The readiness of SMEs on the adoption of e-business will be effective if the countryâs infrastructure on ICT is adequate enough and spans through the length and breadth of the country. Storey, (1994) tries to sum up the danger of using size to define the status of a firm by stating that in some sectors all firms may be regarded as small, whilst in other sectors there are possibly no firms which are small. Policy â supporting a transparent and inclusive policy process, promoting fair and open competition, and strengthening institutional capacity to implement and enforce policies. The study also examines the moderatorsâ effect of gender, GPA, and student majors on the relationship between ICT and academic achievement. The value of fixed assets in the firm has also been used as an alternative criterion for defining SMEs. Retrieve â to obtain specific information from the tables in order to refer or make changes the information. According to the British Department of Trade and Industry, the best description of a small firm remains that used by the Bolton Committee in its 1 971 Report on Small Firms. The land line telephone is still important for business and home, however mobile phones are fast becoming the favoured technology. Similar to e-business benefits, literature is also silent about whether barriers differ based on organizational size. Michaelas et al (1999) consider small independent private limited companies with fewer than 200 employees and LÃ³pez and Aybar (2000) considered companies with sales below â¬15 million as small. A telephone line or telephone circuit (or just line or circuit industrywide) is a single-user circuit on a telephone communication system. The survey report classified firms into: Large enterprise, 100 and more employees (Teal, 2002). Students are requested not to bring mobile phone devices to school. This includes the Internet, wireless networks, cell phones, and other communication mediums. It defines a small -scale enterprise as a firm with not more than 9 workers, and has plant and machinery (excluding land, buildings and vehicles) not exceeding One Thousand Ghana Cedis (GHÂ¢1,000.00). For example, can the firm works effectively on important documents; or does employees struggle to know which the most recent version of that important file is? The rapid growth in this sector is set to continue in 2006. In another study conducted by Ndubisi and Kahraman (2005), they found that the use of advanced systems is significantly related to innovativeness and suggested that innovativeness is an important trait in determining ICT use among women entrepreneurs in Malaysia. ICT has a significant positive impact on organizational performance (Maldeni and Jayasena, 2009) and is vital to SMEs. (2005) added that managerial ICT skills, ICT knowledge and ICT practices are important determinants of whether ICT is adopted or rejected by the SMEs. Data manipulation Update â to correct inaccurate data and to change old data with new data Insert â to add new records in the file when new data are obtained. The low computer literacy is other contributory factor for not adopting ICT in most small and medium-scale enterprises (Kapurubandare, 2006). ICT, or information and communications technology, is a broad term for digital infrastructure including software platforms, foundational services, networks and data centers. The first Africa Development Forum organized by UNECA in 1999, five critically interrelated areas for strategic intervention by governments in developing countries. Ongori (2009) states that the use of ICT would help change the way businesses operate in this era of globalization by changing business structures and increasing competition, creating competitive advantage for businesses and by changing business operations. The defining characteristics are agile, competitive and successful businesses are integrating technology across their business process and improving performance. Some scholars acknowledge that barriers to ICT technologies adoption among SME buyers and suppliers may differ. As SMEs suffer from acute resource scarcity, the perceived barriers of ICT technologies adoption by SMEs may differ considerably than those of large organizations. MacGregor et al. However, the National Board for Small Scale Industries (NBSSI) in Ghana applies both the International Research Journal of Finance and Economics -"fixed asset" and number of âemployeesâ criteria. Governmentâs world- wide has recognized the crucial role that ICTs can play in socio-economic development. Address: Cyprus Headquarters The different types of communication in ICT include electronic mail, video conferencing, facsimile and telephone conferencing. They might be used interchangeably by textbooks or educational sector. (2003), for example, asserted that strong ICT capability including the specific ICT skills of small firm owners has significant influence on the adoption of ICT. Telephone . These changes originated in the developed world - North America and Europe, where the Internet and its related