The Digital Divide: Current and Future Research Directions - MISRC ...

Toward the end of the decade, small businesses found PCs more affordable and
user-friendly, leading to increased adoption. With respect to PC adoption, Farhoomand
and Hrycyk [1985] note that during the 1980s the price of computing power declined
dramatically with the introduction of the PC. However, many small firms still found
investment in PC technology problematic due to the cost and lack of internal technical
expertise. They conducted a questionnaire study of 69 computer users to measure the
growing investment in PCs during the mid-1980s. The study found that the three most
common problems with implementing the technology were lack of technical assistance,
conversion problems, and difficulty in training internal personnel. The large failure rate
of IT projects is problematic for all organizations, however it is more so for small firms
that do not have the resources to absorb the costs associated with technology project
failures.
Using the case study method, Cragg and King [1993] investigated the diffusion
and use of ICT in six small manufacturing firms. They found that inadequate resources
and limited expertise and education by internal personnel were the main factors inhibiting
adoption of ICT. However, they found that improved enthusiasm for the technology by
the company owner was a positive factor for these companies.
Another related research direction is work that examines the adoption of ICT by
firms vis-à-vis actions taken by their trading partners. Taking the special case of
electronic data interchange (EDI), Iacovou et al. [1995] use the case study method to
investigate the adoption pattern of EDI by small companies. They highlight three factors
that impact the ability of small firms to invest in this inter-organizational ICT. First,
small firms often adopt these technologies because of external pressure by larger trading
partners. The other two factors limit the ability of small firms to invest in and use new
IT: organizational readiness, which can be hampered by lower levels of prior IT
experience and lack of resources; and lower perceived benefits from new IT since smaller
firms are less likely to fully integrate EDI-type networking technologies into their
internal systems. This research highlights the importance of competitive market pressure
in bridging the digital divide at the organizational level.
In a related work, Riggins et al. [1994] develop an analytical model where buyers
implement inter-organizational systems with their suppliers. They show that due to
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