1114 E-Business Adoption in SMEs ing, 2004). Our study reveals that the majority of managers’ understanding of e-business tends to be consistent with the current level of e-business DGRSWLRQLQWKHLU¿UPV +ROGLQJ83²7KH,QÀXHQWLDO)RUFHV For E-Business Non-Adoption The barriers that hold companies back from adopting e-business technology are discussed with the directors through a structured question. The question adopted several measurements appeared in literature, and used 5 likart scale in order to LGHQWLI\WKHPRVWLQÀXHQWLDOLQKLELWRUVWKDWKROG XS¿UPVLQFOLPELQJXS the adoption ladder. The results are summarized in Table 6. Lack of Resources and Training /LPLWHGUHVRXUFHVHJ¿QDQFLDOWLPHPDQDJH- ment, training, personnel) are often highlighted as major factors impacting the decision to adopt e-business. Lawrence (2002) argues that resource limitations such as time and capital coupled with preferences for traditional mechanisms to do EXVLQHVVLQKLELWHG¿UPVIURPJDLQLQJEHQH¿WV from introducing e-commerce technology. In this study, lack of resources has been seen as a main obstacle to adopting e-business technologies. This refers to limited personnel, training, and expertise. Managers explained that being small companies, the employees have to train themselves on how to use the functions of the technologies that the company has adopted, i.e. how to use the Internet and how to access information and how to use search engines to obtain higher numbers of hits. As the usage of complex e-business technology LVPLQLPDOLQWKHVH¿UPVIRUPDOWUDLQLQJLVQRW required by the users, nor is such training pro- YLGHGE\WKH¿UP SMEs have been seen as spending little on technology, therefore they do not use the opti- mum solutions for much of their business. As a result, they are unable to invest in new technol- ogy that could actually help put them on the fast track. However, this study shows that the cost of enabling e-business technology appears not WR EHD EDUULHU WR WKHVH ¿UPV DV VKRZQ E\ WKH mean score (3.13). This support the arguments WKDW¿QDQFLDOUHVRXUFHVGRQRWDIIHFWWKHGHFLVLRQ on whether or not to adopt Internet technologies (Mehrtens, Cragg, & Mills, 2001), and that cost is not a main concern when making e-business decisions (Ramsey et al. 2003). Items as Barriers Mean Standard Devia- tion Lack of resources to adopt 2.73 1.20 Lack of training to implement these technologies 2.75 1.26 Lack of customer demand 2.80 1.32 8QFRQYLQFHGRIWKHSRWHQWLDOEHQH¿WV 2.98 1.33 Lack of relevance to the business 3.08 1.35 Cost of enabling e-business technology 3.13 1.14 E-business seen as a greater threat than an opportunity 3.85 1.21 Bandwidth – connecting to the Internet 4.10 0.87 1-Hardest obstacle, 5- Not an obstacle Table 6. Barriers to implement e-business technology 1115 E-Business Adoption in SMEs The Industry Nature and Tradition Some managers commented that e-business technologies are not relevant to the industry and there is no demand from customers for using these technologies. Managers explained that the nature of the industry requires regular face-to-face or telephone contact when describing electronic components. Another reason is that people are used to using traditional methods such as phone or fax. They feel more comfortable continuing to use these technologies, as opposed to investing in new technologies, which may require consider- able training. This suggests that the nature of the industry, the common practice, and the traditional ZD\RIGRLQJEXVLQHVVLPSRVHDVLJQL¿FDQWLPSDFW on the adoption of new technologies. Ramsey et al.’s (2003) addresses the unique nature of an industry in relation to utilization of Internet technology. They assert that each day the owner PDQDJHULVPRUHSUHRFFXSLHGZLWK³¿UH¿JKWLQJ´ WRUHDOL]HDQGIXO¿OOFXVWRPHURUGHUVZKHUHWKHUH is a heavy reliance on face-to-face contact. The service is highly tangible and is not really suited to the e-business environment. The high level of intangibility of the service/product mix can be viewed as one of the major impediments to future utilization