The Importance of Information and Communication Technologies (ICTs) : An Integration of the Extant Literature on ICT Adoption in Small and Medium Enterprises

Information and Communication Technologies (ICTs) possess the potential to contribute significantly to economic growth. Given their many benefits, small and large businesses are adopting ICTs to support their competitiveness, productivity and profitability. However, ICT adoption in small and medium enterprises (SMEs) differs from that of larger organizations because of the specific characteristics of SMEs, such as resources constraints. It is therefore important to understand the theoretical models used to explain ICT adoption in SMEs, to better appreciate the key factors that influence the adoption and use of such technologies by these businesses. This paper reviews the technology innovation literature to explore two of these theoretical models – the diffusion of innovation theory and the technology, organization and environment framework – in proposing an integrated theoretical model of ICT adoption by SMEs. This integrated model includes an overarching typology, which classifies some of the key internal and external factors that influence SMEs’ ICT adoption. The integrated model provides a sound framework for future search on ICT adoption by SMEs in both developed and developing countries