommunications (Poon and Swatman 1995). The Broadband Services Expert Group (BSEG) (1994), and the Australian Science and Technology Council (ASTEC) (1994) were commissioned by the Australian government to produce reports on the subject of Internet potential and networking for small businesses. ASTEC produced a number of recommendations regarding the use of research data networks for small business (Poon and Swatman 1995), and include ‘..to facilitate better technology diffusion, especially to small and medium-sized enterprises, including improved interaction between such enterprises and the research community..’ (ASTEC 1994). The actual level of support and encouragement given to small business by Australian Government initiatives is yet to be researched. Studies from an Australian perspective that addresses the validity of industry and government schemes promoting Internet and networking technologies are difficult to find.

RESEARCH ISSUE AND RESEARCH METHOD There is little research literature available about the adoption of basic Internet technologies such as web presence, web browsers and email. Since these entry level Internet technologies provide a convenient stepping stone for adoption of more sophisticated technologies, it is important to investigate the issues surrounding the adoption or lack of adoption of entry level technologies by small business. The research issue for this study was: "Why do organisations in the small business sector adopt or not adopt entry-level Internet technologies?" Specifically, two main research questions were addressed. The first question was "What factors affect adoption of entry-level Internet technologies by small business?". This question focuses on perceived benefits and costs as well as on facilitators and inhibitors of entry-level Internet technology adoption. Since there is no model of factors affecting Internet technology adoption, the model in Figure 1 (based on literature about general IT adoption by small business) was used as a research framework. The second research question investigated in this study was "How can small businesses be supported and aided with the adoption of entry-level Internet technologies?" In particular the role of government and industry bodies in encouraging and facilitating the adoption of these technologies was of interest. The research method for this study is case study based. Because there is not a large body of literature to draw on for the study of entry-level Internet technology adoption, an in-depth investigation in the form of case studies was justified (Yin, 1994). The underlying principle in selecting appropriate cases is choosing those that are information rich. In addition, the selection of cases involved using replication logic and largely depended on the conceptual framework developed from prior theory. Due to the descriptive nature of the research, multiple case design was used.

1075

The small business owner/manager was the unit of analysis as it is this person who makes decisions on capital expenditure including expenditure on technology. These informants were able to provide information on factors influencing Internet technology adoption or nonadoption. In addition, owner/managers were able to provide richness of data in terms of dealing directly with IT professionals and government small business incentive schemes and projects. Sufficient access to owner/managers within the industry sector was another important consideration in determining the selection of cases. Specific criteria had to be met in terms of the firm size and sector of cases to be selected. These are summarised in Table 1 below. Case Selection Criteria Description and Justification

The small business sector was chosen, as research on adoption of entrylevel Internet technology in this sector is limited. The automobile industry was selected as entry-level Internet technology Automobile Industry adoption and diffusion appears slow compared with other sectors. (car sellers) Both rural and urban districts of south east Queensland was used in case South East selection. Using both districts provided data for comparison in terms of Queensland regional area. Independent non-franchisee businesses were chosen for this research. Independent (nonAffiliated owner/managers would be influenced in their decision making affiliated) by the parent company. To avoid this influence, non-affiliated small businesses were chosen for this study. Table 1: Case Selection Criteria Small Business

Discussions with three owner/managers were conducted. Informants were invited to tell the story of their experience to enable deduction on prior theory raised in the literature review (Perry 1998). Questions aimed to solicit information to address the study's research questions were put to each participant, and their responses are discussed below. The first question probed participants about their perceptions on factors that they see as facilitators to entry-level Internet technology adoption. The second question addressed perceived inhibitors to technology adoption. The final questions asked participants about their experience with, and attitude to Government and industry incentive schemes. In addition, in-depth interviews captured new insights into constructs that are not present in current literature. The data collected from these interviews allowed for a comparison of a full adopter, partial adopter, and non-adopter.

DISCUSSION OF CASE FINDINGS Cases were selected in order to address both adopters and non-adopters of entry level Internet technologies. In order to facilitate discussion and for ethical reasons, cases used in this research are referred to as case A, B, and C. Brief descriptions of case participants are shown in Table 2; descriptive findings for each of the three cases are outlined below.

