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8/7/2019 The Di usion and Adoption of Information Technology
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Technology Analysis & Strategic Management, Vol. 13, No. 2, 2001
The Diusion and Adoption of Information Technology
in Small- and Medium-sized Enterprises through ITScenarios
W. H. C. KNOL & J. H. M. STROEKEN
ABSTRACT T he rapid economic and technological developments in the globally oriented business world
make the strategic use of information technology (IT) essential. Small and medium-sized enterprises
(SMEs) are running behind regarding the application of IT and therefore it is necessary to stimulate
the diusion and adoption of this technology within this group. In this article a so-called IT scenario
model is described, with which communication can be established with entrepreneurs from SMEs
concerning the strategic application of IT. Theoretical approaches and concepts regarding the diusion
and adoption of IT are essential components of the model. The IT scenario model consists of anenvironmental aspect, six phases and three aspect areas. The model was put into operation through
various interviews with SMEs in the furnishing sector.
Introduction
Modern society is rapidly developing into a society in which information and knowledge
are of primary importance. The globalization of the economy and the rapid advances in
technological development in the eld of information technology (IT) have increasingly
focused attention on a technology policy involving evolutionary economic growth theories.
These theories provide advice that is directly related to the importance that is attached to
diusion, adoption and implementation of technology.2 This interest certainly applies to
the diusion, adoption and implementation of IT in small and medium-sized enterprises
(SMEs), as SMEs have such an important position in the national economies and the leve
of application of IT in SMEs is relatively lower than in large-scale enterprises.3 The lack of
strategic insight of the entrepreneur regarding altered product options as a result of the
introduction of IT, the alternative market and customer approach, and the desired forms
of co-
operation is an important reason why there is such a low level of application of IT inSMEs.4 The above makes it clear that it is desirable and essential for policy to stimulate the
di i d d i f IT i SME 5 Wi h hi i h ili i f
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228 W. H. C. Knol & J. H. M. Stroeken
an attitude toward the innovation, to a decision to adopt or reject, to implementation of
the new idea and to conrmation of this decision.8 Rogers denes an innovation as an
idea, practice, or object that is perceived as new by an individual or other unit of adoption.9
The stimulation of diusion and adoption requires the initiation of communication with
SMEs regarding the innovation.
10
To this purpose, this article focuses on a discussion othe so-called IT scenario model as an instrument for shaping the communication process
with regard to the strategic application of IT in SMEs. Matters like the adoption decision
process and implementation, both of which are very relevant for the innovation trajectory
will not be discussed in this article. Theoretical approaches and concepts concerning
diusion and adoption of IT are the basis for the IT scenario model and these will be given
below. Next, the creation and a business sector-specic operationalization of the model are
discussed, after which a limited test is described. Finally, some recommendations for further
research are given. The research is explorative and non-longitudinal.
Diusion of an Innovation
The development and application of a technological innovation is a process of focused
accumulation of knowledge and skills. The innovation development process can be
considered from the supply and demand side.11 The supply side focuses on the creation
production and diusion of an innovation, and the demand side encompasses the
adoption, absorption and application of an innovation. In the transition area between
supply and demand, di
usion and adoption are centremost. Di
usion generally works ata higher aggregation level than adoption, being mostly at the macro and meso-economic
levels. The adoption process, however, takes place at the level of the individual adopting
unit and at the micro-economic level the potential adopter of the innovation often is an
enterprise, a division, or an individual. As regards the diusion process, Rogers12
distinguishes four elements: (1) the innovation, (2) the social system, (3) the communication
channels and (4) time. These four elements are briey discussed below for IT in SMEs.
