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In studies undertaken under the third theme of approaches to Internet adoption, it is widely acknowledged that small businesses tend to be-gin by adopting relatively non-complex Internet

Trang 1

Internet, including particularly the IT already in

place, and the IT skills in existence in the

organi-VDWLRQ 0HKUWHQVHWDO ([WHUQDOLQÀXHQFHV

have also been found to be important, and might

include demands from customers and/or suppliers

(Mehrtens et al., 2001), governmental pressure,

and/or pressure from competitors (Scupola, 2003)

Drawing on research undertaken to date into the

IDFWRUV LQÀXHQFLQJ ,QWHUQHW DGRSWLRQ LQ VPDOO

businesses, the present study seeks to identify the

reasons underlying the decision to participate in

a community Web site project, and comparisons

DUHPDGHZLWKWKH¿QGLQJVRIWKHDIRUHPHQWLRQHG

investigations

8QGHUWKHVHFRQGWKHPHRIEHQH¿WVGHULYHG

from Internet adoption, it has been reported

that small businesses have been slow to realise

WDQJLEOHEHQH¿WVEXWFRQWLQXHWRXVHWKH,QWHU-QHWLQDQWLFLSDWLRQRIIXWXUHEHQH¿WVUHDOLVDWLRQ

(Daniel & Wilson, 2002; Poon & Swatman, 1999)

,Q WKLV VWXG\ WKH EHQH¿WV EHLQJ UHDOLVHG IURP

participation in the community Web site project

are considered, and comparisons are made with

H[LVWLQJOLWHUDWXUHRQVPDOOEXVLQHVVEHQH¿WVRI

Internet adoption

In studies undertaken under the third theme

of approaches to Internet adoption, it is widely

acknowledged that small businesses tend to

be-gin by adopting relatively non-complex Internet

applications (such as electronic mail or a basic

information-only Web site), and then progress

to more complex applications (such as online

ordering and payment facilities) depending on the

needs of the business In some literature, a linear

progression is envisaged (Daniel et al., 2002; DTI,

 ZKLOHRWKHUVDOORZIRU³leapfrogging” of

Internet applications as appropriate to the

busi-ness, suggesting instead a nonlinear approach

to adoption (Rao et al., 2003) In the present

study, an effort is made to determine the nature

of each business’ Internet adoption pathway and

to ascertain at what point in that pathway their

participation in the community Web site project

occurred The study further examines the impact

of participation in the community Web site project

on the subsequent Internet adoption behaviour of each small business

'UDZLQJRQWKHSURFHHGLQJWKHPHVLGHQWL¿HG

in the literature, the objectives of the present study are, in summary, to:

• Establish the motivations of the small busi-nesses in the village for participating in the online business directory component of the community Web site project and to ascer-tain the point in those businesses’ Internet adoption pathway that participation in the project took place;

‡ 'HWHUPLQHWKHEHQH¿WVEHLQJGHULYHGIURP their participation in the project;

• Identify any problems they have encountered

as a result of their participation;

• Establish the impacts their participation has had, or is having, on their further Internet adoption plans and decisions

In pursuing these objectives, it is anticipated WKDWWKH¿QGLQJVRIWKHVWXG\ZLOOPDNHDWLPHO\ and relevant contribution to existing understand-ing of small business Internet adoption decisions and processes, especially those studies that have considered the routes to Internet adoption behav-LRXUDQGRXWFRPHV0RUHRYHUWKH¿QGLQJVVKRXOG

be of value to other small businesses, as well as

to those developing models of Internet adoption pathways to provide guidance and advice to small businesses

OVERVIEW OF THE COMMUNITY WEB SITE

As indicated in the introduction to this chapter, the community Web site under investigation aims to provide an opportunity for business and local community / charitable organisations (e.g., youth clubs, volunteer groups, churches, and so on) to promote their products, services, and/or

