Information and communications technology adoption and use in small and medium businesses : The influence of Hispanic ethnicity

Purpose – The purpose of this paper is to examine the influence of Hispanic ethnicity on the adoption and use of information and communication technology (ICT) tools by small‐ and medium‐sized enterprises (SMEs) in a southwestern renewal community (RC). Design/methodology/approach – The paper investigates the influence of ethnicity on the adoption and use of information and communications technologies in small and medium enterprises using a sample from the RC of a large southwestern metroplex. Findings – Results point to a continuing digital divide among Hispanic and non‐Hispanic SME owners. Non‐Hispanic SME owners were found to be much more likely to adopt a wider range of ICTs and to use them for both administrative and analytical purposes. Hispanic SME owners not only failed to adopt a full range of ICTs but also they were less likely to use ICTs for long‐term strategic analyses. Originality/value – The differences presented in this paper suggest that Hispanic SME owners may not be exploiting ICTs in order to achieve optimal operating efficiency and strategic effectiveness. The outcomes are particularly alarming because SMEs in RC areas have been the target of federal efforts to raise business productivity and profitability. The continuing digital divide may be undermining the very polices designed to enhance business operations in these relatively disadvantaged urban areas.