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Gregory J. Fleet
Associate Professor
Faculty of Business
University of New Brunswick Saint John
100 Tucker Park Road
Saint John, New Brunswick
Canada E2L 4L5
ABSTRACT
Using both primary and secondary research, this study seeks to underline the role of facilitators in
the progressive evolution and adoption of eCommerce and eBusiness among SMEs. In particular,
the paper examines the role of Internet marketing as the trigger for successful facilitation of, and
evolution to, richer eBusiness services. An earlier Atlantic Canadian study by Davies & Vladica
(2004) introduced the notion of facilitators as the key to moving SMEs along a progressive adop-
tion of ICT and eBusiness services. A more recent UK study (Gray, 2009), theorizes on the tre-
mendous challenges SMEs face in eCommerce adoption, specifically with the step from having a
basic web site to transacting with goods and services online. The implications for understanding
and assisting SMEs is obvious; as well, policy makers can now focus their policy and program ef-
forts beyond infrastructure building to training in services that can help SMEs overcome barriers
in adoption and move up the eCommerce adoption path.
or current marketing models. Proposing a new We can also note that traditionally, the focus of
model, they too suggest that the determinants governments and regional development agencies
can be grouped broadly into individual factors has been on external factors—that is, leveling
(such as the SMEs owners or managers), and ex- the playing field for SMEs. For example, in both
ternal, industry and business factors. the developed and developing economic regions
worldwide, there has been a (necessary) focus
Internal versus external barriers on infrastructure, in particular, ensuring that
non-urban and rural regions have broadband
In Figure 1 we have summarized this cross-sec- Internet access is likely one of the most global
tion of research seeking to capture the dozens approaches to reduce or minimize barriers for
of issues that potentially impede the adoption ICT adoption (Kruger & Gilroy, 2008; Sec-
of ICT. As discussed above, these factors can retariat, 2006). Yet on the issue of broadband
be easily grouped into categories that, at the access, there are some exciting developments
highest level, split between internal (within the worldwide. In our own region of Atlantic Can-
business) issues, and external (outside the busi- ada, provincial governments have committed to
ness) issues. On the right, the variety of internal and now are seeing universal broadband access
barriers to ICT adoption can be grouped into across New Brunswick, a sparsely populated,
those due to personal factors of the owner, man- largely rural province (Business New Bruns-
agement or leaders of the SMEs (personal bar- wick, 2009). In other regions such as the UK,
riers such as their awareness, knowledge of and the goal remains despite government cut-backs
attitude toward ICT solutions), those due to any and delayed deadlines. (Kable, 2010). There are
number of resource limitations faced by SMEs similar examples of policies to encourage more
(resource barriers such as real or perceived mate- widespread ICT adoption by tackling politi-
rial and skilled resources), or those due to orga- cal, economic and social barriers, to name a few
nizational and operational peculiarities within (Harindranath et. al., 2008). However, a grow-
the SMEs (organizational barriers with the cul- ing number of researchers suggest that the shift
ture or operations). On the other side, there are in funding, policy and focus needs to look more
a larger number of external barriers, that we felt to internal issues with the SMEs (Wielicki &
group together clearly using an extended PEST Arendt, 2010). Having reviewed the range of
(political, economic, social and technological) factors that can encourage or inhibit technology
analysis framework (Johnson, Scholes, & Whit- adoption among SMEs, we turn now to how re-
tington, 2008). searchers have sought to understand and model
Figure 1
Summary of the categories of barriers to the adoption of ICT by SMEs.
eBusiness adoption and thereby play an impor- In order to ensure comparability between stud-
tant factor driving ICT adoption. ies, the majority of questions remained un-
changed in the second and third studies. Some
Anecdotally, our own research over the past 10
small changes did occur, and additional ques-
years seemed to support this role of trusted fa-
tions were added to the latter surveys to explore
cilitator, but can a post hoc examination of the
the role of Internet marketing, and most re-
qualitative and quantitative data also support
cently (in the 2010 study), questions were asked
this notion?
about the use or planned use of social media.