Trang 2

activities to the population of a village in the UK

This community Web site project forms parts

of a wider community initiative to foster closer

social bonds within the village and to encourage

active participation of villagers in local activities,

as well as to stimulate villagers’ support for local

business and service enterprises

In cases where individual organisations in the

village have their own Web site, then links are

provided to these from the community site In

this respect, the site functions like a Web portal

Features of the community Web site include

ar-chives of news of past events in the village, and an

online discussion facility for villagers to express

their views on local matters and exchange ideas

In addition, the site contains information about

local community service facilities (e.g., health and

welfare provision) and updates on local political

and council matters

As well as the aforementioned features, the

site contains an online directory of businesses

based in the village This directory is organised

thematically, including, for example, sections for

retail organisations, building and house

mainte-nance enterprises, and private health and welfare

providers Each entry in the directory includes

the name of the business, its postal address, other

contact details (e.g., e-mail address, where

avail-able), a link to the business’ own Web site (if it has

one), and a brief summary of what the enterprise

offers in the way of products and/or services It

is this online business directory component of

the community Web site that forms the focus of

the present study

Funding for the village community Web site

is obtained from a variety of sources, notably through sponsorship from some local businesses and the local council Funds are also generated from annual subscription fees paid by some local UHVLGHQWVIRUD³SHUVRQDOLVHG´HPDLODGGUHVVDQG mail forwarding service No charge is levied for local businesses to have an entry placed in the online business directory, and participation in the directory is operated on a voluntary opt-in basis Management, maintenance and updating of the Web site is undertaken by a small team of local volunteers, with Web content being supplied, as appropriate, by various local community organi-sations and businesses

Within the village community, comprising some 5,000 residents, the community Web site supplements an existing (paper-based) village magazine, distributed quarterly to the 2,000 or

so households in the village

RESEARCH METHOD

The exploratory nature of the empirical research conducted in the course of the present study favoured the case study approach (Yin, 1994) The unit of analysis in the study was the small business

The sampling frame for this study comprised the 77 small businesses listed in the online busi-ness directory on the community Web site under investigation Each of the businesses is being contacted by telephone and invited to participate

(employees)

Date founded

Case 2 Childcare service provider 8 1989

Case 3 Manufacturer & distributor of baby products 12 1993

Case 4 Home interiors retail outlet 5 1984

Case 5 Optician and eyewear retail outlet 9 1988

Case 6 Furniture manufacturer & distributor 4 1996

Table 1 Small businesses participating in the study

Trang 3

in the study To date, data have been collected and

analysed from six small businesses having entries

in the online business directory Among the six

businesses that have participated in the study so

far, the retail, manufacturing and service sectors

were represented Table 1 provides a summary of

those six participating businesses

Data were collected about the small businesses

XVLQJWZRSULQFLSDOPHDQV¿UVWDQH[DPLQDWLRQ

was undertaken of the entries in the online

busi-ness directory, and the busibusi-ness’ own linked Web

site was consulted (if available); and second,

in-depth semi-structured interviews were conducted

with the owner-managers of the six participating

enterprises These interviews were conducted in

mid-2004

For the interview phase of the research, an

interview guide was prepared, and closely

fol-lowed in each interview A summary of the key

issues discussed in the interviews is provided in

Table 2

Interviews were recorded and later transcribed

To assist with accuracy, notes were also taken

by the investigator during each interview In

an effort to ensure consistency and validity of

¿QGLQJV LQWHUYLHZ ¿QGLQJV ZHUH VXEVHTXHQWO\ cross-checked, where possible and appropriate, with the community Web site content, as well as the individual Web sites (if any) managed by the individual participating enterprises

SUMMARY OF FINDINGS

As indicated in Table 1, the enterprises participat-ing in the study all fall into the small business category (i.e., having under 50 employees), and indeed all except one of them (case 3) could be classed as micro businesses, that is to say, they have under 10 employees (Curran & Blackburn, 2001; Storey, 1994) Each of the enterprises had a basic entry in the online business directory, com-prising company name, postal address, telephone number, and fax number Those with an e-mail address also included this in their directory entry Those with their own Web site provided a link to the site from their entry in the directory With regard to Internet adoption, three of the small businesses already had their own Web site, one of which (case 3) was offering online ordering

The structure of each interview was as follows:

1. Collection of background information about the enterprise; collection of demographic data, including levels of existing IT knowledge and skills.

