A Perception-Based Model for Technological Innovation in Small and Medium Enterprises

Small and Medium Enterprises (SMEs) form an integral part of every economy as they are the leading providers of revenue and employment. However, as the global economy becomes more reliant on Information Communication and Technology (ICT), some SMEs are yet to reap the benefits that ICT has to offer. The low rate of adoption and innovative use of ICT amongst SMEs has become significant research topics in recent times. One of the many contributing factors towards the above is the failure of SMEs to recognise ICT as a technological innovation, thus affecting their decision to adopt ICT. This and the lack of dynamism between ICT firms and SMEs further impede the development and innovation of ICT for SMEs. Using a technology-organization-environment framework, this study attempts to address the above issue by introducing a perception-based model for technological innovation in SMEs. The model is to be further tested against data collected from an Australian context. The model has both research and practical contributions. For research, the model attempts to study the key determinants and processes of technological innovation and ICT adoption in SMEs. Further, the model attempts to help SMEs recognize that adopting ICT as a technological innovation is important but more of an adaptive than a technical challenge.