Determinants of technology adoption in small and medium-sized enterprises

Johanna Pangeiko Nautwima · Bojan Obrenovic · Asa Romeo · Helvi Nyete Johannes · Nurbanu Adil'bekovna Abueva

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Technology Adoption and User Behaviour Agricultural Innovations and Practices Innovation Diffusion and Forecasting

Abstract

Small and medium-sized enterprises (SMEs) are critical to economic growth, yet their adoption of technology remains a significant challenge in many developing economies. This study investigates the factors influencing technology adoption among SMEs in Namibia, a context often underrepresented in mainstream innovation literature. Drawing on the Technology–Organization–Environment (TOE) framework, the research uniquely tests the mediating role of entrepreneurship education in the technology adoption process. A mixed methods design was adopted, combining survey responses from 97 SME owners/managers in Windhoek with qualitative insights gathered through open-ended questions. Quantitative analysis using PLS-SEM revealed that organizational factors, such as managerial support and internal capabilities and environmental factors, including external support and competitive pressure, showed statistically significant positive effects on technology adoption. Conversely, technological factors such as cost, complexity, and perceived incompatibility showed a negative and statistically insignificant relationship, but qualitative findings highlighted their practical importance as key barriers in the Namibian context. Mediation analysis showed that entrepreneurship education did not mediate the relationship between TOE factors and technology adoption, likely due to limited practical applicability and contextual alignment of current education programs. This study makes a dual contribution to literature by demonstrating how contextual constraints can moderate the relevance of established adoption frameworks in developing economies and by offering integrated insights to inform policy and SME support programs.

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