2. Gathering of data regarding the enterprise’s adoption of Internet technology (e.g

e-mail usage, having own web site, offering online ordering and / or payment facilities).

3. Establishment of the motivations for requesting an entry in the online business directory on the community web site

4. Determination of what the enterprise had anticipated gaining from having an entry in the online business directory

5. Determination of the actual benefits being realised by the enterprise from having

an entry in the online business directory

6. Gathering data about any problems the enterprise has encountered, or is encountering, with having an entry in the online business directory.

7. Determination of the impacts the enterprise’s participation in the community web site project has had on their Internet adoption and electronic commerce activities (e.g has it led to further adoption of Internet technologies; has participation in the community web site project deterred the enterprise from further involvement in Internet and electronic commerce-related activities?)

8. Collection of data regarding the enterprise’s future plans with regard to involvement in Internet and electronic commerce activities

9. Opportunity for interviewee to discuss any other issues relating to the enterprise’s involvement in Internet and electronic commerce activities.

Table 2 Interview guide

Trang 4

(but not online payment) facilities via the site;

the other two Web sites (case 2 and case 5) were

VLPSOH³LQIRUPDWLRQRQO\´ RQOLQHEURFKXUH VLWHV

Four of the organisations had an e-mail address

which was included in their entry in the online

business directory Two out of the six enterprises

(case 1 and case 4) had only their company name,

address and telephone number listed in the online

business directory These two enterprises had

no e-mail facilities and did not have a company

Web site: their only Internet involvement was

their entry in the online business directory on

WKH FRPPXQLW\ :HE VLWH 7KHVH ¿QGLQJV DUH

summarised in Table 3

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studies, the levels of Internet adoption evidenced

among the small businesses participating in the

present study seemed to be quite typical In

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adopters, offering facilities such as online

pay-ment, has been found among other samples of

small businesses In their study of Australian

small businesses, for example, Poon and Swatman

(1999) noted that Internet adoption in each

busi-ness was not very far advanced Similarly, in their

study in Singapore, Kendall et al (2001) found

widespread adoption of basic e-mail facilities and

informational Web sites, but little evidence of use

being made of transactional Web sites Findings in

Scupola’s (2003) study of Italian small businesses

were again broadly similar

In response to questioning about their

motiva-tion for participating in the community Web site

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derive from their participation, the following

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• All cases stated that they anticipated that their entry in the online business directory would generate sales enquiries, and they hoped, lead to increased sales or contracts for work For those cases already operating a Web site (i.e., cases 2, 3, and 5), it was noted that a similar drive had been behind their original decision to launch a Web site for their business This aspiration of improved VDOHVSHUIRUPDQFHDFFRUGVZLWKWKH¿QGLQJV

of other studies

• For case 2, participation in the online busi-ness directory had occurred approximately two years after the launch of the company’s own Web site For case 5, participation in the project had occurred prior to the creation of their own company Web site, and their direc-tory entry was updated with the appropriate Web site link almost as soon as their own site was launched For case 3, involvement with the business directory occurred after the launch of their initial information-only Web site, but before the extension of their site to include online ordering facilities Ir-respective of the point at which participation

in the online business directory occurred

in the Internet adoption pathways of these three businesses, a key motivational factor underlying their involvement was the antici-pation that it would help drive more visitors

to their own company Web site Moreover, they each believed that it would not only

Email address

Web site (date launched)