of Internet commerce by this particular business. Lack of Push from Supply Chain (Customer Demand) Fillis et al. (2004) speculate that there may be a sense that business is dictated mainly by the end customer, supplier or distributor who does not want to embrace e-business technology, instead preferring conventional, traditional methods. The data in Table 6 shows that the SME managers in this industry feel there is a lack of demand from customers to use online selling and buying. This implies that the downstream supply chain (could also be from the upstream chain) demand has a notable impact on the level and scale of adopting advanced e-business technologies. Lack of Vision and Industrial Champion The vision and attitude of the owner managers WRZDUGV,7DGRSWLRQDUHLGHQWL¿HGDVDQLQÀXHQ- tial factor by Chong, (2001) and Levy and Powell (2002). Successful companies that embrace IT and Internet technologies are often ones in which the visionary owner takes on the role as innova- tion champion of IT adoption. However, many managers of SMEs prefer the comfort of what they perceive as familiar over indulging into any QHZYHQWXUH7KH\DUHUHOXFWDQWWR³WKLQNRXWVLGH the box” in order to seek new business solutions (Cyert & March, 1992). In this study, some man- agers don’t perceive (or are not convinced by) the SRWHQWLDOVWUDWHJLFEHQH¿WV RIEHLQJ WKH¿UVW WR utilize new technologies. Some managers do not perceive the relevance of using new technologies to their business, although they understand the online buying and selling functions offered by the t e c h n olo g ie s. A la c k of v i s i on a n d r i s k t a k i n g m ay be speculated as the reason leading to the current situation. We echo Gary’s (2003) argument that w h e t h er t h e a d o p t i o n i s d r i v e n b y b u s i n es s de m a n d or technology push, the owner managers need to be personally ready before moving on to the next stage and that the process involves learning and new knowledge. In summary, a lack of resources, and a lack RIYLVLRQRIWKHSRWHQWLDOEHQH¿WVDUHLQÀXHQWLDO factors that are internal to the SMEs, whereas the industry common practice and a lack of push from supply chain constitute external factors. These factors hamper SMEs in proactively adopting e- EXVLQHVVWHFKQRORJLHVLHKROGLQJXSWKH¿UPV on the adoption ladder/staircase). Other internal factors, such as Internet access, bandwidth, and cost appear not to be critical obstacles in adopting HEXVLQHVVWHFKQRORJLHVLQWKRVH¿UPV 1116 E-Business Adoption in SMEs A Forward View of E-Adoption Pattern Regarding the importance and the future of adopting e-business technology, 65% of the man- agers interviewed think e-business technology (predominantly Internet and e-mail) is important to their companies. Table 7 shows managers’ perceptions of the future of adopting e-business WHFKQRORJ\ZLWKLQWKHLU¿UPV The dominant view is to adopt e-business tech- nology in conjunction with conventional methods RIG R L Q J E X V L QH V V L H W K H ³FO L F N V D Q G P R U W D U ´ S D W- W H U Q 1 R Q H RI W KH ¿ U P V L Q W H U Y L H ZH G D U H F R Q V L G H U L Q J transforming into a purely online business. This has been emphasized by the managers that the industry requires regular face-to-face or telephone contact with customers and employees prefer to adhere to the traditional way of doing business. It is noted that 17.5% consider using e-business WHFKQRORJ\WRDPLQLPXPOHYHODQG¿UPV never intend to use e-business technologies. It ap- pears that industry common practice has a strong LQÀXHQFHRQWKHVH60(V7KLVVLWXDWLRQPD\QRW FKDQJHVLJQL¿FDQWO\LQDVKRUWSHULRGRIWLPHDV RIWKHPDQDJHUVLQWHUYLHZHGDUHVDWLV¿HG with the e-business technology adopted, and less than a quarter (22.5%) of the managers expressed GLVVDWLVIDFWLRQ XQOHVV VLJQL¿FDQW SUHVVXUH DQG push from external stakeholders, particularly from suppliers and customers emerge. Table 7. The future outlook of e-business Views Number % (N=40) ³8VHHEXVLQHVVWHFKQRORJ\WRJHWKHUZLWKFRQYHQWLRQDOEXVLQHVVPHWKRGV´ 31 