Internet adoption decision model among Iranian small and
medium enterprises

Abstract: Information technology plays an important role in making existing
businesses more efficient and effective. Moreover it offers the opportunity
to create new business by opening up new markets and introducing new
products and services. The adoption of information technology represents a
huge problem to small business entrepreneurs. Situation they are facing is
different from larger corporations. Despite the extensive benefits and
opportunities that internet can offer to SMEs, most Iranian SMEs are
relatively reluctant as yet to take advantage of the internet and these
firms with internet access are using it minimally. The objective of this
study is to develop an internet adoption decision model for Iranian SMEs
with the help of main behavioral theories by identifying the factors
influencing the adoption decision and actual usage of internet from the
perspective of decision makers.

Among different behavioral theories ,the behavioral model of TAM
(Technology Acceptance Model) was used as the base of the modified research
model and its foundation was on previous literature on technology
acceptance and innovation adoption research .The original constructs of TAM
(perceived usefulness, perceived ease of use, attitude, behavioral
intention, actual behavior) were retained while the literature suggests
subjective norm, image, perceived risk and facilitating conditions to be
useful antecedents for internet adoption. Based on the literature, a
modified TAM was developed. Hypotheses were discussed in this study related
to the theoretical relationships between constructs and antecedents.
Quantitative research approach was selected for this thesis. Then
measurements of constructs were developed according to prior studies.
Afterwards pilot test in three rounds were conducted. The data was gathered
through online survey. The response rate was 37.7%. After data filtering
to eliminate invalid responses the number of questionnaires decreased to
118. Structural Equation Modeling using visual PLS has been employed to
test the proposed research model.

Tests of significance for all paths were conducted using the bootstrap re
sampling procedure. The results of the structural path analysis of the
research model provided support to fifteen hypotheses. The results are
consistent with theory of acceptance model. Factors proposed as
determinants of internet adoption: perceived usefulness, perceived ease of
use, facilitating conditions, perceived risk, image, subjective norm,
attitude and behavioral intention were found to be statistically
significant. Finally, the implication of this work to both researchers and
practitioners has been discussed.