Case Product A Used Cars B Used Cars C Used Cars Table 2: Details of Cases

Years Trading 2 9 18

1076

Number of Employees 11 13 15

Internet Technology Adoption Status Non-adopter Partial adopter Full adopter

Each single case story is presented in detail including the owner/manager perceptions of the facilitators and inhibitors to technology adoption, and their view of the role of government and industry incentive schemes. Detailed cross-case comparison is then provided to address each of the research questions. Case A (non-adopter). Case A had not adopted entry-level Internet technologies but did have other IS technologies such as a small computer network used for communicating within the organisation between the work shop and administration. In addition there is a modem, a digital camera and facsimile. This firm also takes advantage of on-line communications where possible such as REVS, Queensland Transport and on-line banking and wages. Facilitators: Older technologies such as facsimile are perceived as expensive and not particularly useful, and the owner feels that “not much information can be exchanged for the detail needed on cars”. He also adds that facsimile is slow and not as efficient as he would like, and feels that email would overcome these problems. Hence the owner is aware of potential benefits of using Internet technologies. Inhibitors: There is no internal expertise available to the firm to develop a Web site or train on Internet use and email. In addition, experience with IT professionals in the past has led to some mistrust of that industry. Other inhibitors to the adoption of entry-level Internet technologies in this case included the following: • The manager claimed that there are “too many things on my plate and I can only do one thing at a time”. • He also perceived a lack of IT expertise and that he “doesn’t fully understand the technology”. He feels that it would be better to “hook into someone else’s system rather than try to do a stand-alone one”. • The cost of the technology is also an issue. The owner states that “profitability of the business isn’t there to allow this to happen”. • Security is an important issue for this owner. An employee recently moved $50,000 into her own bank account over a three-month period using the on-line link with the bank that the company had established 12 months ago. Problems with an Internet site and electronic trading are perceived as inhibitors at this stage due to this experience. Government and Industry Incentive Schemes: When questioned about his awareness and/or usefulness of Government incentive schemes, this owner perceived the government as doing “absolutely nothing”. He added that the cost of fulfilling the rules and regulations of the Auctioneers and Agents Act is enormous and that nothing is on-line. He also stated: “I don’t think the Government has ever been of any use to the motor trade industry at all”. Industry incentives were present such as REVS being on-line and the MTAQ. He perceives that although not a member of the MTAQ, their site would be the most useful to link to if he had one. Interestingly, banking on-line for this organisation was adopted as the banks had increased their charges so much that “you had to go on-line - and then there were security problems…”. Case B (partial adopter). Case B specialises in imported Japanese and rare model vehicles. This firm has adopted some of the entry-level technologies in a limited way including limited use of email and a basic Web Site that is linked to the MTAQ (Motor Traders Association of Queensland) site. The adoption of IT within the firm includes facsimile, on-line banking and

1077

wages, on-line communication with REVS used to look up incumbent vehicles, and some basic software (Microsoft Works). The Web site has few details and includes a picture of the car yard and a stock list. Facilitators: The manager adopted a Web site as he perceived that a site was “on the cutting edge as we have a unique product to market” (dealing in rare model vehicles). He also added that: “Things change so quickly with technology. If you stay the same you will go out the back door”. He considers Internet technologies as useful in gaining a competitive advantage and in “valueadding by adding something better for the customer such as presentation and accessibility”. Although email was connected, only the owner and the secretary used this technology for internal communication. Other employees such as salespeople, mechanics, detailers and suppliers relied on the mobile phone and hence did not use email. Inhibitors: The manager was reluctant to further develop the Web site for the reasons outlined below: • IT people “promised everything and delivered nothing”. This firms experience with IT professionals in Web site development was an unhappy one. Specific problems with site development included: the site once established was not easy to find on the Internet; other traders were not linked into the site as promised; and the site was very basic while the cost in developing the site was high. • Email was not perceived as useful to the firm as employees generally did not use the system and tended to rely only on mobile phones. The manager claimed that “they are as guilty as anyone for not checking their email to see if there is any contact”. • The manager also feels the system and software currently used was outdated. • Staff had little or no training in using IT. • Other inhibitors to Web site, email and Web browsing technologies according to the owner included: no access to a digital camera, lack of time, and lack of experience. Government and Industry Incentive Schemes: When questioned about the value of Government incentive schemes the manager claimed that the government provided nothing. He was unaware of any schemes or assistance that would encourage the adoption of entrylevel Internet technologies by small business in general and car traders in particular. The manager was aware of industry incentive schemes and assistance. In particular he made positive comments about the MTAQ in the development of its own sophisticated Web site that a trader can link to. In addition, the MTAQ provided regular communications about the latest IT, Web site development and advertising of the Web site by sponsoring a morning television show with the Web site address shown. Other industry support came from REVS in the form of on-line communication, and the QMDA (Queensland Motor Dealers Association), which has set up a “good on-line insurance scheme for used car sales”. Case C (full adopter). Case C has its own sophisticated Web site where potential buyers can download the entire range of stock and obtain many details on each product. Customers can also email the firm if desired, although this is not obvious on the site. The adoption of IT in this firm is sophisticated with extensive local area networking, on-line banking, various software applications for stock control, parts, ordering and communication. In addition, this firm uses email and facsimile.