Online ordering

Online payment

Table 3 Existing Internet usage

Trang 5

WKLVWUDI¿FZDVOLNHO\WRFRPSULVHDKLJKHU

proportion of relevant and appropriate sales

enquiries By relevant and appropriate they

meant enquiries emanating from members

of the local village population, rather than

:HEXVHUVIURPIXUWKHUD¿HOGZKRVLPSO\

came across their company Web site via

search engines and/or other Web browsing

mechanisms For cases 1 and 4, involvement

in the online business directory was their

only Internet involvement In case 6, their

only other Internet adoption prior to the

in-volvement in the online business directory,

was the use of electronic mail

• All of the cases indicated that one

attrac-tion of the online business directory was

that it provided them with a low-risk, no

cost opportunity to promote their products

and/or services among the inhabitants of

the local community Cases 4 and 6 deemed

this to be a particularly important issue as

the directory gave them the opportunity to

experiment with Internet usage (and most

especially the use of a Web site) and assess

its value to their individual businesses The

owner of case 4 elaborated on this issue by

suggesting that whilst government and

busi-ness support initiatives existed to provide

¿QDQFLDODQGWHFKQLFDODVVLVWDQFHWRVPDOO

businesses wanting to adopt the Internet into

their operations, considerable time and effort

needed to be invested to have a Web site set

up, and the return on that investment was

uncertain By contrast, the online business

directory initiative was deemed less risky,

and importantly for them, it necessitated a

much lower investment of time and effort

Cases 4 and 6 indicated that they viewed their

participation in the online business directory as

a precursor to further Internet adoption, in

par-ticular as a precursor to the establishment of their

own company Web site Each of them believed that

they were organisationally and technologically unready for Internet adoption, but viewed the establishment of the community Web site project

as an opportune moment to consider whether it ZRXOGEHEHQH¿FLDOIRUWKHPWR³JHWUHDG\´IRU Internet adoption, and to review what needed to

be done to ensure they were ready for it The owner of case 1, on the other hand, indi-cated that he had no intention of moving further into Internet usage He deemed Internet technol-ogy to be largely unsuitable for the nature of his business (a plumbing business) For communica-tion purposes, for instance, he believed that the use of a mobile telephone was more useful than electronic mail, as it enabled emergency enquiries WREHGHDOWZLWKSURPSWO\DQGHI¿FLHQWO\ZKHQ KHZDVDZD\IURPKLVRI¿FHEDVH7KHRZQHURI this small business further perceived no use for

a company informational Web site, or indeed for additional online ordering and payment facili-ties Instead, he simply wanted to use the online business directory on the community Web site

as a means of promoting his services to the local village community, and in so doing, to supple-ment his existing entries in various paper-based listings and directories The primary underlying motivation for his participation in the community Web site project was that it provided him with an online business directory entry free of charge The attitudes towards, and perceptions of, Inter-net adoption expressed by the owner of case 1 were similar to those reported of a non-adopting SME in the Internet adoption study documented

in Mehrtens et al., (2001): for the non-adopting SME in their study, the owner/manager believed that traditional methods of doing business were more appropriate in his industry sector (transport service) than the use of the Internet

7RVXPPDULVHWKH¿QGLQJVRIWKLVSDUWRIWKH VWXG\LWDSSHDUVLWVSHUFHLYHGEHQH¿WVZHUHDQ important factor motivating involvement in the online business directory project Unlike other studies of small business Internet adoption (see for example Mehrtens et al., 2001; Scupola, 2003), the

Trang 6

small businesses in this study did not cite external

SUHVVXUH DV D IDFWRU LQÀXHQFLQJ WKHLU DGRSWLRQ

(e.g., pressure from competitors or clients)

