424 SMEs ECT Reality the same Web directory or ISP, and the companies’ willingness to participate in the study. A series of questions were prepared, and each manager was personally interviewed using a semi-structured interview format. Semi-structured interviews FDOOIRUDVSHFL¿FOLVWRITXHVWLRQVWREHDVNHGLQ DVSHFL¿FRUGHUEXWSHUPLWVWKHLQWHUYLHZHUWR ask optional questions, pass on others, and depart EULHÀ\WRIROORZXQH[SHFWHGSDWKV/LQGORI The semi-structured interviews were conducted in the SME premises with the owner-manager or a similar decision maker, for example a partner or marketing director. Each interview lasted an hour. Interviews were both noted and tape-re- corded, and then transcribed. Understanding of the problems and conceptualisation improved as more companies were interviewed. The analysis of the semi-structured interviews took the form of hierarchical coding using template analysis as described by King (1998). Hierarchi- cal coding enables the analysis of text at varying OHYHOV RI VSHFL¿FLW\ 7KHPHV LQ WKH LQWHUYLHZV were coded and grouped, thus forming groups of similar codes clustered together to produce a more general higher order codes. A pragmatic decision was made to stop the process of develop- ing and modifying the analytical template, when there where no relevant sections of transcript uncoded, and there was a clear understanding of what each code meant (King, 1998). Broad, higher codes give an overview of the general direction of the interview, while detailed lower- RUGHUFRGHVDOORZIRUWKH¿QHGLVWLQFWLRQVERWK within cases and between cases, thus enabling a within and between groups comparison (Miles & Huberman, 1994). BACKGROUND OF PARTICIPATING COMPANIES SMEs that participated in the semi-structured interviews were selected from a Web directory, ³MerseyWorld”, that was part of a European funded project, managed by Connect. Connect DFWHGERWKDVD³F\EHUPHGLDU\´DQG,63WKURXJK the MerseyWorld site (Charlton, Gittings, Leng, Little, & Neilson, 1998), as well as a change agent (Charlton, Gittings, Leng, Little, & Neilson, 1997). As a change agent, Connect was responsible for the diffusion of Internet. The primarily concern was providing businesses with the necessary Internet knowhow to effectively exploit the technology and bring businesses onto the Internet. This was performed through Awareness Days, Short Course Programmes, The MerseyWorld Site, and its Work Experience and Work Placement SURJUDPPHV$VD³cybermediary” through the MerseyWorld site, Connect aimed at marketing the electronic potential of the Merseyside region. A Web presence was developed for businesses based on information submitted in any format. Connect employed programmers, designers and system specialists to develop the Web sites. Any company could join MerseyWorld, whether it KDGDQH[LVWLQJ:HESUHVHQFHRUQRW7KH¿UVW 12 months were free of charge irrespective of the level of service the company chooses. Start- ing from the second year charges were incurred depending on the type of service selected. At the time of conducting the interviews, all SMEs hosted their Web presence on MerseyWorld. All interviewed companies have between two and four years experience with the Web pres- ence. The interviewed companies fall within two groups (Elsammani, Hackney, & Scown, 2004; (OVDPPDQL 6FRZQ 7KH ¿UVW JURXS is Need Pull (NP) SMEs that had the initiative to develop their own Web presence, either in- house or through a Web design bureau, before approaching the change agent. NP SMEs were attracted by the services offered by the change DJHQW³HVSHFLDOO\VXEPLVVLRQWRVHDUFKHQJLQHV attractive,” and were encouraged to host their site in the MerseyWorld directory. The second group is Technology Push (TP) SMEs. These companies were pushed into adopting a Web presence, mainly through the change agent efforts in awareness 425 SMEs ECT Reality creation and free Web design and hosting. TP 60(VUHSRUWHGWKDW³IUHH:HEGHVLJQZDVWKH main incentive in adopting a Web presence at WKHWLPH´DVWKH\GLVFRYHUHG³WKHFRPSOH[LW\RI Web design and development while attending the awareness courses.” The majority of participants were small companies with up to 25 employees, and only one company was medium sized (case 11). The semi-structured interviews were conducted in the SME premises with the owner-manager or a similar decision maker, for example, a partner or marketing director (case 11, case 3, case 7, case 2). The interviewed owner-mangers where PRVWO\PDOHVZLWKWKHH[FHSWLRQRIWKUHH¿UPV where owner-manager was female (case 7, case 8, FDVH$OO¿UPVZHUHLQGHSHQGHQWO\RZQHGDQG were