information technologies (IT) were developed, but have been taken up by virtually every country in the world (Wikipedia, 2007). Regarding ICT adoption in Taiwan, Lin (2006) identified these determinants as having influenced on adoption: organizational size, CEOsâcharacteristics and CEOsâperception of relative advantage, compatibility, and complexity. According to Kayanula and Quartey, (2000), The Ghana Enterprise Development Commission (GEDC), on the other hand, uses a Ten Thousand Ghanaian Cedis (GHÂ¢10,000.00) upper limit definition for plant and machinery. In addition, Chacko and Harris (2005) identified three benefits associated with the use of ICT in SMEs: the benefits it can bring to the business in terms of utilization, the ICT literacy level of its employees and the financial resource available. Search this site. This seeks to find out how a given SME communicates in terms of telephony (or IP Telephony), email, Instant messaging, text messaging and faxing. As such, some researchers examine the barriers perceived by SMEs for introducing ICT technologies. These centre mainly on the apparent inconsistencies between defining characteristics based on number of employees and those based on managerial approach. For example, the immediate . Alberto and Fernando (2007) argued that the use of ICT can improve business competitiveness with internet providing numerous opportunities for SMEs to compete equally with large corporations. ICT has the potential to contribute to substantial These awareness campaigns could include free training courses and workshops on e-business, security and privacy, awards programs, and information centers to assist SMEs. ICT skills could also include the ability to use older communication technologies such as telephones, radios, and televisions. The definition taken in this paper classifies ICT into information technologies, telecommunications technologies and networking technologies (Nicol, 2003). 2 0 obj Using videoconferencing to host meetings between members in different locations, for example, reduces travel costs. In this respect, SMEs should consider information and communication technology (ICT) as an important approach in their business to take competitive advantage from the global markets (Mutsaers et al., 1998). - Commerce opportunities: ICT can improve a companyâs internal and external operations. As the Internet and its applications including the World Wide Web and e-mail, have evolved, it is evident that digital technologies are transforming the way in which international trade and communications are conducted. Focusing exclusively on small businesses, Mpofu (2012) opined that ICT represents the advancement in technology uptake among small businesses in developing nations. The European Commission (2008), states that SMEs could use ICT in order to grow and to become more innovative. The Bolton Committee applied different definitions of the small firm to different sectors. ICT Theory Exam Questions. Nowadays small businesses are increasingly using and adopting information and communication technology due to the advent of Personal Computer and broadband internet access. It is very important for organization to determine its employeeâs knowledge or skills of ICT because those knowledge or previous experiences may influence organization decision in adopting ICT. By drawing and building on the previous studies, this paper presents a research framework adapted mainly from Anukis (2009), E- adoption model. The lack of suitable technical and managerial staff with sufficient ICT expertise is another major barrier for SMEs in adopting ICT. 32 Stasicratous Street Their findings clearly indicated that ICT adoption is positively related to firm size. Gamal Orphy - ICT Theory. Wainwright et al. It is used to monitor and compare developments in information and communication technology (ICT) between countries and over time. %PDF-1.3 Internal communication may also mean communicating with outlying or remote offices. For example, personal computers, digital television, email, robots. For example, after SMEs adopt ICT tools, they also use personal computers (PC) with basic software installed. Government and private sector partnerships can engage in a campaign to disseminate information to SMEs about e -business policies, best practices, success stories, and opportunities and obstacles relating to the use of ICTs and e -business. The Digital Divide, or the digital split, is a social issue referring to the differing amount of information between those who have access to the Internet (specially broadband access) and those who do not have access. This is the informational equivalent to 404 billion CD-ROM in 2007. The acronym ICT is often used in many different contexts. The term broadband commonly refers to high-speed Internet access that is always on and faster than the traditional dial-up access. Levy et al. The government is committed to continuing the privatization of the national carrier, Ghana telecom, as well as the fibre network of Voltacom, the countryâs electricity company. The extent to which the small firm sectorâs economic contribution has changed over time; Applying the statistical definition in a cross-country comparison of the small firmsâ economic contribution. However, there is a disagreement about some barriers. It is important to caution that the process of valuing fixed assets poses a problem. x��[Ko�ȱ��Wp�f�~?