IMPACT OF BROADBAND INTERNET TECHNOLOGIES ON BUSINESS PERFORMANCE OF

IRISH SMES1

AUTHORS

Eileen Doherty, Research Fellow, Innovation Value Institute, Maynooth University,

Maynooth, Co. Kildare, Ireland2.

Elaine Ramsey, Professor of Business Innovation, University of Ulster, N. Ireland.

Paul Harrigan, Senior Lecturer in Marketing, The University of Western Australia.

Pat Ibbotson, Senior Lecturer in E-Commerce, University of Ulster, N. Ireland.

SHORTER TITLE:

Impact of broadband

MAIN MESSAGE:

SME’s adoption and use of broadband technology is driving both day-to-day efficiencies and

strategic developments.

KEY POINTS:

SMEs are driven to adopt broadband technologies from needs internal or inside their

business, and not generally from external pressures. SME owner-managers are the key

decision makers and they report that the image of their business is enhanced through the

use of broadband technologies which enable better website, email and social media use. In

turn, new international markets open up for the SMEs with which they are able to trade

online via e-commerce.

JEL Codes:

O3, R5

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1

INTRODUCTION

With the advent of advanced ICTs and telecommunications, particularly the Internet and

more recently broadband Internet, comes a multitude of economic and social benefits

consequential to these technological advances and as such, are fundamental components of

today’s digital revolution. Broadband can be defined as:

“High-speed transmission. The term commonly refers to Internet access via a variety

of high-speed networks, including cable, DSL, FiOS, Wi-Fi, WiMAX, 3G, 4G and

satellite, all of which are faster than analog dial-up by a huge magnitude.”

(PC Mag, 2015)

It is now perceived as a key factor in the success of the economy (Lehr et al., 2006;

Majumdar et al, 2010;Czernich et al, 2011) and at a micro level it has positive implications

for firm performance (OECD, 2008; Mack and Faggian, 2013). Broadband-enabled

communities experience more rapid economic growth, increased employment, a greater

number of businesses overall and more businesses in the IT intensive sectors (Lehr et al.,

2006; Majumdar et al, 2010; Czernich et al, 2011). There has been a significant body of

research undertaken regarding adoption and diffusion of the Internet and associated

technologies by the firm (Doherty, 2012) however there has been a dearth of studies

conducted in the SME context and even fewer that have a theoretical base underpinning

their research. This paper seeks to understand the impact of broadband Internet

technologies on business performance of Irish SMEs through an exploration of the key

drivers impacting upon adoption, nature of broadband usage, challenges to adoption and

ultimately the post adoption impact of the technology.

The paper is presented as follows: the literature surrounding the research problem relative

to the adoption and diffusion of an innovation (technological determinism and instrumental

theory) is first presented. Additionally, previous studies examining the practical

implications of the adoption and diffusion of the technology are then outlined.

Consequently the methodological approach adopted through this study is presented

followed by the quantitative and qualitative findings from the research. Finally the

discussion, conclusion and ideas for future research are presented.

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BACKGROUND

Extensive research has previously been undertaken from a large firm (Majumdar et al,

2010), country (Manzoor, 2014) and consumer context (Irani et al, 2009; Dwivedi et al,

2009; Manzoor, 2014) regarding adoption and diffusion of the Internet and associated

technologies. However, there is acknowledgement that further research needs to be

conducted from a micro perspective and little has been done to examine the post-adoption

impact and what it is being used for (Akerman, 2013). In addition, it is important to note

that there is also a dearth of research undertaken from an SME perspective (Ramdami et al,

2009). As such, this research seeks to understand the impact of broadband Internet

technologies on Irish (Northern Ireland and the Republic of Ireland) SME business

performance for reasons of SME density of population (Intertrade Ireland, 2013) and claims

of broadband coverage (Collins, 2010; ITU, 2012).

PHILOSOPHIES/THEORIES GUIDING TECHNOLOGY ADOPTION

Technological determinist scholars purport that technology in general and more specifically

communications technologies are the basis of society in the past, present and the future

(Chandler, 1995). Furthermore, in this era of the Internet and its associated technologies,

there is acknowledgement that the role technology plays in social change on a daily basis is

ubiquitous. Many of our normal and routine ways of doing things can be attributed to the

introduction of some new technology or other (Lawson, 2004). Determinists view

technology as an autonomous force of social change; as the ‘prime mover’ in history

(Chandler, 1995) and its significant impact on society is therefore a destiny from which there

is no escape (Feenberg, 1991).

Social determinism can be perceived as taking key elements of both of the above

philosophical perspectives in that it perceives technology as a result of the society in which

it is developed (Green, 2001). Green asserts that throughout history, technology has been

developed as a consequence of a social need, with a particular purpose or objective in mind

(2001). It acknowledges that technology development can only happen with financial

backing and as such is of benefit to those who are in a position to subsidise its development.

In essence, this philosophical perspective asserts that it is the attributes or features of the

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technology that determines its use and the role of a progressive society is to adapt to (and

benefit from) its use (Green, 2001).

The current study is concerned with the area of technology acceptance and consequently

necessitates an understanding and further investigation of how new technology is adopted.

Of particular relevance is the adopter based Technology Acceptance Model (TAM). TAM was

developed by Davis (1989) and Davis et al (1989) using computer usage research to explain

behavioural intentions associated with why users accept or reject technologies. In addition

Roger’s developer based Diffusion of Innovations theory (1995) is concerned with the

attributes that will affect technology adoption rates. The next sections outline these

theoretical perspectives in more detail.

TAM focuses on the perceived characteristics of the technology which are believed to drive

adoption behaviours - termed the ‘technological’ perspective (Franquesa and Brandyberry,

2009). Central to TAM are two distinct but related constructs; perceived usefulness (PU)

and perceived ease of use (PEOU), (Davis, 1989) which are purported to be “the two most

important factors in explaining system use” (Legris et al, 2003, p.192). Perceived usefulness

is defined as "the degree to which a person believes that using a particular system would

enhance his or her job performance" (Davis, 1989, p. 320) and perceived ease of use as "the

degree to which a person believes that using a particular system would be free of effort"

(Davis, 1989, p. 320). TAM suggests that the perceived usefulness and perceived ease of use

constructs impact a user’s attitude towards a new innovation or technology. Essentially, if a

user perceives the technology as an effective tool to use in their job, then users’ attitudes

towards using the new technology will be more positive (Pai and Huang, 2011). As a

consequence this attitude promotes the user's behavioural intention and actual system use.

DOI theory developed by Rogers (1962; 1983; 1995) is considered to include the most

prominent of the developer-based theories of adoption and diffusion (Poscente et al, 2006).

The fundamental nature of DOI is that an individual’s decision to adopt a new technology is

a process that occurs over a period of time which consists of a series of actions and

decisions as opposed to an instantaneous act (Oni and Papazafeiropolou, 2008). Rogers

DOI theory (1995) has four key components;

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1) Innovation Decision Process: asserts that diffusion occurs over a period of time as

potential adopter’s progress through linear stages of knowledge, persuasion, decision,

implementation, and ultimately, confirmation (Rogers, 1995). This theory places learning

about the innovation as central to the adoption and diffusion process (Rogers, 1995).