77.5% ³&RQVLGHUXVLQJPLQLPDOHEXVLQHVVWHFKQRORJ\LQWKHIXWXUH´ 717.5% ³1RLQWHQWLRQWRXVHHEXVLQHVVLQWKHIXWXUH´ 25.0% ³5HO\HQWLUHO\RQHEXVLQHVVWHFKQRORJ\DQGEHFRPHDSXUHO\RQOLQHEXVLQHVV´ 00.0% MANAGERIAL IMPLEMENTATIONS $OWKRXJKVRPHRIWKH¿QGLQJVWHQGWREHFRP- mon to all SMEs (e.g., lack of resources), some ¿QGLQJVDUHXQLTXHLQWKHFRQWH[WRIWKLVVWXG\ 7KHVH GLVWLQFW ¿QGLQJV KDYH LPSOLFDWLRQV LQ providing guidance on practical application of e-business technologies in SMEs and in devel- oping e-adoption models. Firstly, industry com- mon practice, peer pressure, and customer push need to be recognized as major external forces WKDWLQÀXHQFHWKHOHYHORIDGRSWLRQRIHEXVLQHVV technology in SMEs. Even though this study is QRWDLPHGWRVFLHQWL¿FDOO\WHVWZKHWKHUH[WHUQDO forces outweigh internal forces, its results indicate WKDWH[WHUQDOIRUFHVWHQGWREHDVWURQJLQÀXHQWLDO factor in affecting the level and scale of e-tech- nology adoption in this particular industry. The ¿QGLQJVDSSURYHWKDWPRVW60(VDUHIROORZHUV in their sector in terms of adopting technology. It can be envisaged that an industry champion/or OHDGHU ZKR GHPRQVWUDWHV VWUDWHJLF EHQH¿WV RI adopting advanced technologies, together with a strong demand from suppliers or customers could LQÀXHQFHPDQ\60(VPRYLQJXSWRWKHKLJKHU level of the adoption ladder, although there are internal resource constraints. This implies that the pattern of adopting e-business technologies may not be linear as depicted in Figure 1 (i.e., SMEs may not necessarily move from Internet level to e-commerce level and then to e-business level). It is possible that many SMEs in the electronic components industry may engage in business 1117 E-Business Adoption in SMEs process change based on an intranet-based sup- ply chain infrastructure while conducting online buying and selling. This is a non-linear path of adopting e-business technology. Based on such speculation, the e-adoption model may need to EH PRGL¿HG WR LQFOXGH D QRQOLQHDU SDWK ZLWK FRQVLGHUDWLRQRIWKHGULYLQJIRUFHVIURPD¿UP¶V internal and external environment. Figure 3 de- picts such a model. Secondly, owner managers need to develop a strategic vision, and the industry needs a cham- pion to lead. As far as the SMEs in the electronics components industry is concerned, there needs to b e an ext er n al push a s wel l a s an i nter n al bu sine ss GULYHUWRPDNHVPDOO¿UPVSURDFWLYHO\HQJDJHLQ adopting advanced e-business technologies. This could be achieved by inspiring owner managers ZLWKLPPHGLDWHEHQH¿WVDQGVWUDWHJLFFRPSHWL- tive) advantages of using e-business technologies. The key to success is to provide a cost/time saving DVZHOODVÀH[LEOHOHDUQLQJRSSRUWXQLW\IRUWKH owner managers who are busy in managing daily business and seeking new business opportunities. Thirdly, the IT industry that provides e-business solutions needs to articulate explicitly the poten- tial and added value of technologies to owner managers. The products and services need to be tailor-made to suit the unique needs of SMEs, and vendors’ support and training should be priori- WL]HGWR60(VFOLHQWVGXHWRWKHVLJQL¿FDQWODFN of expertise, specialist knowledge, and resources in the SME sector. Lastly, the e-business environ- ment and infrastructure need to be continuously improved to facilitate e-business application in SMEs. This includes easy Internet/broadband access, government incentives for SMEs, secure order processing and payment systems, distribu- tion infrastructure supporting online transactions, online taxation and legislation. These are generally uncontrollable factors to SME managers but they could pose direct impact on the level of adoption as external forces. )LJXUH$QHDGRSWLRQODGGHUZLWKLQÀXHQWLDOIDFWRUV 1. e-mail 2. website 4. e-business 5. transformed organisations Extent of Organizational Change and Technology Sophistication Business Benefits 3. e-Commerce Pushing Up Forces Holding-up Barriers Business benefit Competition, peer pressure, benchmarking Awareness, understanding of technology Lack of resources Lack of vision Lack of external pressure 1118 E-Business Adoption in SMEs