Information and communication technology adoption in Caribbean SME competitiveness

Caribbean use ICT

How can SMEs in (Caribbean) use ICT to achieve competitive advantage?

Literature Review and Conceptual Framework

Conceptual Framework

Research Philosophy and Paradigm

Epistemology

Ontology

Mixed Methods

Primary Data

Secondary Data

Sampling Techniques and Procedures

Data Analysis and Techniques

Qualitative Analysis

Quantitative Analysis

Research Ethics Codes and Policies of Research Ethics

Limitations to Methodology

Time Plan and Resources

The emergence of information and communications technologies or ICTs has a significant influence on different industries and organizations all across the globe. ICT refers to technologies, which provide access to information through the use of telecommunications (Maguire, et al., 2007; Chong, et al., 2012). Grandon and Pearson (2004) provide that ICTs are considered as such type of technology that offers organizations a huge range of hardware, telecommunications, and technology applications. This wide range of technologies and products are utilized to establish, analyze, develop, package, distribute, receive, and forward information electronically through emails, websites, social networking, and wireless communication devices. It can be said that the ICT is an important tool as it provides an opportunity for SMEs to improve their competitiveness in the areas of business (Schware, 2003; Ollo-Lopez & Aramendia-Muneta, 2012). The rapidly changing business environment of twenty first century provides the significant importance of adopting ICT to maintain the competitive edge and to establish a wider international network. Sheils, et al. (2003) highlight the effective use of information system and information technology for SMEs in terms of an opportunity for enhancing the ways of conducting business and of increasing competencies.

1.2 Research Aims and Objectives

The research aims and objectives of the proposed study are outlined as follows:

1. To identify the challenges faced by SMEs of Caribbean countries to implement ICT

2. To examine the characteristics of skills and innovation required by SMEs of Caribbean regarding implementation of ICT

3. To evaluate the solutions to overcome the challenges of implementing the ICT ins SMEs of Caribbean countries

4. To analyze the relationship between ICT skills, use, adoption patterns, and adoption categories for the SMEs of Caribbean countries

1.3 Research Questions

The research questions of the proposed study are outlined as follows:

1. What are the challenges faced by SMEs of Caribbean countries to implement ICT?

2. What are the skills and innovation required for implementing the ICT in SMEs of Caribbean countries?

3. How the challenges can be overcome to implement ICT in SMEs of Caribbean countries?

4. How the ICT skills, use, adoption patterns, and adoption categories are related for SMEs of Caribbean countries?

1.4 Research Hypothesis

The research hypothesis of the proposed study is outlined as follows:

1. There is a relationship between ICT skills and ICT use in SMEs of Caribbean countries

2. There is a relationship between ICT skills and innovation characteristics in SMEs of Caribbean countries

3. There is a relationship between ICT use at SMEs of Caribbean countries and innovation characteristics

4. There is a relationship between innovation characteristics and adopters category for SMEs of Caribbean countries

1.5 Rationale of Study

ICT is having an important position in the recent era of globalization and in the case of SMEs in Caribbean countries, implementation of ICT is important to grow to be a part of such globalized economy so as to struggle and flourish in future. The main issue that is being faced by the SMEs in Caribbean states involves the use of traditional tools to maintain the competitive position. The SMEs of Caribbean countries require to take benefits of the power of ICT for accepting the competition all across the globe. It can be said that the ICT tools are vital for maintaining the competitive position of SMEs in Caribbean countries. The reasons for which SMEs in Caribbean countries cannot implement ICT tools include the limitations in absence of trained employees and absence of tools.

