Organizational adoption of digital information and technology: a theoretical review

This paper aims to review previous studies on how organizations, particularly small and medium enterprises (SMEs), adopt digital information and technology, especially on the drivers and the outcomes of the adoption itself.

The present study follows a literature review design. Previous studies that examine SMEs’ digital information and technology adoption are taken into account in building the conclusion.

The review reveals that digital information and technology that is used for marketing-related position allows SMEs to be more competitive. In general, there are three main theories that have been used to understand the adoption process (i.e. diffusion of innovation theory, technology-organization-environment framework and institutional theory). These theories should be used in conjunction with each other to better explain the adoption process. Additionally, there are three characteristics (i.e. innovation, firm and environmental) that are related to the risks and barriers of the adoption process.

This theoretical review is among the few that put forward the findings reported in research articles on the digital information and technology adoption process within SMEs. Moreover, this paper summarizes the issues (i.e. drivers, outcomes, risks and barriers) related to the adoption process.