Factors Influencing Social Media Adoption in Small and Medium Enterprises

273 Pages·2017·3.77 MB·English

Factors Influencing Social Media Adoption in
Small and Medium Enterprises (SMEs)

A thesis submitted for the degree of Doctor of Philosophy
By
Hafedh Said Abdullah AL Rahbi
Department of Computer Science
Brunel University London

January 2017
ABSTRACT
The adoption and use of Information and Communication Technologies (ICTs) is widely
regarded as essential in contemporary organisational environments. Such technologies
have substantial effects on an organisation’s productivity and competitiveness. However,
the nature of the effects varies across types of organisation (small to large), by country-
context (developed and developing countries) and with the type of ICT adopted. This
thesis focuses primarily on Small to Medium Enterprises (SMEs) in a less-researched
developing country context, the region of the Gulf Cooperation Council (GCC), with
special reference to Oman. In terms of the ICT under investigation, recognising the
emergence of more interactive forms of technology, this thesis focuses on social media
applications. It is widely recognised that the adoption and use of these applications
change the ways in which organisations conduct their activities and represent a critical
business opportunity for SMEs. This opportunity will only be realised by SMEs if, and
when, social media are adopted in their organisations. This therefore creates a
requirement to understand the factors that influence SMEs in making the adoption
decision. The research related to such factors is scarce, not least because the
technologies are relatively new. By using the Technology-Organisation-Environment
(TOE) framework, this study therefore attempted to understand the factors influencing the
decision by SMEs to adopt social media. It employed a sequential, exploratory mixed
method, where both qualitative and quantitative approaches were combined to meet the
research objectives. In the first stage, a preliminary TOE model of 18 factors was
developed from the analysis of semi-structured interviews with 18 SMEs owner-managers
in Muscat, the capital city of Oman. In the second stage, a survey involving 205 SMEs in
Muscat was conducted to examine empirically the preliminary model. The survey data
were analysed using logistic regression (LR). Of the factors examined, compatibility,
observability, trialability, trust, image, perceived lack of managerial time, market scope,
customer pressure and family and friends’ support were found to have significant
influence on SMEs’ decisions to adopt social media. These findings have important
implications and value for the research community, SMEs and policy makers (in
particular, the Public Authority for SME Development (PASMED)) in terms of formulating
improved strategies for social media adoption. The resulting research model proposed in
this thesis can improve these stakeholders’ understandings of why some SMEs have
chosen to adopt social media technologies, while other SMEs which face similar market
conditions have not.

I
ACKNOWLEDGEMENTS
I would like to convey my sincere thanks and gratitude to my supervisor, Professor Rob
Macredie, who has been a constant source of invaluable support and limitless guidance
at various stages of my research. After the grace of the Almighty God, the patience and
the experience of my supervisor have been invaluable to the completion of this thesis. It
is difficult to express thanks and gratitude to him as his guidance and advice shaped my
work into a complete piece of academic writing. In fact, I could not have imagined having
a better mentor and supervisor for my study. Thanks also go to Dr David Bell, my second
supervisor for his support and guidance.
I would like also to extend thanks to all academics in the Department of Computer
Science at Brunel University London for providing support to us during the program which
has made my PhD-related issues and procedures clear and easy. Also, I would like to
extend thanks to my friends in the department who were really supportive and a great
source of enthusiasm. Thank you all for the sharing this time with me.
My deepest appreciation and gratitude go to my parents. I am forever indebted to them
for their encouragement and support throughout my entire life. I am also deeply grateful
to my brothers and sisters, who kept me in their prayers during the course of this study. A
special thanks to my beloved wife and my daughter for accompanying me from the
beginning to the end of this project and for them being an endless source of cheerfulness.
Also, I would like to extend thanks to my employer, the Ministry of Manpower in Oman, for
sponsoring my study and for their financial support.
Lastly, but very importantly, I am deeply grateful for Dr Nayna Patel, for her insights and
kind support during and after she left the University. I dedicate this thesis to her, with
gratitude and thanks, and wish her a successful career and a blessed life.

II
ABBREVIATIONS
Abbreviation Full term
ANT Actor Network Theory
B2B Business to Business
CA Content Analysis
CRM Customer Relationship Management
DV Dependent Variable
EC E-Commerce
EDI Electronic Data Interchange
FA Factor Analysis
GCC Gulf Countries Council
ICT Information and Communication Technologies
IS Information Systems
IT Information Technology
IV Independent Variable
Les Large Enterprises
LR Logistic Regression
PASMED Public Authority for Small and Medium Enterprises
SMEs Small and Medium Enterprises
SEM Structural Equation Modelling
SNS Social Networking Services
SPSS Statistical Package for Social Science
T Tolerance
TA Thematic Analysis
TAM Technology Acceptance Model
TOE Technology-Organisation-Environment
TPB Theory of Planned Behaviour
UK United Kingdom
USA United States of America
VIF Variance Inflation Factor