Chapter 2: Literature Review and Conceptual Framework

2.1 Conceptual Framework

The rapid expansion of the internet for communication has emerged as an important procedure for organizations in SMEs as it can provide cost effective access to the economy all across the globe. The use of internet offers a platform for SMEs to participate within the global market while providing the flexibility in the nature of their business (Pavic, et al., 2007). The recent evaluation of ICTs has altered the amount of knowledge and availability of information. In other words, the concept of the Information Society is observed as the extension of post-industrial society. The main feature of the Information Society is the increase in competition between agents through innovation (Ritchie & Brindley, 2005; Ollo-Lopez & Aramendia-Muneta, 2012). The innovation refers to the capacity of managing knowledge creatively as an answer to changes in social needs and in technology. The innovation is considered as a means of promoting socioeconomic development (Maguire, et al., 2007; Lasagni, 2012; Brady, et al., 2002).

2.2 Literature Review

SMEs are a considerable part of the economy but a limited knowledge is obtainable regarding the implementation of ICTs. However, it has been observed that the relationship between the SMEs and ICTs has started to be explored (Ndou, et al., 2011). Raymond, et al. (2012), Nguyen (2009), Bidarian, et al. (2011) and Tan, et al. (2009) provide that the studies regarding the ICT adoption among SMES have increased as an information system that continues to expand in every aspect of organizational life. Gnyawali and Park (2009), Ongori and Migiro (2010), and Dyerson (2011) depict that the previous literature has suggested the need for enhancing the understanding of key elements that are being experienced involving different contexts and technologies. The reason behind using ICT is that it is a technology that smooths the progress of communication and helps in processing information through electronic means. The implementation of ICT is crucial for SMEs because it has turned out to be a foremost method and acts as an element for bringing change in organizations (Higon, 2012; Ndou, et al., 2011; Maguire, et al., 2007; Zarei, et al., 2011).

Saptadi, et al. (2012), Eze, et al. (2012), and Camacho and Dirckinck-Holmfeld (2009) highlighted that the implementation of ICT is said to be the way organizations correspond, pool resources with consumers, providers, and distributors through the technological advancements, thus, providing the capability for SMEs to take part in the globalized era. Nordman and Tolstoy (2011), and Lasagni (2012) argue that SMEs possesses a chance to achieve a competitive advantage of implementing ICT through novelty, marketing, and consumer responsiveness. Wang and Costello (2009), Yunis, et al. (2012), and Chong, et al. (2012) provide the conclusion with some evidences that SMEs can act proactively to use ICT. Eze, et al. (2012) state that the implementation of ICT can change the business operations in this era of globalization and this change is brought by changing structures of businesses and increasing competition to create a competitive benefit for businesses. In many urbanized countries, ICT is being used to change the way business operations are conducted to obtain strategic advantage. The returns from investment obtained by small organizations through ICT implementation have reduced of certain potentials (Nguyen, 2009). The studies of Higon (2012), Saarenketo, et al. (2011), Tan, et al. (2009), and Trimi (2008) have attributed this issue to factors of organizations including environmental factors, and lack of technical skills. Lopez-Nicolas and Soto-Acosta (2010) argue that the issues in introducing ICT in countries that are under development can be categorized in three classes such as contextual, operational, and strategic. It can be said that the problems regarding context are due to inappropriate selection of models regarding plans and applications in the context of the developing countries. There are certain issues that influence developing countries to implement ICT and the studies of Wielicki and Arendt (2010), Saleh and Burgess (2009), and Day, et al. (2012) depict these issues as absence of skilled human resources, economic constraints, absence of systems infrastructure, and implementation issues.

Grandon and Pearson (2004) highlight the absence of trained human resources as a main barrier, which blocks the effective development of ICT in SMEs of developing countries. It has been stated that such types of absence of counterpart training under technical assistance are not a major issue for SMEs. Saptadi, et al. (2012) evaluate the economic constraints including the nonexistence of reliable statistical information and inadequate capital to finance ICT are among one of the main factors for SMEs. It is obvious that many SMEs are found to be in the early phase of implementation of ICT as the employment of ICT depends on the level to which SMEs are intended to implement new technologies to bring enhancements in their business operations. According to Yunis, et al. (2012), all organizations is suggested that the level of adopting ICT in SMEs depends on the behavior of an organization towards technologies of ICT along with the inclination to deploy them. Trimi (2008), Ghobakhloo, et al. (2011), and Brady, et al. (2002) provides recommendation that the SMEs are required to understand the primary factors behind technological adoption along with the differences in inclination of organizations that can enable organizations to evaluate the inclination to develop and use the technologies.