Simi-larly, the issue of organisational readiness did not

seem to be an important factor here Indeed, on

the contrary, since some of the participants were

clearly not ready for Internet adoption, from the

point of view of their IT knowledge and skills

The project had acted as a catalyst to help them

get ready for it

:LWKUHJDUGWRWKHDFWXDOEHQH¿WVEHLQJUHDOLVHG

from participation in the community Web site

project, the following points can be highlighted

IURPWKH¿QGLQJVRIWKHVWXG\

participat-LQJVPDOOEXVLQHVVHVWKHDQWLFLSDWHGEHQH¿W

of generating more enquiries and increasing

sales and/or contracts had been translated

LQWRDQDFWXDOEHQH¿WWKURXJKLQYROYHPHQWLQ

the online business directory Each business

reported growth in sales since the launch

of the directory, and most had been able to

track the source of a number of individual

enquiries and sales to a direct link with the

online directory However, none of the small

businesses had performed any detailed or

IRUPDOHYDOXDWLRQRIWKHHI¿FDF\RIWKHGL-rectory The online directory was applauded

by the enterprises because it had opened up

ZKDWZDVSHUFHLYHGWREHDQ³HDV\´PDUNHW-ing and sales generation opportunity

were already operating their own company

:HEVLWHDIXUWKHUDQWLFLSDWHGEHQH¿WRIWKH

online business directory was reported in

the study to have been translated into an

DFWXDOEHQH¿WWKHVHVPDOOEXVLQHVVHVZHUH

UHFHLYLQJLQFUHDVHGWUDI¿FRQWKHLURZQ:HE

site Again, following their own informal

investigations, these businesses believed

WKH\FRXOGDWWULEXWHWKLVLQFUHDVHLQWUDI¿F

on their own site to Web users tracing the

company Web site link via the online

busi-ness directory on the community Web site

So, for these small businesses, participation

in the online business directory was prov-ing to be a valuable means of increasprov-ing the HI¿FDF\ RI WKHLU H[LVWLQJ DQG HVWDEOLVKHG Internet adoption efforts

noted earlier, one motivation for placing an entry in the online business directory (for cases 4 and 6) was that it would provide an opportunity for them to determine if there was any value in further pursuing Internet adoption When asked about the actual EHQH¿WV EHLQJ UHDOLVHG IURP WKHLU SDUWLFL-pation in the community Web site project, both small businesses reported positive experiences, and indicated that they were consequently actively exploring the pos-sibility of launching a simple Web site to promote their products and services Case

4 also noted, that they were in the process

of setting up an e-mail account, but had not yet thought beyond a basic Web presence with e-mail link Case 6, on the other hand, indicated that if their basic Web presence proved a success, then they would consider moving into providing additional online facilities, such as online catalogue searching and online ordering However, online pay-ment facilities were deemed problematic by FDVH³IRUVHFXULW\UHDVRQV¶,QVXPPDU\ for both of these cases, the online business directory had provided some impetus for the owner/managers to consider further Internet adoption in an active way

and 6, participation in the community Web site project had encouraged the owner/man-agers to increase their own IT skills They had each started to attend IT courses, two

at the local community college, and one via

a government online training initiative In these small businesses, the owner/managers had seemed to recognise the importance of

Trang 7

gaining IT skills in order to improve their

level of organisational readiness for Internet

adoption It has been found elsewhere that

the IT knowledge and skills of the owner/

managers is an important contributory

fac-tor to the readiness of a small business to

adopt Internet applications (see for example

Mehrtens et al., 2001) In this study, it seems

that the online business directory created an

environment in which some small businesses

at least, began to address the issue of their

adoption readiness (or unreadiness) and

ac-cordingly began to prepare for adoption

For case 1, a rather different situation was

evidenced: a perceived advantage of the

community Web site project in general, and

the online business directory in particular,

was that the owner/manager felt that through

his directory entry the business now had

a very basic online presence (giving the

³LPSUHVVLRQ WKDW LW ZDV PRGHUQ DQG s t

century”, without any need on his part to

become IT literate, or to introduce any form

of IT into his existing business operations

For this owner/manager, lack of time was

deemed to be his greatest barrier to IT

adop-tion

geo-graphical reach seemed to be important for

each of the participating small businesses

It has been widely suggested in the

litera-ture that, for business enterprises, one of

the most attractive aspects of the World

Wide Web is its broad geographical reach,

providing a key opportunity for products

and/or services to be promoted and sold

in overseas markets (Aldridge, Forcht, &

Pierson, 1997; Herbig & Hale, 1997; Kiani,

1998) It has been further argued that the

Web is, in this respect, particularly

attrac-tive for small businesses, as its use reduces

conventional costs of advertising in overseas

markets (Hamill, 1997), and thereby enables

VPDOOEXVLQHVVHVWR³FRPSHWHPRUHHDVLO\LQ

the global marketplace” (Quelch & Klein, 1996) However, the small businesses in the present study were interested not so much

in global, but local, reach Indeed in most cases (notably cases 1, 2, 4, 5 and 6), a cited EHQH¿WRIWKHLUHQWU\LQWKHRQOLQHEXVLQHVV directory was precisely that this directory had very much a local focus, namely the village in which the business enterprises were based

