Diffusion of innovation - the adoption of electronic commerce by small and medium enterprises (SMEs) in regional Australia

Abstract

[Abstract]: Many variables can influence the likelihood of innovation adoption. Analysis of these variables suggests that further research needs to be conducted to better understand the process of adoption. This paper explores the issues that influence the diffusion of innovation as it relates to the adoption of e-commerce by Small and Medium Enterprises (SMEs) particularly in regional areas. While it is generally accepted that the strategic use of Information Technology (IT) is vital in the marketplace, SMEs, especially those in regional Australia, are lagging behind. The paper examines existing theory as it pertains to the diffusion of innovation from the perspective of regional SMEs. A research study is outlined to identify the causal factors responsible for this lack of uptake of IT. It is critical to understand such factors so that steps can be taken to redress this inequity and positively influence the acceptance and use of IT innovations in SMEs in regional Australia. An empirical investigation is planned to explore this diffusion and the slow rate of uptake by SMEs. This investigation will use a survey, preceded by focus groups, to uncover factors influencing the adoption or non adoption of IT innovations by SMEs.