Determinants of internet adoption in small and medium-sized enterprises

Abstract

This study builds on the existing research on internet adoption in small and medium-sized enterprises (SMEs). A research model was postulated to contain three organisational independent variables – company size, financial condition, and technological readiness – that are believed to influence internet adoption within SMEs. Using data from 94 SMEs, technological readiness variables were found to influence the overall measure of internet adoption and four of its components: e-mail use; website sophistication; internet use for marketing support; and internet use for marketing intelligence. Company size was found to be positively related to only the overall internet-adoption measure and none of its components. Financial condition, on the other hand, was found to have no influence on the internet adoption or any of its components. The findings are discussed and implications are explained.

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