not in partnership with larger organisations. Generally, the interviewed companies are mature companies established for more than six years, with the exception of one young company (case 8) established for less than three years. Overall, the sample is a mixture of business-to-business (B2B) and business-to-consumer (B2C) compa- nies. Most companies operate in local and national markets, with the exception of two companies that have international clients and customers (case 3 and case 7). Companies come from a diversity of industry sectors: manufacturing, retail, real estate, DQG¿QDQFLDOLQWHUPHGLDWLRQ7DEOHSURYLGHVDQ overall presentation of participants in the semi- structured interviews. IMPLEMENTATION HISTORY NP SMEs and TP SMEs mainly differ by where the Web presence was initially developed and in the years of experience with the Web presence (see Table 1). NP SMEs have been internally motivated, either by the owner manager or a mem- ber of staff. Their initial adoption decisions was LQÀXHQFHGE\WKHLGHQWL¿HGEXVLQHVVQHHGDIWHU experiencing the advantages of using e-mail for communication and observing the fast adoption of the new technology. These companies own a Web presence between three and four years. They developed their initial Web site either in-house or approached a Web design bureau. Contrary, TP SMEs own a Web presence for two to three years. They have been externally motivated by the change agent’s efforts in the diffusion of ECT. TP SMEs initial Web site was developed by the change agent, hence their initial adoption GHFLVLRQ ZDV VWURQJO\ LQÀXHQFHG DQG OLPLWHG by the services provided by the change agent or perceived change agent. Within the two to four years of ECT adop- tion, most NP SMEs and TP SMEs subsequently redesigned and developed a number of Web sites with the exception of three companies. Two TP SMEs (case 1 and case 2) still use the same site developed by the change agent, and one NP SMEs (case 3) where the site was originally developed by an enthusiastic member of staff, but the company lost interest in further investment in the Web pres- HQFHDVLWZDVRIQRVLJQL¿FDQFHWRWKHFRPSDQ\ Web site update and management was either done in-house by owner-manager and/or members of staff, or outsourced to a Web designer and/or the change agent. Reasons for subsequent Web site redesign and development include: update Web site functionality (NP case 5, NP case 6, TP case 8), keep customer interest (NP case 4), improve Web site aesthetics (TP case 7, TP case 1), and the site developed by change agent was basic (TP case 9, and TP case 10). Table 2 provides a summary of SMEs’ Web site implementation and subsequent redesign. Although NP and TP SMEs differed in their initial adoption decision and Web site develop- ment, evidence shows that overtime, there is an overlap in their subsequent development and management practices. A retrospective analysis of WKHLULPSOHPHQWDWLRQEHKDYLRXUUHÀHFWVDQXPEHU of patterns in the allocation of resources, devel- opment process, and strategic planning. These SDWWHU QVDUHQRWVSHFL¿FWRHLWKHUJURXSDOWKRXJK 426 SMEs ECT Reality SMEs Managed by (gender) Number of employees Business Activity Industry Market Years of Experience with Website First Website Developed by NP/TP Case 11 Partnership (male) Medium (50 employees + 60 part-time) B2C & B2B Manufacture; Publishing National 3 years In-house by IT Staff NP Case3 Partnership (male) Small (25 employees) B2B Financial Intermediation; business insurance International and national 3 years In-house by owner- manager NP Case5 Owner-manager (male) Small (25 employees) B2B Real Estate, Renting & Business; renting out equipment National 3 years In-house by owner- manager NP Case6 Owner-manager (male) Small (20 employees) B2C Other social & personal services National 4 years In-house by owner- manager NP Case4 Owner-manager (male) Micro (3 employees) B2B & B2C Manufacture of Textile and Textile Products National 3 years ISP (different than MerseyWorld) NP Case7 Partnership (female) Small (12 full time + 60 part-time) B2B Real Estate, Renting & Business; labour recruitment International and national 2 years Change Agent (Connect) TP Case2 Partnership (male) Small (30 employees) B2B Financial Intermediation; business insurance Local 2 years Change Agent (Connect) TP Case8 Owner-manager (female) Micro (2 employees) B2C Manufacture of Textile and Textile Products National 3 years Change Agent (different than Connect) TP Case9 Owner-manager (male) Micro (3 employees) B2C Retail Trade of books National 2 years Change Agent (Connect) TP