III
Tables of Contents

Chapter 1: Introduction ....................................................................................... 1
1.1 RESEARCH BACKGROUND ........................................................................ 1
1.2 RESEARCH MOTIVATION .......................................................................... 2
1.3 RESEARCH CONTEXT ............................................................................... 4
1.4 THEORETICAL APPROACH ........................................................................ 4
1.5 RESEARCH AIM, OBJECTIVES AND QUESTIONS ........................................ 5
1.6 RESEARCH DESIGN ................................................................................... 6
1.7 RESEARCH SIGNIFICANCE ........................................................................ 7
1.8 STRUCTURE OF THE THESIS ...................................................................... 7
Chapter 2: Literature Analysis ............................................................................ 9
2.1 INTRODUCTION......................................................................................... 9
2.2 ICT INNOVATION ADOPTION .................................................................. 10
2.2.1 ICT Adoption in Organisational Contexts ........................................... 10
2.2.2 ICT Adoption in SMEs ......................................................................... 11
2.2.3 Importance and Benefits of ICT Adoption in SME Contexts ............... 13
2.2.4 Challenges Facing SMEs in Relation to ICT Adoption ....................... 14
2.3 THE ROLE OF TECHNOLOGY EVOLUTION IN SMES ................................ 18
2.3.1 Social Media: Definition and Classifications ...................................... 19
2.3.2 The Growth and Use of Social Media in Organisational Context ....... 21
2.3.3 Benefits of Using Social Media ............................................................ 24
2.4 IT ADOPTION MODELS AND THEORIES................................................... 26
2.4.1 Overview of existing IT adoption models and theories ........................ 27
2.4.2 Overview of major technology adoption theories in SMEs .................. 28
2.4.3 TOE’s Contexts .................................................................................... 35
2.5 SUMMARY .............................................................................................. 42
IV
Chapter 3: Research Design Overview ............................................................. 43
3.1 INTRODUCTION....................................................................................... 43
3.2 DECISIONS ABOUT THE RESEARCH PARADIGM ...................................... 43
3.3 RESEARCH APPROACH ........................................................................... 47
3.3.1 Rationale Behind the Selection of Mixed Methods Research Approach
....................................................................................................................... 48
3.3.2 Research Design................................................................................... 50
3.4 SUMMARY .............................................................................................. 52
Chapter 4: Phase One – The Qualitative Study ............................................... 53
4.1 INTRODUCTION....................................................................................... 53
4.2 STUDY SET-UP ....................................................................................... 54
4.2.1 Interview ............................................................................................... 55
4.2.2 Research Instrument ............................................................................ 57
4.3 DATA COLLECTION ACTIVITIES ............................................................. 58
4.3.1 Sampling ............................................................................................... 59
4.3.2 Ethical Considerations ......................................................................... 61
4.3.3 Pilot Study ............................................................................................ 63
4.3.4 Interview process ................................................................................. 64
4.4 DATA ANALYSIS ..................................................................................... 65
4.4.1 Data Analysis: Thematic Analysis Technique ...................................... 66
4.4.2 Data Analysis Process.......................................................................... 69
4.4.3 The participating SMEs........................................................................ 75
4.5 FINDINGS OF QUALITATIVE DATA ........................................................... 76
4.5.1 Findings related to the technology context .......................................... 77
4.5.2 Findings Related to the Organisation Context .................................... 86
4.5.3 Findings Related to the Environment Context ..................................... 92
4.6 DISCUSSION ........................................................................................... 98
V
4.6.1 Discussion of the findings related to technology context ..................... 99
4.6.2 Discussion of the findings related to organisation context ................ 102
4.6.3 Discussion of the findings related to environment context ................ 104
4.7 RESEARCH HYPOTHESES ...................................................................... 107
4.8 SUMMARY ............................................................................................ 109
Chapter 5: Study 2 – The Quantitative Research Phase ............................... 110
5.1 INTRODUCTION..................................................................................... 110
5.2 STUDY SET-UP ..................................................................................... 111
5.2.1 Survey ................................................................................................. 112
5.3 SURVEY DESIGN AND DEVELOPMENT .................................................. 114
5.3.1 Survey Design Tool ............................................................................ 115
5.3.2 Instrument Design .............................................................................. 115
5.3.3 Instrument Structure and Measurement Operationalisation ............. 120
5.4 DATA COLLECTION ACTIVITIES ........................................................... 125
5.4.1 Sampling ............................................................................................. 125
5.4.2 Ethical Considerations ....................................................................... 127
5.4.3 Piloting ............................................................................................... 129
5.4.4 Instrument Distribution ...................................................................... 130
5.5 ANALYSIS ............................................................................................ 132
5.5.1 Validity and Reliability ...................................................................... 132
5.5.2 Logistic Regression ............................................................................ 137
5.5.3 Considerations in Applying Logistic Regression ............................... 139
5.5.4 Descriptive Analyses .......................................................................... 145
5.5.5 Findings and Statistical Tests of the Hypotheses ............................... 152
5.6 SUMMARY ............................................................................................ 157

