The adoption of information and communication technology within fast-moving consumer goods SMMEs within townships in the Cape Metropole

Abstract

Despite the significant contribution small, medium, and micro enterprises (SMMEs) make to the South African economy through creating employment opportunities, alleviating poverty, and contributing to the country’s gross domestic product, they have one of the worst sustainability rates in the world. The high failure rate of South African SMMEs and their slow adoption of information and communication technology (ICT) is of great concern, especially during an era where technologies drive change. Given the importance of SMMEs and the sparse literature on ICT adoption by particularly township SMMEs, this research intended to investigate the factors influencing ICT adoption within fast-moving consumer goods (FMCG) SMMEs in townships located in the Cape Metropole, South Africa. The main objective was to uncover what factors influence the adoption of ICT by FMCG SMMEs within townships in the Cape Metropole by focusing on the types of ICT adopted and the perceived value, driving forces, and barriers to ICT adoption. This empirical research focused on the research paradigm of positivism. This was achieved through conducting a survey. Purposive and convenience sampling were employed to select 55 participants. All respondents were managers and/or owners of South African township FMCG SMMEs who adhered to a list of strict delineation criteria. This research combines the Technology Acceptance Model (TAM) and Actor-Network Theory (ANT) into a comprehensive framework to better understand the factors influencing ICT adoption. This integrated model provided a robust structure to analyse how perceived usefulness (PU), perceived ease of use (PEOU), and various socio-environmental factors influenced the attitudes and intentions of SMME owners regarding ICT adoption. Results show that South African FMCG SMMEs employ some ICT in one way or another but without fully comprehending how it can benefit their businesses. To address shortfalls and increase the adoption of ICTs in township SMMEs, various recommendations were proposed to address the lack of ICT awareness, use, and computer literacy that contribute to the non-adoption or ineffective adoption of ICTs. Since the FMCG sector is essential to the South African economy and contributes significantly to its economic growth, this research will recommend township SMME owners and/or managers regarding how to successfully adopt ICT to improve their businesses’ day-to-day operations, growth and sustainability. It is recommended to conduct further research with a larger sample size to improve the generalisability of the findings and investigate the various factors that influence ICT adoption in more SMME sectors throughout South Africa.