The Innovation
IT is viewed as an innovation here when it is felt to be relatively new by the potential
adopters.13 Freeman and Soete dene IT at a high aggregation level as a new techno-
economic paradigm aecting the management and control of production and service
systems throughout the economy, based on an inter-connected set of radical innovations
in electronic computers, software engineering, control systems, integrated circuits and
telecommunications, which have drastically reduced the cost storing, processing, com-
municating and disseminating information. It comprises a set of rms and industrie
supplying new equipment and software, but its development and applications are not
limited to this specialised information technology sector.14 From a more pragmatic and
technological perspective IT is related to all technologies used to collect store process
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IT in Small- and Medium-sized Enterprises 229
The Social System
The social system is the second element in the diusion process and Rogers denes it as
a set of interrelated units that are engaged in joint problem-solving to accomplish a
common goal.18 In this article part of the SMEs are viewed as being part of a diusion-
oriented social system and for the purposes of this research SMEs are dened as allcompanies with less than 100 employees. The attention is focused on SMEs because
compared to large-scale enterprises they have problems spreading and applying knowledge
concerning new technological innovations such as IT.19 As regards the stimulation o
diusion and adoption of innovation in SMEs, it is important to recognize the hetero-
geneity of these enterprises,20 as the degree of homogeneity of the potential adopters in
the social system inuences the diusion rate of an innovation.21 This implies a sector-
by-sector approach to the diusion issues, since the sector and its business are a clear
and recognizable frame of reference for the parties involved in the social system.Within the social system various types of actors, such as customers and suppliers
sector organizations and the national government are interwoven with SMEs in inter-
organizational networks. Alter and Hage dene networks as (unbounded or bounded
clusters of organisations that) constitute a basic social form that permits inter-organisa-
tional interactions of exchange, concerted actions and joint production.22 The presence
of organizations or enterprises in inter-organizational networks reduces risks and uncer-
tainty, and provides means, expertise and information, so that the potential adopter
have the ability to learn about new technologies via external contacts.23 This eld is
closely related to terms like supply chain integration and reversal, and horizontaintegration. With respect to this, Dierckx and Stroeken describe the use of techno-
economically oriented scenario methods and the actor-oriented SCOT (Social Construc-
tion of Technology) method to analyze developments regarding the strategic application
of IT in a sector.24 The relations between the various actors in a social system have a
signicant role in the diusion process when communication takes place about the
innovation.
The Communication
The essence of a diusion process is to break down or reduce uncertainty about an
innovation among the members of the social system by means of communication. In this
context communication can be dened as the process by which participants create and
share information with one another in order to reach a mutual understanding25 As
regards the diusion of innovations, Rogers26 distinguishes two kinds of communication
channels, i.e. mass media channels and interpersonal channels. Nilakanta and Scamell
indicate that the eectiveness of the communication about an innovation depends on the
specic characteristics of the communication sources and channels used.27 Thus, the
various communication sources and channels inuence the degree to which an innovation
diuses in a social system Attewell distinguishes two forms of communication i e
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230 W. H. C. Knol & J. H. M. Stroeken
Time
The fourth diusion element, time, is expressed by the adoption rate of the innovation
in a particular social system within a particular period. Generally the adoption rate can
be graphically depicted as a sigmoidal curve (s-curve).31 The increase in the adoption
rate of interactive innovations like the telephone and e-mail does not follow the patternof a traditional s-curve, but is more exponential.32 This has to do with the network
externalities that accompany the application of this type of innovation.33
To fathom the diusion process, we conclude from the above, we need to look at four
elements: IT as an innovation, SMEs and their environment as the social system, the
communication between the members of the social system and the aspect of time. IT is
a generic, complex innovation and within SMEs there is a degree of uncertainty
concerning the innovation and focused communication with the potential adopters may
reduce this uncertainty. Therefore it is essential to know how the SMEs are embeddedin the social system. In the rst place, SMEs are a very heterogeneous group, making it
necessary to segment the group of potential adopters for purposes of diusion. This
implies a sector-specic approach, because the sector and its business are a clear frame
of reference for the parties involved. In the second place, actors like customers and
suppliers, sector organizations and regional training centres play an important role in the
communication process regarding the strategic use of IT. This makes these actors
signicant in the policy regarding the use of the IT scenario model in a given sector
Furthermore, communication with entrepreneurs cannot be based on signalling informa-
tion alone for the diusion of a complex innovation like IT. The communication isimperative of know-how information about the strategic, technological and organizationa
aspects of the adoption and implementation of IT.