Case10 Owner-manager (male) Micro (2 employees) B2C Retail of Music Records National 3 years Change Agent (Connect) TP Case1 Owner-manager (female) Micro (5 employees) B2C Retail Sale of Clothing National 3 years Change Agent (Connect) TP Table 1. Description of SME participants in semi-structured interviews 427 SMEs ECT Reality NP/TP SME Initial Website developed Years of Experience History of Websites Adopted Reasons for subsequent re-design Update and management Case11 (NP) In-house by IT Staff 3 years &XUUHQW¿QDOVLWHGHYHORSHGE\&RQQHFWXQGHUWKH supervision of Marketing Director (MD) Lately, management directed attention towards website Update by MD or IT staff. Outsource re-design to Connect Case3 (NP) In-house by owner- manager 3 years Thinking of developing a second site. Will outsource development to a web designer 1RWVLJQL¿FDQWWRWKHFRPSDQ\ No point in update Case5 (NP) In-house by owner- manager 3 years Two sites are running simultaneously on MerseyWorld. Each has different functionality. Both sites designed and developed by owner-manager Add e-commerce solution, waiting one year for response from Connect Owner-manager IT person and tidies the site every 3-4 months Case4 (NP) ISP (other than MerseyWorld) 3 years Three times a year the site is re-designed and updated Keep customer interest. Need new domain name On going update and re-design by owner-manager Case6 (NP) In-house by owner- manager 4 years Current (second) website developed last year by a university student. Still not functioning Add online quoting system, free service of student scheme Update yearly by owner-manager Case7 (TP) Change Agent (Connect) 2 years They had a number of false starts with local design companies. Final site is developed by Web design bureau but is hosted on MerseyWorld Change the look and feel of the site Day-to-day update by admin staff. Out-sourced the re-design of website Case2 (TP) Change Agent (Connect) 2 years 6WLOOXVHVWKH¿UVWVLWHGHYHORSHGE\&KDQJH$JHQW No urgent need to re-design Day-to-day update by management Case8 (TP) Change Agent (different than Connect) 3 years Current (second) website by Change Agent, third site under construction for the last six months slow progress due to communication problems with designer Add functionality e-commerce and online diary of events Out source day-to-day management and redesign of the site. Owner lacks skills Case9 (TP) Change Agent (Connect) 2 years Immediately, owner-manger started changing and re-designing the site developed by Change Agent. Not happy with site initially developed by change agent Update and management by owner- manager Case10 (TP) Change Agent (Connect) 3 years Developed in-house a new website which is hosted in three different ISPs with three different domain names Site developed by change agent was too basic Continuous update and re-design of website by owner-manager Case1 (TP) Change Agent (Connect) 3 years Current (second) site developed by amateur web designer but is hosted it at MerseyWorld web directory Update products, look and feel Outsource update due lack of skills. Update yearly. Table 2. Historical account of initial Web sites implementation and subsequent re-design 428 SMEs ECT Reality some behaviour might be more dominant in one group than the other. Some companies, irrespec- tive of whether they are NP or TP, prefer to be self-reliant and depend on internal resources, while other companies prefer to outsource. Some SMEs (particularly NP SMEs) are active adopters that dynamically add changes to Web presence functionality, while other companies (mostly TP SMEs) take a more passive stance by limiting Web site changes to update of informa- WLRQ7KHFKDQJHVPDGHE\DFWLYHPRGL¿HUVDUH not always driven by strategic planning, but are based on ad-hoc decisions and choices to gain WDQJLEOHEHQH¿WVDQGFRPSHWLWLYHDGYDQWDJH Contrary, passive adopters had limited impact on the Web presence maintenance and their Web presence is either updated sporadically mainly to update content, or the Web presence is in a static state with minimum or no update. Table 3 gives a details account of each interviewed company and the development patterns that inform their implementation behaviour. The remaining part of this section discusses these patterns and the LQÀXHQFLQJIDFWRUV Outsource vs. In-House (Self-Reliance) Web site management can be viewed from two perspectives: the update and management of day- to-day information, and the major design changes. 