CONCLUSION 7KH¿QGLQJVRIWKLVVWXG\VKHGOLJKWRQVRPHRI the issues concerning the engagement of e-busi- ness in SMEs. SMEs in the electronic components industry are at the lower ladder of adopting e-business technology. The technologies used are predominantly e-mail and Internet, and are used primarily as an additional marketing tool to display company’s products and services infor- mation, rather than as an e-commerce platform to enable online transactions and organizational transformation. The problems underpinning the low adoption of sophisticated e-business technol- ogy lie not in Internet access, cost and managerial understanding, but in the external forces including industry/sector practice, lack of push from supply chain, as well as internal factors such as lack of resources, expertise and strategic vision to lead. Even though half of the owner managers are aware of e-business functions, awareness of e-business VWUDWHJLFEHQH¿WVFDQEHIXUWKHULPSURYHG$VIDU a s t h i s i n d u s t r y i s c o n c e r n e d , a p u s h f r o m e x t e r n a l forces could quickly change the picture of the level and the scale of e-business adoption. The ¿QGLQJVDOVRVXJJHVWWKDWHEXVLQHVVDGRSWLRQPD\ not follow a linear path and the adoption pattern PD\EHVSHFL¿FWRHDFKLQGXVWU\VHFWRU 7KH¿QGLQJVUHSRUWHGLQWKLVVWXG\QHHGWREH interpreted with caution due to the limitations of the unique industry selected and the small sample VL]H+RZHYHUWKH¿QGLQJVDUHXVHIXOLQUDLVLQJ the question as to whether there exists a general pattern or model of e-business adoption that can ¿WDOO60(VHFWRUV,WDOVRRSHQVDGRRUWRH[DP- LQHLIH[WHUQDOIRUFHVKDYHPRUHLQÀXHQFHWKDQ internal forces in the SME sector. Aggregated ¿QGLQJVRQWKHOHYHORIHEXVLQHVVDGRSWLRQIURP multiple industry-based studies neglected sector difference, and the results are not consistent to generate a common adoption pattern/model. Therefore, further study of a similar nature in VSHFL¿FLQGXVWU\QHHGVWREHFRQGXFWHGVRWKDW the unique needs and problems related to that industries/sectors in adopting e-business tech- nology can be appropriately addressed, and the ¿QGLQJVJHQHUDWHGIURPGLIIHUHQWLQGXVWU\VHFWRU can be compared in the context of developing an e-business adoption model. REFERENCES Allcock, S. P. A., Webber, S., & Yeates, R. (1999). Business information and the Internet: Use of the Internet as an information resource for SME. British Library Research and Information Report. (136). Barnett, R. R., & Mackness, J. R. (1983). An ac- WLRQUHVHDUFKVWXG\RIVPDOO¿UPPDQDJHPHQW Management Journal of Applied Systems, 10, 63-83. Boone, C., De Brabander, B., & Hellemans, J. (2000) Research note: CEO locus of control and VPDOO ¿UPSHUIRUPDQFHOrganization Studies, 21(3), 641-646. Carmichael, C., Turgoose, C., Gary, M.O., & Todd, C. (2000). Innovation and SMEs the case of Yorkshire, UK. 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The Journal of Enterprise Information Management, 17(4), 301-311. Stone, M. (2003). SME e-business and supplier- customer relations. Journal of Small Business and Enterprise Development, 10(3), 345-353. This work was previously published in International Journal of E-Business Research, Vol. 3, Issue 1, edited by I. Lee, pp. 74-90, copyright 2007 by IGI Publishing (an imprint of IGI Global). 1121 Copyright © 2009, IGI Global, distributing in print or electronic forms without written permission of IGI Global is prohibited. Chapter 4.10 Adoption of Mobile Technology in the Supply Chain: An Exploratory Cross-Case Analysis Bill Doolin Auckland University of Technology, New Zealand Eman Al Haj Ali Higher Colleges of Technology, UAE ABSTRACT The increasing utilization of mobile commerce technologies in e-business raises the question of their use in supply chain integration and manage- ment. This article presents a multiple case study investigation of the adoption of mobile technol- ogy in the supply chain. A technology-organiza- tion-environment framework of the contextual LQÀXHQFHVRQWHFKQRORJLFDOLQQRYDWLRQDGRSWLRQ is used to inform an analysis of three