Influence of ICT Adoption on Agro-Enterprises: Conceptual Framework and Structural Model

Abstract

Information and communication technology (ICT) adoption studies have identified ICT as a tool capable of spurring innovative business development in small and medium-scale enterprises (SMEs) if used wisely. Adopting the Unified Theory of Acceptance and Use of Technology (UTAUT) model approach with adjustments by integrating two externally derived constructs (SME Managerial Creativity and SME Organisational Size as predictors), this study investigated factors that influence ICT usage among Malaysian agro-based SMEs. A pre-tested survey instrument consisting of 132 items was administered to 400 purposively selected workers from 43 agro-based SMEs that were randomly selected in Selangor. The study was mainly aimed to determine factors that influence ICT usage among the agro-based SMEs, determine the relationship between the six predictors: performance expectancy, effort expectancy, facilitating conditions, SME organisational size and SME creativity and innovativeness and (the dependent variable) ICT usage. Also aimed to be determined was the moderating effect of gender, age and experience on the relationship. Factor analysis was run and a new test model was designed with Structural Equation Modelling. The study concludes that integrating firm and management characteristic constructs into UTAUT model provides a scale capable of explaining ICT usage behaviour of Malaysian agro-based SMEs better.