SMEs' adoption of enterprise applications: A technology-organisation-environment model

Abstract

Purpose

This paper aims to empirically explore the TOE (technology-organisation-environment) factors influencing small to medium-sized enterprises' (SMEs') adoption of enterprise applications (EA).

Design/methodology/approach

Direct interviews were used to collect data from a random sample of SMEs located in the northwest of England. Using partial least squares (PLS) technique, 102 responses were analysed.

Findings

Results indicate that technology, organisation and environment contexts impact SMEs' adoption of EA. This suggests that the TOE model is indeed a robust tool to predict the adoption of EA by SMEs.

Research limitations/implications

Although this study focused on examining factors that influence SMEs' adoption of a set of systems such as CRM and e-procurement, it fails to differentiate between factors influencing each of these applications. The model used in this study can be used by software vendors not only in developing marketing strategies that can target potential SMEs, but also to develop strategies to increase the adoption of EA among SMEs.

Practical implications

This model could be used by software vendors to determine which SMEs they should target with their products. It can also be used by policy makers to develop strategies to increase the rate of EA adoption among SMEs.

Originality/value

This paper provides a model that can predict SMEs' adoption of EA. SMEs, adoption, enterprise applications, enterprise systems, ICT, PLS, technology-organisation-environment framework, TOE

Citation

Ramdani, B., Chevers, D. and Williams, D.A. (2013), "SMEs' adoption of enterprise applications: A technology-organisation-environment model", Journal of Small Business and Enterprise Development, Vol. 20 No. 4, pp. 735-753. https://doi.org/10.1108/JSBED-12-2011-0035