An exploratory study of the extent of information technology adoption in SMEs: an application of upper echelon theory
Journal of Enterprise Information Management
ISSN: 1741-0398
Article publication date: 13 February 2009
Abstract
Purpose
The paper aims to investigate the effect of compositions of managerial/demographic characteristics of the top management team (TMT) on the extent of information technology (IT) adoption in small businesses (SMEs), where such strategic decisions made by TMT have direct and significant influence on all aspects of business operations and its competitive position in a market.
Design/methodology/approach
Based on the upper echelon theory, the study formulated four hypotheses relating the compositions of TMT characteristics to the extent of IT adoption in different functional areas. Multiple regression analysis was employed to analyze the data.
Findings
The age average and the education average of TMT in small businesses are significant predictors of the extent of IT adoption. However, the group heterogeneity (either gender or ethnicity), contrary to the prediction, has negative impact on the extent of IT adoption.
Practical implications
The research findings indicate that the age and education composition of managers as current/future top management is critical to facilitate the extent of IT adoption in SMEs.
Originality/value
The research contributes to the body of knowledge in IT adoption by complementing the results of prior research with the findings that the characteristic compositions of TMT affect the extent of IT adoption in SMEs, applying the upper echelon theory to examine issues surrounding IT adoption, and suggesting practical implications that SMEs could compose, educate, and rejuvenate their top management teams to achieve a high extent of IT adoption.
Keywords
Citation
Chuang, T., Nakatani, K. and Zhou, D. (2009), "An exploratory study of the extent of information technology adoption in SMEs: an application of upper echelon theory", Journal of Enterprise Information Management, Vol. 22 No. 1/2, pp. 183-196. https://doi.org/10.1108/17410390910932821
Publisher
:Emerald Group Publishing Limited
Copyright © 2009, Emerald Group Publishing Limited