The studies of Wolcott, et al. (2008), Camacho and Dirckinck-Holmfeld (2009), and Steinfield, et al. (2012) provide the findings that top management plays an important role towards the implementation of ICT in organizations. Zarei, et al. (2011), Oh, et al. (2009), and Saarenketo, et al. (2008) assesses an empirical approach to the top management in such a way that it can lead to the implementation of ICT. Bidarian, et al. (2011) provides the conclusion that involvement of management provides support that is important for the success of ICT adaptation in SMEs. Harbi, et al. (2009), and Hacklin, et al. (2009) evaluate that the top management in SMEs take decisions regarding adaptation of ICT but Ollo-Lopez and Aramendia-Muneta (2012) argue that the CEO of SMEs can influence the likelihood of technology adoption in a positive manner. The characteristics of leaders in SMEs can help in the development of positive attitudes of organizations towards the adoption of ICT in SME (Saarenketo, et al., 2011; Oh, et al., 2009; Ollo-Lopez & Aramendia-Muneta, 2012; Pavic, et al., 2007).

The previous literature has suggested that the core values of an organization can influence SMEs towards specific alternative technology or strategy. The technical expertise of SMEs along with their behavior towards ICT can influence the ability of organizations along with their ability to engage with issues of ICT (Chong, et al., 2012). Eze, et al. (2012), Pavic, et al. (2007), Gnyawali & Park (2009), and Ollo-Lopez and Aramendia-Muneta (2012) state that absence of awareness can delay the understanding in SMEs to understand the potential benefits that are associated with new technologies that can increase their efficiency while increasing their productivity. It is found that the awareness has an affirmative impact on the inclination of organizations to consider the adaptation of ICT. The literature has also provided that SMEs has cultures to support innovative ideas regarding the implementation of ICT (Ghobakhloo, et al., 2011; Oh, et al., 2009; Raymond, et al., 2012). This can have a positive influence on the management of SMEs while increasing the tendency for developing and adapting applications with new technology. Nguyen (2009), Yunis, et al. (2012), Wolcott, et al. (2008), and Wang and Costello (2009) further state that the inclination of organizations towards the implementation of ICT can be strengthened only if there is a culture of sharing innovative ideas. Therefore, it can be said that a positive organizational behavior in the context of systems innovation can increase the implementation of ICT technologies to increase competitive advantage (Saarenketo, et al., 2011; Wielicki & Arendt, 2010; Ritchie & Brindley, 2005).

The availability of resources is identified as the enhancement to adopt ICT within small and middle organizations and the factors influencing this availability include the cost of ICT equipment and networks to adopt ICT (Raymond, et al., 2012). Saptadi, et al. (2012), Zarei, et al. (2011), Schware (2003), and Wielicki and Arendt (2010) highlight capital resources along with intangible assets such as knowledge as scarce for many SMEs. The study further provides that the managers of SME spend sufficient time in trying to stretch limited resources of organizations. Thus, the allocation of scarce resources for new initiatives such as adoption of ICT requires a serious commitment from SMEs. It is obvious that there is a requirement of a combination of resources and capabilities to have a competitive advantage in SMEs (Nordman & Tolstoy, 2011; Bidarian, et al., 2011; Ongori & Migiro, 2010; Day, et al., 2012).