Adoption of IT
The adoption of an innovation like IT is considered at the level of a single SME in this
research. Many aspects implicitly or explicitly inuence decisions taken with regard to
the adoption of an innovation and these aspects collectively form the context of theadoption process. The adoption framework of Tornatzky and Fleischer34 can be used as
an analytical model regarding the adoption context of an innovation and in this context
they distinguish three elements: the environment, the technology and the organization
According to them, the environmental context regarding the adoption is related to the
characteristics of the sector and market structure, the availability and quality of sources
one can consult, and governmental policy. Scenario methods are an instrument for
presenting possible development in the environmental aspect (sector, supply chain and
technology) at the management level.35 Thus, scenarios can support entrepreneurs in
SMEs with the learning processes related to business strategies and innovation.36
For the case of the adoption and implementation of IT the technological and
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IT in Small- and Medium-sized Enterprises 231
and infrastructure and processes of the information systems. From both concepts we can
deduce that it is essential to unite or even integrate business aspects with IT aspects a
the strategic level. The concepts provide insight from a non-evolutionary perspective into
forces and relations between them that inuence the strategic embedding of IT in an
enterprise. The IT growth-
phase models of Nolan,
41
Venkatraman,
42
Tan
43
and Stroekenand Coumans44 describe the development of the strategic application of IT in an
enterprise from an evolutionary perspective. The development of the adoption context
of IT in an enterprise is presented in phases in these models. The focus of the phases
moves from an internal approach to computerization aiming to improve eciency and
eectiveness to an external approach, in which aspects like supply chain integration and
changes in the product-market combination under the inuence of IT are discussed. It is
obvious from the above that an integral and consistent approach to aspects like strategy
technology and organization are of importance for the application of IT. 45 It also means
that the growing IT possibilities, like the Internet, are only eective by a successfuimplementation in the organization and a ne-tuning to the strategy, both being the
main bottlenecks for SMEs.
Below this adoption context in relation to IT will be rendered in an IT scenario
model.
IT Scenario Model
The IT scenario model aims to provide SMEs with insight into the strategic application
of IT from a broader meso perspective. The role of the model is to raise the awareness of
people regarding IT by focussing communication on its strategic application. The IT
scenario model contains three main components: the environment, six phases and three
aspect areas (Figure 1).
The Environment Component
The contents of the environment component are mainly deduced from the scenario
planning method and are related to uncertain developments that occur at the macro and
meso levels. This concerns matters such as macro-economic, technological, demographic
and market developments. The communication of relevant environmental developments
increases the awareness of the entrepreneur concerning the contextual environment
Specic developments at the sector or supply chain level are dealt with in the phases
component.
phase 0
environment
phase 1 phase 2 phase 3 phase 4 phase 5
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232 W. H. C. Knol & J. H. M. Stroeken
Table 1. The phase division of the IT scenario model
Phase Description
0 No usage of information technology
1 Internal oriented functional integration
2 Internal oriented multifunctional integration
3 External oriented process integration
4 Business proc ess redesign
5 Business scope redenition under inuence of IT
The Phases
The division of phases is the critical part of the model, as it provides the basis for the
evolutionary nature of the application of IT in relation to external business aspects
Matters like vertical and horizontal integration and supply chain reversal are dealt with
in this. The IT scenario model encompasses six phases (Table 1) and these are taken
from the IT growth-phase models of Venkatraman,46 Tan47 and Stroeken and Coumans.48
With focused communication of the contents of the phases to entrepreneurs in SMEs
the recognizability and distinctive capacity of the six phases are of extreme importance.
