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1. International Small Business Journal
2014, Vol. 32(3) 285–306
© The Author(s) 2012
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DOI: 10.1177/0266242612461802
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461802ISB32310.1177/0266242612461802International Small Business JournalJones et al.2012
Corresponding author:
Paul Jones, Plymouth Business School, University of Plymouth, Drake Circus, Plymouth PL4 8AA, UK.
Email: Paul.Jones@plymouth.ac.uk
An exploration of the attitudes
and strategic responses of sole-
proprietor micro-enterprises
in adopting information and
communication technology
Paul Jones
University of Plymouth, UK
Geoff Simmons
University of Ulster, UK
Gary Packham
Anglia Ruskin University, UK
Paul Beynon-Davies
Cardiff University, UK
David Pickernell
University of Glamorgan, UK
Abstract
This article analyses longitudinal case-based research exploring the attitudes and strategic
responses of micro-enterprise owners in adopting information and communication technology
(ICT). In so doing, it contributes to the limited literature on micro-enterprise ICT adoption,
with a particular focus on sole proprietors. It provides a basis for widening the theoretical base
of the literature pertaining to ICT adoption on two levels. First, a framework is developed which
integrates the findings to illustrate the relationships between attitudes towards ICT adoption,
endogenous and exogenous influencers of these attitudes and subsequent strategic response in
ICT adoption. Second, building upon this framework the article reveals the unique challenges,
opportunities and implications of ICT adoption for sole-proprietor micro-enterprises.
Article

2. 286 International Small Business Journal 32(3)
Keywords
ICT adoption, longitudinal case study, micro-enterprise, sole proprietor
Introduction
Information and communication technology (ICT) can be defined as enabling business processes
electronically, whereby the internet and other related technologies represent an enabler of more
effective and efficient business activity (Darch and Lucas, 2002). ICT adoption has grown in
importance and prominence in the small firm literature (e.g. Fillis and Wagner, 2005; Simmons
et al., 2008, 2011); it has been found to offer opportunities for such firms to attain increased busi-
ness competitiveness and enhanced profitability (Aragόn-Sánchez and Sánchez-Martin, 2005;
Simmons et al. 2011). ICT adoption represents an enabling mechanism by not only potentially
improving the efficiency and effectiveness of business processes, but also transforming existing
business models (Chong, 2004).
While research into ICT adoption by small and medium-sized enterprises (SMEs) is relatively
well developed, several researchers assert that understanding is limited regarding micro-sized
enterprises (Bharati and Chaudhury, 2006; Dandridge and Levenburg, 2000; De Berranger et al.,
2001; Fink and Disterer, 2006). Wolcott et al. (2008) identify the specific challenges faced by
micro-enterprises in their attempts to adopt ICT: they often have little or no training in ICT usage
and a lack of awareness of the benefits to be accrued from adoption (Jones et al., 2011). These
challenges are grouped into six categories: capabilities, attitudes, resources, context, access and
operations. Barba-Sanchez et al. (2007) and Wolcott et al. (2008) state that the smaller the enter-
prise, the more pronounced these challenges. Moreover, research would indicate that micro-
enterprises may gain significant benefits from ICT adoption in terms of understanding customers
better and developing closer relationships, building upon recognised small firm flexibility and
informality (Simmons et al., 2011). Wolcott et al. (2008) found that ICT adoption in micro-
enterprises is woven into the social and attitudinal systems within the enterprise. Therefore, in
order to understand micro-enterprises’ ICT adoption, researchers need to appreciate the attitudes
of owner/managers which determine their strategic response (Simmons et al., 2008).
A review of the existing literature points to a knowledge gap regarding ICT adoption in micro-
enterprises. There have been recent criticisms of small business literature focused on ICT adoption,
with a need for greater focus on diversity (Alonso Mendo and Fitzgerald, 2005). Due to their small
size, micro-enterprises would be expected to exhibit unique attitudes and strategic responses
towards ICT adoption as against SMEs more generally. Concurring with and building upon previ-
ous research, Bengtsson et al. (2007) found that size and size gradation was a significant factor in
determining ICT adoption. Therefore, it may be expected that for micro-enterprises these effects
would be amplified. For sole proprietors in particular, as the most extensive component of this
micro-enterprise classification, this amplification also would be expected to have even greater
theoretical and applied significance for the small business literature. Given the importance of
micro-enterprises to the economy, it is timely to consider extending the boundaries of the small
business literature focused on ICT adoption to include sole-proprietor micro-enterprises. Therefore,
the aim of this article is to conduct a longitudinal case-based study to explore sole proprietor atti-
tudes and strategic responses in adopting ICT. In so doing, it contributes to the limited literature on
micro-enterprise ICT adoption with a particular focus on sole proprietors.
We provide a basis for widening the theoretical base of the small business adoption literature
pertaining to ICT adoption on two levels. First, we develop a framework which integrates the find-
ings to illustrate the relationships between attitudes towards ICT adoption, endogenous and