This matter of local reach was explained by the respondents by comparing their online business directory entries with those of other more conventional paper-based directories they were familiar with: it was noted that the paper-based directories operating in the YLFLQLW\ZHUHQRWVSHFL¿FDOO\IRFXVVHGRQ the village under investigation in this study, but rather covered a broader geographical area, encompassing two small towns and

a large collection of villages and hamlets Respondents commented that this meant that their entries in the paper-based listings RIWHQVHHPHG³ORVW´DPRQJDPXFKODUJHU pool of companies offering similar products and/or services This issue seemed to be a particularly important one for cases 1 and

2 (and to a slightly lesser extent also for case 5): the owner/manager of case 1, for example, stated that he frequently received enquiries via the paper-based directories to undertake work in locations at quite some distance from the village These enquiries were often not deemed worthwhile for him

to pursue, and he felt he had to turn down potential clients By contrast, enquiries that came to him via the online business directory typically came from residents in the village, and he therefore only needed to travel short distances between clients, and could thus undertake more assignments per day This,

of course, saved him both time and money (in reduced travel costs), and enabled him to earn more money through carrying out more

Trang 8

assignments The owner/manager of case 1

further stated that he had always hoped that

the village would be able to have its own

paper-based directory of local businesses,

but he recognised that it was simply not

cost effective to do this; the online

busi-QHVVGLUHFWRU\VHHPHGWRSURYLGH³H[DFWO\

what [my] company needed: a local pool of

clients.” Similar sentiments were expressed

by the owner/managers of cases 2 and 5

With regard to geographical reach, a further

issue was mentioned in detail by one of

the respondents (case 3), and touched upon

EULHÀ\E\RQHRWKHU FDVH 7KLVLVVXHFDQ

SHUKDSVEHVWEHVXPPHGXSDV³ORFDWLRQDQG

cyberspace:” the owner/manager of case 3

felt, that their own company Web site was

³MXVW RXW WKHUH LQ F\EHUVSDFH´

FRPPHQW-LQJIXUWKHUWKDW³VRPHWLPHVSHRSOHIRXQG

it, sometimes they didn’t.” By contrast,

being part of the village community Web

site project, and in particular having a link

IURPWKH³YLEUDQWDQGEX]]LQJYLOODJH:HE

site” directly to the individual company

:HE VLWH ³ORFDWHG WKH FRPSDQ\ LQ D UHDO

SODFH´DQGKHOSHGWR³SXWLWRQWKHPDS´

7KH SHUKDSV UDWKHU LQWDQJLEOH  EHQH¿W RI

this to the small business seemed to be that

they felt the enquiries they received were

from local people who had some sort of

immediate bond with the company because

of a shared physical location, and it was felt,

therefore, that they had an increased degree

of trust in the company and its products

The owner/manager of case 3 summarised

WKLVLVVXHDVJLYLQJD³VHQVHRIORFDWLRQWR

F\EHUVSDFH´DQGIXUWKHUQRWHGWKDWLW³KHOSHG

to personalise cyberspace.”

and quality assurance was also discussed

E\DOORIWKHUHVSRQGHQWVDVDGLUHFWEHQH¿W

of doing business with clients who came

to them via the online business directory

The community Web site, according to the

respondents, was perceived by the local YLOODJH FRPPXQLW\ DV DQ ³RQOLQH YLOODJH green,” that is to say some sort of hub and meeting place for the villagers Businesses advertising on it were considered part of the village community, and known in that community, and thus to be trusted to pro-vide a quality service Again, this sense of community was not felt by the respondents when they participated in more disparate business directories and listings in a wider geographical area

