The Influence of Strategic Dimensions and the Environment on the Introduction of Internet as Innovation into Small and Medium-Sized Enterprises

The influence of strategic and environment variables on the adoption of the Internet by small businesses is examined. Data consisted of structured interviews with a sample of 94 small and medium-sized Spanish enterprises (SMEs). Three strategic dimensions -- entrepreneurial, administrative, and technological -- and three environmental dimensions -- dynamism, complexity, and hostility -- were studied. Results show a strong positive correlation between innovation and five of the dimensions. No correlation was found for one environmental parameter,hostility. A logistic regression analysis shows that the administrative dimension has the greatest influence on the introduction of the Internet into Spanish SMEs. Business complexity also shows a positive effect on the decision to use the Internet. The most important factor impacting a company's decision to introduce the Internet into its daily routine is that of firm size. Internal strategic features and size of the company have a greater influence on whether or not the Internet will be introduced than environmental factors.(NEE)