0RVW60(V DFTXLUHG VXI¿FLHQW Web authoring skills to aid them in managing the Web presence, either due to owner-manager’s personal interest in Web authoring or through the change agent awareness and knowhow training. NP SMEs updated their site on a daily and monthly basis, contrary to TP SMEs who update their site on a quarterly or yearly basis. In most companies, both TP SMEs and NP SMEs, day-to-day updates are usually managed in-house whether by own-man- ager or other in-house staff, with the exception of two companies (TP case 1, and TP case 8) that outsource day-to-day updates (see Table 2). We update if there is something major, if we are doing a new product. I will change it but in a general sense I probably tidy it up, make a few changes to make it look different if nothing else, probably every two/three months. (NP case 5) …as far as the majority of the actual text informa- tion is concerned, we have the ability to change it from here. As far as any interactive screens are concerned, we don’t and obviously we’re going to go back to [Web design Bureau] for that. (NP case 6) I think I might have been tempted originally if ,ZDVÀXVKZLWKPRQH\EXW,¶PDOPRVWSOHDVHG WKDW,ZDVQ¶WÀXVKZLWKPRQH\DWWKHEHJLQQLQJ because it taught me how to do it myself, I mean very amateurishly really but the thing is, it is working and it’s selling books. (TP case 9) 60(VWKDWDUHFRQ¿GHQWZLWKWKHLU:HEDXWKRU- LQJVNLOOVGRQRW¿QGWKHQHHGWRHPSOR\PRUH staff to manage the site. For these companies out- sourcing, Web site maintenance and subsequent redesign, to external professional Web design companies is not a solution they have considered. SMEs’ preference to depend on internal resources, rather than approach a professional Web design company, is driven by: fear of high maintenance FRVWVODFNRIMXVWL¿FDWLRQIRUFRVWVIRUFRQWLQXRXV update, lack of trust in designers’ capability, fear of losing control over the Web presence, and lack of time to liaise and communicate with designer. These factors are evident from the following statements. Basically the cost really, to get a professional Web design company to do it, doesn’t warrant the actual expenditure really I don’t think because what’s there is ok and if we went to a professional company, all they’d do is, they’d still be asking us for more photos and more graphics, they wouldn’t be going out taking pictures of our events, so it’s 429 SMEs ECT Reality NP/TP SME Years of Experience Resources Development Process Planning Outsource In-house Passive Adopter $FWLYH0RGL¿HU No Planning or Ad-hoc Planning Tendency for Strategic Planning Case11 (NP) 3 years 33 3 3 Case3 (NP) 3 years 33 3 Case5 (NP) 3 years 33 3 Case4 (NP) 3 years 33 3 Case6 (NP) 4 years 33 3 3 Case7 (TP) 2 years 33 3 3 Case2 (TP) 2 years 33 3 Case8 (TP) 3 years 33 3 Case9 (TP) 2 years 333 Case10 (TP) 3 years 333 Case1 (TP) 3 years 33 3 Table 3. Implementation patterns of subsequent Web presence implementation 430 SMEs ECT Reality just paying them to put it on the screen correctly and I can do that anyway. (NP case 6) We’ve got a couple of new pictures to go on it and we’ve had to change the title on the top of every page because the designer that did the original site didn’t use a recognised sponsor, I’ve been through SKRQHQXPEHUVDQG,FDQ¶W¿QGKHUVKH¶VOHIW the University, I can’t track her down and I got to a point where I’d spent a couple of days trying WR¿QGKHUDQG,MXVWWKRXJKW,¶PZDVWLQJWLPH here, bugger it, we’ll just change every heading instead, so we just came back and just changed every heading. (NP case 4) Although most NP SMEs are capable of per- forming major aesthetic design changes internally within the company, they tend to depend on ex- ternal expertise as they implement more complex ECT solution. For example a NP SMEs (case 5) has two ongoing Web sites, a catalogue site and an e-commerce site which was developed with the help of change agent. The e-commerce site is online for more than a year but is not functioning effectively. The owner-manager is waiting for the change agent to resolve the technical problem and provide adequate EC solution. We have two Web sites, we have a catalogue, a magazine if you like … and we have an email, e-commerce thing …The e-commerce site is SQL server-based which means that if you actually click it, you call up a database, a pick list if you like and it is slow and we are talking just now to [Consultant at Connect] he can improve po- tential customer access to it in terms of speed of delivery. … so we have had business through the catalogue but not through the e-commerce site … it is enquiries that lead to business but not directly, there is always a second stage in it, we are not