1078

Facilitators: Unlike cases A and B, this firm had the internal expertise available to design its own Web site. Generally the manager is happy with the site but would like to have pictures of the stock displayed as well. The Internet is also used for browsing competitors’ sites to check prices to ensure they remain competitive. According to the manager, the Internet site was developed: “…to make it easier for potential customers to see what stock we have”. Inhibitors: The issues of concern for the manager in using email, the Web site and Web browsers are: • “It is difficult to sell a car over the Net because people want to see it in person”. • “Most employees in the used car area are reluctant to use email and to sell through the Internet site”, and “they don’t recognise the potential and don’t think it’s useful to them”. The manager described the reluctance of the salespeople as the “nature of the animal”, adding that they are not familiar with the Internet and “don’t want to be”. Although the firm has email, only two employees use it – the manager and the stock controller. Government and Industry Incentive Schemes: When asked about Government incentive schemes for Internet technology adoption, this participant reacted in much the same way as cases A and B. The manager said the Government gave “no assistance – nothing at all”. Industry incentives were more encouraging with the MTAQ described by this manager as “excellent”. The MTAQ helped with the Web site, encouraged email use and promoted the electronic exchange of information (although the regular newsletter is sent in hard copy format). In addition, this firm’s Web site is linked to the MTAQ site. The industry body REVS also allowed for on-line communication which according to the manager “saves heaps of time”.

CROSS CASE ANALYSIS The following table outlines the facilitators for each of the three cases. The factors for each case are rated as ‘high’, ‘average’, ‘low' or 'not applicable' (n.a.) depending on the level of importance placed on each facilitator by the owner/manager.

Facilitator • Innovative manager • Perceived benefits • Pressure from competitors • Need for on-line communication • Need for competitive advantage • Legacy systems need updating • Internet technical expertise • Cost effective • Experienced with earlier IT • Improve security Table 4: Facilitators for each case study

Case A (non-adopter) n.a. Average n.a. Average n.a. High n.a. Average n.a. n.a.

Case B (partial adopter) Average High Low Low High Average n.a. Average n.a. n.a.

Case C (full adopter) High High n.a. n.a. High n.a. Average Average Average Low

The number of facilitators increases exponentially with the adoption status of each business. Both the partial- and full-adopters perceive many benefits in adopting entry-level Internet

1079

technologies in comparison to the non-adopter who perceived little benefit. Cases B and C perceive benefits in adopting, particularly in relation to competitive advantage and cost effectiveness in marketing their business. Facilitators to the adoption of these technologies that rated highly by owner/managers were: • Perceived benefits (cases A, B and C) • Cost effectiveness (cases A, B and C) • Innovative manager (cases B and C) • Need for more efficient information systems (cases A and B) • Need for competitive advantage (cases B and C) The following table outlines the inhibitors for each of the three cases. Again, each of the factors are rated as ‘high’, ‘average’, ‘low’ or ‘n/a’ (not applicable) depending on the level of importance placed on each inhibitor by the owner/manager.