companies’ adoption and use of mobile data solutions for sales automation, freight tracking, and service support. Analysis of the three case studies found that the relative advantage of the technological innovation and the information intensity of the company were WKHPRVWLPSRUWDQWIDFWRUVLQÀXHQFLQJDGRSWLRQ 2WKHUIDFWRUVWKDWDSSHDUHGWRLQÀXHQFHDGRSWLRQ included the compatibility of the technology with the company’s business approach, the presence of top management support, and the degree of organizational readiness. Environmental factors such as competition within the industry or busi- QHVV SDUWQHU LQÀXHQFH VHHPHG OHVV LQÀXHQWLDO for these pioneers of mobile technology use in supply-side activities. INTRODUCTION 6XSSO\FKDLQPDQDJHPHQW6&0FDQEHGH¿QHG DV ³WKH SURFHVV RI PDQDJLQJ UHODWLRQVKLSV LQ- IRUPDWLRQDQGPDWHULDOVÀRZDFURVVHQWHUSULVH borders to deliver enhanced customer service and economic value” (Mentzer et al., 2001, p. 10). Information technology (IT) is pervasive in SCM, and with the development of e-com- merce it is playing an increasingly strategic role 1122 Adoption of Mobile Technology in the Supply Chain as supply chain activities are conducted, linked, and integrated electronically (Bhatt & Emdad, 2001). Companies are seeking to gain competitive advantage and create responsiveness to markets by adopting IT that enables them to utilize and manage information and knowledge within and across the extended enterprise (Lau et al., 2006). Of relevance to this article is the relatively recent but rapid development of mobile commerce and its application to SCM. Mobile commerce is the conduct of e-com- merce through mobile or handheld computing devices (e.g., mobile phones, PDAs, and tablet PCs), using wireless technologies and telecom- munication networks (Siau, Lim, & Shen, 2003). Such mobile technologies facilitate communica- tion, Internet access, data exchange, and trans- actional capabilities largely independent of time and location. The result is increased real-time interaction between companies, employees, supply chain partners, and customers, enhanc- LQJ RSHUDWLRQDO HI¿FLHQF\ DQG SURYLGLQJ QHZ opportunities for customer service (Shankar & O’Driscoll, 2002). A number of studies have examined the potential for mobile commerce to be applied to SCM. Mobile technologies are envisaged to have the most impact in areas of SCM such as e-procurement; materials handling; warehousing; LQYHQWRU\PDQDJHPHQWORJLVWLFVDQGIXO¿OPHQW DVVHWWUDFNLQJVDOHVDQG¿HOGIRUFHDXWRPDWLRQ and dispatch management. For example, it has been argued that mobile applications integrated with a company’s enterprise systems can provide greater visibility into supply chain operations, leading to real-time order status information and more responsive service management (Kalakota, Robinson, & Gundepudi, 2003). When deployed to mobile employees such as sales representatives or WHFKQLFDO¿HOGVHUYLFHWHDPVPRELOHWHFKQRORJLHV can automate data collection, deliver necessary information to employees wherever their location, and reduce the time needed to update data from WKH¿HOGIRUWKHUHVWRIWKHFRPSDQ\UHVXOWLQJ in improved workforce productivity, process HI¿FLHQF\ GDWD DFFXUDF\ DQG VHUYLFH TXDOLW\ (Rangone & Renga, 2006). The idea that mobile commerce can transform 6&0LVUHÀHFWHGLQWKHGHYHORSPHQWRIFRQFHSWV VXFK DV ³XQWHWKHUHG´ 6KDQNDU 2¶'ULVFROO ³DGDSWLYH´ .DODNRWD HW DO DQG ³UHVSRQVLYH´ /DX HW DO VXSSO\ FKDLQV However, there are few empirical studies that focus on the adoption and implementation of mobile commerce in the supply chain activities of companies—those that do have tended to report RQ¿QDQFLDOO\PRGHVWRUUHODWLYHO\VLPSOHDSSOLFD- tions that support mobile activities (operational mobility) rather than the mobile transmission of data (transmission mobility) (Rangone & Renga, 2006). In contrast, this article examines the adop- tion of more complex mobile applications that sup- port transmission mobility as well as operational mobility, and integrate with existing company information systems and have the potential