2) Individual Innovativeness: explains why it is that some individuals adopt a new technology

earlier than others and accordingly asserts that some individuals have more of a

predisposition to being innovative than others and may be plotted on a continuum from

‘early adopters’, through ‘early majority’, ‘late majority’ and finally ‘laggards’ who may be so

opposed to risk taking so as to never adopt an innovation (Rogers, 1995).

3) Rate of Adoption: suggests that diffusion occurs over a period of time and when plotted

forms an ‘s-shaped curve’, where adoption begins slowly, accelerates and then plateaus

(Rogers, 1995).

4) Perceived Attributes of an innovation: is considered the most applicable of all Rogers’

theories to the current study that considers technological innovation in the SME context.

The perceived attributes theory builds on previous work conducted by Davis (1989) in his

Technology Adoption Model (TAM) and suggests that potential adopters evaluate or judge

innovations based on five distinct concepts: their ‘trialability’, the ‘observability’ of their

impact, their ‘relative advantage’ over existing technologies, their ‘compatibility’ with

existing social systems and their ‘complexity’ (Rogers, 1995). To expand on these concepts

further the theory states that the diffusion rate of an innovation will increase if potential

adopters consider that the innovation has ‘trialability’; where the innovation can be ‘tried

out’ for a limited period before adoption. It must also possess ‘observability’ where the

innovation must offer observable results to other potential adopters. It needs to offer a

substantial relative advantage over other innovations and be seen as superior to the

technology already in use (Gunderman and Meesa, 2008). Compatibility concerns the

degree to which the innovation is compatible and ‘fits in’ with existing practices and

experiences. Finally, complexity concerns how easy or difficult it is to understand and use

the innovation (Gunderman and Meesa, 2008).

As a facilitating technology, previous studies have examined broadband adoption under the

TAM and DOI lenses. Oni and Papazafeiropolou (2008) found that ‘compatibility’,

‘complexity’ and ‘relative advantage’ from Rogers DOI (1995); were found to best explain

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broadband take up and usage by SMEs. Pontikakis and Collins (2010) also found ‘relative

advantage’ to be an effective measure of firm adoption of broadband in Ireland. Grilli and

Colombo (2007) in a study of broadband adoption by Italian SMEs found that the perceived

competitive pressure, the telecommunications infrastructure in their area, the availability of

a skilled workforce and the actual and future cost of broadband all had an impact upon the

adoption and diffusion process. Thus, from a practical perspective a firm’s decision to

adopt new technologies may be impacted by internal and external influences (Sim et al.

2011; Oni and Papazafeiropolou, 2008); some of which are presented in the next section.

INTERNAL AND EXTERNAL INFLUENCES AFFECTING ADOPTION

Internal Influences

The perceived benefits from adopting and using broadband technologies provide strong

impetuses for SMEs. These can be grouped into efficiency, effectiveness and image-related

benefits (Beckinsale and Levy, 2004); as well as improved market reach.

Improved firm efficiency and effectiveness

Pontikakis and Collins (2010) found that a firm’s need for increased speed and use of tele-

working applications made a company more likely to adopt the technology. In another

study, savings can be achieved through more effective communication, sales online,

improved marketing and customer service (Galloway, 2007). Other studies have given

credence to this finding that firms are benefitting from cost savings through e-business

activity (Warren, 2009; Tan et al., 2010) and further reported a link between this activity

and increased profits (Warren, 2009).

Previous SME studies have found significant value has resulted from Internet based ICT

usage including improved relationships with trading partners (Tan et al., 2010), enhanced

levels of productivity, improved efficiency (Harrigan et al., 2011), access to extensive market

information and business knowledge (Xu, et al., 2007; Tan et al., 2010). Mora-Monge et al.

(2010) in their research into the impact of web-based e-commerce (WEC) on the firm found

that it has a positive effect on bottom line efficiency, improved the quality of the

information used by the firm and improved the firms competitive advantage. In a study of

Austrian SMEs, the use of particular e-business applications (enterprise resource planning

and personnel information systems) were highly effective in improving firm efficiency levels,

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and relationships were also significantly improved with business partners and customers

(Fuchs et al., 2010). Furthermore, productivity improvements are one of the key impacts

resulting from broadband use (Fornefeld et al., 2008; Warren, 2009). However, this positive

impact on productivity does not result unless online technologies are integrated with the

company’s processes in order to facilitate the exchange of information with the business

environment (Fornefeld et al., 2008).

Image

The image of the firm can be positively impacted as a result of e-business use. It is

enhanced through direct links with customers and suppliers, the resultant improved

communication and the increased efficiency of work practices (Alam et al., 2005).

Furthermore, a firm’s image can be improved through developing and maintaining a web

presence (OECD, 2009). Firms have also been found to make use of their website as a

means of improving their credibility through specifying detailed company information in

order to highlight their strengths in the market (Tiesen et al., 2001). Moore and Benbasat

(1991) also found that the potential improvements on the firm’s image; defined as “the

degree to which use of an innovation is perceived to enhance one’s image or status in one’s

social system” (Moore and Benbasat, 1991, p.195; Rogers, 1995) was considered important

in the decision to adopt an innovation.

Improved market opportunities

The Internet and e-business opens up new market opportunities (Loane, 2006; Tan et al.,

2010) and firms are found to be more competitive (Harrigan et al., 2008) as the technology

facilitates marketing and the subsequent international sales through real time interaction

with customers and business colleagues (Xu et al., 2007; Galloway, 2007; Zhang et al., 2008).

Broadband also facilitates improved SME co-operation and competition with larger firms in

a wide range of markets (OECD, 2008). In a study on the impact of e-business for UK firms,

growth in sales over a three year period were found to be significantly higher for those firms

who marketed or engaged in online sales, than those firms who had a basic web presence

(BCG, 2010).

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External Influences

External influences also have an impact on SMEs internal attitudes, beliefs, and intentions

(Pai and Huang, 2011).

Competitive environment

The perceived external pressure on the firm; alternatively conceptualised as the

‘competitive pressure’ or the level of pressure experienced or perceived by the firm from

others including their competitors within their industry (Oliveira and Martins, 2010) and

their suppliers (Oni and Papazafeiropolou, 2008) has been purported to act as a driver in

innovation diffusion (Porter and Miller, 1985). Through the adoption of new innovations

firms may be better positioned to change the conventional ways in which they compete,

shape the structure of the industry and create new ways in which rivals could be

outperformed, consequently transforming the competitive landscape (Porter and Miller,

1985).

Broadband infrastructure

Previous studies have indicated that the quality of broadband service has become a key

factor in the adoption and diffusion of the technology (Oni and Papazafeiropolou, 2008; EU,

2009). The Boston Consulting Group (2010) found that the primary reason given by low and

no web businesses (those firms with at most a basic website) for their failure to exploit the

Internet more aggressively was an insufficient broadband connection. Speed of broadband

is also an issue, with OFCOM (2010) indicating that although a voluntary code of practice has

been introduced in the UK since 2008, to provide consumers with a more accurate and

consistent estimate of the speeds achievable on their lines, the problem has actually

worsened since then. Consumers are reporting a widening between the actual speeds

delivered and the advertised speeds over the last number of years (Bintliff, 2010). UK

customers are paying for an average broadband speed of between 20Mbps and 24Mbps and

are receiving less than 10Mbps (OFCOM, 2010). This poor performance by the UK has been

attributed to a lack of government spending on broadband (SBA, 2010).