3. Jones et al. 287
exogenous influencers of these attitudes and subsequent strategic response in ICT adoption.
Second, building upon this framework we reveal the unique challenges, opportunities and implica-
tions of ICT adoption for sole-proprietor micro-enterprises. We also provide new insights into the
nature of the subsequent strategic response in adopting ICT, looking at short-term issues and a
formal or informal planning basis as features with particular resonance for micro-enterprises.
The structure of the article is as follows. We appraise the literature around SME ICT adoption,
before focusing on adoption from the perspective of micro-enterprises. It then describes the meth-
odology adopted to address the research aim. The findings are presented, followed by a discus-
sion and conclusion, with managerial and policy implications and recommendations for further
research.
Theoretical background
The small firm sector is characterised by high business failure rates (Dutta and Evrard, 1999);
within the UK, survival rates are approximately 92 percent and 71 percent, after one and three
years, respectively (Department for Business, Innovation and Skills, 2007). Current economic
pressures suggest that this situation will be exacerbated thus, there is a need to explore areas
which might improve the potential for small firm survival and growth (Kitching et al., 2011).
One such area pertains to ICT. Daniel and Grimshaw (2002) and Tan et al. (2010) suggest that
ICT adoption is not an alternative but an imperative for future business success. ICT adoption by
smaller firms has been largely driven by the emergence and usage of email and the internet as
tools with increased affordability and availability (eCommerce Innovation Centre, 2005).
However, the evidence suggests that ICT adoption remains embryonic, with the majority of firms
not participating in more sophisticated solutions such as enterprise resource planning or customer
relationship management (Chibelushi and Costello, 2009; Lewis and Cockrill, 2002). Due to their
size, with fewer resources and less specialist expertise, such firms can be more constrained in ICT
adoption (Ashurst et al., 2012; Chibelushi and Costello, 2009). Bengtsson et al. (2007) also noted
marked differences in the frequency and type of ICT adoption among enterprises, related to their
size and size gradation. Nevertheless, examples of progressive small firms that are prepared to
adopt ICT technologies to meet competitive challenges, potentially transforming the nature of
their business operations, have emerged (Loebbecke and Schäfer, 2001).
Owner/manager attitudes towards ICT adoption have been identified as a critical variable in
deciding the competitive position of the firm (Bharati and Chaudhury, 2006; Higón, 2012; Mills
and Pawson, 2012). Building on diffusion of innovation models, including seminal work by
Tornatzky and Klein (1982) and Rogers (1995), Simmons et al. (2008) breaks down into the per-
ception of benefits in adoption and the perception of costs. They state that due to resource con-
straints, smaller firms are more reluctant to invest in developing e-commerce without a clear
identification of potential benefits. Lewis and Cockrill (2002) and Simmons et al. (2008) state that
for similar reasons, they are more sensitive to adoption costs. External factors such as market struc-
tures and demands, dynamic competitive strategies and rapidly emerging opportunities and threats
online, are viewed as important influences on owner/manager attitudes towards ICT adoption
(Beckinsale et al., 2011; Simmons et al., 2008). Sadowski et al. (2002) and Arbore and Ordanini
(2006) suggested that successful adoption of ICT varies according to sector, customers and the
influence of trading partners. Drew (2003) indicated that sectoral differences could result in the
need for specific packages of training and support to ensure that perceptions of value in adoption
were enhanced. Within this external context, the literature points to the relevance of customers in
defining perceptions of value in adoption (Beckinsale and Levy, 2004). Moreover, research reveals

4. 288 International Small Business Journal 32(3)
that small firms require a customer orientation in order to clearly perceive the value required to
drive online and offline performance (Quinton and Harridge-March, 2003). Corroborating
these findings, Fillis and Wagner (2005) found that customer influence is an integral element of
SME decision-making in relation to ICT adoption.
A prime reason for the failure of ICT adoption has been identified as the lack of a strategic
model for implementation (Raymond et al., 2005). Differences in attitudes towards adoption can
be related to specific strategic responses: for example, firms may utilise email and the internet
without any intention of adopting more sophisticated e-commerce solutions (Simpson and
Docherty, 2004). Such enterprises might pursue business growth but not ICT development, and
vice versa. Quayle (2002) states that while ICT was not considered important by many firms, only
one-third actually employed e-commerce applications. MacGregor and Vrazalic (2005) suggest
that where owner/managers are not enthusiastic or proficient about adopting ICT strategic responses
through advanced deployment of applications remain low (Lockett and Brown, 2006; Maguire
et al., 2007).
Micro-enterprise information and communication technology adoption
A review of the small business literature reveals a limited exploration of ICT adoption by micro-
enterprises, with no empirical studies of the sole-proprietor micro-enterprise identified (Fink and
Disterer, 2006). Rodgers et al. (2002) assert that micro-sized enterprises without an ICT strategy
find it difficult to compete with larger organisations, while Schlenker and Crocker (2003) suggest
that often micro-enterprises are incapable of utilising ICT to develop their business. Micro-sized
enterprises are recommended to maximise the potential and minimise the risks of ICT adoption
through the development of appropriate strategies (Barnes and Vidgen, 2002; Prananto et al.,
2003), and should be integrated and implemented towards a measurable adoption goal.
Simmons et al. (2008), state that strategic response in ICT adoption is determined by the attitude
of owner/managers in small businesses. Wolcott et al. (2008) explore micro-enterprise owner/man-
ager attitudes towards technology, suggesting that they are not predetermined by particular knowl-
edge or skills (see Simmons et al., 2008), but related to a general knowledge of the impact of ICT
globally. Wolcott et al. (2008) focus particularly on the perceived value of ICT solutions as an
integral aspect of micro-enterprise attitudes, determined by comparisons of perceived benefits
against costs in adoption (Simmons et al., 2008). Mehrtens et al. (2001) conceptualise three aspects
of micro-enterprise attitudes towards ICT: perceived benefits (Poon and Swatman, 1999), organisa-
tional readiness and external influences (Ibbotson and Fahey, 2004). The micro-enterprise’s ability
to recognise and understand the benefits and relevance of ICT utilisation may move them towards
increased uptake and usage of ICT (Bharati and Chaudhury, 2006; Hughes et al., 2003; Poon, 2000).
However, while acknowledging that perception of benefits is important, Simmons et al. (2008)
point to the importance of resource constraints for micro-enterprises regarding ICT development
(Bharati and Chaudhury, 2006; Lockett and Brown, 2000). Axiomatically, the presence, or indeed
lack, of knowledge and skills regarding ICT relating to specific technology solutions (e.g. open
source as a cost-effective technology solution) is a critical influence on micro-enterprise ICT adop-
tion attitudes. As such, Wolcott et al. (2008) noted an increasing awareness of the potential of ICT,
and the interrelationship between the technology and socio-organisational context within which it
exists, as a critical issue. They employed ‘IT therapy’, attempting to mitigate ICT adoption chal-
lenges in micro-enterprises by providing individualised technology-related assistance, with an
emphasis on relationship building, customised training, context sensitivity and business solutions.

