Skip to main content

Advertisement

Log in

Diverse views on IT innovation diffusion among SMEs: Influencing factors of broadband adoption

  • Published:
Information Systems Frontiers Aims and scope Submit manuscript

Abstract

This study is examining the challenges involved in the effective diffusion of innovation technologies among Small and Medium Size Enterprises (SMEs). Having broadband Internet as the technology in focus we report that broadband adoption by SMEs was initially particularly slow while there has been little research on the reasons behind this phenomenon. This study provides an in-depth view of the broadband diffusion process to SMEs in south east UK by examining the views and activities of the various groups involved in the process. Innovation diffusion and social construction of technology theory are applied in order to construct a framework that addresses some of the issues not covered in previous literature. Our results show that even though several SMEs have adopted broadband, they are not making full use of the technology, while using broadband has not changed significantly the way they operate their businesses. The point we are raising with this study is that the SMEs’ lack of understanding on the effective application of the technology is the main impediment for effective adoption. We believe that our results are useful to providers looking to diffuse broadband to SMEs as well as other IT innovations.

This is a preview of subscription content, log in via an institution to check access.

Access this article

Price excludes VAT (USA)
Tax calculation will be finalised during checkout.

Instant access to the full article PDF.

Fig. 1
Fig. 2

Similar content being viewed by others

References

  • Agarwal, R., & Prasad, J. (1998). A conceptual and operational definition of personal innovativeness in the domain of information technology. Information Systems Research, 9(2), 204–215.

    Article  Google Scholar 

  • Ajzen, I. (1991). The theory of planned behaviour. Organisational Behaviour and Human Decision Process, 50, 179–211.

    Google Scholar 

  • Arbore, A., & Ordanini, A. (2006). Broadband divide among SMEs: the role of size, location and outsourcing strategies. International Small Business Journal, 24(1), 83–99.

    Article  Google Scholar 

  • Arnott, S. (2005). UK climbs world table in broadband uptake, Computing 26 Oct 2005.

  • Aronsson, M., Tholen, D., Josephson, P., Li, H., & Kong, S. (2003). Broadband services for residential and commercial tenants: a categorisation of current and future services and a survey on tenants needs in Sweden. Building and Environment, 38(2), 347–358.

    Article  Google Scholar 

  • Basaglia, S., Caporarello, L., Magni, M., & Pennarola, F. (2009). Environmental and organisational drivers influencing the adoption of VoIP. Information Systems and E-Business Management, 7(1), 103–118.

    Article  Google Scholar 

  • Beckinsale, M., & Levy, M. (2004) SMEs and internet adoption strategy: who do SMEs listen to? In Proceedings of the Twelfth European Conference on Information Systems. Turku, Finland: Turku School of Economics and Business Administration.

  • Beynon-Davies, P., & Williams, M. D. (2003). The diffusion of information systems development methods. The Journal of Strategic Information Systems, 12(1), 29–46.

    Article  Google Scholar 

  • Biggs, P., & Kelly, T. (2006). Broadband pricing strategies. Info, 8(6), 3–14.

    Article  Google Scholar 

  • Bijker, W., Hughes, T., & Pinch, T. (1987). The social construction of technological systems. Cambridge: The MIT Press.

    Google Scholar 

  • Brown, L. (1981). Innovation diffusion: A new perspective. London: Methuen &co.

    Google Scholar 

  • BSG (2004). Third Annual Report and Strategic Recommendations. [Online]Available:http://www.intellectuk.org/publications/reports/BSG_3rd_annual_report.pdf [Accessed 09/12/ 2008].

  • BTOpenworld (2002). BT Openworld shows businesses the route to high-speed cost savings [Online] Available: http://www.cisilion.com/bnews_benefits.htm [Accessed 17/10/ 2005].

  • BTPlc (2005). Broadband boost for small and medium business [Online] Available:http://www.btplc.com/Innovation/Strategy/boost/ [Accessed 7/11/ 2005].

  • Burke, K. (2005). The impact of firm size on internet use in small businesses. Electronic Markets, 15(2), 79–93.

    Google Scholar 

  • Cava-Ferreruela, I., & Alabau-Munoz, A. (2006). Broadband policy assessment: a cross-national empirical analysis. Telecommunications Policy, 30(8–9), 445–463.

    Article  Google Scholar 

  • Chappell, C., Feindt, S., & Jeffcoate, J. (2002). Best practice in SME adoption of ecommerce. Benchmarking: An International Journal, 9(2), 122–132.

    Article  Google Scholar 

  • Chau, P. Y. K., & Hu, P. J. -H. (2001). Information technology acceptance by individual professionals: A model comparison approach. Decision Sciences, 32, 699–719.

