DIGITAL DIVIDE OF SMALL AND MEDIUM-SIZED ENTERPRISES: AN ANALYSIS OF INFLUENCING FACTORS USING THE TOE THEORY

SOUZA, CESAR ALEXANDRE DE; SIQUEIRA, ÉRICA SOUZA; REINHARD, NICOLAU

doi:10.1590/1678-69712017/administracao.v18n2p15-48

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Resources and Entrepreneurial Development • RAM, Rev. Adm. Mackenzie 18 (02) • Mar-Apr 2017 • https://doi.org/10.1590/1678-69712017/administracao.v18n2p15-48 copy

DIGITAL DIVIDE OF SMALL AND MEDIUM-SIZED ENTERPRISES: AN ANALYSIS OF INFLUENCING FACTORS USING THE TOE THEORY

EXCLUSÃO DIGITAL DAS PEQUENAS E MÉDIAS EMPRESAS: UMA ANÁLISE DOS FATORES INFLUENCIADORES UTILIZANDO TEORIA TOE

BRECHA DIGITAL DE PEQUEÑAS Y MEDIANAS EMPRESAS: ANÁLISIS DE LOS FACTORES DE INFLUENCIA UTILIZANDO LA TEORÍA TOE

Authorship SCIMAGO INSTITUTIONS RANKINGS

ABSTRACT

Purpose:

This study describes the phenomenon of digital divide in small and medium enterprises in Brazil by means of an indicator of ICTs use in these organizations.

Originality/gap/relevance/implications:

There are several studies on the adoption of ICTs by organizations, however rare are those that explore the topic using the concept of digital divide. This study addresses the second order digital divide, related to the effective use of ICTs by companies.

Key methodological aspects:

The study was carried out based on a sample of 3,231 companies participating in the "TIC Empresas" survey of 2014 (published in 2015). By means of structural equations, an index was created to measure the intensity of the ICTs use in organizations and factors that affect it were verified through linear regressions.

Summary of key results:

The first result concerns the feasibility of an index that measures the ICTs use. Then, when analyzing its distribution, we can see the discrepancy of values between companies in relation to their size. The regression analysis indicates that the access to technology and the Internet, as well as ICTs skills and attitudes are factors correlated to a more intense use of ICTs by organizations.

Key considerations/conclusions:

Digital divide is a phenomenon related to high enterprise mortality rates and low productivity in small and medium-sized enterprises. This study outlines a possible way to study this phenomenon, integrating an adoption model (TOE) and a model of ICTs use in the context of second order digital divide.