5. Jones et al. 289
Ndubisi and Jantan (2003) noted that SMEs with positive attitudes made more effective utilisa-
tion of ICT adoption through a strategic response, while Simmons et al. (2008) stated that attitudes
towards ICT adoption determine the strategic response to adoption. Earlier work by Khandekar and
Young (1985) emphasises that strategic planning is important; this can be paralleled with ICT
adoption and a need for sole-proprietor micro-enterprises to build on positive attitudes towards
adoption in their strategic response.
Research problem
This literature review reveals limited consideration of ICT adoption by micro-enterprises. The
general literature on small firm ICT adoption provides a supplementary theoretical basis for the
limitations regarding micro-enterprises. However, due to their size and resource issues, micro-
enterprises would be expected to exhibit unique attitudes and strategic responses towards ICT
adoption. Concurring with previous research (Chappell and Feindt, 2000; Moussi and Davey,
2000; Aguila-Obra and Padilla-Melendez, 2006), Bengtsson et al. (2007) found that size and size
gradation was a significant factor in determining ICT adoption. We would expect that for micro-
enterprises, these effects would be amplified. Drawing from the literature review, we propose three
research questions:
RQ1: What are sole-proprietor micro-enterprise attitudes towards ICT adoption?
RQ2: What are the influencing factors of sole-proprietor micro-enterprise attitudes towards ICT adoption?
RQ3: What are the strategic responses of sole-proprietor micro-enterprises in adopting ICT?
The methodology employed to address these questions is considered in the following section.
Method
Research aim
This research aims to explore the attitudes and strategic responses of micro-enterprises, specifi-
cally sole proprietors, in adopting ICT. The need to penetrate the social and behavioural context
of micro-enterprises made a case study approach suitable, due to its tradition of providing rich
contextual data (Levy and Powell, 1999) and enabling in-depth examination of the subject material
(Owens and Robertson, 2000). Moreover, the lack of prior knowledge in this area made such an
approach relevant (Hill and Tiu Wright, 2001).
The case study method enabled ‘how’ and ‘why’ questions to be asked in order to understand
the nature and complexity of the processes taking place (Benbasat et al., 1987). To strengthen the
validity of the findings (Babbie, 1998), the case studies adopted an 18-month longitudinal perspec-
tive to assess ICT developments (Remenyi et al., 1998). In-depth qualitative and longitudinal data
can delve into the fine-grained aspects of issues associated with the area of study. The 18-month
timescale was deemed sufficient due to the rate of technological change (Bharati and Chaudhury,
2006) and SME closure levels (Department for Business, Innovation and Skills, 2007). Case stud-
ies have been criticised as giving rise to anecdotalism (Smith, 1991) and not maintaining researcher
objectivity (Salkind, 2003). These issues were overcome by constructing a systematic case study

6. 290 International Small Business Journal 32(3)
protocol. The following protocols were employed in the case study design: case selection, design
of research tools and data collection method, field procedures and data analysis (Yin, 1994).
Case selection
The literature provides no precise guidelines as to how many cases should be chosen. The goal
should be to select ‘information rich’ cases in relation to the research aim – that is, those worthy of
in-depth study (Ghauri and Gronhaug, 2005; Perry, 1998). Sole-proprietor micro-enterprises from
various business sectors, exhibiting different deployments and experiences of ICT, were identified
and selected from a prior survey undertaken by the authors. Cases were selected to ensure varia-
tion, allowing the researchers to identify extremes of ICT usage, ranging from high to low deploy-
ment, and enabling between-case contrasts to be explored (Perry, 1998). Overall, 10 sole-proprietor
micro-enterprise cases were selected (Table 1 provides an overview of the participants). The iden-
tity of the participant micro-enterprises was protected by use of an anonymous coding system
(letters A–J).
Data collection
Data collection consisted of documentary evidence and two semi-structured, in-depth interviews
conducted with each case micro-enterprise on a longitudinal basis. The first interview was con-
ducted at the outset of the study, with the second after an 18-month period. Interview questions
were framed around the three research questions drawn from the literature review as three key
study themes:
• micro-enterprise attitudes towards ICT adoption;
• influencing factors of sole-proprietor micro-enterprise attitudes towards ICT adoption; and
• strategic responses of sole-proprietor micro-enterprises in adopting ICT.
Table 1. Demographic overview of case studies.
Case Industrial activity Description Business ownership Annual turnover
A Services/transport Guesthouse Sole proprietor Under £50,000
B retail/repair Second-hand records
retailer
Sole proprietor Under £50,000
C Services/transport Stuntman Sole proprietor No response
D Manufacturing retail/
repair
Manufacturer and retail
of jewellery
Sole proprietor Under £10,000
E Manufacturing retail/
repair
Manufacture and retail
of bespoke medals
Sole proprietor Under £50,000
F retail/repair Antique shop retail Sole proprietor Over £100,000
G Agriculture retail/repair Egg production and
retail
Sole proprietor Between £200,000
and £250,000
H Agriculture retail/repair Sheep farming and
butchery retail
Sole proprietor Between 50,000 and
£100,000
I Services/transport Restaurant Sole proprietor Over £200,000
J Manufacturing retail/
repair
Manufacture and retail
of pottery
Sole proprietor Over £150,000