Phase zero is related to situations in which no form of IT is used in the enterprise,
with the exception of simple variants like a fax machine. A considerable proportion ofDutch SMEs can be placed in this category.
Phase one is aimed at the computerization of existing activities to improve eciency
As a result, the emphasis is placed on internally oriented integration of existing
activities. Often programs are used to register part of or all of the information ows
from the primary process. In larger companies this is done by ERP packages (Enterprise
Resource Planning) and in SMEs standard, integrated programs generally are used.
In phase two the improvement in eectiveness is realized through internally oriented
multifunctional integration. This lends more depth and breadth to the integration
mentioned in phase one and the programming from phase one is applied in a moreadvanced and rened way.
Phase three is aimed at the improvement of the present productmarket combination
through a type of process integration, in which a greater emphasis is placed on the
externally oriented improvement of business processes. This means that the strategic
position of the enterprise in the market and supply chain is the focal point of attention.
IT is implemented in such a way that it makes a fundamental contribution to the
customer approach and supply chain integration.
Phase four encompasses the redesign of business processes to extend the externaorientation. As a result, the enterprise has the ability to orient itself towards innovative
d t k t bi ti IT f ti bli t h l i thi h
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IT in Small- and Medium-sized Enterprises 233
Table 2. The aspect area of strategy
Element Description
Main feature of the strategy The main feature of the strategy indicates what the essence of the business strategy
is in a particular phase: eciency improvement, eectiveness improvement,
improvement of the product-market combination, renewal of the product-market
combination or a totally new business orientation
The function of IT This point is related to the above point and covers the support of existing functions,
the integration of existing functions, and the redesign or redenition of functions
The IT plan An IT plan gives the strategic vision in relation to the use of IT. The degree of
attunement between the IT plan and the business plan can be divided into various
stages
Table 3. The aspect area of technology
Element Description
The business processes The strategic vision has various implications in each phase for the technical and
organizational structure of the business processes. One important point of
departure is the data structure
The data structure For each phase we can indicate which information ows can be supported by IT in
the data structure
The IT applications
In relation to above two points, the IT applications are specically named
Table 4. The aspect area of organization
Element Description
Organization and tasks, The implementation of IT brings about changes in the internal and external
authorities and responsibilities organization. This has implications for the relations between business processes.
With this, changes occur in accompanying tasks, authorities, and responsibilities
Training Training plays an essential part in the acceptance and actual use of IT and
employees must become familiar with the strategy and operational aspects of IT
Management of technology Once the technology has been adopted, the management of the technology has to
be organized
Management and users As regards the above points, the attitude of the management is crucial to success.
Clear denitions have to given of the roles and relations between the management
and the users
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234 W. H. C. Knol & J. H. M. Stroeken
Operationalization of the IT Scenario Model for the Furnishing Sector
The IT scenario model is operationalized for the furnishing sector, as a part of the retail
trade, because the retail trade represents a considerable share of the total number of
companies in the Dutch economy, the level of computerization of retail trade SMEs is
relatively low and the furnishing sector largely produces to order and therefore informa-
tion and knowledge exchange in the supply chain is essential.52 From this we can deduce
that the smaller furnishing shops with less than 10 employees are in phase zero and the
medium-sized shops (with between 10 and 100 employees) can more often be categorized
in higher phases. The furnishing sector focuses on the sale of living room and bedroom
furniture, cupboards, kitchens, oor coverings, wallpaper and lights. Within the Dutch
furnishing sector we can distinguish ve types of companies: furniture stores, bedroom
furnishing stores, wall and oor furnishings, mixed businesses and other businesses like
kitchen stores, and cork and parquet ooring businesses.The furnishing market is growing and consumer expenses increase comparatively on
a yearly basis. However, there is a real threat for the small furnishing retail shop caused
by the growing scale of the sector (furnishing centres). This concentration of points of
sale weakens the competitiveness of the SME retailer. One of the answers could be the
implementation and use of IT in the retail shop.