  • Choudrie, J., & Dwivedi, Y. K. (2006). Investigating factors influencing adoption of broadband in the household. The Journal of Computer Information Systems, 47(4), 25–34.

    Google Scholar 

  • Choudrie, J., & Papazafeiropoulou, A. (2007). Assessing the UK policies for broadband adoption. Information Systems Frontiers, 9(2–3), 297–308.

    Article  Google Scholar 

  • Choudrie, J., Papazafeiropoulou, A., & Lee, H. (2003). A web of stakeholders and strategies: a case of broadband diffusion in South Korea. Journal of Information Technology, 18(4), 281–291.

    Article  Google Scholar 

  • Cisilion (2002). Small to medium businesses can’t see broadband benefits [Online] Available: http://www.cisilion.com/bnews_intellect.htm [Accessed 18/11/2004]

  • Cooper, R. B., & Zmud, R. W. (1990). Information technology implementation research: a technological diffusion approach. Management Science, 36(2), 123.

    Article  Google Scholar 

  • Crum, M. R., Premkumar, G., & Ramamurthy, K. (1996). An assessment of motor carrier adoption, use, and satisfaction with EDI. Transportation Journal, 35(4), 44.

    Google Scholar 

  • Damsgaard, J., & Lyytinen, K. (2001). The role of intermediating institutions in the diffusion of electronic data interchange (EDI): how industry associations intervened in Denmark, Finland, and Hong Kong. The Information Society, 17(3), 195.

    Article  Google Scholar 

  • Daniel, E., Wilson, H., & Myers, A. (2002). Adoption of ECommerce by SMEs i + n the UK. International Small Business Journal, 20(3), 253–270.

    Article  Google Scholar 

  • Davis, F. D. (1989). Perceived usefulness, perceived ease of use, and user acceptance of information technology. MIS quarterly, 13(3), 319–339.

    Google Scholar 

  • Dierckx, M. A. F., & Stroeken, J. H. M. (1999). Information technology and innovation in small and medium-sized enterprises. Technological Forecasting and Social Change, 60(2), 149–166.

    Article  Google Scholar 

  • Dobers, P. (2002). Broadband-boom and bust in the new economy. In I. Holmberg, M. Salzer-Mörling, & L. Strannegård (Eds.), Managing and organizing in the new economy. Stockholm: Book House.

    Google Scholar 

  • DTI (2003). The small business service: National statistics, Department of trade and Industry [Online] Available: www.sbs.gov.uk/ [Accessed 03/05/2005].

  • DTI (2004). Broadband- FAQs. [Online] Available:http://www.dti.gov.uk/Files/file13254.pdfppubpdfdlead=04%2F2304 09/12/2008].

  • Dutta, A., & Roy, R. (2003). Anticipating internet diffusion. Communications of the ACM, 46(2), 66–71.

    Article  Google Scholar 

  • Dutton, W. H., Gillet, S. E., McKnight, L. W., & Peltu, M. (2004). Bridging broadband internet divides: reconfiguring access to enhance communicative power. Journal of Information Technology, 19(1), 28–38.

    Article  Google Scholar 

  • Dwivedi, Y., & Irani, Z. (2009). Understanding the adopters and nonadopters of broadband. Communications of the ACM, 52(1), 122–12.

    Article  Google Scholar 

  • European Commision (2009). Report on Implementation of the definition [Online] Available: http://ec.europa.eu/enterprise/policies/sme/files/sme_definition/sme_report_2009_en.pdf [Accessed 7/07/2010].

  • European Commission (2007). Putting SMEs first: Europe is good for SMEs, SMEs are good for Europe [Online] Available: http://ec.europa.eu/enterprise/entrepreneurship/docs/sme_pack_en.pdf [Accessed 24/10/2007].

  • Firth, L., & Kelly, T. (2001). Broadband briefing paper, ITU, Geneva [Online] Available: http://www.itu.int/osg/spu/ni/broadband/workshop/briefingpaperfinal.doc [Accessed 14/04/2011].

  • Firth, L., & Mellor, D. (2005). Broadband: benefits and problems. Telecommunications Policy, 29(2–3), 223–236.

    Article  Google Scholar 

  • Gholami, R., Koh, E., & Lim, J. (2010). The post adoption phase of broadband in small businesses. Information Resources Management Journal, 23(1), 35–52.

    Article  Google Scholar 

  • Hemming, M., Davenport, C. (2010). Broadband: Steps for an incoming Government. Federation of Small Business.

  • Hitt, L., & Tambe, P. (2007). Broadband adoption and content consumption. Information Economics and Policy, 19(3–4), 362–378.

    Article  Google Scholar 

  • Holt, L., & Jamison, M. (2009). Broadband and contributions to economic growth: lessons from the US experience. Telecommunications Policy, 33(10/11), 575–581.