$VZHOODVWKHEHQH¿WVDVVRFLDWHGZLWKSDU-ticipation in the community Web site project, the small businesses taking part in the study also LGHQWL¿HGDQXPEHURISUREOHPV,WVKRXOGEHQRWHG KRZHYHUWKDWHDFKFRPPHQWHGWKDWWKHEHQH¿WV generally outweighed these problems The most QRWDEOH DPRQJ WKH SUREOHPV ZHUH ¿UVW WKRVH small businesses not operating their own Web site wanted the scope of the online business directory

to be extended to enable them to incorporate more detailed information in their individual directory entry Information suggested for inclusion com-prised the business’ opening times, type of work undertaken, and so on Second, some concerns were voiced about the fact that the community Web site project was coordinated and adminis-tered by a group of volunteers from the village This reliance on the goodwill of volunteers was felt to pose a possible problem for the longevity and future sustainability of the project as a whole, thus casting a doubt over how long the small busi-QHVVHVZRXOGEHDEOHWRHQMR\WKHEHQH¿WVRIWKH online business directory

DISCUSSION AND IMPLICATIONS

The primary reason for participation in the online EXVLQHVVGLUHFWRU\VHHPHGWREHWKHEHQH¿WVLW offered For the small businesses investigated

in this study to date, participation was rewarded

Trang 9

held true for enterprises not engaged in any other

form of Internet adoption, as well as for those

which had already embarked on Internet

adop-WLRQYHQWXUHV$ULVLQJIURPWKH¿QGLQJVRIWKLV

exploratory study, a number of issues are worthy

of note and further discussion

First, whilst existing conventional Internet

adoption models typically cite having an e-mail

account and/or a basic informational Web site as

the Internet adoption starting point for many small

businesses (see for example Daniel et al., 2002;

5DRHWDO6FXSROD WKH¿QGLQJVRI

this study suggest that for some small businesses,

a valuable starting point in Internet adoption might

simply involve placing an entry in a wider online

business directory The advantages are that it

car-ries a relatively low risk, it can be offered at low

cost (or, in the case of the site under investigation

in the present study, at no cost), and it requires

no IT knowledge or skills in the small business

itself As demonstrated in this study, a local online

business directory forming part of a community

Web site may provide, for some small businesses,

an environment and context in which they can

experiment with the Internet, and particularly

³WHVW WKH ZDWHU´ DERXW WKH YDOXH RI SURPRWLQJ

their products and/or services via the World Wide

Web For some also, such online directories may

act as a catalyst for further Internet adoption

In recognition of the role that such directories

might play in the Internet adoption pathways of

small businesses, it seems reasonable to propose

that existing models of Internet adoption might

incorporate, at the early, non-complex application

level (i.e., before the e-mail and Web site adoption

levels), a level comprising participation in a local

online business directory

Second, for those small businesses that are

DOUHDG\RSHUDWLQJWKHLURZQ:HEVLWHWKH¿QGLQJV

of the study indicated that participation in the

online business directory had the positive effect

of both increasing the number of visitors to their

own Web site, as well as increasing the proportion

RIUHOHYDQWVLWHYLVLWRUV,QWKHOLJKWRIWKH¿QGLQJV

of other studies that have suggested that there KDVEHHQOLWWOHGLUHFWUHDOLVDWLRQRIEHQH¿WVIURP Internet adoption for small businesses, the role

of online business directories in community Web site projects might usefully be further examined Support initiatives devised to help small busi-nesses optimise their Internet adoption ventures might, for example, encourage small businesses

to link their own Web sites to relevant online directories or local portals in order to increase the visibility of their site, and thus help increase WKHOHYHORIWUDI¿FWRLW

Third, the present study helped to address the issue, discussed elsewhere in the literature (see for example Mehrtens et al., 2001; Teo & Ranganathan, 2004), of encouraging traditional QRQDGRSWHUVRIWKH,QWHUQHWWR¿QGVRPHYDOXH

in using it within their own business operations

In particular, the study demonstrated that a lo-cal online business directory could provide a mechanism for traditional non-adopters to have

an online presence (albeit quite a minimal one), DQGWRGHULYHVRPHEHQH¿WIURPWKDWSUHVHQFHRYHU more conventional approaches to the marketing and promotion of their goods and/or services As evidenced in this study, for some small businesses, participation in an online business directory may

be the extent of the Internet involvement they require or deem appropriate for their business purposes For others, of course, it may be that their involvement with such a directory might convert them to Internet adopters This issue does not appear to have been investigated elsewhere and arguably warrants further investigation beyond the scope of this study Such an investigation would be especially useful in the light of recent UHVHDUFK FKDOOHQJLQJ WKH QRWLRQ RI D ³RQH VL]H