��� �s� F�� -���H�=�ߧ��~H]6����|]��W�=��mk�k�U�����J�y�^������ە��k������o�~�o�o � According to Melody et al. It is argued that many of these barriers can be successfully addressed by large organizations due to their resource and expertise availability. ICT which stands for Information and Communication and Technology, is elaborated as follows. Different authors have given different definitions to this category of business. These are: A more recent definition is the one given by the Regional Project on Enterprise Development Ghana manufacturing survey paper. ICT is rapidly changing global production, work and business methods and trade and consumption patterns in and between enterprises and consumers. Having Internet presence also enable SMEs to enjoy improved communication tools such as email, file sharing, creating websites, e-commerce, among others (Chacko and Harris, 2005). At this stage, firms ensure that customers know their existence and that they can easily find out information about them. Few studies have examined the relationship between ICT skills and ICT adoption. ICT communication uses ICT devices to connect businesses, organizations and individuals. ICT Devices Images. Indeed, very little is understood about the determinants of ICT adoption among SME business owners in Ghana. Mistrust of the information technology industry and lack of time are two other factors that affect the decision to adopt ICT. Hence, there is a need to encourage the use of ICT in SMEs and address the high cost of ownership of ICT equipment since it can help to improve technical and managerial skills, making available e-business solutions for SMEs. (1996) and Cragg and King (1993) also stressed that employees of small businesses tend to lack skills and expertise to use IT in their businesses. Windrum & Pascale (2003) study reveals that the ICT adoption in SME depends on the CEO/owner being the ICT decision-maker. ICT covers any product that will store, retrieve, manipulate, transmit or receive information electronically in a digital form. The full legalization of VoIP telephony and the implementation of Broadband over Power lines (BPL, PLC) are other key development expected (Miniwatts, 2009). ICT is defined as âany technology used to support information gathering, processing, distribution and useâ (Beckinsale and Ram, 2006). LITERATURE REVIEW A broad range of factors that can influence the use of technology in learning has been mentioned in the literature. This is because of the limited number of employees with lack of technical knowledge. Most SMEs are concerned about a return on investments and for that matter reluctant to make substantial investments particularly when short term returns are not guaranteed. The following are the indicators as to whether they are e-ready for e- business adoption. Allison (1999) agrees that a skilled and knowledgeable work force was closely linked with the successful implementation of technology. In general, the following major barriers are identified: A lack of time to implement ICT (Scupola, 2009), the high level of complexity associated with e -business implementation (Kaynak et al., 2005) and high implementation cost associated with e -business technologies (Tan et al., 2010). Converging technologies that exemplify ICT include the merging of audiovisual, telephone and computer networks through a common cabling system. For example, people ICT provides opportunities for business transformations (Chibelushi, 2008) and provide SMEs the opportunity to conduct business anywhere (Jennex et al, 2004). We use our phones to check email and social media, for online shopping and banking, as well as making calls and sending messages. Anukis (2009), e -adoption ladder suggests sensible, bite-size that allow businesses to spread cost and risk of ICT investment and enables them to achieve maximum return on investment (ROI). Osei e.t al. Adoption of ICT by SMEs in Ghana is still lower than expected (Pavic et al., 2007; Yu, 2006). Denni (1996) stress every business must bring ICT into their business operation and take advantage of the benefits they offer. It also includes antiquated technologies, such as landline telephones, radio and television broadcast -- all of which are still widely used today alongside cutting-edge ICT pieces such as artificial intelligence and robotics. Without the utilization of ICT, it may be impossible for modern SMEs to compete as ICT ha s a significant impact on SMEs operations and is claimed to be crucial for the survival and growth of economies in general (Berisha-Namani, 2009). But Li and McQueen (2008) provide opposite findings. 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