directly selling from the e-commerce site at all, hence our continued discussions with Connect about its effectiveness. (NP case 5) In comparison to N P SMES, TP SMEs tend to depend more on external expertise, e.g., the Web design bureau as well as designer at the change agent. Some TP companies (TP case 8 and TP case 1) have not reached a stage of self-reliance and depend on the change agent’s services for d a y - t o - d a y u p d a t e a s w e l l a s s u b s e q u e n t r e d e s i g n . This can explain why the majority of TP SMEs XSGDWHWKHLUVLWHTXDUWHUO\RU\HDUO\DQGDVLJQL¿- cant number of TP SMEs were not aware of how frequent or when the site will be updated. More- over, TP SMEs dependence on the change agent (or perceived change agent) is driven by the cost for redesign and trust in designer (change agent) rather than evaluation of possible EC solution or services provided. We have just designed another one [site] I’ve done the pictures and all that stuff… I asked Con- nect to price this for me and at last the count was £1,700 and rising… so I went across the road to a computer place that does computers he’s going to charge me £300 against £1,700 and rising… so there’s a big difference. (TP case 1) Now having done it [site] and having seen that there are 200,000 people around the world who now know there’s a company called [name of business] in the Wirral, I’m quite happy and I’m prepared to pay for it to be refreshed because those are the people [Connect] who have helped us and I trust them, at the end of the day it’s my company. (TP case 2) In summary, most NP and TP companies are capable of conducting day-to-day updates, but there is a tendency to outsource major Web site redesign especially with the increase in complexity of Web site functionality. This pattern is evident in the more technically capable NP SMEs. The less capable TP SMEs tend to outsource most Web site management whether day-to-day or subsequent redesign of a new site. SME’s choice RI:HEGHVLJQEXUHDXLVEDVHGRQWKHMXVWL¿FDWLRQ 431 SMEs ECT Reality of costs and trust (or lack of trust) in external professional support and services. 3DVVLYH$GRSWHUYV$FWLYH0RGL¿HU The majority of NP SMEs have developed their Web presence in-house and have control over their adoption decisions. These companies are mostly DFWLYH PRGL¿HUV 7KH\ KDG LQLWLDOO\ GHYHORSHG their Web site either in-house or approached a Web design bureau. Most NP SMEs continue to manage and update their Web presence on a regular daily or monthly basis depending on their internal resources. These companies are technologically self-reliant in Web authoring using Netscape, HTML, and Dreamweaver. Most redesign and update, performed in-house, is apparent at the aesthetic and layout level of design rather than improving functionality. This behaviour is carried on to the subsequent development and redesign phases (see Table 2). The majority of NP owner-managers took a pragmatic and short-term approach to Web site development. Owner-managers update and redesign the site, on a daily and monthly basis, as and when they felt the need to add changes. 7KLV IUHTXHQF\ RIXSGDWH LV PRVWO\ LQÀXHQFHG by owner-manager’s enthusiasm and interest in Web authoring, as well as, their personal view on the quality of the Web site after comparison with competitor’s Web sites. Moreover, in some F DVH V RZ QHU PDQD JHU V K DYH LGH QWL¿H GDE X VL Q H VV need to update the content and the feel of the site. Thus, the Web presence is not developed at one stage, but redesigned and updated frequently due to management enthusiasm, technical self-reli- ance, perceived knowledge of Web authoring, and SHUFHLYHGEHQH¿WVJDLQHGIURPDGRSWLRQ I am the IT man. I have Netscape and Internet Explorer at home and I check if the colours are ¿QH%HFDXVHDQ\RQHFDQGHVLJQD:HEVLWHDQ\RQH can sit and use Internet Explorer. Companies are UH¿QLQJDQGXSGDWLQJDOOWKHWLPH«,WLG\LWXS every 3-4 months…I’ve got WSFTP at home and here, so this weekend I’ll pull that down and make the amendments and then resubmit it. I’ll do that during the course of the weekend. (NP case 5) We’d already done one, a very, very crude one ourselves. When we got an ISP, we got the free Web space, so we’d done one, a very crude one [site] that was Merseynet, our ISP which is the local ISP…it was a mess, it was very crude and not very well laid out, we didn’t know anything about it. Then we found out about the Internet courses at Connect, we went on them and at the time Connect were actually doing a free design service which we took up, we got a free Web site