Similarly, this issue of broadband service quality has been raised as a key concern in respect

of the Republic of Ireland in an EC digital competitiveness report (EC, 2009). It was found

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that Ireland has lagged behind its EU counterparts in the rollout and diffusion of a high

quality broadband service since the technology was launched there almost a decade ago

(EU, 2009). Speed has also been found to be an issue of concern for broadband subscribers

and this varies considerably depending on the location of the subscriber; Ireland was ranked

19th when compared with the other EU countries in terms of the speed of its national

broadband subscriptions (EU, 2009). Indeed, the Republic of Ireland broadband experience

has been described as being; “Far from being a smooth ride. Instead of speeding down the

highways of the future, think of it more like driving a 1979 Ford Cortina with no suspension

across a Donegal bog” (Kennedy, 2009). The necessary technical investment and the

marketing of services on behalf of the government have lagged (Pontikakis and Collins,

2010).

Within the EU, both Ireland and the UK have been identified in a 2nd tier ‘digital followers’

group. It was felt they were not doing enough to ensure proper ‘penetration’ of the

advanced services within their populations (Cruz-Jesus et al., 2012). A failure to close this

‘digital gap’ would result in a portion of the businesses being left behind resulting in an

‘untapped potential’ that would inhibit the country’s economic growth and development

(Cuervo and Menendez, 2006).

Government interventions

Raising awareness of broadband and the associated business benefits that can be derived

from the technology are key components in promoting demand and take-up (Oni and

Papazafeiropolou, 2008; EU, 2009). In the UK, the government provides online resources to

provide information and guidelines highlighting the benefits of broadband for firms (World

Bank, 2010). The EU also provides financial support for projects that offer advice and

training on e-business for SMEs (EC, 2015). However, previous research suggests that firms

still consider they lack the necessary e-business skills (Boyd, 2009) and also perceive this

training to be irrelevant for them (Bintliff, 2010). Whilst broadband service providers, the

government and other interest groups have continually promoted the benefits of

broadband, it is suggested they have had minimal effect on SME take up of the technology

(Oni and Papazafeiropolou, 2008). As such, the next section considers levels of broadband

usage by SMEs as part of a strategic approach to e- business.

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Broadband Usage by SMEs

E-business embodies modern business management practice and reflects a firm’s strategic

intention to make use of the Internet to share information, to enable transactions, to

improve customer service and to support back-office integration (Turban et al., 2012).

However, a number of studies have found business use of the technology to be fairly basic

in that it is limited primarily to communicating by email and to searching for information

rather than more advanced usage such as utilising applications for e-business and marketing

activities (Oni and Papazafeiropolou, 2008; Harrigan et al., 2011). A 2012 report found that

over a third of firms still do not have a website (Lloyds Banking Group, 2012). However, this

lack of a website may be perceived as less important now for firms with the advent of social

media. In a report published by the Boston Consulting Group, 30 per cent of UK firms were

found to be involved in some form of social networking or media activity (BCG, 2010).

Another study also found that only 14% of firms were found to transact online (Lloyds

Banking Group, 2012). Electronic Data Interchange (EDI) has been found to be more

suitable in the large firm context, due in part, to SMEs perceptions of excessive investment

costs which are often not easily available for smaller firms when considered in light of the

perceived benefits that will result (Doherty, 2012). There is a scarcity of up-to-date

information regarding the level of Voice over IP (VOIP) use by firms. However, OFCOM

(2007) indicated that 16 percent of consumers made use of VOIP technology, although this

does not differentiate between general household customers and firms. In general, SMEs

consider only approximately a third of their staff to be digitally savvy and almost a quarter

of SMEs feel their employees do not have basic IT skills needed to reap the benefits from

their connectivity. This skills issue is also found at senior manager level, with over 40

percent of SME owner managers described as ‘not comfortable’ using technology (Lloyds

Banking Group, 2012).

In light of the theoretical and practical dimensions that have been identified in the

literature, the study’s main aim was to investigate the impact of broadband on the business

performance of SMEs, using the following research objectives as the basis of the study:

RQ1: Determine the triggers/drivers that impact upon the adoption/diffusion of broadband

by SMEs;

RQ2: Determine the nature of usage of broadband Internet by SMEs;

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RQ3: Discern the current challenges to the adoption of broadband by SMEs; and

RQ4: Identify the business performance impacts that have resulted from broadband

adoption by SMEs

METHODOLOGY

In order to address the research objectives, a sequential mixed methods approach was

utilised, with each method contributing a distinct, yet complementary function (Creswell

and Plano Clark, 2007; Tashakkori and Teddlie, 2003).

The initial stage of the research design (Phase 1) took the form of a macro level exploratory

phase utilising a quantitative survey questionnaire to gather data pertinent to the research

question with the intention of generalising from the sample to the population (Babbie,

1990). A survey approach was selected following consideration of; the type of information

required, the characteristics of the sample group, the creation and selection of the

measurement scales, issues of reliability and validity, instrument design, drafting of the final

survey method and sampling strategy and means of administration of the final

questionnaire to the final sample (adapted from Blumberg et al, 2008). All measures used in

this study were either adopted from previous studies or drawn from the SME and

technology adoption/diffusion literature (see Appendix A). The survey consisted of a

combination of open, closed and Likert scales (5 point ranging from 1=strongly disagree and

5=strongly agree).

The survey was distributed principally by online means, although it was also necessary to

distribute by post to ensure that owner-managers who are not connected to the Internet

were also represented in this research. The resultant 200 responses were analysed using

SPSS V20. The research was distributed to a sample of 1500 SMEs in Ireland (Northern

Ireland and Republic of Ireland). The owner-manager was chosen as the primary point of

contact as they were deemed to be in the best position to comprehensively answer

questions pertinent to the research problem; being involved in all aspects of SME activities

on a day-to-day basis (Carson and Gilmore, 2000). The study does not focus on a particular

industry sector as it is accepted that broadband adoption has the potential to impact on any

business (Grosso, 2006). There were 200 usable responses returned (response rate = 13%).

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In terms of the qualitative element, 34 in-depth interviews were also carried out post

survey. The interview approach was selected in order to ‘probe’ or delve deeper into

answers, where the researcher wanted the interviewee to explain or expand upon their

responses (Saunders et al, 2009). The sample for this qualitative phase comprised a subset

of the respondents from the first phase of the research who had indicated their willingness

to further participate. This sub-sample was made up of the 92 respondents who had

indicated their willingness to participate in the second qualitative phase. This was further

stratified according to the following criteria;

Table 1. Qualitative sample

Criteria Breakdown of respondents indicating willingness to beinterviewed

Location

Sector

Urban/rural Urban

Size of company

NI: 50% (n = 46), ROI: 50% (n = 46)

Service: 89% (n = 82), Manufacturing: 11% (n = 10)

51% (n = 47), Rural: 48% (n = 44)

Micro: 77% (n = 71), Small: 17% (n = 16), Medium: 6% (n = 5

Accordingly, it was endeavoured by the researcher to ensure that the qualitative research

was as representative of the overall population / sampling frame as possible, however, this

was somewhat constrained by the number of respondents who were in the end willing or

available to participate in the interview process. Consequently, the final number of

interviews that were conducted represented 17 per cent of the survey respondents, (n=34).