To accommodate these additional questions,
METHOD some questions from the original surveys were
removed in order to keep the completion dura-
Quantitative studies tion similar to past surveys and more feasible
(2005, 2007 and 2010) for busy participants. Overall, the three surveys
maintained over ninety percent of their content.
The University of New Brunswick’s Electronic
Commerce Research and Training Centre (ECC) Qualitative study (2009)
is in a relatively unique position given the re-
search it has completed over the past six years. In There were also two qualitative studies conduct-
particular, the Centre has recently completed its ed, one in 2009 and one in 2010. The 2009 study
third Atlantic Canadian-wide quantitative sur- followed a pilot student internship program for
vey of SMEs and their use and adoption of ICT. SMEs. We had heard during the training work-
What is rare is having this historic frame of ref- shops and creation of case studies with Atlantic
erence using a largely consistent set of questions. Canadian SMEs that individuals outside the
SME business (friends, relatives or trusted third
Each of the three Atlantic Canada studies was
parties) played a key role in assisting them to
conducted using a secure, password-controlled
take the necessary steps to implementing more
web-based survey. Unique email invitations
advanced ICT services (Doiron et. al, 2008). (It
were sent to thousands of SMEs across the re-
is worth noting that this casual, qualitative find-
gion inviting their participation by completing
ing was used to support the federally-funded
a forty-plus item questionnaire. The email ad-
Small Business Internship Program (SBIP) in
dresses were culled from a range of local and fed-
Atlantic Canada, and extended to all of Canada
eral government and business sources. The most
in 2010; Doiron et. al., 2010).
recent 2010 study, for example, created an email
database of over eleven thousand businesses. In order to study the impact of this pilot, sev-
The survey was available for completion over a en SMEs who had participated in the Internet
period of three to four months. Regular remind- marketing-focused student internships were
ers were sent to those businesses that had yet to chosen (Doiron et. al., 2010). The program was
participate. Early participation prizes were used such that students were matched with SMEs
as incentives, as were small denomination gift and assigned projects which required them to
cards and larger technology offerings (for ex- build and implement a complementary Internet
ample, iPod touch, Netbooks). marketing strategy for the firms. Owners and
managers of these firms all felt that their eCom-
The questions in the survey requested informa- merce activities had stalled or was less than they
tion on their Internet use, perceived enablers desired them to be. The goal of the internship,
and barriers to ICT adoption, marketing and therefore, was to see whether student interns
export factors, and finally general business de- could facilitate eCommerce activity within an
tails. The purpose of each of these surveys was to SME through the introduction and use of rela-
provide a benchmark of technology adoption to tively simple Internet marketing tactics. In ad-
help frame a series of subsequent training initia- dition, we were interested to see if Internet mar-
tives. As such, the questions surveyed this range keting might serve as a catalyst to get the SMEs
of issues mostly using nominal and ordinal rat- excited about the potential growth the Internet
ing scales and response types. represents for their business and subsequently
engage them in eCommerce related activities. into these groups was based on their responses
In other words, this pilot is specifically designed to the various technology adoption questions.
to help the SME see Internet marketing as a de- In the web survey, all participants were asked if
liberate, strategic, intention decision for their their business currently uses technology to en-
business sure (a) secure transactions with consumers; (b)
an internal company website and communica-
An unstructured telephone-based interview was
tions intranet; and (c) secure business transac-
conducted with these seven SMEs, examining
tions with other businesses or governments. The
the role and success of the student intern, the
advanced group were chosen from those busi-
Internet marketing services implemented, the
nesses who answered yes to all three questions;
impact of the services, and the long-term plan
the moderate group answered yes to one or two
for these services.
questions; and the minimal technology group
answered no to all three questions.