to change operating procedures and activities. Since the organizational adoption of mobile commerce technologies in the supply chain is not well understood, we use an exploratory case study approach to provide an analysis of three New Zealand companies’ development and use of mobile data solutions. We draw on the IT in- n o v a t i on a d o p t i o n l i t e r a t u r e t o i n f o r m o u r a n a l ys i s . The next section summarizes this literature and presents a conceptual framework based on techno- logical, organizational, and environmental factors LQÀXHQFLQJWKHLQQRYDWLRQDGRSWLRQGHFLVLRQ:H then outline the research method used in the study before presenting our analysis of the three case VWXGLHV7KH¿QDOSDUWRIWKHDUWLFOHV\QWKHVL]HV some conclusions from the cross-case comparison and discusses the implications for research and practice in this area. 1123 Adoption of Mobile Technology in the Supply Chain ORGANIZATIONAL ADOPTION OF IT INNOVATIONS There is a long-standing interest in the adoption of IT innovations in the study of information systems. In this article we are concerned with the primary adoption of an innovation by an organization, rather than its secondary adoption by individuals in the organization. By organizational adoption of an innovation we mean a process beginning with initial awareness and evaluation of a new technology or product, followed by a decision to purchase and implement the innovation, and ¿QDOO\LWVDFFHSWDQFHRUDVVLPLODWLRQZLWKLQWKH organization (Frambach & Schillewaert, 2002). Researchers have utilized a number of ap- proaches in attempting to explain why organi- zations adopt IT-related innovations. Probably the most common approach used is one based DURXQGWKHLGHQWL¿FDWLRQRIDVHWRIFRQWLQJHQF\ factors that collectively explain the innovation adoption decision or outcome (Fichman, 2004; Frambach & Schillewaert, 2002; Jeyaraj, Rottman, & Lacity, 2006). Many contingency or factor studies of IT innovation adoption tend to follow D³WHFKQRORJ\RUJDQL]DWLRQHQYLURQPHQW´PRGHO pioneered by DePietro, Wiarda, and Fleischer (1990). The number of empirical studies following this approach provides support for its usefulness and, following calls to extend this framework to other innovation domains (Chau & Tam, 1997; Thong, 1999; Zhu, Kraemer, & Xu, 2003), we have used it to organize our exploratory study of WKHFRQWH[WXDOLQÀXHQFHVRQWKHRUJDQL]DWLRQDO adoption of mobile commerce technologies in the supply chain. The technology-organization-environment model proposes that organizational innovation DGRSWLRQ LV LQÀXHQFHG E\ WKUHH HOHPHQWV RI context: (1) the perceived attributes of the tech- nological innovation, (2) organizational charac- teristics, and (3) environmental conditions. Prior VWXGLHVRILQQRYDWLRQDGRSWLRQKDYHLGHQWL¿HGD complex and rich group of potentially relevant factors within each of these three elements—too many for a single study to examine (Frambach & Schillewaert, 2002; Russell & Hoag, 2004). The adoption model we use in this study is shown in Figure 1. It includes three high-level factors for )LJXUH&RQWH[WXDOLQÀXHQFHVRQPRELOHFRPPHUFHWHFKQRORJ\DGRSWLRQµ¶DQGµ¶LQGLFDWHDSRVLWLYH RUQHJDWLYHLQÀXHQFHRQDGRSWLRQUHVSHFWLYHO\ Technology Relative advantage (+) Compatibility (+) Complexity (-) Organisation Information intensity (+) Leadership (+) Organizational readiness (+) Mobile commerce technology adoption Environment Competitive intensity (+) Partner influence (+) Available support (+) . demand from customers to use online selling and buying. This implies that the downstream supply chain (could also be from the upstream chain) demand has a notable impact on the level and. Lack of Vision and Industrial Champion The vision and attitude of the owner managers WRZDUGV,7DGRSWLRQDUHLGHQWL¿HGDVDQLQÀXHQ- tial factor by Chong, (2001) and Levy and Powell (2002) Adoption in SMEs The Industry Nature and Tradition Some managers commented that e-business technologies are not relevant to the industry and there is no demand from customers for using these