The determinants of information communications technology adoption by small and medium enterprises in the Capricorn District Municipality

Abstract

Information and communication technologies (ICT) and its impact in the economic, social and personal development has become an important object of scientific research in recent decades. Theoretical and empirical studies have demonstrated the necessity to gain and exploit positive outcomes such as productivity growth, organisation expansion, efficiency, effectiveness, competitiveness and so on of ICT adoption and implementation in various organisations. Therefore, the aim of this paper is to investigate the determinants of ICT adoption by SMEs for improved performance. The study utilised the quantitative research approach whereby a survey was conducted using convenience and snowball sampling methods. Data was tested for reliability using the Cronbach’ Alpha. Furthermore, descriptive analysis was conducted as well as correlation and regression tests. The questionnaire was developed from the empirical literature review. The determinants of ICT adoption were represented by perceived ease of use, perceived usefulness, entrepreneurial orientation, entrepreneurial passion, personal factors, business characteristics and performance. Based on the results, SMEs should seek to adopt ICT using the determinants which were assessed as they show how effective a business can improve performance if these determinants are used to adopt ICT. Furthermore, more should be done by government to give support and awareness to SMEs on various aspects that can improve their businesses such as ICT. Keywords: ICT, SMEs, Determinants, Adoption, Performance