designed by one of their 3 rd or 4 th year students and then we started going on html courses, Java Script courses and gradually we’ve just changed it completely. (NP case 4) It’s as much amusement as anything else but we advertise the Web site all the time…we’re get- ting around 3,500 hits a month, something like that. So even if we don’t get anything back from it, we’re still advertising in the same sense as a billboard poster or a newspaper advert, you don’t necessarily get anything back but you’ve got to just assume that it’s going somewhere to someone who’s interested, certainly in the keywords that are coming up on the searches. The end result is YHU\GLI¿FXOWWRVHH(NP case 5) Most TP SMEs can be described as passive adopter, where the initial Web presence was de- veloped by change agent and their choice of Web VLWHZDVVWURQJO\LQÀXHQFHGDQGOLPLWHGE\WKH offers provided by the change agent (TP case 1, TP case 2 and TP case 8). Some TP SMEs (case 8 and case 1) continue to be passive adopters and outsource the update and management as well as the development of their subsequent Web sites. Other TP SMEs still use the same Web site devel- oped initially by the change agent, with minimum update of Web site content in their three years of 432 SMEs ECT Reality adoption (TP case 1 and TP case 2). TP SMEs u p d a t e t h e i r s i t e m o s t l y o n a n a d - h o c m a n n e r b a s e d on circumstance or resources. These companies do not see the need to redesign. In particular, one company (TP case 2) is not thinking of redesign- ing another site, and in case they did, they will approach the change agent. How we came to launch it was, we actually got contacted by Liverpool University who said that they had European funding available for com- panies on the Merseyside area, to help them to develop Web sites and they have an organisation called Connect at the University and it’s very good and the upshot was that we went along one day and had a long conversation about the Internet and they would design and launch the Web site for us which they have done…for the amount of money that we would pay Connect, it’s not worth it [in-house management of the site]. It’s some- thing being better off outsourced and our sense of design is terrible…I’m quite happy and I’m prepared to pay for it [Web site] to be refreshed because those [Connect] are the people who have helped us and I trust them, at the end of the day it’s my company. (TP case 2) Nonetheless, some TP SME (case 9 and case EHFDPHDFWLYHPRGL¿HUVE\DFTXLULQJ:HE authoring skills. One owner-manager (TP case ZDVQRWVDWLV¿HGZLWKWKH:HEVLWHGHYHORSHG by the change agent and redesigned a new Web site within a short time from receiving that site. The Web authoring knowledge and skills, gained from change agent training and owner-manager personal efforts, were used in tearing out the Web presence developed by the change agent and redesigning a new site. …I took the course and realised how much there was to know and I went for the deal of a free Web site design which I think involved half a day’s consultation and then a day’s Web site design from them and wasn’t at all pleased with the job that’s has been done for me…In a sense I got what I asked for, on the home page but I got things that I did not ask for or did not want. On the subordinate pages I did not get the links I wanted and I got over fancy designs…so I rewrote the links and eventually developed the site…from the courses, we were allowed to develop it ourselves and it’s grown to about 65 pages now. They don’t offer help, they will give you help if you ask, but you need to ask. (TP case 9) ,QVXPPDU\1360(VDUHDFWLYHPRGL¿HUV who have the technical knowhow, Web authoring skills, and technological awareness to update and redesign their Web presence. Contrary, most TP SMEs can be described as passive adopters with limited Web authoring knowledge and technical ability, and who depend mostly on external sources for management and update. Although, two TP 60(VEHFRPHDFWLYHPRGL¿HUVPDQDJLQJWKHLU own Web presence, however, most companies within this group tend to remain passive adopters (see Table 3). Ad-Hoc Planning vs. Strategic Planning Whether SMEs are passive adopters or active PRGL¿HUV WKHUH LV DQ LPSOLFLW DVVXPSWLRQ LQ literature that the effectiveness of a Web site is dependent on a clear link between objectives, planning/strategy and Web site design and func- tionality (McNaughton, 2001; Wen, Chen, & Hwang, 2001). Strategy entails the deployment of resources to achieve organisational aims and ob- jectives (O’Regan & Ghobadian, 2004). Strategic planning relates the activities of an organisation to the mission and goals that should guide the organisation’s activities and provides a basis for the allocation of resources to a project and for its evaluation (Clyde, 2000). In the case of Web site development, strategic planning process provides DEDVLVIRUWKHLGHQWL¿FDWLRQRIWKHUHVRXUFHVDQG skills that are needed at each stage of the Web 433 SMEs ECT Reality presence development and maintenance (Clyde, 2000). $FWLYH PRGL¿HUV 60(V DUH FRPSDQLHV WKDW reached a stage of self-reliance in managing their Web presence. These companies are more advantageous in their development and mainte- nance practices. They are keen on experiment- ing with different ECT solutions and scenarios. The Web site is in a continuous state of update and redesign. The aim is not only the update of content and product information, changing the feel and look of the site to attract customers and increase sales, but also adding new functionalities to the site (see Table 2). These owner-managers compare their Web site with competitors’ Web sites and try to improve their Web presence to gain competitive advantage. However, in most cases the choice of changes made to the site and ECT solution, is not the result of strategic plan- ning but more of ad-hoc decisions based on peer views and owner-manager’s Web authoring skills and resources. That was something I slipped in because some- body said to me that if you’re selling stuff on the Internet you need to have a returns procedure as well which I didn’t think about to be honest. Yes, I’ve been told it’s just business etiquette, it’s nice to have a returns procedure and a policy but I never really thought about it. (TP case 10) 6RPHDFWLYHPRGL¿HUVKDGWKHLULQLWLDO:HE presence developed by professional Web design bureau. These companies depend on in-house resources for day-to-day update and management of the Web site content but outsource major rede- sign to professional Web design companies. These companies show a clear link between the business objective to attract customers to the site, and the maintenance activities that include changes to the improve Web site aesthetics. However, in most scenarios, this link indicates a tendency towards strategic planning but no active steps have been taken towards incorporating a strategy to their business activity. … we add so much in and because it’s constantly changing, because we react all the time to what people are asking for, that we’d end up paying RXW¿YH RUVL[ WLPHVD\HDUWRKDYH LWFKDQJHG plus we’re both of the opinion that it needs to be changed at least three times a year just to keep people coming back to it. I mean if they keep going in and it’s the same page and it’s the same this and it’s the same pictures, it gets boring, you’ve just got to keep changing it. (NP case 4) $FWLYHPRGL¿HU60(VDUHDZDUHRIWKHQHHGWR develop e-business strategy to achieve maximum EHQH¿WVIURPWKHLU:HESUHVHQFHKRZHYHUWKH\ need the support and consultation of external expertise to help them develop a strategy. I think we perhaps need more consultation on how to develop our company and the model of ZKDWZHGRWR¿WLQZLWKWKLVQHZWHFKQRORJ\VR that it’s not just something that we can say, oh we’ve got a Web site because the whole world’s got a Web site but it’s something that does actively work for us and increase the revenue, reduce the cost, something that has a positive effect for us rather than just something that sits on a Web page somewhere. (NP case 7) Only one NP SME case 11 (a publishing company) had implemented a brand building strategy to support the value of the magazine they publish. The Web site provides information to the current magazine readers as well as other potential business advertisers on the magazine. This enhances the communication between their customer and potential advertising companies. The Web site supports the magazine, but does not replace the magazine published, which is the company’s main product. . sites and they have an organisation called Connect at the University and it’s very good and the upshot was that we went along one day and had a long conversation about the Internet and they. update and management was either done in-house by owner-manager and/ or members of staff, or outsourced to a Web designer and/ or the change agent. Reasons for subsequent Web site redesign and. case 1), and the site developed by change agent was basic (TP case 9, and TP case 10). Table 2 provides a summary of SMEs’ Web site implementation and subsequent redesign. Although NP and TP