7. Jones et al. 291
The semi-structured interview instrument was developed with a set of open-ended questions
(Partington, 2002), enabling respondents to discourse on the topics (Johannessen et al., 1999).
Related questions were utilised as prompts, ensuring a more consistent link to the research
themes (Poon and Swatman, 1998). The ICT adoption questions were structured into sections:
sole-proprietor micro-enterprise demographics; attitudes to ICT adoption; endogenous and
exogenous influences on attitudes; and strategic responses in ICT adoption. Demographics con-
textualised ICT use by industrial sector and business activity (Gray, 2004). After an 18-month
time period a return visit was made, utilising the same interview research instrument to assess
the level of change.
Secondary documentary evidence was collected in the form of business information and lit-
erature in order to supplement the longitudinal interview data. Documentary evidence related to
the use and performance of ICT, consisting of sales reports and website material, enterprise
background or history and trading history. The documentary evidence enabled the in-depth inter-
views to concentrate specifically on research themes, while allowing the researchers to build a
case history of each micro-enterprise. To ensure the effective development of case histories and
the reliability and consistency of this approach, a case study database was created (Darke et al.,
1998; Rowley, 2002), which comprised written and electronic notes pertaining to each case,
organised and categorised alphabetically. The case study report involved a staged approach in
assembling raw data, constructing a case record and narrative (Patton, 1990) organised around
the case content categories.
Data analysis
To provide structure to the analysis, a coding system was utilised to categorise the data. This
involved a process of data reduction, display and conclusion drawing and verification (Miles and
Huberman, 1994). Thereafter, the data were sorted and placed into sections relating to the three
research themes developed from the prior literature (Smith, 1991). A narrative text approach was
adopted to enable an accurate description of the data as related to the phenomena of ICT adoption
around the three research themes (Strauss and Corbin, 1990). This involved a keyword search and
a cross-comparison of the emergent themes against each of the three themes, and across the longi-
tudinal time period of data collection for each case. This interpretation process involved multiple
reviews by the lead researcher and numerous meetings with the research team in order to explicate
and refine the understanding of each case (Baskerville and Pries-Heje, 2001). Although time-
consuming, this was recognised as the only viable method to elucidate an agreed meaning from
the longitudinal transcripts.
The data analysed from the longitudinal in-depth interviews was traiangulated with the second-
ary data for each of the 10 cases. Initial interview transcript and documentary analysis was guided
by the three research themes. To assist this process, domain analysis was employed to complement
and extend the initial data analysis, distinguishing the semantic nature and meaning of the relation-
ships between the enterprise variables and supplying enhanced insight into the phenomena of ICT
adoption. Domain analysis provided a method for collective comparison of the case studies, while
retaining a degree of richness and meaning associated with the three research themes.
Findings
This section presents the key findings from the case studies conducted with the sole-proprietor
micro-enterprises (see Table 1 for an overview of the enterprises). Direct quotes from participants

8. 292 International Small Business Journal 32(3)
are included to provide a richer interpretation of pertinent findings. Results are presented around
the three research themes, as listed previously. Reflective of the longitudinal nature of the study,
we also present findings from further research with the cases 18 months after the initial work. Table 2
presents an overview of key ICT responses across all of the case studies. This allows the reader to
compare specific findings from the each of the 10 cases with broader trends across the 10 cases,
focusing particularly on attitudes towards ICT adoption and the influences of those attitudes.
Attitudes towards adoption of information and communication technology
The findings reveal that sole-proprietor micro-enterprise attitudes towards ICT adoption were
grounded in their perceptions of the benefits. While ICT adoption varied, for the more progressive
micro-enterprises, perceptions of benefits were clearly defined and understood as pragmatic busi-
ness solutions that would make an immediate impact and work towards ensuring business sustain-
ability. For example, internet access was recognised as an essential resource for market research
and operational purposes, including cost-effective web analytics packages:
I use the internet for several purposes, including research for records stock, purchasing through eBay and
checking pricing of competitors. I also use a web analytics package to assess customer data on the website.
This allows me to update stock and pricing lists and be more targeted to customers, and makes me more
responsive to the market overall. [Jules, owner/manager, Enterprise B]
Fast broadband access and associated market response advantages were viewed by progressive
enterprises as a critical, given limited time resources. It was evident that ICT adoption was per-
ceived to be a potential driver of enhanced market awareness to ensure business sustainability,
rather than an overt focus on growth. Technology disposition in this context was oriented more
towards pragmatic business solutions on a short-term daily operational basis that aided the sustain-
ability of the business, rather than a longer-term vision or thinking of how it could transform and
significantly grow their business:
Table 2. Overview of sole-proprietor micro-enterprise responses.
ICT adoption attitudes and influences A B C D E F G H I J
Increased efficiencies Y Y Y Y Y
Business process improvements Y Y
Reduced costs Y Y Y
New communication opportunities Y Y Y Y Y
Enhanced market research Y Y Y Y Y
Improved support for operations Y Y
Finance constraints Y Y Y Y Y Y
Time constraints Y Y Y Y Y Y Y Y Y Y
ICT knowledge and skill constraints Y Y Y Y
Regular website maintenance policy Y Y Y Y Y
ICT-enabled access to new markets Y Y Y Y
No change to customer profile Y Y Y Y
Formal planning process for ICT Y Y Y Y