Qualitative study (2010)
The brief unstructured telephone-based inter-
In the 2010 quantitative web survey, partici- view asked what key factors they identified as
pants were asked if they would be willing to important in their adoption, or lack of adoption
take part in a short, follow-up, in-depth tele- of ICT services.
phone survey. From the four hundred thirty-
two participants, twelve SMEs were contacted,
comprised of three groups of four businesses
each that demonstrated an advanced, moder-
ate, or minimal use of ICT. Their placement
Table 1
The Percentage of Atlantic Canadian SMES that Currently use
A Variety of Technologies and Services for their Business
(from studies in 2005, 2007 and 2010)
Figure 2
The Percentage of Atlantic Canadian SMES that Currently use
A Variety of Technologies and Services for their Business
(from studies in 2005, 2007 and 2010)
Table 2
The Percentage of Atlantic Canadian SMES that Currently use
A Variety of Marketing Services for their Business
(from 2010 study only).
were on their sales; what factors lead them to systems (where advertisements and competitive
adopt these services; and whether the adoption pressures seem to more important).
was part of a formal marketing plan. Of those
who use these services, no one indicated that
Future technology adoption
adoption resulted in a decrease in sales. While
the majority said there was no change (either A comparison of the 2010 data with that of pre-
measured or perceived), yet for the top eleven vious years, especially on the question of what
services between twenty-five and fifty percent of technologies and services SMEs plan on adopt-
SMEs indicated an increase in sales. ing the service in the near future, show some
considerable changes in opinion. In Table 3,
We further inquired about the drivers for the
there is a list of fourteen ICT services, and the
adoption of marketing services, which poten-
corresponding change in percentage of those
tially demonstrates the propensity for trusted
SMEs planning to adopt. It can be noted that
facilitators of ICT. Our respondents were asked
interest in many of these fourteen services has
which of four factors were important in their
doubled since the 2007 survey (for example,
decision to use these web marketing services.
while website design interest only grew six
If we group these factors by those that involve
percent between 2005 and 2007, it jumped to
a more personal interaction (workshops and
twelve percent between 2007 and 2010). In
recommendations) versus those drivers that
fact, three services (website development, pro-
are more impersonal and external (competitive
motional/Internet marketing services, and cus-
environment and advertising), we see that web
tomer support) grew by fourteen percent and
analytics, search engine optimization, and mul-
fifteen percent after showing only a three to five
timedia content all seem to be adopted with a
percent interest previously. This growth in op-
high percentage of workshop and personal rec-
timism is mirrored by the answer to the ques-
ommendations. This suggests that trusted facili-
tion option ‘I have no plans in this regard’. In
tators were more important with choosing and
2005 over one-third of the sample failed to see
implementing these services than for services
these technologies as part of their companies
such as pay per click or content management
Table 3
ThePercentageofAtlanticCanadianSMESthatIndicatedtheyPlan,intheNearFuture,
To use a Variety of Technologies and Services for their Business
(from studies in 2005, 2007 and 2010).
near-term plans; but this year, that number had marketing strategy for the SME. (iv) Once ap-
dropped to a mere thirteen percent. proved by the owner/manager the students be-
gan the exercise of implementing the identified
Internet marketing tactics.
Student interns as facilitators (2009)
Most SMEs began by implementing Google An-
As noted previously, in 2009 the University of alytics, which is used to monitor and measure a
New Brunswick’s ECC began a program where web site’s traffic and effectiveness. Various other
students worked with SMEs to develop Internet tactics were employed, including Facebook™ pag-
marketing opportunties. There were four impor- es, Google Adword™ campaign’s, email marketing
tant elements to these internships: (i) All SMEs campaigns and various search engine optimiza-
in this study had websites. (ii) Both students and tion activities. Success of these internships was
a representative from the SME were required to measured in various ways, the most important
sit through a one-day Internet marketing semi- of which was in increase in Internet originated
nar at or near the start of the internships. (Note: sales for the SME.