Based on the method that best suited the participant, the interviews were conducted either

face-to-face, by email or through the use of Voice over IP (VOIP) technology over the

Internet (see Table 2).

Table 2. Sample distillation (size)

Details Total

Total usable responses from surveyAgreed to participate in follow‐up interviewInterviewed face to faceInterviewed via SkypeInterviewed by email

Total interview participants

200922356

34

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Data Analysis

Using SPSSV20, principal component analysis (PCA) using orthogonal rotation (VARIMAX)

was performed to ascertain the underlying structure of the data. The Kaiser-Meyer-Olkin

(KMO) measure of sampling adequacy and Bartlett’s test for sphericity were employed to

test the suitability of the data for factor analysis. Relative scores of 0.867 and 5001.175

(p<0.001) rendered the data suitable for factor analysis. The application of the Kaiser

criterion led to components with eigenvalues (latent root criterion) of less than one being

excluded. A minimum parameter of 0.55 (Raubenheimer, 2004) was set in the interpretation

of data, which is higher than the generally accepted level of 0.30. This decision is justified on

the basis that, after critical evaluation, items with smaller loadings were failing to load

significantly on any factor which in turn was likely to reduce their significance (Ramsey,

2005). Having deleted items with smaller loadings, 36/59 items were retained.

The qualitative data was analysed through content analysis. A number of analytical tools

were used (see Table 3) in this sequentially mixed approach to the research in order to

produce an accurate representation of the data collated. The objective was movement

from an ‘intratextual’ data analysis of cases to an ‘intertextual’ data analysis of themes

approach (Peters and Wester, 2007). Manual coding was employed for a number of

reasons; the number of respondents (n=34) did not constitute use of a computer program

and; the manual technique served to gain knowledge of the data on an intimate and

personal level (Carson and Coviello, 1996).

Table 3. Synopsis of analytical tools

Analytical method Intratextual(within text)

Intertextual(across text)

Audio‐textualPawingWord repetitionsKeywords in contextScrutiny‐basedConstant ComparisonMetaphors

XXXXX

X

XXXX

Source: Adapted from Ramsey (2005), Harrigan (2008).

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Through this analytical process, themes emerge through the integration of latent content

and manifest content (Wheeler, 1988). Using the analytical framework devised by (Ryan

and Bernard, 2003), a number of analytical tools such as audio-textual, pawing,

word/phrase repetitions, key word in context and indigenous categories, cutting and

sorting, constant comparison method, searching for metaphors and analogies and missing

data were used.

Validity and reliability was ensured through measures such as prolonged engagement with

and persistent observation of the sample population, gaining informant feedback, and

weighting the evidence (Onwuegbuzie and Leech, 2007). The in-depth interview process

took place over a three-month period. The researchers provided each respondent with the

opportunity to read the transcript of their interview and provide feedback on context and

accuracy.

FINDINGS

The factor analyses generated 9 specific factors that were clustered around 18 components

as seen in the Rotated Component Matrix (see Appendix B in appendix). Cumulatively the 9

factors explained 77 per cent of the total variance in the data. Furthermore Cronbach’s

alpha of all the factors ranged from 0.70 (Factor 8) to 0.88 (Factor 6), which is within the

acceptable limits of 0.7 for internal consistency of scale reliability (Patton, 2002) of the

components that comprise the 9 factors.

RQ1: Findings relating to the triggers/drivers that impact upon the adoption/diffusion of

broadband by SMEs;

External/Environmental Drivers/Triggers

Table 4. External drivers factor and items

Factor 5: External Drivers1=strongly disagree, 5=strongly agree

Mean (Standard Deviation)

Customers demanded broadband as it made dealing with us much easier 3.10 (1.47)Our competitors had it so we felt we should get it to compete e ectively 2.64 (1.38)Suppliers demanded we have broadband in order for us to use their systems 2.51 (1.41)

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Factor five accounts for 6.69 percent of the total variance. This factor consists of 3 items

with factor loadings ranging from .761 to .765. These items describe the owner-managers’

perceptions of external drivers for broadband adoption and the factor is labelled ‘External

Drivers’. Table 3 illustrates the highest level of agreement that ‘Customers demanded

broadband as it made dealing with us much easier’. More specifically customers played a

role in this adoption decision as one catering firm from NI asserts;

‘We needed to communicate with [customers] on a daily basis. I would receive between 20

and 30 emails a day requesting information about catering. I would say 8 orders a day

would be placed via email’ (Service, NI).

The utilisation of email over a broadband connection transformed how things had been

done traditionally in some sectors and it was deemed necessary to harness this technology

in order to meet the expectations of customers and to compete in the market. One graphic

design company states that;

‘Due to the nature of our business it [broadband] is fundamental for sending ‘visuals’ of our

promotional material by email to customers’ (Professional Service, NI).

Some owner-managers discussed how competitive pressure was a key driver in their

decision to adopt broadband technologies. The following quotes illustrate this point:

‘We had to adopt the Internet and broadband to ‘keep up with the times’. Otherwise we

don’t appear professional’ (Manufacturing, NI). One newspaper also highlights how

suppliers influenced this adoption decision as things that were traditionally done in their

line of business changed and broadband was now necessary in order to carry out essential

every day activities;

‘We produce a newspaper and we needed to send the pages to the printer via broadband’

(Service, ROI).

However, as outlined in Table 3 (above) the mean scores indicate that owner managers do

not perceive competitors/suppliers to have exerted much influence on their overall

broadband adoption decision.

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Ineffective Drivers

Table 5. Ineffective drivers factor and items

Factor 7: Ineffective Drivers1=strongly disagree, 5=strongly agree

Mean (Standard Deviation)

The government was making statements about how ‘critical’ broadband was for business

2.25 (1.27)

It was in the newspapers/on the radio/on TV etc. 2.21 (1.21)

Factor seven accounts for 4.91 percent of the total variance. This factor consists of 2 items

with factor loadings ranging from .867 to .883. These items describe the owner-managers’

perception of elements that had minimal influence on the decision to adopt broadband by

the SME. The factor is labelled ‘Ineffective Drivers’.

This factor comprises two items relating to drivers which owner-managers perceived to be

ineffective in their decision to adopt broadband. However, qualitative data shows that a

number of firms did feel pressured into connecting to broadband. For example, the new

online method implemented by the Inland Revenue for automating Tax Returns has acted as

a powerful driver, as confirmed by the following statements:

‘We felt pushed into getting broadband by the Inland Revenue and the new deadlines

they set…so by doing it online they gave you three extra months. You could still file it

by paper after the 31st of October but there was a £100 penalty. There is also that

expectancy that you will do more and more stuff online’. (Professional Service, NI)

‘As a farmer… a lot of the farm stuff comes through broadband. You can now do

your online farming – do your online permits, online form filling, tax forms. All the

red tape for Brussels’ (Service, NI).