9. Jones et al. 293
ICT has made an immediate contribution. It helps my business be more efficient in customer
response through applications that improve customer relationships, which gives a more professional
impression to customers and makes us appear much bigger than a sole-proprietor enterprise.
Overall, strategically, it helps ensure the sustainability of my business. (Amanda, owner/manager,
Enterprise J)
This responsiveness and improved market knowledge also enabled several enterprises to access
new markets and extended their geographical area of business:
We have now got a European and international customer base instead of virtually all local customers. It’s
still small, but growing, accounting for approximately 10 percent of all sales at the moment. The nature of
the customer base has changed from being largely student-based towards the dedicated record collector of
an older age. (Jules, owner/manager, Enterprise B)
In other cases, there was a limited perception of ICT value beyond providing a basic presence
online. Enterprise I’s business model could have benefited from the inclusion of increased
functionality, such as customer ability to make reservations and an e-commerce facility, or the
development of a Facebook presence. However, a lack of positive perceptions of value towards
ICT adoption, weighted towards negative perceptions regarding costs and a lack of resources,
resulted in a failure to see the strategic fit of these ICT applications with their business model.
Several micro-enterprises identified limited change to their typical customer profile:
I have a specialist clientele; the website has improved my access to them but I don’t think I’m going after
different types of customers. (Robert, owner/manager, Enterprise C)
Moreover, a perception of ICT as an administrative cost burden was held by some respondents
where there had been minimal or no attempt to evaluate its impact or future potential in adoption.
Comments suggested that ICT adoption was regarded predominantly as a basic support or admin-
istrative function, implying limited perceptions of value in exploiting the wider adoption benefits,
as again, there were opportunities to adopt more advanced ICT applications with a ‘business model
fit’ in these cases. In such cases, it was apparent that there was a lack of awareness, understanding
and evaluation regarding, for example, more sophisticated customer as well as supplier-oriented
ICT applications:
We do not track our customers and identify where they come from. I suspect that website adoption has
simply provided a quick and cheap method of informing our customers regarding our prices, but not much
beyond. (David, owner/manager, Enterprise A)
From a different perspective, the findings revealed that an encouraging general disposition
towards technology, allied to positive perceptions of the value of ICT adoption and underpinned
by ICT knowledge or skills, could lead to in-house creation of ICT applications to cut costs
Several micro-enterprises revealed that they had personally developed their website:
I knew what I wanted and I was confident I could produce something workable and presentable, and that
would allow me to cut adoption costs – which a sole proprietor will always find to be of paramount
importance. (Stephen, owner/manager, Enterprise H)

10. 294 International Small Business Journal 32(3)
The rationale provided by other respondents in employing a web designer was multifaceted, and
included a desire to develop a professional website which met strategic business objectives:
I contacted a number of web design companies to undertake the process with my involvement regarding
content and feedback. I wanted a professional showpiece for the business to promote and show off what
we do. (Ann, owner/manager, Enterprise I)
In such cases, comments in the transcripts indicated an acceptance of limited ICT knowledge
or skills and time limitations, and recognition that a website designer could produce a suitable
website.
In addition, attitudes towards adoption could be ascertained through website maintenance
approaches. Several enterprises identified a regular, if informal, website maintenance policy,
whereby regularity of maintenance (e.g. daily, weekly or monthly) evidently was driven by prior
knowledge or skills and significant perceived benefits from their web presence. For example,
enterprise B revealed that its website was maintained on a daily basis to reflect stock levels – a
critical process, as the enterprise was reliant on e-commerce applications. Generally, the cases
revealed that the development, maintenance and management of websites did not occur in a struc-
tured or planned manner; decisions were made in an ad hoc manner to meet immediate operational
requirements, rather than longer-term strategic considerations.
Influencers of attitudes towards adoption of information and communication
technology
A recurrent theme from the cases, when considering the influencers of sole-proprietor attitudes to
ICT adoption, related to customers as an external influence:
The website and email can be used to update customers regarding special offers and promotions. I also would
like to move to create a blog to encourage further engagement. (Amanda, owner/manager, Enterprise J)
Customers expect you to have a website and to be able to converse with the business online. I know that I
feel disappointment if I want to look at a product or service but there is no website. (Rhian, owner/
manager, Enterprise E)
External influences also included competitors and suppliers:
I think our competitors inspired me to set up a website. I also felt a bit embarrassed that I did not have a
website when speaking to suppliers about the use of IT. (Ann, owner/manager, Enterprise I)
I was aware of the number of businesses and particularly competitors in the industry creating websites, and
I felt it offered great opportunity. I was also motivated based on speaking to people in the know from the
supply base. (Jules, owner/manager, Enterprise B)
The findings also point to an overall limited influence of external advice and support from gov-
ernment or consultants in defining attitudes towards ICT adoption. In some cases respondents
were reluctant to invest in ICT training and support as they were uncertain regarding the specific
benefits to be gained from ICT adoption:

11. Jones et al. 295
We have an eight-bedroom guesthouse and have maximum revenue which we can achieve based on full
occupancy. Our existing offline advertising through local tourist guides and the website enables us to
achieve this at certain times during the year. Investment in ICT training would not result in any increase
in profitability and would exacerbate our lack of resources more generally. (David, owner/manager,
Enterprise A)
The majority of cases identified internal influences on attitudes towards ICT adoption relating to
issues around resource availability, ICT knowledge or skills and business model fit. Resource
availability was a particularly acute influence upon attitudes towards adoption, with finance a sig-
nificant constraint:
Money is probably the biggest factor that stops me from really improving my ICT package and taking it to
a level of transforming the business. (Jules, owner/manager, Enterprise B)
Time was also identified as a negative resource constraint for a sole proprietor:
Running a business as a sole proprietor means that I have limited time to explore the opportunities which
ICT offers. (David, owner/manager, Enterprise A)
I am very busy in manufacturing and often just don’t get the time to think about ICT beyond the immediate
operational implications. (Amanda, owner/manager, Enterprise J)
ICT knowledge or skills were evident in the findings as an influence of attitudes towards ICT adop-
tion. Almost half of the micro-enterprise cases revealed constraints pertaining to knowledge or
skills around ICT; these related to a general lack of ICT background and experience associated
with the age or educational background of the proprietor. Business model fit was revealed to be
important; some micro-enterprises were able to consider e-commerce applications as their product
or services were translatable to the internet, with the possibility of new markets to be targeted.
Other cases revealed that business model fit was not a positive influence; David commented, for
example, that their premises presented particular constraints:
Having a low turnover, the high capital cost in investing in ICT in contrast to potentially minimal
increase in profit due to business size was a deterrent to investment. The business is a bed and breakfast,
and due to its location and size there is no opportunity for expansion. Consequently we have a ceiling
on guest numbers [that] we can accept. (David, owner/manager, Enterprise A)
Strategic responses in adopting information and communication technology
Strategic responses in adopting ICT were varied, with a focus on short-term goals evident. Minimal
formal consideration was afforded to the long-term strategic role of ICT in the business, with only
enterprise G making reference to longer-term strategic impact. This may be linked to the findings
above, where micro-enterprises emphasised business sustainability as a key offline goal of the
business. Stephen, for example, was wary of over-expansion as a threat to the business in their
strategic response to ICT adoption, with more advanced ICT adoption creating demand which
could not be serviced due to insufficient resources and stock. Other responses suggested that enter-
prises had minimal desire to pursue business growth through ICT adoption. In these cases, the aim
was to sustain existing levels of business, with little time or effort devoted to more formal

12. 296 International Small Business Journal 32(3)
long-term strategic ICT planning. When asked to consider their longer-term plans, Jules noted that
this would be determined by sufficient finance being available, with strategic decisions determined
and implemented in an ad hoc manner and based upon short-term operational requirements. David
indicated that more formal and longer-term planned ICT investment would only occur to support a
change of business emphasis:
My planning is done informally. I consider the business and its needs on a day-to-day basis, as opposed to
having a long-term more systematic planning process. For me, it all about sustaining the business. (David,
owner/manager, Enterprise A)
The desire for sustainability and lack of more formalised and longer-term strategic responses in
ICT adoption may be linked directly to resource availability issues for sole-proprietor micro-enter-
prises, with evidence of an influence on negatively perceived value in ICT adoption linked to the
required ICT infrastructure, costs of adoption and maintenance, limited access to finance and time
pressure:
ICT infrastructure restricted my ability to exploit advantages of the internet as a low-cost communication
media. Cost would be a significant factor as we have not introduced e-commerce, resulting in the loss of
customers. (David, owner/manager, Enterprise A)
Further investment would have to be justified on a cost–benefit analysis. I could introduce a CRM
[customer relationship management] system such as Goldmine to market the products only if [it] were
worthwhile financially, which would represent a complex calculation to make. (Jules, owner/manager,
Enterprise B)
In contrast, micro-enterprises that were thinking of becoming more progressive in their ICT adop-
tion revealed a more formal planning approach, if short-term benefits were evident:
The website has made an immediate impact – we would not have been able to trade and exist without [it].
We have moved our business from a traditional storefront to a fully functional e-commerce-facilitated
online business. This has also meant we have to be more systematic in how we do business, more formal
and more rigorous. (Will, owner/manager, Enterprise F)
I would like to explore the potential of new networking technologies which could build on my offline
strengths in engaging with my customers. I would also like to explore its use with my suppliers. This will
take time and a more systematic approach to my ICT planning and how it links to the offline business.
(Amanda, owner/manager, Enterprise J)
Longitudinal findings after 18 months
All of the 10 case studies were revisited after an 18-month time period from the initial research to
examine their ICT developments in the intervening period (Table 3).
Two of the sole-proprietor micro-enterprises had experienced expansion in terms of employee
numbers (G and H). One case had undergone a change in terms of trading pattern (B), and one had
ceased trading (D). Several of the sole-proprietor micro-enterprises (A, G, H and I) had remained
static or regressed in their ICT usage. Regression was apparent where there had been an initial
website investment, but in the intervening time, minimal maintenance or updating. One website