    Article  Google Scholar 

  • Humphreys, L. (2005). Refraining social groups, closure, and stabilization in the social construction of technology. Social Epistemology, 19(2/3), 231–253.

    Article  Google Scholar 

  • Intellect (2003). The benefits of broadband to SMEs in the ICT sector interim conclusions from intellect member research [Online] Available:http://www.intellectuk.org/campaigns/broadband/benefits/Exec_summary_Intellect.pdf [Accessed 09/12/2008].

  • Intellect (2005). SMEs need guidance in adapting to Broadband [Online] Available:http://www.intellectuk.org/press/news/news_170505_SMEbroadband.asp 31/10/ 2005].

  • ITU (2003). Promoting broadband: Background paper. International Telecommunication Union.

  • Jayakar, K., & Park, E. A. (2012). Funding public computing centers: balancing broadband availability and expected demand. Government Information Quarterly, 29(1), 50–59.

    Article  Google Scholar 

  • Kalakota, R., & Robinson, M. (2001). E-Business 2.0: Road-map for Success. Addison-Wesley, Harlow.

  • Kautz, K., & Pries-Heje, J. (1996). Diffusion and adoption of information technology. London: Chapman & Hall.

    Book  Google Scholar 

  • Klein, K. K., & Myers, M. D. (1999). A set of principles for conducting and evaluating interpretive field studies in information systems. MIS Quarterly, 23(1), 67–94.

    Article  Google Scholar 

  • Lacity, M. C., & Janson, M. A. (1994). Understanding qualitative data: a framework of text analysis methods. Journal of Management Information Systems, 11(2), 137–156.

    Google Scholar 

  • Law, J. (1987). Technology and heterogeneous engineering: the case of Portuguese expansion. In W. Bijker, T. Hughes, & T. Pinch (Eds.), The social construction of technological systems (pp. 111–134). Cambridge: MIT Press.

    Google Scholar 

  • Lawson, R., Alcock, C., Cooper, J., & Burgess, L. (2003). Factors affecting adoption of electronic commerce technologies by SMEs: an Australian Study. Journal of Small Business and Enterprise Development, 10(3), 265–276.

    Article  Google Scholar 

  • Lefebvre, L., Harvey, J., & Lefebvre, E. (1991). Technology experience and thetechnology adoption decisions in small manufacturing firms. R & D Management, 21(3), 241–249.

    Article  Google Scholar 

  • Levenburg, N. M. (2005). Does size matter? Small firms’ use of e-business tools in the supply chain. Electronic Markets, 15(2), 94–105.

    Article  Google Scholar 

  • Levy, M., Powell, P., & Yetton, P. (2001). SMEs: aligning IS and the strategic context. Journal of Information Technology, 16(3), 133.

    Article  Google Scholar 

  • Levy, M., Powel, P., & Yetton, P. (2002). The dynamics of SME Information system. Small Business Economics, 19, 341–352.

    Google Scholar 

  • Lou, H., Luo, W., & Strong, D. (2000). Perceived critical mass effect on groupware acceptance. European Journal of Information Systems, 9(2), 91–103.

    Article  Google Scholar 

  • MacKenzie, D., & Wajcman, J. (Eds.). (1999). The social shaping of technology. Buckingham: Open University Press.

    Google Scholar 

  • NTL (2005). How can broadband benefit your business [Online] Available:http://business.ntl.com/internet_products/business_broadband/business_benefits.php [Accessed 08/11/ 2005].

  • OECD (2003). Broadband driving growth: Policy responses [Online] Available: http://www.oecd.org/dataoecd/18/3/16234106.pdf [Accessed 07/07/ 2010].

  • OECD (2005) ICT, E-business and SMEs [Online] Available:http://www.oecd.org/dataoecd/32/28/34228733.pdf [Accessed 07/07/ 2010].

  • OECD (2007). OECD Communications Outlook 2007 [Online] Available:http://213.253.134.43/oecd/pdfs/browseit/9307021E.PDF [Accessed 20/09/2007].

  • Ofcom (2005). The communications market 2005.

  • Ofcom (2006). The communications market 2006.

  • Ofcom (2007). The communications market 2007.

  • Ofcom (2009). The communications market 2009.

  • Ofcom (2010). The communications market 2010.

  • Office of the e-Envoy (2001) UK Online: The Broadband Future

  • Papazafeiropoulou, A. (2002). A stakeholder approach to electronic commerce diffusion. PhD Thesis. Uxbridge, England: Brunel University.