As illustrated from the mean scores, owner-managers do not consider government or the

media to impact upon their decision to adopt broadband for their business. There was a

sense among some firms that they felt pressured into adopting it through hearing it on the

media, TV, radio etc.:

16

‘Everyone was talking about it and I felt that to compete in this current climate we

had to do all that we could to ensure that we could provide as good a service as our

competitors’. (Service, ROI)

However, most firms did not cite these as the key drivers in their adoption decision.

Profitability Drivers/Triggers

Table 6. Profitability drivers factor and items

Factor 9: Pro tability Drivers1=strongly disagree, 5=strongly agree

Mean (Standard Deviation)

Broadband would help increase our profits 3.33 (1.41)

It would enable us to buy and sell online 3.13 (1.53)

Factor nine accounts for 3.81 percent of the total variance. This factor consists of 2 items

with factor loadings ranging from .741 to .865. These items describe the owner-managers’

perception of how broadband was adopted as a means of increasing sales and subsequently

improved on profits. The factor is labelled ‘Profitability Drivers’.

This factor contains two factors relating to drivers for broadband adoption. The highest level

of agreement was achieved by ‘Broadband would help increase our profits’. The comments

of a manufacturing SME (NI) reinforce this;

‘We do 95 per cent of our sales online and people expect a quick answer to emails

and queries. Dialup was taking forever, and was costing a fortune’. (Manufacturing,

NI).

A number of firms adopted broadband as they considered that they would benefit from the

cost savings resulting from reduced Internet and telephone costs;

‘Significant financial savings should accrue from the use of…satisfactory…broadband

e.g. telephone bills through use of Skype’. (Service, NI)

Furthermore there is agreement among owner managers that broadband ‘would enable us

to buy and sell online’ as a service sector firm explains;

17

‘I can go from having a visitor on my website to having a confirmed order with

approved artwork in 10 to 15 minutes … without broadband it can take a week or

more to achieve the same’. (Service NI)

‘It is the new high-street. Once you are off the high-street you are invisible. However,

the Internet and broadband allows a very high sense of visibility …We have a good

website and we are definitely getting a good reaction’. (Manufacturing, ROI)

It is evident that the ability to reduce telecommunication costs, and generate online sales

has acted as a profitability (actual and potential) driver for the adoption and use of

broadband technologies.

RQ2: Findings relating to the nature of usage of broadband Internet by SMEs;

Broadband Service Experience

Factor one represents the largest proportion of the total variance (19.56%). This factor

consists of six items with factor loadings ranging from .71 to .83. These items describe the

owner-managers’ experience of their broadband service and the factor is labelled

‘Broadband Service Experience’.

Table 7. Broadband service experience factor and items

Factor 1: Broadband Service Experience1=strongly disagree, 5=strongly agreeMean (Standard Deviation)

The download limit is satisfactory 3.51 (1.23)I am satisfied with the current security measures provided 3.47 (0.99)The overall quality of service obtained is satisfactory 3.46 (1.04)I am satisfied with the speed obtained from my current service provider 3.43 (1.38)My current broadband service is good value for money 3.22 (1.23)The broadband service operates at or above the speed advertised by my service provider 2.75 (1.30)

The highest level of agreement was achieved by ‘The download limit is satisfactory’. The

mean scores also illustrate that owner managers perceive their experience of broadband to

be a positive one in terms of security measures provided, the overall quality of service,

satisfaction with speed and they feel that it is good value for money. However, owner

managers perceive that the broadband speed that they receive is less than the speed that is

18

stipulated by their ISP. The remarks of an owner manager (Service, NI) reinforces the

general consensus that ‘there are rarely any problems with it’ [broadband], and that the

‘service is very good…and is fast enough’. A manufacturing SME is pleased to say that ‘over a

6-year period their broadband connection has only been ‘down’ on one occasion’ . One

owner manager (Service NI) pointed out their loyalty to BT because ‘they offer good

customer service and are easy to talk to, to solve any problems’.

During interviews, the fundamental importance of broadband technologies for conducting

business was often emphasised. The comments of one owner manager (Professional service

NI) would reflect the general opinion that ‘we couldn’t run our business without it…it is such

an integral tool’. Many confirmed that without the Internet and broadband, they would not

be in business.

Simplistic Broadband Usage

Factor eight accounts for 4.03 percent of the total variance. This factor consists of 2 items

with factor loadings ranging from .814 to .823. These items describe the owner-managers’

perceptions of the simplistic usage of broadband for business purposes. The factor is

labelled ‘Simplistic Broadband usage’.

Table 8. Simplistic broadband usage factor and items

Factor 8: Simplistic Broadband Usage1=strongly disagree, 5=strongly agree

Mean (Standard

Deviation)

I use broadband for ‘Email’ only 1.56 (1.04)

‘Surfing’ is the only thing we use broadband for 1.34 (0.76)

This factor comprises two items relating to how owner-managers perceive broadband to be

used in their business. As illustrated from the mean scores, owner-managers do not

consider that broadband is used for ‘email only’ or ‘only for surfing’. Firms acknowledge

that when they consider the initial driver for the adoption of broadband and how they now

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use the technology, what they had originally planned to use broadband for has changed,

(sometimes considerably) since it has been adopted by their firm;

‘We had planned to use it mainly for sending and receiving external email but we

now use it for email, research and development, we do online banking’

(Manufacturing NI).

‘The web has become so interactive now. It is more of a communication tool than

even we would have predicted say 5 or 6 years ago’ (Service, NI).

In general, firms in this study are more reliant on the technology than they alluded to in

their survey responses and tend to make fairly extensive and varied use of it in their

everyday business activities. This professional service firm from NI exemplifies this as they

outline that their business uses broadband for; ‘…emarketing… I use Survey Monkey. If

there is a large file…I will put it online on somewhere like Slideshare.net… [I use] LinkedIn… I

also tend to use project sharing sites such as project spaces… huddle.net… [I use] Flicker a

photo sharing site… Twitter…… I also have a Facebook account…I am using YouTube as well…

I use the broadband Internet for a lot of general advice… I use free open source websites

such as Jimna (I got my free content management software here)… This is all enabled and

couldn’t happen without broadband’ (Service NI).

RQ3: Findings relating to the current challenges to the adoption of broadband by SMEs;

Challenges relating to current broadband use to overcome geographical constraints:

Factor three represents 9.13 percent of the total variance. This factor consists of 3 items

with factor loadings ranging from .846 to .873. These items describe the owner-managers’

perceptions of how technology that can be used over broadband acts to overcome issues of

distance or location and the factor is labelled ‘Lack of ‘tele’ technology usage’.