The operationalization of the IT scenario model was realized through interviews with
the following bodies:
The trade organization of the furnishing sector. This organization is an association of
entrepreneurs in the furnishing sector that protects the collective and individual interests
of entrepreneurs in the elds of product liability, shopping hours, certication and
supply chain-oriented computerization protocols.
Two large retail organizations in the Netherlands. Core activities of these organizations
include being a supplier, retail trade activities, and commercial and business services to
independent entrepreneurs in the elds of market research, sales concepts, promotiona
activities and computerization services.
Some IT suppliers who develop, install and maintain hardware and software productsspecically for the furnishing sector.
Two regional training centres that provide information to SMEs about computerization
through their so-called knowledge-transfer points.
Some small and medium-sized enterprises in the furnishing sector.
As not all of the operationalized parts of the model can be given in this paper, we have
opted to ignore the environmental component. In addition, the phases zero to ve are
only summarized, which means that matters like tasks, authorities and responsibilities
schooling and management, and user aspects are only briey discussed. For a complete
and detailed representation of the operationalized model see Stroeken and Knol 53 The
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IT in Small- and Medium-sized Enterprises 235
Phase 1: Computerization Aimed at a Functional, Internally Oriented
Integration
Strategy
The strategy of the enterprise in this phase is focused on raising the e
ciency within thefurnishing shop. The function of computerization is especially focused on the support of
existing functions. One example is the structural registration of order data with an order-
processing program. The role of the IT plan generally is limited in this phase. If there is
an IT plan, it is not tuned to the business plan or the business strategy.
Technology
The computerization in this phase is especially related to the internal data structure of
the following business processes: management, personnel process, administration, servicesales, purchasing, stock and supply. The following computer applications can be men-
tioned for this phase: an order processing program, accounting program, word processing
program, ATM machine (Automated Teller Machine), electronic cash register (not in all
types of companies), a CAD system (i.e. Computer Aided Design; not for all types of
businesses), a fax and spreadsheet program. The hardware consists of separate computers
with accompanying peripherals. There are hardly any or no data links between the
computer applications mentioned above. Figure 2 gives an overview. For each relevant
business process, information is given about the computerized data and the accompanying
type of computerization.
Organization
The use of computerization has implications for the organization of the furnishing shop
(structure, functions and schooling). The structure of the organization changes because
the application of computerization alters the shape of the business processes. In the sales
process, for example, the order processing program is used to register matters like product
data, orders and customers, and therefore this program holds an important position
within the business process. This means that tasks, authorities and responsibilities have
to be organized regarding regular activities and activities related to the use of computers
The same applies to the technical operational maintenance of the computers (installing,
updating, copying and making back-up copies). The management of computers is an
important subject and is nearly always organized by the entrepreneur in this phase. The
role of the user in the adoption process of computerization in this phase is limited and
management in particular needs to gain insight into the strategic role of computerization
The following schooling is required: an introductory course in business science (business
strategy, organization, business processes and customer services), an introductory andgeneral course about the strategic use of computerization, a course about the operational
f i i d b i li i ( d i
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236 W. H. C. Knol & J. H. M. Stroeken
Figure 2. Computerized data and computerization in phase 1.
