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

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