Table 9. Lack of ‘tele’ technology usage factor and items

Factor 3: Lack of ‘tele’ Technology Usage1=strongly disagree,5=strongly agree Mean (Standard Deviation)

We use VOIP – ‘voice over IP’ (e.g., Skype) over broadband 2.43 (1.60)

20

We offer tele‐working over broadband 2.10 (1.49)Broadband is used for video conferencing 2.01 (1.41)

It is apparent that owner managers perceive that broadband technology is not used widely

for ‘tele’ technologies to overcome issues of ‘distance’. There is least agreement that

‘Broadband is used for video conferencing’. Furthermore, owner-managers are not utilising

the technology for either teleworking or for Voice over IP (VOIP).

In general, firms equate VoIP technology with SKYPE and the general consensus is that firms

are aware of the technology but are not using Voice over IP (VOIP) to any great extent for

business purposes. One owner-manager who may have been less aware of the benefits of

VOIP technologies stated that; ‘…SKYPE is more a ‘fun thing’ as opposed to a business thing.

To me any business that uses SKYPE looks ‘cheap’ (Manufacturing NI).

A particular challenge found amongst ROI firms were the difficulties surrounding the

complete adoption or integration of Voice (e.g. VOIP) or video technologies such as SKYPE,

into their business. For example, it was reiterated that ‘a lot of customers cannot contact

you with SKYPE as they are still on dialup’ (Service, ROI). In some ROI cases, the intermittent

quality of their broadband has professionally constrained firms from utilising Voice and

video technologies over the Internet effectively in their business

In terms of using broadband for teleworking purposes, an ROI service firm specifies how

teleworking has enabled them to be ‘much more flexible, understanding and considerate of

staff needs, without impacting on the performance or efficiency of the company’.

Electronic Data Interchange Usage

Factor six accounts for 5.23 percent of the total variance. This factor consists of 2 items

with factor loadings ranging from .878 to .920. These items describe the owner-managers’

use of broadband for EDI purposes with both suppliers and customers. It is labelled

‘Electronic Data Interchange Usage’.

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Table 10. Electronic data interchange usage factor and items

Factor 6: ElectronicData Interchange Usage1=strongly disagree, 5=strongly

agree

Mean (Standard

Deviation)

We use broadband for an Internet-based EDI ordering/payments system for

‘Suppliers’2.65 (1.55)

We use broadband for an Internet-based EDI ordering/payments system for

‘Customers’2.49 (1.54)

This factor illustrates that there is not such a high level of agreement regarding the use of

Electronic Data Interchange (EDI) to help deal with suppliers or customers.

When this issue was further pursued during the interviews, it transpired that the main

business needs regarding suppliers and customers were easily met through the use of e-

banking systems. As such, it was found that a number of firms have embraced the extensive

functionality afforded by e-banking and integrated this into their everyday business

processes, such as receiving from and making payments to suppliers. One owner manager

was pleased to say that:

‘I now pay all the wages online…I also pay all my suppliers as much as I can online. In

fact we just had a conversation before you arrived how we were going to stop using

the suppliers that we couldn’t do our transactions with online’ (Service NI).

RQ4; Findings relating to the Identification of business performance impacts that have

resulted from broadband adoption by SMEs

Broadband Efficiency Impacts

Factor two accounts for 15.01 percent of the total variance. This factor consists of 4 items

with factor loadings ranging from .772 to .881. These items describe the owner-managers’

perceptions of the impact of broadband on business and the factor is labelled ‘Broadband

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Efficiency Impacts’. Within this factor, the highest level of agreement was reported for ‘Our

organisation ‘appears’ more professional since using broadband’;

Table 11. Broadband efficiency impacts factor and items

Factor 2: Broadband Efficiency Impacts 1=strongly disagree, 5=strongly agreeMean (Standard

Deviation)

Our organization ‘appears’ more professional since using broadband 4.05 (1.26)

Broadband has enabled us to access different types of content 3.96 (1.20)

Broadband has positively impacted on our ability to tap into other markets 3.75 (1.28)

We are a more productive company since using broadband 3.59 (1.29)

Within this factor, the highest level of agreement was reported for ‘Our organisation

‘appears’ more professional since using broadband’: ‘We had to adopt the Internet or

broadband to ‘keep up with the times’. Otherwise we don’t appear professional

(Manufacturing, NI).

The mean scores also illustrate that owner managers agree that broadband has enabled

them to access different types of content, facilitated access to other markets and has

resulted in them being a more productive company;

In terms of enabling them to access different types of content, one Professional Service firm

from NI states that;

‘Broadband is essential to my business…it has allowed us to use richer content in sites, such

as videos. I could not run my business from an area that did not have broadband’

(Professional Service NI).

Firms also outline the wide variety of content they can access. One service firm from NI

states that they use broadband for; “…updating the site… use a lot of social networking

sites… we use Youtube… we use Blogger…for marketing we use ‘Constant contact’…

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research…applying for grants online…and Skype”. They explain that; “as most of these

applications are web-based we need the broadband to use them”. This sentiment is echoed

by the owner of a coffee shop from NI who acknowledges that “although we had considered

our broadband usage to be fairly basic, upon more careful consideration we realise that our

business is in fact very dependent upon the technology”.

Firms are also seeing the positive impact from broadband on their ability to tap into other

markets;

‘It has opened up a lot more markets to me. My furthest away customer is actually in the Fiji

Islands. I have a customer in Azerbaijan, one in Equatorial Guinea, one in the Caribbean

somewhere, one just outside Barcelona and one in Marbella. I also have 3 customers out on

the Irish Sea on fishing boats’ (Service ROI).

‘What broadband does it puts me on the map… the marketplace on a worldwide basis’

(Service ROI).

Firms also highlighted how they are more productive as a result of being connected to

broadband;

‘Broadband has cut a lot of time out. It cuts out paperwork. I do find that it cuts out loads of

time… It has simplified a lot of our procedures as well’ (Service NI).

‘It makes my job a lot easier and it is far more efficient. It means that if someone wants to

know something that I need to look up the Internet for, it takes me 2 seconds, instead of

waiting for 5 minutes for the information to upload’ (Service ROI). It is observed by another

SME (Service NI) that ‘the impact has been massive…it has revolutionised business’.

Productivity Improvements

Factor four accounts for 8.25 percent of the total variance. This factor consists of 3 items

with factor loadings ranging from .710 to .894. These items describe the owner-managers’

perceptions of how broadband increases levels of productivity and the factor is labelled

‘Productivity Improvements’.

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The highest level of agreement was achieved by ‘It is much faster when surfing websites,

when using broadband’. One service firm from ROI highlights how it is much faster when

surfing websites over broadband and how this is so important to their business; “…obviously

if you have someone at the other end of your desk waiting for information. You want it at

the fastest speed possible. Hence the speed and broadband is so important”.

Table 12. Productivity improvements factor and items

The mean scores also illustrate that owner managers agree that broadband has a positive

impact on issues relating to productivity such as the faster downloading of files and the

freeing up of phone-lines.

Firms express how broadband has enabled them to access content over the Internet

through faster download of files that they could not have accessed over a non-broadband

connection; “Broadband has made a big difference as a lot of the applications we use we

could not do so without the speed we get from our broadband connection” (Service, ROI).