Inhibitors

Case A (non-adopter)

• •

Lack of internal IT expertise Lack of employee and management experience • Lack of time • Too expensive to set up • IT professionals too expensive and not helpful • Security problems • Reluctance to use new system by employees Table 5: Inhibitors for each case study

Case C (full adopter)

Average High

Case B (partial adopter) N/a High

Low Average Average

Low N/a High

N/a N/a N/a

High N/a

Average Average

N/a High

N/a Low

Consistent with findings from table 4, case A perceived many more inhibitors to adopting these technologies compared with cases B and C. The case A owner/manager was reluctant to adopt Internet technologies, focusing most of his discussion on security issues and lack of experience. Interestingly, case B identified many inhibitors that have resulted in that firm not evolving from the current partial-adoption status. A factor not previously identified in the literature seen as an inhibitor by cases A and B is the mistrust both owner/managers had of the IT industry. This factor will be included on the interview protocol. Other factors repeatedly mentioned as inhibitors to adoption were: • Lack of experience and knowledge of Internet technologies (cases A, B and C). • Lack of internal expertise (cases A and B). • Expense of setting up the technology (cases A and B). • Insufficient time (cases A and B). The Internet technology status of the firm appears to be associated with the number of adoption facilitators and/or inhibitors perceived by the owner/manager of the firm. For example case A (non-adopter) perceives many inhibitors to adopting compared to case C (adopter) whose only frustration lies in his employees preventing further diffusion of IT within the firm. Similarly case A does not identify many facilitators to technology adoption compared to cases B and C who are adopting or have adopted the technologies. Responses to the Government and Industry incentive schemes were very similar in all three firms.

1080

The second research question concerned the role of government and industry bodies in encouraging and facilitating Internet technology adoption by small business. Negative responses to the usefulness of government incentive schemes were repeated by all three cases. Interestingly, none of the owner/managers identified Queensland Transport as a Government body, even though this is a State Government run organisation that allows for on-line communication. All cases were unaware of any special schemes to encourage small business Internet technology adoption and use. Industry incentives centered mainly on the MTAQ with all informants being aware that that this body encourages Internet technology adoption. REVS also received approval from all case informants for developing efficient on-line communications.

CONCLUSION When comparing the original research model (Figure 1) against the factors affecting entrylevel Internet technology adoption in each of the three case studies, the model remains largely in tact. As a result of findings, two factors can be added to the model: mistrust of the IT industry, and a lack of time. Neither of these two factors is specifically mentioned in the existing literature as inhibiting technology adoption. However, participants underlined the importance of these two factors as delaying further technology adoption. Another finding is that years of operation and size of the organisation (size, sector, status) appear correlated with the adoption status of the firm. However this is not conclusive at this stage. The refined model is presented in figure 3 below. Owner/Manager Characteristics • Perceived benefits • Computer literacy • Assertiveness • Perceived control • Subjective norm • Mistrust of IT industry • Lack of time

Firm Characteristics

Return on Investment

• • • • •



Organisational readiness External pressure to adopt Customer/supplier dependency Structural sophistication of the firm Size, sector, status Information intensity

IT adoption in SMEs

Figure 3: Revised model of factors affecting adoption of Internet technologies by SMEs

In further work the authors are testing the revised model shown in Figure 3 by carrying out an in-depth study into entry-level Internet technology adoption of small business using the revised model. The study to date was based in regional Queensland, which may not be generalisable to Sydney, Melbourne and other Australian capital cities. However, the study is not yet complete and including city-based small businesses in further studies should overcome this problem. Another limitation is that the study may not be generalisable to other countries where uptake of Internet technologies has already been shown to be faster and more widespread. Also, this study is based on one particular industry sector (second hand car dealers). Previous research has shown that IT and Internet adoption varies according to industry sector (Yellow Pages Small Business Index 1999). Therefore this sector's findings may not be completely relevant to other sectors. However, many of the findings to date are

1081

strongly related to the small business context rather than to the specific industry sector. Hence, the findings from this study are likely to be relevant to small business at large.