13. Jones et al. 297
(H) was no longer active despite the micro-enterprise still successfully trading; reflective
comments included the following:
Little has changed, I suppose. We still use the same computer, software and website. The website was
updated a number of months ago to improve the quality of the pictures of the hotel. However, I have not
updated the site with this season’s price yet – it’s something I need to do, to be honest. (David, owner/
manager, Enterprise A)
Within these sole-proprietor micro-enterprises, there seemed to be a reluctance to embrace the
opportunity that ICT offers. Despite investing in a website there was little evident perceived
value in ICT adoption, even though, as previously stated, these enterprises had business models
open to more advanced ICT adoption that could create customer relationships as well as poten-
tially increased revenue. Typically, ICT adoption was not viewed as key to business sustainabil-
ity, and therefore was largely ignored in these cases. By contrast, four micro-enterprises revealed
progression in their ICT adoption (B, E, F and J). Enterprise E had relaunched its website as a
more sophisticated presence capable of enabling customer interaction in product choice and
design. Similarly, enterprises B, F and J’s websites emerged as important functions within their
overall business operations, contributing significantly towards sales and marketing and provid-
ing access to new markets. Enterprise B in particular had taken the step of transforming its busi-
ness model by moving to a pure online trading position. Representative comments included the
following:
There was obvious trepidation, moving from a traditional selling storefront to a pure online operation.
However, it has been relatively painless and the business is thriving. We are getting new customers from
all over the place. The website has helped, but you still need to be efficient and knowledgeable of what it
can do. (Jules, owner/manager, Enterprise B)
The website and a new email application have been quietly effective. They provide an effective method of
marketing our products on a global market [e.g. the USA]. We have definitely sold a number of dressers
through initial contact from the website, so I am delighted with it. (Will, owner/manager, Enterprise F)
Table 3. Overview of ICT deployment after 18 months.
Case No. Online sales Online sales
outside UK
Online B2B Online B2C Status Change
A Static None
B     Pure e-commerce Significant
C Incremental change Minor
D Dead site None
E    Major redesign Significant
F    Content updates Significant
G Static None
H Static None
I Static None
J     Content updates Significant

14. 298 International Small Business Journal 32(3)
Overall, further development of ICT had been focused on incremental improvements, and in one
case, a relaunch of the enterprise as a pure online business. Five micro-enterprises’ usage of ICT
appeared to have peaked and some had declined. Four continued to embrace the use of ICT tech-
nologies, and had benefited in the form of new customers and a new business model in one case. A
key factor appears to be a business goal of sustainability on the whole, as opposed to more radical
change to enable business growth.
Discussion
In this study we have offered a theoretical contribution to the existing literature on micro-enterprise
ICT adoption, with a particular focus on sole proprietors. We contribute to the small business litera-
ture focused on ICT adoption, extending its boundaries at two levels. First, we develop a frame-
work which integrates the findings to illustrate the relationships between attitudes towards ICT
adoption, endogenous and exogenous influencers of these attitudes and subsequent strategic
response in ICT adoption. Second, building upon this framework we reveal the unique challenges,
opportunities and implications of ICT adoption for sole-proprietor micro-enterprises when com-
pared to SMEs per se. We focus on the nature of sole-proprietor micro-enterprise attitudes towards
ICT adoption: such attitudes, articulated as a general technology disposition and perceptions of
ICT value, were influenced by endogenous and exogenous factors. We also provide new insights
into the nature of subsequent strategic responses in adopting ICT.
Critical to sole proprietor micro-enterprises attitudes towards ICT adoption were perceptions
of the value of ICT adoption. Evident from the findings was the critical importance of the ben-
efits to be obtained from adoption, defined largely as pragmatic business solutions. Micro-
enterprise attitudes towards ICT adoption have been tentatively associated with value perceptions
from a specific industry perspective (Grandon and Pearson, 2004). We found that the value of
adoption was not just reserved for service-based firms. Specifically, the value of ICT adoption to
the manufacturing-based sole-proprietors could be realised through strategic responses that
deployed e-commerce applications, for example. A ‘short-termism’ emerged, pertaining to the
pragmatic strategic responses in applications deployed; these findings suggest that positive atti-
tudes were influenced by the relevance of ICT adoption to the micro-enterprise’s offline goals,
and particularly with regard to the sustainability of current levels of business. Where relevance
was more tenuous, attitudes towards ICT adoption were more negative over time.
Perceptions of ICT benefits were framed as supportive of micro-enterprise sustainability; exog-
enous influences were particularly pertinent in this respect. Customers’ relationships were critical,
for example; more advanced ICT applications such as analytics packages which focused on cus-
tomer sustainability were considered to better understand customer needs and related e-commerce
solutions. Comments also related to the potential of conversations with customers through new
interactive technologies. Fast broadband access was considered critical to respond quickly to cus-
tomer needs. Previous work has considered broadband from the perspective of size gradation in
small businesses, framed as a broadband divide that included geographical bias (Arbore and
Ordanini, 2006). Advice and support as an exogenous influence on attitudes towards ICT adoption
appeared to come mostly from the supply base.
The findings also indicate the presence of specific endogenous influences upon attitudes
towards ICT adoption. Resource availability appeared to be particularly critical; financial
resources, for example, were found to be significant, with a requirement to receive a return on
any potential investment in the short term, minimising associated risks. Perceived benefits