Strategy
The strategic attention in this phase is focused on the eectiveness of the enterprise
through the use of computerization. Among other things, this is realized by obtaining
more insight into turnover per product, product group, manufacturer, period, or oor
surface. The accompanying function of computerization is to support, improve and
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IT in Small- and Medium-sized Enterprises 237
Figure 3. Computerized data and computerization in phase 2.
some new business processes are added and some processes are extended or renewed
regarding the use of computerization. We are dealing with the following new and renewed
business processes: management, personnel process, marketing, administration and sales
The following extra computer applications can be mentioned in this context: a more
extensive application of the order-processing program and tele-banking facilities The
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238 W. H. C. Knol & J. H. M. Stroeken
Organization
The structure of the organization changes through the application of computerization in
the four business processes mentioned earlier. Tasks, authorities and responsibilitie
concerning the regular and computer-related activities must be adapted to the new
situation. The computer management often is in the hands of the entrepreneur, thoughit can also be in the hands of a close employee, the IT supplier (via leasing and other
contracts), or a part-time manager (a costly option). Considering the increasing complexity
of the computerization to be used, training becomes increasingly important. The following
types of training are needed in this phase: a follow-up course in business science (business
strategy, organization, business processes and customer service), a follow-up course
concerning the strategic role of computerization in and around the enterprise, and specic
courses aimed at the use of specic computer applications, such as the order processing
program and tele-
banking.
Phase 3: Computerization Concerning an Externally Oriented Process
Integration
Phase three is related to enterprises that have advanced applications of computerization
The smaller enterprises have to strongly reconsider their strategic position in this phase.
Strategy
Compared to the previous phases, phase three and higher are more related to the externa
orientation of the enterprise, in which forms of integration in the business sector
(intensication of the relations with suppliers and customers) in relation to the sector and
market developments are of major importance. As a result, the strategic attention is
focused on the creation of an advantage with the present product-market combination
and raising the eectiveness of the external communication with customers and suppliers
among others. A strategic option relevant in this phase is the franchise construction. In
addition, it is wise for the smaller furnishing shops to reconsider their strategic positionin which options like scale enlarging, segmentation and specialization can be important
points of attention. The function of computerization is to support and improve existing
business functions for the creation of added value within the present products and service
package. The IT plan is largely based on the business plan.
Technology
The computerization is aimed at practically all business processes and in comparison
with the previous phase, the degree of computerization per business process is intensied
in this phase Some business processes are extended or undergo renewal The following
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IT in Small- and Medium-sized Enterprises 239
Figure 4. Computerized data and computerization in phase 3.
linked computers in a LAN conguration (Local Area Network). The following extra
computer applications can be mentioned: Internet and e-mail, EDI, barcode scanner
and a portable ATM machine.
Organization
In this phase we can assume that the organization of the enterprise has been reasonably
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240 W. H. C. Knol & J. H. M. Stroeken
Phase 4: Computerization and the Externally Oriented Redesign of
Business Processes
Phases four and ve focus on the larger furnishing stores with possible outlets. For smaller
shops phases four and ve are less relevant, with the exception of innovative enterprises.
Strategy
The strategic attention in this phase focuses on the creation of extensions to the product-
market combination. This mainly entails the creation of new forms of service through
the application of computerization among other things. The marketing aspect is extremely
important; entering into a franchise construction can be a strategic option in this phase
The function of computerization is to realize added value to the one-to-one service to be
created. So it would be possible for customers to place several articles from the portfolioof the furnishing retailer to a virtual room enabling the visualization of customers desired
room. In this phase purchasing articles via the Internet (electronic commerce) could be
a complete new service.
In this phase the IT plan must be derived from or integrated with the business plan.
Technology
The applicable computerization is aimed at all business processes and in comparison
with the previous phases the degree of computerization is extended further. The following
new and renewed business processes are of importance: personnel process, marketing
sales and purchasing. The attention is strongly focused on the externally oriented data
structure. The hardware consists of linked computers in a LAN conguration and there
are many software links between business processes within and outside the enterprise
(suppliers, customers, service industries, etc.). The following extra computer applications
can be mentioned: learning applications via CD-ROM and/or the Internet, a strategically
designed website on the Internet, an information terminal, multimedia computer for the
visualization of products and PDI-
like structures. Product Data Interchange (PDI) enablesthe retailer to communicate product data with the producer.