A number of firms highlight how use of the Internet is freeing up their phone line in their

business activities on a day-to-day basis;

‘If you look at them now [points though the window at staff]… there are 5 of them

there now. None of them are on the phone and none of them are likely to be on the

Table 12. Productivity improvements factor and items

phone for ages, maybe not at all. You could go a whole day without getting a phone

call for any of them because people now just communicate by email as it is just so

quick. This is of course predicated on our Internet connection being fast with

25

Factor 4: Productivity Improvements1=strongly disagree, 5=strongly agree

Mean (Standard

Deviation)

It is much faster when surfing websites when using broadband 4.53 (0.87)

Files are downloaded faster when using broadband 4.52 (0.88)

The phone-line is freed up whilst connected to the Internet 4.45 (0.95)

broadband as otherwise we could not send large files as is imperative in our line of

business’ (Service ROI).

Another firm highlights the cost savings from this decrease in their use of the phone:

‘Our phone bill for calls used to be between €500 and €1000 euro per month. Our

calls bill now would be in the region of €40-50 per month’. (Service ROI)

DISCUSSION

This research provides a number of interesting findings and resultant implications from both

a theoretical and a practical perspective.

Analysing the triggers/drivers that impact upon the adoption/diffusion of broadband by

SMEs, this paper focused on factors both internal and external to the firm. In terms of the

external factors, SMEs consider customers to exert some influence in their decision to adopt

the technology as it made dealing and communicating with them much easier. However

other factors external to the organisation such as suppliers and competitors, who they

engage with in order to conduct their everyday business activities, were found to exert little

influence on their decision to adopt broadband for their business. From a macro

perspective, SMEs indicated that the government and the media were making statements

about how critical broadband was for business, yet their campaigns to encourage take-up

had minimal impact on SME broadband adoption decisions. There was some recognition

that firms felt ‘forced’ into adopting the technology as they had to engage in e-government

activities however, SMEs in general, do not consider existing awareness campaigns to be

particularly effective in promoting adoption of the technology. As such there is a need to

better match the message of these programmes with SMEs’ needs.

Factors internal to the organisation related to issues of profitability i.e. the technology

‘would help increase profits’ and would enable SMEs ‘to buy and sell online’, were found to

be the principal drivers which influence owner managers in SME adoption of broadband.

Owner managers were finding dialup too slow to conduct their everyday business activities,

the telephone as the primary means of communication was proving too expensive, ‘jobs’

were taking too long to turn around as opposed to the efficiency savings offered by this

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enabling technology and the ability to have an easy to update and maintain website was

recognised as fundamental to business success. As such, Rogers (1995) concept of ‘Relative

advantage’ purported as a key factor in the adoption of innovations is supported in this

study.

Consequently, in relation to the drivers/triggers of broadband by the SME, a key conclusion

of this research is that whilst there is acknowledgement that those factors that are external

to the organisation are less influential in this adoption decision, this is also the case for

those external stakeholders who proactively seek to promote the adoption and diffusion of

broadband technology in that they still make minimal impact on SME take-up despite the

fact that they make significant investment in terms of time and money in its promotion.

Factors internal to the organisation such as those relating to issues of ‘productivity’ are

found to be fundamental in this adoption decision.

In examining the nature of broadband Internet usage for their business, the SME owner

managers are generally satisfied with their broadband service experience. SMEs perceive

the technology to be crucial to their business and consider it to have transformed or

revolutionised how their business is conducted. Firms acknowledge that when they

consider the initial driver for the adoption of broadband and how they now use the

technology, what they had originally planned to use broadband for has changed,

(sometimes considerably) since it has been adopted by their firm. Their usage is

multifaceted and in many cases SME owner managers are surprised when they discuss their

usage as it highlights their extensive usage and high dependency on the technology. This

study concludes SMEs consider the technology to be integral and fundamental to their

business, they consider it to be easy to use (PEOU) and useful (PU). This perceived

usefulness contributes to the overall broadband service experience of the firm. To

conclude, the PEOU and the PU constructs of TAM (Davis, 1989) are found to be important

factors which contribute to the overall experience of using broadband.

Analysing the challenges facing SME owner/mangers, this study found that firms are not

making use of broadband for ‘tele-working’ purposes such as through the use of Voice over

IP (VOIP) technology (e.g. SKYPE) to overcome issues associated with distance. SMEs are

27

not using broadband for electronic data interchange (EDI) to make payments to suppliers or

to receive payments from customers. Firms in this study, who report extensive use of email,

their website and e-banking, are already able to invoice and receive payments from

customers and suppliers and most therefore do not see the value of investing in EDI

systems. Electronic Data Interchange (EDI) providers need to re-evaluate the applicability of

their products for the SME market. To appeal, they need to clarify what value can be gained

from EDI over existing e-banking technology, which is often less expensive for the firm to

use.

In analysing the business performance impacts that have resulted from broadband adoption,

SMEs in this study find that broadband adoption and use results in a number of positive

efficiency-related impacts for the firm. Owner managers consider that their firm’s image is

enhanced and consider that they are perceived as more professional though making use of

broadband dependent technologies, such as their website, email, social media etc. This level

of professionalism is also enhanced through offering additional products or services to their

customer base (e.g. cloud based services etc.) and through enabling them to tap into other

markets. This finding concurs with Zhu and Kraemer’s (Zhu and Kraemer, 2005) assertion

that e-business technologies diffuse as a multi-stage process, starting at adoption and

extending to usage and eventually to value creation. Additionally, firms are seeing an

increase in the level of productivity of their business. This is through the faster download of

files, enhancing marketing activities, freeing-up of the phone-line, and freeing up of time for

staff to dedicate to other business tasks. A key conclusion of this study is that SMEs are

seeing a positive impact on their firm’s image or their level of professionalism as a

consequence of their broadband use. Previous research has examined this idea of the

firm’s image as a driver in the adoption of IT innovations by the firm. However, the

resultant impact of IT innovations adoption on the image of the firm has had scant

attention in research, specifically in respect of broadband technology. This research

confirms that the perceived positive impact on the image of the firm to be key to its

adoption. Firms are also seeing an improvement in the overall level of productivity of

the firm and while there are indeed significant improvements in the level of

‘productivity’ of the firm, this also has a knock-on positive effect of significant ‘cost-

savings’ and an improvement in the ‘image’ of the firm.

28

CONCLUSION AND FUTURE RESEARCH

This study has shed light on a fundamental issue in the business activities of SMEs in Ireland.

The research ultimately was concerned with the area of technology acceptance and

consequently necessitated an understanding and further investigation of how new

technology is adopted. SME’s adoption and use of broadband technology is driving both

day-to-day efficiencies and strategic developments. SME owner-managers are the key

decision makers and they report that the image of their business is enhanced through the

use of broadband technologies which enable better website, email and social media use. In

turn, new international markets open up for the SMEs with which they are able to trade

online via e-commerce. For some SMEs this may be a staged approach, but for others the

technology may open up this possibility immediately. At the very least, all SMEs experience

day-to-day efficiencies and increased productivity from using broadband technologies,

through streamlined or even automated communications.

