Use of the Internet

managing it in government, business & communities

Chapter 1 - Adopting the Entrepreneurial Process in the Study of Information Systems and Small Business
Managing IT in Government, Business & Communities
by Gerry Gingrich (ed)
Idea Group Publishing 2003


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Burgess and Trethowan (2002) examined the use of Web sites by small businesses, represented by general practitioners, in Australia. They found that while there was a reasonably high use of computers to improve efficiency and lower costs, there was not much use of computers for Web sites. Those who had Web sites mainly employed them to provide basic information and contact details.

Dandridge and Levenburg (2000) investigated Internet use by small (fewer than 25 employees) businesses. They determined that very few small businesses were moving to this next step in the use of IS. While they found that IS were being employed for daily operations, there was little use of computerization for competitiveness aspects.

A number of research projects have identified that small businesses have not adopted Internet use because of lack of knowledge and experience (Iacovou et al., 1995; Damsgaard and Lyytinen, 1998; Kuan and Chau, 2001). Another set of contributing factors relates to the lack of personnel and time (Bennett et al., 1999). Even when time and personnel are available, there seems to be reluctance by small businesses to investigate the use of the Internet (Chapman et al., 2000).

Actor-Network Theory (ANT), or the innovation translation model, suggests that a network of actors conduct negotiations regarding stances to be taken in relation to the adoption of an innovation. The consideration of the entrepreneurial process allows the ANT theory and translation model to be more appropriately applied in the specific instance of small business. That is, a small business proceeds through a series of development stages, known as the Entrepreneurial Process. Within each of these stages the actors, according to ANT, will bring different inherent characteristics to the innovation translation model within the innovation research paradigm.

To summarize the discussion to this point, it is clear that no single template exists to prescribe the IS needs of a business. Clearly, small and large businesses are different. Stevenson's model (Table 1) suggests differing approaches to business practices between entrepreneurs (promoter) and managers (trustee). They are pursuing different goals and responding to different constraints and strictures - for example, resource poor business owners versus large businesses rich in both financial and human resources. Further, it is generally known that many small business owners initiate IS use in their businesses more to facilitate daily operations and not so much for competitive and strategic reasons.

Articulating the differing IS requirements of small versus large businesses is a useful beginning. A more comprehensive approach is to recognize that a small business is a work in progress. Entrepreneurs are engaged in a creative act of " impressing their vision on their chosen medium - the venture" (McMullan and Long, 1990, p. 133).

The distinction between big business and small business alone misrepresents the evolving growth dynamics of venture development. The dynamic is inherent in the process of entrepreneurship as put forth by McMullan and Long (1990). Therefore, differing IS requirements will evolve from the dynamics of a developing business. The challenge for the researcher is to recognize the changing context of the small business and its impact on appropriate IS requirements.


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