The DiÚ 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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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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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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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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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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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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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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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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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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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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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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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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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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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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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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Notes and References

1. R. Nelson & S. Winter, An Evolutionary Theory of Economic Change (Cambridge, MA, Harvard

University Press, 1982); G. Dosi, C. Freeman, R. Nelson, G. Silverberg & L. Soete (Eds), Technica

Change and Economic Theory (London, Pinter Press, 1988).

2. P. Saviotti, Technological Evolution, Variety and the Economy (Cheltenham, Edward Elgar, 1996).3. OECD, Small and Medium-sized Enterprises: Technology and Competitiveness (Paris, Organisation for

Economic Co-operation and Development, 1993); OECD, Information Technology (IT): Diusion

Policies for Small and Medium-sized Enterprises (SMEs) (http://www.oecd.org/dsti/sti/it/infosoc/prod/

e9576.pdf ), (Paris, Organisation for Economic Co-operation and Development, 1995).

4. J. Stroeken & J. Coumans, The Actual and Potential Use of Information Technology in Small and

Medium Sized Enterprises, Prometheus, 16 (4), 1998, pp. 469483.

5. Cf. OECD, op. cit., Ref. 3; R.M. La Rovere, IT Diusion in Small and Medium-sized Enterprises

Elements for Policy Denition, Information Technology for Development, 7 (4), 1996, pp. 169181.

6. E.C.C. Faber, J.H.M. Stroeken & M.J. de Vries, The Missing Link: An evaluation of the Utilizationof the Monitor Studies in the Netherlands, Technology Analysis & Strategic Management, 9 (1), 1997

pp. 8596.

7. E.M. Rogers, Diusion of Innovations(New York, The Free Press, 1995), p. 5.

8. Ibid., p. 20.

9. Ibid., p. 11.

10. Cf. B. Nooteboom, C. Coehoorn & A. van der Zwaan, The Purpose and Eectiveness o

Technology Transfer to Small Businesses by Government-sponsored Innovation Centres, Technology

Analysis & Strategic Management, 4 (2), 1992, pp. 149166; J. Bessant & H. Rush, Building Bridges

for Innovation: The Role of Consultants in Technology Transfer, Research Policy, 24, 1995

pp. 97114.

11. Cf. L.G. Tornatzky & M. Fleischer (Eds), The Process of Technological Innovation (Lexington, MA

Lexington Books, 1990).

12. Rogers, op. cit., Ref. 7.

13. Ibid.

14. C. Freeman & L. Soete, Information Technology and Employment: An Assessment (Brighton, University of

Sussex, 1985), p. 46.

15. OECD (1995), op. cit., Ref. 3.

16. W.J. Abernathy & J.M. Utterback, Patterns of Industrial Innovation, Technology Review, 80, 1978,

pp. 4047; Barras, R., Interactive Innovation in Financial and Business Services: The Vanguardof the Service Revolution, Research Policy, 19, 1990, pp. 215237.

17. J. Stroeken, Information Technology, Innovation and Supply Chain Structure, International Journa

of Technology Management, special issue on Technology Management in a Post-Fordist Environment

vol. 20, No. 112, pp. 156175, 2000.

18. Rogers, op. cit., Ref. 7, p. 23.

19. Cf. Nooteboom et al., op. cit., Ref. 10; OECD (1995), op. cit., Ref. 3; La Rovere, op. cit., Ref. 5

Stroeken & Coumans, op. cit., Ref. 4.

20. M.R. Kelly & H. Brooks, External Learning Opportunities and the Diusion of Process Innovations

to Small Firms: The Case of Programmable Automation,Technological Forecasting and Social Change

6, 1991, pp 103125; Nooteboom et al., op. cit., Ref. 10.

21 S Davies The Diusion of Process Innovations (Cambridge Cambridge University Press 1979)


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28. P. Attewell, Technology Diusion and Organizational Learning: The Case of Business Computing

Organization Science, 3 (1), 1992, pp. 119.

29. Stroeken & Coumans, op. cit., Ref. 4; J. Stroeken & W.H.C. Knol, IT Scenarios for Small and

Medium-sized Enterprises, Paper presented at the conference Technology Policy and Innovation

Austin, TX, 31 August2 September, 1999.

30. Attewell, op. cit., Ref. 28.

31. Cf. Rogers, op. cit., Ref. 7.

32. M.L. Markus, Toward a Critical Mass Theory of Interactive Media: Universal Access, Interdepend-

ence and Diusion, Communication Research, 14, 1987, pp. 491511; M.L. Markus, Toward a

Critical Mass Theory of Interactive Media, in: J. Fulk & Ch. Steineld (Eds), Organizations and

Communication Technology (Newbury Park, Sage, 1990), pp. 194218.

33. M.L. Katz & C. Shapiro, Network Externalities, Competition, and Compatibility, American

Economic Review, 75, 1985, pp. 424440; M.L. Katz & C. Shapiro, Technology adoption in the

Presence of Network Externalities, Journal of Political Economy, 94 (4), 1985, pp. 822841.

34. Tornatzky & Fleischer, op. cit., Ref. 11.35. Cf. K. van der Heijden, Scenarios: The Art of Strategic Conversation (Chichester, Wiley, 1996)

J. Gausemeier, A. Fink & O. Schalke, Scenario Management: An Approach to Develop Future

Potentials, Technological Forecasting and Social Change, 59, 1998, pp. 111130.

36. R .P. Bood & T.J.B.M. Postma, Scenario Analysis as a Strategic Management Tool, SOM Research

Report 9805, Groningen, University of Groningen, 1998; Stroeken & Knol, op. cit., Ref. 29.

37. M.S. Scott Morton (Ed.), The Corporation of the 1990s: Information Technology and Organizationa

Transformation (Oxford, Oxford University Press, 1991).

38. N. Venkatraman, IT-induced Business Reconguration, in: M.S. Scott Morton (Ed.), The Corporation

of the 1990s: Information Technology and Organizational Transformation (Oxford, Oxford University Press1991), pp. 122158.

39. Scott Morton, op. cit., Ref. 37.

40. Venkatraman, op. cit., Ref. 38.

41. R .L. Nolan, Managing the Crisis in Dataprocessing, Harvard Business Review, 57 (2), 1979,

pp. 115126.


43. D.S. Tan, IT Management Plateaus: An Organizational Architecture for IS, Information Systems

Management, Winter, 1995, pp. 4453.

44. Stroeken & Coumans, op. cit., Ref. 4.

45. Ibid.; Stroeken & Knol, op. cit., Ref. 29.


47. Tan, op. cit., Ref. 43.

48. Stroeken & Coumans, op. cit., Ref. 4.

49. Scott Morton, op. cit., Ref. 37.


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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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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