Examining ICT application adoption in Australian home-based businesses: An innovation-decision process approach

The purpose of this paper is to report on a study that examines an under-researched area, the use of information and communications technologies (ICT) in Australian home-based businesses (HBB).

HBB constitute a large part of the economy, yet little is known of how they use ICT to improve their business operations. The study involved a case study comprising interviews with 30 business operators in the Western region of Melbourne, a major Australian city. The findings were analysed using a unique approach to Rogers’ (2003) Diffusion of Innovations, employing the innovation-decision process as a lens for the analysis.

The study findings suggest that ICT application adoption in HBB participants is not uniform, with adoption of applications such as e-mail differing from adoption of newer applications, such as social networking. ICT use needs to be considered according to individual ICT applications and explained in the context of particular HBB. The study contributes to studies of innovation adoption, particularly in relation to the use of ICT applications in HBB.

It should be remembered that this study involved interviews with a broad selection of 30 HBB in the Western region of Melbourne, Australia. The results should be considered in the context of hypothesis generation in regards to HBB rather than hypothesis testing that can occur with larger samples. The authors feel that this study would be representative of the practices of ICT adoption in many such groupings of HBB in cities of major Western countries, but hesitate to claim that similar, specific uses of ICT applications would be matched elsewhere.

This study has a number of practical implications. The results suggest that researchers should consider adoption of individual ICT applications in HBB. Further, policy makers looking to support the use of ICT by HBB should consider that the HBB in this study had adopted different ICT applications and were at different stages of ICT adoption. This is worth considering when deciding upon policies relating to how to suppzort the HBB sector (such as provision of training support and so forth).

The paper introduces a unique means to assess the adoption of ICT applications by examining their level of penetration, level of maturity and usefulness to HBB.