REFERENCES ASTEC (1994) The Networked Nation. A report on the future requirements for national research data networks in Australia, Australian Science and Technology Council, Commonwealth of Australia. Brooksbank, R., Kirby, D., and Kane, S. (1992) 'IT adoption and the independent retail business: The retail newsagency', International Small Business Journal, Apr-Jun, vol. 10, no. 3, pp. 53-61. BSEC (1994) Networking Australia’s Future – The Interim Report. A report submitted by the Broadband Services Expert Group to the Minister for Communications and the Arts. Coccia, S.M. (1997) 'Using the Internet to level the playing field', Medical Marketing and Media, January, vol. 32, no. 1, pp. 30-36. Cragg, P.B., and King, M. (1993) 'Small-firm computing: Motivators and inhibitors', MIS Quarterly, March, vol. 17, no. 1, pp. 47-60. Davis, F., 1989, 'Perceived usefulness, perceived ease of use and user acceptance of information technology', MIS Quarterly, September, vol. 13, no. 3, pp. 319-340. Fichman, R. G. and Kremerer, C.F. (1993) 'Adoption of software engineering process innovations: The case of object-orientation', Sloan Management Review, Winter, pp. 7-22. Forrester Research Incorporated (1997) Forrester ranks world economics for eCommerce, Cambridge, URL http://www.forrester.com. Gefen, D., and Straub, D.W. (1997) 'Gender differences in the perception and use of E-mail: An extension to the technology acceptance model', MIS Quarterly, December, vol.21, no. 4, pp. 389-400. Harrison, D.A., Mykytyn, P.P. .Jr, and Rienenschneider, C.K. (1997) 'Executive decisions about IT adoption in small business: Theory and empirical tests', Information Systems Research, A Journal of the Institute of Management Sciences, June, vol. 8, no. 2, pp. 171195. Hawking, P. (1997), 'The implications of Internet telephony to small businesses in Australia', Conference Proceedings from SEAANZ Annual Conference, September 1997. Iacovou, C.L., Benbasat, I., and Dexter, A.A. (1995) 'Electronic data interchange and small organisations: Adoption and impact of technology', MIS Quarterly, December, vol. 19, no. 4, pp. 465-485. Julien, P.A., and Raymond, L. (1994) 'Factors of new technology adoption in the retail sector', Entrepreseurship: Theory and Practice, Summer, vol. 18, no. 5, pp. 79-90.

1082

Kaplan, T.E. Johnson, R.W., Pearce, C.G., and George, G. (1997) 'The strategic role of communication technology in small business: Where we are and where we should be going.' American Business Review, Jan, vol. 15, no. 1 pp. 86-91. Kirby, D., and Turner, M. (1993) 'IT and the small retail business', International Journal of Retail and Distribution Management, vol. 21, no. 7, pp. 20-27 Perry, C. (1998) Processes of a case study methodology for postgraduate research in marketing, University of Southern Queensland, Australia. Poon, S., and Swatman, P.M.C. (1995) The Internet for small businesses: an enabling infrastructure for competitiveness. URL http://www.isoc.org/HMP/PAPER/126/html/paper.html. Thong, J. and Yap, C.S. (1995) 'CEO characteristics, organisational characteristics, and information technology adoption in small business', Omega, August, vol. 23, no. 4, pp. 429-442. Yellow Pages Australia (1999) Small Business Index: Survey of Computer Technology and ECommerce in Australian Small and Medium Business. May Yin, R.K. (1994) Case Study Research: Design and Methods, 2nd ed, Sage Publications Inc, Thousand Oaks, CA, United States of America. Zinatelli, N., Cragg, P.B. and Cavaye A.L.M. (1996), ‘End user computing sophistication and success in small firms’, European Journal of Information Systems, vol. 5, pp. 172181

COPYRIGHT Jeanette Van Akkeren and Angele L.M. Cavaye ©1999. The authors assign to ACIS and educational and non-profit institutions a non-exclusive licence to use this document for personal use and in courses of instruction provided that the article is used in full and this copyright statement is reproduced. The authors also grant a non-exclusive licence to ACIS to publish this document in full in the Conference Papers and Proceedings. Those documents may be published on the World Wide Web, CD-ROM, in printed form, and on mirror sites on the World Wide Web. Any other usage is prohibited without the express permission of the authors.

1083