KEYWORDS:
Digital divide; TOE; IT organizational use; SMEs; ICT4D

Context	Factors	Author
Organizational	Strategic Alignment: aligning IT with the IT needs of the organization	Ramos, Silva and Alverga (2009)Ramos, A., Silva, E., & Alverga, P. (2009). O papel estratégico da TI nas micro e pequenas empresas. Natal: Sebrae.; Mirchandani and Motwani (2001)Mirchandani, D. A., & Motwani, J. (2001). Understanding small business electronic commerce adoption: an empirical analysis. Journal of Computer Information Systems, 41(3), 70-73.
	Skills with ICT: skills in computer and internet use	Harindranath, Dyerson, and Barnes (2008)Harindranath, G., Dyerson, R., & Barnes, D. (2008). ICT in small firms: factors affecting the adoption and use of ICT in Southeast England SMEs. In Proceedings of the 2008 European Conference on Information Systems. Paper No. 167, Galway: ECIS.; *Ramos et al. (2009)*Ramos, A., Silva, E., & Alverga, P. (2009). O papel estratégico da TI nas micro e pequenas empresas. Natal: Sebrae.
	Attitude: positive attitude of managers towards ICT	Li and Xie (2012)Li, P., & Xie, W. (2012). A strategic framework for determining e-commerce adoption. Journal of Technology Management in China, 7(1), 22-35.; *Harindranath et al. (2008)Harindranath, G., Dyerson, R., & Barnes, D. (2008). ICT in small firms: factors affecting the adoption and use of ICT in Southeast England SMEs. In Proceedings of the 2008 European Conference on Information Systems. Paper No. 167, Galway: ECIS.; Dewan and Riggins (2005)Dewan, R., & Riggins, F. J. (2005). The digital divide: current and future research directions. Journal of the Association for Information Systems, 6(12), 298-337.; Kuan and Chau (2001)*Kuan, K. K. Y., & Chau, P. Y. K. (2001). A perception-based model for EDI adoption in small business using technology-organization-environment framework. Information & Management, 38(8), 507-521.
Technological	Infrastructure: computers, network, internet and connection type.	Oliveira and Martins (2010)Oliveira, T., & Martins, M. F. (2010). Firms patterns of e-business adoption: evidence for the European Union. The Electronic Journal Information Systems Evaluation, 13(1), 47-56.; *Zhu et al. (2003)Zhu, K., Kraemer, K., & Xu, S. (2003). Electronic business adoption by European firms: a cross-country assessment of the facilitators and inhibitors. European Journal of Information Systems, 12(4), 251-268.; Li and Xie (2012)Li, P., & Xie, W. (2012). A strategic framework for determining e-commerce adoption. Journal of Technology Management in China, 7(1), 22-35.; Ramos et al. (2009)*Ramos, A., Silva, E., & Alverga, P. (2009). O papel estratégico da TI nas micro e pequenas empresas. Natal: Sebrae.
External Environment	External Support: support from vendors for use of solutions	Alshamaila, Papagiannidis, and Li (2013)Alshamaila, Y., Papagiannidis, S., & Li, F. (2013). Cloud computing adoption by SMEs in the north east of England: a multi-perspective framework. Journal of Enterprise information Management, 26(3), 250-275.; Ramdani and Kawalek (2008)Ramdani, B., & Kawalek P,. (2008). Predicting SMEs willingness to adapt ERP, CRM, SCM & e-procurement systems. In Proceedings of the 2008 European Conference on Information Systems. Paper No. 222. Galway: ECIS .; Del Aguila-Obra and Padilla-Meléndez (2006)Del Aguila-Obra, A. R., & Padilla-Meléndez, A. P. (2006). Organizational factors affecting Internet technology adoption. Internet Research, 16(1), 94-110.
External Environment	Pressure/Influence of the Market, partners, suppliers and customers.	*Alshamaila et al. (2013)Alshamaila, Y., Papagiannidis, S., & Li, F. (2013). Cloud computing adoption by SMEs in the north east of England: a multi-perspective framework. Journal of Enterprise information Management, 26(3), 250-275.; Iacovou, Benbasat and Dexter (1995)*Iacovou, C., Benbasat, I., & Dexter, A.. (1995). An electronic data interchange and small organizations: adoption and impact of technology. MIS Quarterly, 19(4), 465-485.

Dimension of IT Use	Questions of “TIC Empresas” Survey
Internal Integration	Did you use ERP to integrate data and processes? (yes/no)
	Did you use CRM to manage customer information? (yes/no)
	Training and education? (yes/no)
	Recruit internal and external staff? (yes/no)
Decision support	Market monitoring? (yes/no)
	Search for product or service information? (yes/no)
	Search for government information? (yes/no)
External integration	Order or reservation system? (yes/no)
	After-sales support? (yes/no)
	Customization or personalization of products for customers? (yes/no)

Size (in function of quantity of employees)		Frequency	Percentage	Accumulated percentage
Small	From 10 to 19	598	18,5%	18,5%
Small	From 20 to 49	1,058	32,7%	51,3%
Medium	From 50 to 99	784	24,3%	75,5%
Medium	From 100 to 249	791	24,5%	100,0%
	Total	3,231	100,0%

	SMEs sample	Average	Standard deviation	1st Quartile	Median	3rd Quartile
ICTs Use Index for SMEs in 2014	3.231	0.591	0.199	0.459	0.592	0.743

Construct	Composite Reliability
External integration	0.74
Internal Integration	0.76
Decision support	0.73
ICTs Use	0.72

(AND T-TEST VALUE IN PARENTHESES FOR FACTOR LOADS) Indicator	Internal Integration	Decision support	External integration
Do you use CRM?	0.65 (39.4)	0.15	0.04
Do you use ERP?	0.65 (42.6)	0.13	0.13
Do you use Internet for External/Internal Recruitment?	0.66 (48.0)	0.28	0.14
Do you use Internet for Training and Education?	0.68 (49.7)	0.19	0.19
Do you use Internet to Research Government Information?	0.19	0.72 (45.0)	0.11
Do you use Internet to Research Information on Products and Services?	0.11	0.60 (21.7)	0.06
Do you use Internet for market monitoring?	0.28	0.75 (52.0)	0.04
Do you have the option of Product Customization in the Website?	0.06	0.04	0.62 (21.0)
Do you have the option of Orders and Reservations in the Website?	0.20	0.11	0.79 (42.8)
Do you have the option of after-sales services in the Website?	0.12	0.05	0.67 (28.0)

Construct	AVE
External integration	0.48
Internal integration	0.44
Decision support	0.48
ICTs use	0.47

	External integration	Internal Integration	Decision support
External integration	0.70
Internal integration	0.20	0.66
Decision support	0.10	0.29	0.69