Organization
In this phase the organization of the enterprise is adapted to the use of computerization
The tasks, authorities and responsibilities concerning regular and computer-related
activities usually are organized. The computer management is in the hands of the
entrepreneur or an expert employee, in which the IT supplier or part-time manager can
lend support. Considering the increasing complexity of the computerization required
schooling remains essential: a course about the strategic use of specic forms o
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IT in Small- and Medium-sized Enterprises 241
Figure 5. Computerized data and computerization in phase 4.
Strategy
The strategic attention in this phase is focused on the creation of new product-
market combinations by using computerization among other things. The function o
computerization is to create new products and services and to this purpose the IT planhas to be integrated with the business plan. Below two examples are given of new
d t k t bi ti
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242 W. H. C. Knol & J. H. M. Stroeken
complete furnishing of a house into projects for the products and service industries
such as interior decorators, plasterers, furniture manufacturers, carpenters and lighting
experts. Computerization supports the structural co-ordination of the projects in which
PDI-like communication protocols are used.
Technology
Computerization plays a considerable role in the example businesses mentioned and
supports the integration of the business processes. There are many links present with the
business processes of other organizations (suppliers, partners, customers, third parties and
others). As regards the rst example company, the following integrated computer
applications are relevant: interactive website in which the relevant business processes are
present and integrated (front oce), back-oce software to control and manage the many
business processes through databases and on-line communication lines with suppliers. Asregards the second example company, the following integrated computer applications are
relevant: database applications to determine the assortment of the various suppliers
multimedia software for the sales process (advice, tender and order), on-line communi-
cation lines with the many suppliers and software to co-ordinate the project management
Organization
In this phase the organization of the enterprise is completely tuned to computerization,as computerization is the enabler for the business strategy. Computerization has a
strongly integrative function in the enterprise, which means the tasks, authorities and
responsibilities must be clearly agreed upon. The computer management is in the hands
of a very expert employee, in which the IT supplier or part-time manager can oer
support. Training must focus on the way to operate in new markets, the redenition and
design of new business processes and functions, and strategic application and use o
specic computer applications.
From Model to Instrument
The IT scenario model can serve as a structure to communicate with entrepreneurs from
SMEs about the strategic application of IT. So, our model can play an essential role in the
rst two stages of the adoption process of Rogers,54 i.e. knowledge and persuasion. From a
cognitive perspective, it is necessary to rst raise the awareness of the entrepreneur regard-
ing the innovation to stimulate its adoption.55 This means inuencing the stages of know-
ledge and persuasion through focused communication in an attempt to reduce uncertainty
about the innovation. The essence of communication is to reach a converging level of
knowledge via mutual understanding and the most eective communication occurs
between two individuals in which a degree of homogeneity is present regarding back-
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IT in Small- and Medium-sized Enterprises 243
strategic innovation. Stroeken and Knol62 give an overview of the relation between learning
processes and innovation in the eld of IT in SMEs. In essence learning processes con-
cerning strategy and strategic innovation can be supported and inuenced through the
articulation of information via scenarios. For IT this implies making available information
in the eld of the aspects of strategy, technology and organization.
63
The available informa-
tion is communicated via communication channels and it is found that the various channels
(e.g. interpersonal or mass media channels) have dierent degrees of inuences on the
adoption phases of knowledge and persuasion in the adoption process of an innovation.64
Due to the relatively restricted interaction options, mass media channels have less inuence
on the persuasion phase than interpersonal means of communication, but they do oer
ample means to provide signalling information to potential adopters in the knowledge
phase.65 However, Nooteboom et al.66 indicate that due to the high degree of tacit know-
ledge in SMEs, the adoption phase is better served by interpersonal contacts.