Along with the opportunities for the implementation of ICT in SMEs, the literature has provided the evidence of increasing competition in the markets due to globalization. SMEs are required to look at internal procedures and seek solutions to sustain their growth while improving competitiveness (Ghobakhloo, et al., 2011; Brady, et al., 2002; Oh, et al., 2009). SMEs are faced with different challenges in trying to remain relevant and competitive. Different studies including Bidarian, et al. (2011), Ollo-Lopez and Aramendia-Muneta (2012), Sheils, et al. (2003), and Ritchie and Brindley (2005) have shown that organizations having investment in ICTs are productive and SMEs are required to determine the ways of obtaining most appropriate advantage of IT for supporting its operations while gaining competitive advantage in the marketplace. It is evident that the deliverance of quality products and services is a strategic necessity for SMEs because it is linked to the ICT resources and capabilities for SMEs (Maguire, et al., 2007; Wolcott, et al., 2008).

Chapter 3: Research Design and Methodology

2.3 Research Philosophy and Paradigm

2.3.1 Epistemology

This research philosophy is related to the ontology and methodology because it assesses the way of realizing the reality. The epistemology provides the answers to the questions regarding the determination of the relationship between the known and the unknown, and the ways of obtaining this relationship. It can be said that the epistemological research paradigm requires the researcher to involve in the setting while participating in the act of the respondents in their lives to generate meaning (Bergh & Ketchen, 2009).

2.3.2 Ontology

It is the branch that is concerned with the nature of reality and it influences the epistemological persuasion that affects the view of human nature and consequently the selection of methodology follows the assumptions made by the researcher. It can be said that the ontology provides the basis to conduct research considering the nature of reality in the context of the study (Bergh & Ketchen, 2009).

2.3.3 Mixed Methods

The selected research philosophy for this proposed study can be a methodology or mixed methods. The methodology involves both quantitative and qualitative approaches and the reason behind selecting this research philosophy is to provide complete valid and generalized results for the proposed study. For the proposed study, it is appropriate to use case study with qualitative and quantitative methods under the mixed methodology (Bergh & Ketchen, 2009).

2.4 Data Sources

2.4.1 Primary Data

The primary data for the proposed study can be collected through the questionnaire from employees working in SMEs in Caribbean states. The questionnaires will be closed ended to conduct quantitative analysis, that is, to prove the hypothesis being formulated for the study. The open ended questionnaire will be conducted to conduct qualitative analysis to meet the objectives of the proposed study.

2.4.2 Secondary Data

The secondary data for conducting study is obtained from previous practices of other researchers. The desk research is used to obtain secondary data for conducting the study because it is convenient and inexpensive to obtain information through secondary data collection (Bergh & Ketchen, 2009). The search engines such as Google are used to locate the information within journal articles, books, and periodicals. Databases are also accessed for obtaining secondary data for this study, which include EbscoHost, Jstor, Springer, and Emerald.

2.5 Sampling Techniques and Procedures

The sampling frame of the proposed study can include employees of SMEs working in Caribbean states and the sample size can be about 300 employees. The large sample size will be selected for avoiding the absence of generalizability, and validity of data obtained from it. The sampling technique used for selecting participants in the proposed study is no probability sampling because it enables the researcher to select the participants with convenience and having most common features of the population under study (Jonker & Pennink, 2010).

2.6 Data Analysis and Techniques

The two methods for analyzing data can be used in the proposed study, namely qualitative analysis and quantitative analysis.

2.6.1 Qualitative Analysis

Qualitative analysis transforms theories in a form of statements and concepts focusing on interpretations. The qualitative analysis for the study is consisting of discussion of secondary data and results obtained from the open ended questionnaire (Krishnaswamy, et al., 2009).

2.6.2 Quantitative Analysis

It is conducted to estimate the hypothesis of the study and the quantitative analysis of this proposed study is provided in the form of regression analysis and correlation using SPSS 17. The results will be presented in the form of tables obtained from the processing of obtained data from closed ended data to determine the relationship between the defined variables (Bergh & Ketchen, 2009).

