AN EMPIRICAL ANALYSIS OF FACTORS INFLUENCING INTERNET/E-BUSINESS TECHNOLOGIES ADOPTION BY SMES IN CANADA

Abstract

Small and medium enterprises (SMEs) around the world engage in e-commerce and e-business to support business operations as well as to enhance revenue generation from nontraditional sources. Internet and e-business technologies (IEBT) are the pillars of e-commerce and e-business. Despite the universal appeal of IEBT, it has been reported that the adoption of such technologies by SMEs is influenced by contextual imperatives. The objective of this research is to investigate factors impacting the adoption of IEBT in SMEs based in the Maritime region of Canada. A research model based on the diffusion of innovation (DIT) and the Technology–Organization–Environment (TOE) frameworks was used to guide the discourse. Such factors as relative advantage, compatibility, complexity, management support, organizational readiness, external pressure, and government support were used to develop relevant hypotheses. Questionnaires were mailed to key informants in SMEs. Data analysis was performed using the partial least squares (PLS) technique. Predictions related to relative advantage, management support, and competition's pressure were confirmed. The study did not support the constructs of compatibility, complexity, government support, customers' and partners' pressures as significant predictors of IEBT adoption by the SMEs in the region.