Dimensions	Use of ICTs
Internal Integration	0.83 (91.0)
Decision support	0.66 (36.1)
External integration	0.52 (19.4)

Dimensions	Factors	Questions in the “TIC Empresas” Survey	Type of Variable
Technological	Infrastructure	Number of computers (desktop/notebooks/tablets) in the company by employee (calculated from the variables in the microdata)	Metric
		Does the company have LAN/wired network?	Binary
		Does the company have LAN/wireless network?	Binary
		Does the company have Intranet?	Binary
		Does the company have Extranet?	Binary
		In the last 12 months, has the company used a dedicated link connection?	Binary
		In the last 12 months, has the company used a fiber optic connection?	Binary
		In the last 12 months, has the company used a cable connection?	Binary
		In the last 12 months, has the company used a radio connection?	Binary
		In the last 12 months, has the company used a satellite connection?	Binary
		In the last 12 months, has the company used a 3G or 4G modem?	Binary
		Higher access speed considering all connections is greater than 10 Mbps?	Binary
Organizational	Alignment	There is an IT area in the company (recoding the question: the person interviewed holds a position in IT: yes or no)	Binary
	Alignment	Did the company have to hire IT professionals in the last 12 months?	Binary
	Skills with ICTs	% of employees who have used Internet for work purposes at least once a week in the last 12 months? (Calculated from the variables in the microdata)	Metric
	Skills with ICTs	In the last 12 months, has the company used any open source operating system, such as Linux?	Binary
	Attitude in relation to ICTs	In the last 12 months, has the company introduced new software not previously used by the company?	Binary
	Attitude in relation to ICTs	In the last 12 months, has the company updated the version of one or more software already used by the company?	Binary
External Environment	External Support	Any of the functions requiring IT specialists or the use of computers and Internet has been performed by external suppliers, in whole or in part, in the last 12 months?	Binary
	Market influence: Partners, suppliers, customers	In the last 12 months, has the company bought goods or services over the Internet?	Binary
		In the last 12 months, has the company sold goods or services over the Internet?	Binary
		Sector of operation (codified by binary variables for each of the sectors covered in the survey according to the CNAE code)	Category

Dimensions	Factor	Questions in the Survey TIC Empresas 2014	Medium-sized enterprises: R² aj.= 31.4%		Small-sized enterprises: R²aj.=32.6%
Dimensions	Factor	Questions in the Survey TIC Empresas 2014	Standard Beta	Sig.	Standard Beta	Sig.
Technological	Infrastructure	Does the company have LAN/wireless network?	.082	.000	.068	.002
		Does the company have Intranet?	.133	.000	.121	.000
		Does the company have Extranet?	.102	.000	.096	.000
		In the last 12 months has the company used a dedicated link connection?	.080	.001	.065	.004
		In the last 12 months, has the company used a fiber optic connection?	N.S. ^() ()** N.S. – not significant: the variable was not included in the model because it has shown a significance level under 5%.		.053	.016
		In the last 12 months, has the company used a cable connection?	.060	.015	N.S.
		In the last 12 months, has the company used a 3G or 4G modem?	.067	.003	.086	.000
		Higher access speed considering all connections are greater than 10 Mbps?	N.S.		.067	.003
Organizational	Alignment	Is there an IT area in the company?	.115	.000	N.S.
	Alignment	Did the company have to hire IT professionals in the last 12 months?	.068	.003	.070	.002
	Skills with ICTs	% of employees who have used Internet for work purposes at least once a week in the last 12 months? (Calculated from the variables in the microdata)	.161	.000	.187	.000
	Skills with ICTs	In the last 12 months, did the company use any open source operating system, such as Linux?	.060	.016	.128	.000
	Attitude in relation to ICTs	In the last 12 months, has the company introduced new software not previously used by the company?	.177	.000	.162	.000
	Attitude in relation to ICTs	In the last 12 months, has the company updated the version of one or more software already used by the company?	.055	.012	N.S.
External Environment	External Support	Any of the functions requiring IT specialists or the use of computers and Internet was performed by external suppliers, in whole or in part, in the last 12 months?	.083	.000	N.S.
	Market influence: Partners, suppliers, customers	In the last 12 months, has the company bought goods or services over the Internet?	.096	.000	.161	.000
		Sector: Transformation Industry	.136	.000	.047	.040
		Sector: “Business; repair of motor vehicles, personal objects”	.090	.000	N.S.
		Sector: “Housing and Food”	.096	.000	N.S.
		Sector: “Information and Communication”	N.S.		-.052	.033
		Sector: “Art, culture, sport and recreation; Other service activities”	.061	.009	N.S.

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