2.7 Research Ethics Codes and Policies of Research Ethics

It can be observed that ethics for conducting the proposed research is of great importance and various professional organizations, governmental organizations, and universities have adopted certain codes, rules and policies relevant to research ethics (Resnik, 2010). The research ethical principles can be summarized by illustrating as follows

Plagiarism

It is the act through which else's thoughts, theories and words are presented under own name. Plagiarism is a not a legal act and it is subjected to punishment because it is considerably identical to the stealing from the original writer. Hence, to avoid such type of issue in this proposed study, the complete bibliography with in-text citations in the correct format is provided by the author (Resnik, 2010).

Conflicts of Interest

The conflicts of interests usually emerge when the obligations of an individual regarding the research conflicts with the personal interests and obligations. Moreover, the determination of conflicts of interest is significant to confront the challenges and issues relevant to the study. The research conducted in this paper is exposed to certain conflicts of interests with the organization. Therefore, the researcher should make specific attempts to identify the conflicts of interests to solve the issues and thus, identifies and assesses the objective, straightforward and reliable conflicts of interests (Resnik, 2010).

Data Management

Managing data is exposed to certain issues with respect to the research ethics, which includes the ethical collection of reliable data and responsibility of gathering data along with the maintenance of the data with the shared access to collected data with the public. For overcoming the issues relevant to the data management that is collected for conducting the proposed research, the researcher is required to address such issues before starting the research. Moreover, the protection towards intellectual property is significant to make sure the valid and reliable research (Resnik, 2010).

Research Misconduct

The research misconduct is the procedure to identify and report the unethical research and can be an outcome of lazy and mistaken practices of research. The researcher can avoid such type of research by acting and implementing the research practices in an ethical way (Resnik, 2010).

2.8 Limitations to Methodology

The proposed methodology is limited to the Caribbean states to determine the implementation of ICT in SMEs. The methodology is limited to use regression analysis and correlation to evaluate the hypothesis, which means that the hypothesis can be estimated using t test or f test. It is also found that the methodology is also limited to the interpretation of qualitative data obtained from an open ended questionnaire with the support of secondary data or literature review. The sample of the proposed study is only limited to the employees of SMEs of Caribbean states, which means that the top management is not taken into account for determining the implementation of ICT in SMEs of Caribbean state.

2.9 Summary of Methodology

Chapter 4: Time Plan and Resources

The time plan for the proposed study is provided as follows the time duration of the tasks are allotted after considering the importance of each phase of the study. The most critical part of the proposed study as observed is the gathering of data and analysis of gathering data. The following table and Gantt chart of the proposed study are provided with the help of MS Project to provide a clear picture of the proposed study.

Tasks

Duration

Collection of previous studies for literature review

2 days

1/1/2013

1/2/2013

Preparation of literature review

2 days

1/3/2013

1/4/2013

Devising methodology

1 day?

1/7/2013

1/7/2013

Collection of data from employees

30 days

1/8/2013

2/18/2013

Analysis of primary data through statistical tools

14 days

2/20/2013

3/11/2013

Discussion of secondary and primary data to achieve objectives

7 days

3/13/2013

3/21/2013

Provide conclusion to the study

5 days

3/25/2013

3/29/2013

Formatting and revising before final submission

2 days

4/1/2013

4/2/2013

The Gantt chart for the proposed time plan is as follows and the duration for certain tasks is extended to make potential changes in previous phases of the study. The researcher will be able to make necessary changes in any of the sections and will be able to collect the data from the research participants with ease and convenience. The resources for the proposed study will include the internet, library, databases, books, lecture notes, and discussions with peers and supervisors. The resources can enable the researcher to conduct the study in the most effective manner. Comprehensive information about the subject area is the most appropriate resource for the proposed study and it will be obtained through the previous literature during the preparation of a literature review. It can enable the researcher to gain insightful information for devising an effective methodology and the gathering of data from the proposed study will take sufficient time for the large sample of 300 people.

Reference

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Eze, S., Duan, Y. & Chen, H., 2012. Factors Affecting Emerging ICT Adoption in SMEs: An Actor Network Theory Analysis. Tianjin, Springer Berlin Heidelberg, pp. 361-377.