VI
Chapter 6: Discussion ....................................................................................... 158
6.1 INTRODUCTION..................................................................................... 158
6.2 DISCUSSION OF TOE CONTEXTS .......................................................... 158
6.2.1 Technology Context ............................................................................ 159
6.2.2 Organisation Context ......................................................................... 164
6.2.3 Environment Context .......................................................................... 167
6.3 REVISION OF THE RESEARCH MODEL ................................................... 171
6.4 SUMMARY ............................................................................................ 174
Chapter 7: Conclusion ...................................................................................... 176
7.1 INTRODUCTION..................................................................................... 176
7.2 SUMMARY OF FINDINGS ....................................................................... 176
7.2.1 Research Question 1 .......................................................................... 176
7.2.2 Research Question 2 .......................................................................... 177
7.2.3 Research Question 3 .......................................................................... 177
7.2.4 Research Question 4 .......................................................................... 178
7.3 THEORETICAL CONTRIBUTIONS OF THE RESEARCH ............................. 178
7.3.1 Contributions in Relation to the TOE Model ..................................... 179
7.3.2 Contribution in relation to the ICT adoption literature ..................... 180
7.4 RESEARCH IMPLICATIONS .................................................................... 181
7.4.1 Implications for Academics ................................................................ 181
7.4.2 Implications for SMEs Owner-Managers .......................................... 183
7.4.3 Implications for Policy Makers .......................................................... 185
7.5 LIMITATIONS OF THE RESEARCH .......................................................... 188
7.5.1 Methodological limitations ................................................................ 188
7.5.2 Context/focus-related Limitations ...................................................... 189
7.5.3 General Limitations ........................................................................... 191
VII
7.6 DIRECTIONS FOR FUTURE RESEARCH ................................................... 192
7.6.1 Generalizability and replicability ...................................................... 192
7.6.2 Focus/scope ........................................................................................ 192
7.6.3 Other avenues..................................................................................... 193
7.7 SUMMARY ............................................................................................ 194
References .......................................................................................................... 195
Appendix A ........................................................................................................ 226
Appendix B ........................................................................................................ 231
Appendix C ........................................................................................................ 232
Appendix D ........................................................................................................ 235
Appendix E ........................................................................................................ 236
Appendix F ......................................................................................................... 238
Appendix G ........................................................................................................ 248
Appendix H ........................................................................................................ 250
Appendix I ......................................................................................................... 252
Appendix J ......................................................................................................... 253
Appendix K ........................................................................................................ 255

VIII
LIST OF TABLES
Table ‎2.1 Benefits of ICT adoption ........................................................... 14
Table ‎2.2 Benefits of social media adoption ............................................ 26
Table ‎2.3 Examples of TOE-based studies (1) ........................................ 32
Table ‎2.4 Examples of TOE-based studies (2) ........................................ 33
Table ‎3.1 Comparison between positivist and interpretivist paradigms .... 45
Table ‎3.2 The four dimensions of mixed methods research design ......... 52
Table ‎4.1 A Summary of the Qualitative Research Instrument ................ 58
Table ‎4.2 Issues arising from the pilot study for phase one ..................... 64
Table ‎4.3 Classification of the main themes ............................................ 70
Table ‎4.4 The subthemes identified to relate the data ............................. 72
Table ‎4.5 The Subthemes identified to relate to the data ......................... 74
Table ‎4.6 Profiles of SMEs taking part in the study .................................. 75
Table ‎4.7 TOE Proposed Hypotheses ................................................... 107
Table ‎5.1 Questions types in the survey ................................................ 117
Table ‎5.2 General guidelines related to question formulation that were
used in the development of the survey .................................................. 118
Table ‎5.3 Overview of the survey structure ............................................ 120
Table ‎5.4 Questions on respondents’ demographic information ............ 121
Table ‎5.5 Questions on SMEs' characteristics ....................................... 121
Table ‎5.6 Questions on social media adoption in SMEs ........................ 122
Table ‎5.7 A summary of the technology context factors ........................ 123
Table ‎5.8 A summary of the organisation context factors ...................... 124
Table ‎5.9 A summary of the environment context factors ...................... 125
Table ‎5.10 Survey responses and non-responses ................................. 131
Table ‎5.11 Summary of reliability assessment of instrument constructs 133
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