SMEs are driven to adopt broadband technologies from needs internal or inside their

business, and not generally from external pressures. Thus, relative advantage and perceived

usefulness are central drivers (Rogers, 1995) as are Perceived ease of Use (PEOU) and

Perceived Usefulness (PU) (Davis, 1989). In addition to this, image is also a key driver in

their broadband adoption decision (Rogers, 1995, Moore and Benbasat, 1991). As such, key

constructs from both the Diffusion of Innovations (DOI) (Rogers, 1995) and the Technology

Acceptance Model (TAM) (Davis, 1989) play a key role in the broadband adoption decision

of SMEs in this study. From a philosophical perspective findings would suggest support for

the social determinist viewpoint (Green, 2001) in that key attributes of the technology are

important in the adoption decision, as is the adaption of society or its users to its use.

These findings have implications for government policy around broadband adoption. It must

illustrate the benefits of adoption; rather than coerce adoption through agencies such as

the Inland Revenue. Of course, there is much room for development with the continuing

expansion of open source software options in all areas of business for SMEs to choose from.

This would be a rich area for future research, to delve deeper into the range of open source

or social software that SMEs are using in Ireland to facilitate both local and international

business. Skype is an example of one such tool that appeared under-used in this research.

29

30

Appendix:A Constructs and items Questionnaire Items Adapted/Developed fromFactor 1 ‐ Broadband Service Experience

Q23g. The download limit is satisfactory Federation of Small Business (2010)

Q23d. I am satisfied with the current security measures provided Dwivedi et al. (2006)

Q23f. The overall quality of service obtained is satisfactory Chambers Ireland (2007)Q23a. I am satisfied with the speed obtained from my current service provider Dwivedi et al. (2006)Q23b. My current broadband service is good value for money Chambers Ireland (2007)

Q23c. The broadband service operates at or above the speed advertised by my service provider

Federation of Small Business (2010)

Factor 2 ‐ Broadband Efficiency ImpactsQ27c. Our organisation ‘appears’ more professional since using broadband Harrigan et al. (2008)Q27j. Broadband has enabled us to access di erent types of content Chambers Ireland (2007)Q27d. Broadband has positively impacted on our ability to tap into other markets Harrigan et al. (2008)Q27h. We are a more productive company since using broadband Chambers Ireland (2007)Factor 3 ‐ Lack of ‘tele’ technology usageQ24j. We use VOIP ‐ Voice over IP (e.g. SKYPE) over broadband broadband OFCOM (2007)Q24i. We o er tele‐working over broadband Dwivedi et al. (2006)Q24l. Broadband is used for video‐conferencing OFCOM (2007)Factor 4 ‐ Productivity ImprovementsQ21b. It is much faster when surfing websites when using broadband Dwivedi et al. (2006)Q21a. Files are downloaded faster when using broadband Dwivedi et al. (2006)Q21d. e phone‐line is freed up whilst connected to the Internet Dwivedi et al. (2006)Factor 5 ‐ External DriversQ20b. Customers demanded broadband as it made dealing with us much easier Dwivedi et al. (2006)Q20e. Our competitors had it so we felt we should get it to compete e ectively Dwivedi et al. (2006)

Q20d. Suppliers demanded we have broadband in order for us to use their systems Oni and Papazafeiropolou (2008)

Factor 6 ‐ Electronic Data Interchange UsageQ24e. We use broadband for an Internet based EDI ordering/payments system for ‘Suppliers’ Chambers Ireland (2007)

Q24f. We use broadband for an Internet based EDI ordering/payments system for ‘Customers’ Chambers Ireland (2007)

Factor 7 ‐ Ineffective DriversQ20f. The government was making statements about how ‘critical’ broadband was for business. Spurge and Roberts (2005)

Q20g. It was in the newspapers/on the radio/on TV etc. Dwivedi et al. (2006)Factor 8 ‐ Simplistic Broadband Usage

Q24b. I use broadband for ‘Email’ only Oni and Papazafeiropolou (2008)

Q24c. ‘Surfing’ is the only thing we use broadband for Chambers Ireland (2007)Factor 9 ‐ Profitability DriversQ20j. Broadband would help increase our profits Chambers Ireland (2007)Q20i. It would enable us to buy and sell online EU (2009)

31

Appendix B: Factor analysis output

32

Items within questionnaire instrumentF1 F2 F3 F4 F5 F6

I am satisfied with speed from ISP 0.834My current BB service is good value for money 0.791e quality of service is satisfactory 0.790e D/L limit is satisfactory 0.756e BB speed is at least as fast as is advertised 0.725I am satis ed with the current security measures 0.710Our organization appears more professional 0.881BB has enabled us to tap into other markets 0.830BB has enabled us to access di erent types of content 0.790

We are a more productive company 0.772We o er tele‐working over BB 0.873We use BB for video conferencing 0.869We use VOIP over BB 0.846Sur ng websites is much faster 0.894Files are downloaded faster 0.855BB frees up the phone line 0.710Customers demanded it 0.765Competition drove adoption 0.761Suppliers demanded it 0.761We use BB for EDI for suppliers 0.920

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AUTHOR BIOGRAPHIES

Corresponding author. Email: Eileen.doherty@nuim.ie Tel: +353 1 708 6931

Eileen Doherty is a Research Fellow at the Innovation Value Institute at Maynooth

University. Her research interests are in leveraging business value from technology, SME

adoption and diffusion of technology; specifically broadband and cloud.

Innovation Value Institute, Logic Annex, South Campus, Maynooth University, Maynooth, Co. Kildare, Ireland. Tel: +353 1 708 6931, Email: eileen.doherty@nuim.ie

Elaine Ramsey is Professor of Business Innovation at the University of Ulster. Her main

research interests relate to innovation, entrepreneurship and e-business, with a specific

focus on strategies to improve the competiveness, growth and longer-term sustainability of

SMEs.

Business and Management Research Institute, Room L234, Department of Business and

Enterprise, University of Ulster, Coleraine campus, Cromore Road, Coleraine,

Co. Londonderry, N. Ireland, BT52 1SA

Tel: +44 28 70123335, Email: e.ramsey@ulster.ac.uk

Paul Harrigan is a Senior Lecturer in Marketing in UWA Business School at The University of

Western Australia. His research interests focus on customer relationship management

(CRM), social media technologies, and SMEs.

42

UWA Business School, The University of Western Australia, M263, 35 Stirling Highway,

Crawley, WA, 6009

Tel +61 8 6488 1979, E-Mail: paul.harrigan@uwa.edu.au

Patrick Ibbotson is a senior lecturer in E-Commerce at the University of Ulster, His main

research interests relate to the impact of E-Business on SMEs and issues relating to

assimilation of new technologies, skills development and internationalisation, including the

role of central and local government support.

Business and Management Research Institute, Room L222, Dept. of Business and

Enterprise, University of Ulster, Coleraine campus, Cromore Road, Coleraine, Co.

Londonderry, N. Ireland, BT52 1SA,

Tel: +44 28 70124148, Email: pg.ibbotson@ulster.ac.uk

43