these seminars alone had proven successful in
assisting SMEs to adopt Internet marketing The results showed that five of the seven intern-
tactics or practices. For example, results follow- ships were successful. On average the interns
ing a series of training seminars which engaged implemented three Internet marketing tactics
over four hundred and fifty SMEs showed that for their employers and all five SMEs who par-
over sixty-five percent of the attendees engaged ticipated continued to utilize the Internet mar-
in one or more Internet marketing tactics). (iii) keting tactics after the internship finished. One
Students were then asked to build an Internet important note is that none of the students had
any experience in Internet marketing prior to We also found in our most recent 2010 study
the internship; that is, they essentially executed that many Internet marketing and social media
these tactics for the first time. technologies are being used (ranging between
thirty and 43 percent adoption by SMEs. We
believe that the ease of use and low cost of these
Follow-up telephone interviews (2010)
services have played a role, but our data also
The last set of results came from the telephone found that the human training and workshops
interviews that followed the 2010 web survey. and personal recommendations were identified
The 12 SMEs who participated, comprised of as important for these new technologies.
three groups of four businesses each that dem-
Earlier, we described the literature where organi-
onstrated an advanced, moderate, or minimal
zational readiness, and deliberate planning were
use of ICT (based on their responses to vari-
pre-requisites or determinants of ICT adoption.
ous technology adoption questions in the web
Our own data showed a dramatic increase in
survey). The advanced group identified three
interest in adopting specific technologies and
factors that precipitated their level of ICT adop-
services, which when coupled with inexpen-
tion: self-training and education, external train-
sive, easy to install/use services, and trusted fa-
ing, and finally in-house or external facilitators.
cilitators, provides a compelling formula for the
The moderate group also identified self-interest
adoption of more advanced ICT.
and self-training as key, as well as the attraction
or promise of larger or more accessible markets. This argument is best demonstrated by the
Finally, the group that demonstrated minimal successful student internship program (SBIP).
adoption of ICT were asked what factors have Businesses keen to find ways to make the Inter-
held them back. Not surprisingly, lack of skills net work for them, have been trained on Inter-
and/or knowledge, budget or financial con- net marketing approaches, and been provided
straints, time, and the size of their business (for with trusted facilitators to assist them with
example, owner-operated). implementation and operational details. (See
Doiron et. al, 2010 for more details about the
DISCUSSION program and its success).
In exploring the idea that slow or stalled eCom- Together, we would propose these findings indi-
merce and eBusiness adoption can be reversed cate a unique hypothesis that deserves research,
by a trusted facilitator, our data are not conclu- examination and discussion.
sive. Yet, we have tried to provide a series of sup-
The implication of these ideas for policy makers
porting arguments from the literature and from
is very direct; they can now focus their policy
our research (both quantitative and qualitative).
and program efforts on Internet marketing fa-
Our data do show that different technologies cilitation, which will be the new defining factor
are adopted by SMEs to differing degrees, and in helping SMEs overcome barriers in adoption
that over a five-year period, specific technolo- and move up the eCommerce adoption func-
gies show a range of adoption levels as well as tion.
demonstrate various growth rates. We can see
At the same time, the value for SMEs and lo-
that a number of technologies have reached or
cal economies is significant. For many SMEs,
are nearing saturation levels in Atlantic Cana-
eCommerce and eBusiness adoption is stalled
dian SMEs (for example, PCs, email, web, secu-
even though they have invested in web sites.
rity, functional software packages). Even website
Moving them up the adoption curve will serve
adoption is now well over eighty percent in our
to help them to better compete regionally, to ex-
2010 data (Fleet et. al., 2010). Yet other tech-
port their products and/or services and to open
nologies do not demonstrated the same level or
up new markets and opportunities for their
growth in adoption.
businesses. Focusing initial facilitation efforts
on Internet marketing tactics may be a worth-
while facilitation strategy which can drive sig- Dixon, T., Thompson, B., and McAllister, P.
nificant near term results. (2002). The Value of ICT for SMEs in the
UK: A Critical Literature Review (pp. 1–28).
Small Business Service Research Programme.
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