For a rst test the operationalized model was used as a frame of reference in part ofthe enterprises in question within the Rotterdam project Haal meer uit je computer
(Get more from your computer). This pilot project was focused on raising awareness of
entrepreneurs concerning the application of IT through (1) advice from teachers and
the regional training centres involved, (2) modules about sector and computerization
developments, and (3) a sector-specic, informative CD-ROM with a diagnostic compo-
nent that can generate a brief IT plan. So, the communication concept was arranged as
a balanced combination of multimediamass media (CD-ROM or website) and an
interpersonal communication channel (advisor). The project was aimed at a group ofabout 30 entrepreneurs in the hairdressing, clothing and furnishing sector. Stroeken and
Knol give an extensive description of the project.67 The IT scenario model was used as
a frame of reference in four furnishing shops to analyse to what extent the contents of
the phases matches the actual situations the enterprises in question are in. No research
was done to see whether the IT scenario model really inuences awareness. All things
considered, the IT scenario model seems to provide insight into the strategic application
of IT in companies and supply chains for each phase and can depict these concretely
This would mean that the communication of general sector developments and company
specic matters for the aspect areas of strategy, technology and organization, raise theknowledge level of the entrepreneur and therefore also stimulate the diusion and
adoption of the strategic application of IT in the long run.
Future Research
With the IT scenario model it seems possible to communicate with individual companies
within a specic sector through for example information brochures and consultation
therefore inuencing diusion and adoption processes for the strategic application of IT
In this capacity the model is signicant for the diusion and adoption policy of IT in
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244 W. H. C. Knol & J. H. M. Stroeken
Notes and References
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9. Ibid., p. 11.
10. Cf. B. Nooteboom, C. Coehoorn & A. van der Zwaan, The Purpose and Eectiveness o
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13. Ibid.
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21 S Davies The Diusion of Process Innovations (Cambridge Cambridge University Press 1979)
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IT in Small- and Medium-sized Enterprises 245
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29. Stroeken & Coumans, op. cit., Ref. 4; J. Stroeken & W.H.C. Knol, IT Scenarios for Small and
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30. Attewell, op. cit., Ref. 28.
31. Cf. Rogers, op. cit., Ref. 7.
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38. N. Venkatraman, IT-induced Business Reconguration, in: M.S. Scott Morton (Ed.), The Corporation
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40. Venkatraman, op. cit., Ref. 38.
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44. Stroeken & Coumans, op. cit., Ref. 4.
45. Ibid.; Stroeken & Knol, op. cit., Ref. 29.
46. Venkatraman, op. cit., Ref. 38.
47. Tan, op. cit., Ref. 43.
48. Stroeken & Coumans, op. cit., Ref. 4.
49. Scott Morton, op. cit., Ref. 37.
50. Venkatraman, op. cit., Ref. 38.
51. Tornatzky & Fleischer, op. cit., Ref. 11.
52. OECD (1995), op. cit., Ref. 3.
53. J. Stroeken & W.H.C. Knol, The Stimulation of the Diusion and Adoption of Information Techno-
logy in Small and Medium-sized Enterprises through IT Scenarios, Research Report, Eindhoven
Eindhoven Centre for Innovation Studies (ECIS), http://www.tm.tue.nl/ecis/repStroeknol. PDF
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246 W. H. C. Knol & J. H. M. Stroeken
59. W.M. Cohen & D.A. Levinthal, Absorptive Capacity: A New Perspective on Learning and
Innovation, Administrative Science Quarterly, 35, 1990, pp. 128152.
60. Nooteboom et al., op. cit., Ref. 10.
61. Op. cit., Ref. 58; I. Nonaka, The Knowledge-Creating Company, Harvard Business Review
NovemberDecember 1991, pp. 96104.
62. Stroeken & Knol, op. cit., Ref. 29.63. Ibid.; Stroeken & Coumans, op. cit., Ref. 4.
64. Nilakanta & Scamell, op. cit., Ref. 27; Rogers, op. cit., Ref. 7.
65. Attewell, op. cit., Ref. 28.
66. Nooteboom et al., op. cit., Ref. 10.
67. Stroeken & Knol, op. cit., Ref. 53.
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