  • Papazafeiropoulou, A.,Gandecha, R., Stergioulas, L. (2005) Interpretive flexibility along the innovation decision process of the UK NHS care records service (NCRS). Insights from a local implementation case study In Proceedings of the Thirteenth European Conference on Information Systems. Regensburg, Germany.

  • Parker, C. M., & Castleman, T. (2007). New directions for research on SME-eBusiness: insights from an analysis of journal articles from 2003 to 2006. Journal of Information Systems and Small Business, 1(1–2), 21–40.

    Google Scholar 

  • Pavic, S., Koh, S. C. L., Simpson, M., & Pardmore, J. (2003). Could e-business create a competitive advantage in UK SMEs? Benchmarking: An International Journal, 14(3), 320–351.

    Article  Google Scholar 

  • Philpott, M. (2004). Ovum white paper: DSL services for small enterprises.

  • Pinch, T. J., & Bijker, W. E. (1987). The social construction of facts and artefacts: Or how the sociology of science and the sociology of technology might benefit each other. In W. E. Bijker, T. P. Hughes, & T. J. Pinch (Eds.), The social construction of technological systems (pp. 18–50). Cambridge: MIT Press, Massachusetts Institute of Technology.

  • Pontikakis, D., & Collins, P. (2010). Exploring geographic variation in corporate broadband adoption; evidence from Irish small- and medium-sized enterprises (SMEs). Telecommunications Policy, 34(3), 144–161.

    Article  Google Scholar 

  • Pouloudi, A., & Whitley, E. A. (1997). Stakeholder identification in inter-organizational systems: gaining insights for drug use management systems. European Journal of Information Systems, 6(1), 1–14.

    Article  Google Scholar 

  • Premkumar, G., Ramamurthy, K., & Crum, M. (1997). Determinants of EDI adoption in the transportation industry. European Journal of Information Systems, 6(2), 107–121.

    Article  Google Scholar 

  • Rajagopal, P. (2002). An innovation-diffusion view of implementation of enterprise resource planning (ERP) systems and development of a research model. Information Management, 40(5), 87.

    Article  Google Scholar 

  • Rogers, E. M. (2003). Diffusion of innovations. New York: Free Press.

    Google Scholar 

  • Sanders, P. (1982). Phenomenology: a new way of viewing organizational research. Academy of Management Review, 7(3), 353–360.

    Google Scholar 

  • Seemann, M. (2010). UK Broadband for SMEs: Not fit for purpose, Business Computing World, 22 June 2010.

  • Shao, Y. P. (1999). Expert systems diffusion in British banking: diffusion models and media factor. Information Management, 35(1), 1–8.

    Article  Google Scholar 

  • Spurge, V., & Roberts, C. (2005). Broadband technology: an appraisal of government policy and use by small- and medium-sized enterprises. Journal of Property Investment and Finance, 23(6), 516–524.

    Article  Google Scholar 

  • Strader, T. J., Ramaswami, S. N., & Houle, P. A. (2007). Perceived network externalities and communication technology acceptance. European Journal of Information Systems, 16, 54–65.

    Article  Google Scholar 

  • Taylor, S., & Todd, P. A. (1995). Understanding information technology usage: A test of competing models. Information Systems Research, 6(2), 144–176.

    Google Scholar 

  • Taylor, M., & Murphy, A. (2004). SMEs and e-business. Journal of Small Business and Enterprise Development, 11(3), 280–289.

    Article  Google Scholar 

  • Tornatzky, L. G., & Klein, K. J. (1982). Innovation characteristics and innovation adoption-implementation: a meta analysis of findings. IEEE Transactions on Engineering Management, 29(11), 28–45.

    Article  Google Scholar 

  • Viatel (2005). Viatel broadband for business [Online] Available:http://www.viatel.com/uplds/NetServ_Broadband.pdf [Accessed 7/11/2005].

  • Walsham, G. (1995). The emergence of interpretivism in IS research. Information Systems Research, 6(4), 376–394.

    Article  Google Scholar 

  • Woolgar, S. (1996). Technologies as cultural artifacts. In W. H. Dutton & W. H. Dutton (Eds.), Information and communication technologies: Visions and realities (pp. 87–102). Oxford: Oxford University Press.

    Google Scholar 

Download references

Author information

Authors and Affiliations

Authors

Corresponding author

Correspondence to Anastasia Papazafeiropoulou.

Rights and permissions

Reprints and permissions

About this article

Cite this article

Oni, O., Papazafeiropoulou, A. Diverse views on IT innovation diffusion among SMEs: Influencing factors of broadband adoption. Inf Syst Front 16, 729–747 (2014). https://doi.org/10.1007/s10796-012-9384-7

Download citation

  • Published:

  • Issue Date:

  • DOI: https://doi.org/10.1007/s10796-012-9384-7

Keywords

Navigation