¿WV DOO´ ,QWHUQHW DGRSWLRQ PRGHO DQG VWUDWHJ\ (see for example Martin & Matlay, 2001) From

a practical point of view, it would be useful too to examine the extent to which government Internet promotion strategies and small business Internet adoption support initiatives have considered the

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role that online business directories and

com-munity Web sites can play in helping traditional

non-adopters begin to explore the value of having

an online presence

$IRXUWKLVVXHWREHGLVFXVVHGIURPWKH¿QG-ings of the present study is that of geographical

reach and the small business: whilst global reach

is undoubtedly an important issue for many

small businesses, and the Internet has provided

an unprecedented boost to their international

marketing efforts, the notion of the Internet and

local reach should not simply be neglected As

this study has shown, for some small businesses,

the need is to use the Internet to help them

de-velop a deeper more targeted client base within

their own locality and community The study has

shown how a local community Web site, might

help facilitate that It is interesting to note that

much of the existing research literature on the

Internet and small business tends to mention only

the aspect of global reach, rather than deeper

lo-cal market penetration Again, government and

small business support agencies might usefully

highlight this aspect of the Internet’s value when

endeavouring to encourage small businesses to

engage in Internet activities

Having conducted this initial exploratory

VWXG\DQGLQVRGRLQJLGHQWL¿HGVRPHEHQH¿WV

and problems of community Web sites for small

businesses and highlighted the impacts such sites

might have on the Internet adoption behaviour of

small businesses, the intention now is to undertake

a more extensive study, involving more small

businesses and incorporating further community

sites and online business directories The purpose

of this follow-up study will be to investigate more

fully some of the issues arising from this study,

to explore further some of the ideas put forward,

and ultimately to develop and evaluate a model of

Internet adoption that incorporates the notion of

a local community Web site containing an online

business directory

CONCLUDING REMARKS

7KLV VWXG\ VRXJKW WR H[SORUH WKH EHQH¿WV DQG problems small businesses in a UK village are deriving from participation in a community Web site project, focussing particularly on the online business directory component of that project and

to investigate the impacts participation is having

on their Internet adoption behaviour The study has indicated that the small businesses believed the EHQH¿WVRXWZHLJKHGDQ\SUREOHPVDQGWKDWWKRVH EHQH¿WVLQFOXGHGWKHFDSWXULQJRIDPRUHUHOHYDQW local client base, low cost marketing available at minimal effort, and the opportunity to engage in low-level Internet adoption as a means of testing the water for further future involvement, if ap-propriate to their business operations It has been suggested that government small business Internet LQLWLDWLYHVVKRXOGQRWQHJOHFWWKHYDOXHRIWKH³OR-cal focus” for small businesses when promoting Internet adoption, and that furthermore, the notion

of community Web site and local online business directories might usefully be further explored by government agencies and small business support providers as a means of engaging a wider pool of small businesses in Internet activities, particularly the traditional non-adopters of the Internet A further, more extensive study, is now proposed and planned to pursue these matters in greater depth, with a view to developing an Internet adoption model that can accommodate community Web site projects and local business directories

REFERENCES

Aldridge, A., Forcht, K., & Pierson, J (1997) Get linked or get lost: Marketing strategy for the

In-ternet Internet Research: Electronic Networking

Applications and Policy, 7(3), 161-169

Curran, J., & Blackburn, R A (2001)

Research-ing the small enterprise London: Sage

Publica-tions Ltd

... Internet

applications (such as electronic mail or a basic

information-only Web site), and then progress

to more complex applications (such as online

ordering and payment... also been found to be important, and might

include demands from customers and/ or suppliers

(Mehrtens et al., 2001), governmental pressure,

and/ or pressure from competitors... adoption plans and decisions

In pursuing these objectives, it is anticipated WKDWWKH¿QGLQJVRIWKHVWXG\ZLOOPDNHDWLPHO\ and relevant contribution to existing understand-ing of small

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