15. Jones et al. 299
in ICT adoption were seen as relating to ICT applications that could negate typical resource
constraints faced by sole-proprietor micro-enterprises. Where there was evidence of ICT knowl-
edge or skills, there also was a more positive general disposition towards technology, as well as
more positive perceptions of the value of ICT adoption. A typical strategic response was based
upon in-house development of internet technologies such as websites and email clients; these
sole proprietors were also more active in maintaining their websites. Business model fit was
another endogenous influence on ICT adoption, based on a realisation of the fit of ICT and
desire for business sustainability. Evidence from the longitudinal study from a unique strategic
response perspective showed a plateau effect, whereby the micro-enterprises adopted a certain
level of ICT – typically, a website – but did not develop beyond this, and in some cases showed
evidence of decline. We also found a lack of perceived value in ICT adoption weighted towards
adoption costs, with business models suited to more advanced ICT applications such as
Facebook, for example. This would indicate a lack of both knowledge and skills in adoption,
requiring advice and support.
We found that strategic responses in ICT adoption were defined largely from a temporal per-
spective: short-term or long-term. Overall, it was apparent that sole-proprietor micro-enterprises
did not operate long-term planning frameworks concerning strategic responses in ICT adoption.
With some of the enterprises, there was a lack of understanding of the impact of ICT upon business
goals and regarding business model fit. It was evident that attitudes towards ICT adoption were
framed by a business model grounded in more immediate and attainable outcomes, predominantly
focused on business sustainability and often survival, with limited consideration of longer-term
business goals. This provides a new angle from which to view the small business literature on ICT
adoption, which has focused largely on stage models and progression in adoption (Earl, 2000;
Gray, 2006; Rao et al., 2003; Rayport and Jaworski, 2002). The findings from this study suggest
that there needs to be greater attention in the small business literature to diversity within SME clas-
sifications, particularly in the case of sole-proprietor micro-enterprises. Investments in ICT were
undertaken only if transparent and immediately attainable benefits were identifiable and achiev-
able, with finance readily available. ICT development decisions, for example, were made on a
short-term ad hoc basis, with a view to meeting immediate operational requirements and ensuring
sustainability. If an ICT investment did not provide an immediate return on investment, it was
given less priority or even allowed to decline.
Overall, strategic responses were not conceived of or attempting to leverage ICT as an agent
of longer-term transformational change to achieve future business growth (Levy and Powell,
2003). The longitudinal aspect of the case studies revealed some interesting findings in this
regard. Generally, the cases revealed that on the whole, sole-proprietor micro-enterprises were
not maximising ICT potential for organisational transformation, as noted by Loebbecke and
Schäfer (2001) and Lewis and Cockrill (2002). There was a particular lack of utilisation or further
development of ICT applications towards more sophisticated applications, such as CRM or
enterprise resource planning, which could aid a transformational approach to business. In the
majority of cases, there was minimal change in ICT adoption levels and sophistication during the
longitudinal study. For a number of the firms, the adoption of ICT had peaked and some had even
declined over the period of the study: these findings point to a more static view of ICT adoption
for sole-proprietor micro-enterprises, focused at best on business sustainability and often survival
(as mentioned previously), rather than more progressive or transformational stage models, as
have been detailed and promoted by the extant literature (Earl, 2000; Rao et al., 2003; Rayport
and Jaworski, 2002).

16. 300 International Small Business Journal 32(3)
We also noted that more advanced ICT adoption tended to reflect a more structured or for-
malised strategic response, but still within a short-term strategic frame. This contradicts previous
evidence and intuitive thinking on how micro-enterprises ‘do’business, which points to their infor-
mal approach to strategic management (Donnelly et al., 2012; McCarthy, 2003; Miller and
Toulouse, 1986). It also suggests that ICT adoption may be a cost-effective means of facilitating
more formalised and strategic approaches for smaller firms that can help in ensuring sustainability.
We contribute from a new perspective here to that of Simmons et al. (2011), who found that small
businesses at the leading edge of website adoption were using cost-effective web tools such as web
analytics, online surveys, community forums and database technology to grow their business.
These tools facilitated more formalised and structured strategic responses in ICT adoption. Further,
they complemented and supported, online and offline, the more informal and flexible type of plan-
ning preferred by small firms. This may be even more pertinent for sole-proprietor micro-enter-
prises: cost-effective ICT tools may allow them to overcome resource constraints and leverage
their personal style of doing business as an opportunity to get closer to customers (Phippen, 2004;
Probaker, 2000; Rowley, 2004).
Conclusions
Managerial and policy implications
The study findings reveal the importance of sole-proprietor attitudes towards ICT adoption repre-
sented by their perceptions of value. For policymakers, if sole proprietors are unable to develop
the required attitudes for positive strategic responses, government-sponsored advisers or consul-
tants will need to investigate this, particularly within the framework of business sustainability
rather than transformational or aggressive business growth approaches in ICT adoption. A concern
is the lack of mention of advisers beyond web designers; therefore, as well as promoting their
services, these advisers or consultants could explore the key aspects of the framework developed
(Figure 1), particularly the relationships between attitudes, influencers and strategic responses.
This could help reveal that sole proprietors need to be coached and mentored in developing ICT
knowledge and skills or a greater appreciation of business model fit with ICT, and provide a basis
for promoting the benefits of employing government advisers, for example, whereas previous
research has indicated a tendency for SMEs to discount their value as a support in ICT adoption
(Simmons et al., 2011).
In particular, the relevance of ICT adoption in relation to customers and customer relationships
seems to be a promising area as an influencing factor of ICT adoption attitudes: a critical policy
aspect of this relates to ensuring that sole-proprietor micro-enterprises have access to fast broad-
band services as a priority. For small businesses more generally, Bengtsson et al. (2007), Fillis and
Wagner (2005), Martin and Matlay (2003) and Simmons et al. (2011) found that internet technolo-
gies can be used strategically to develop stronger links with customers. Simmons et al. (2011)
found that cost-effective internet tools complement and support, offline and online, the more infor-
mal type of marketing that small businesses normally practice. Technology experts and govern-
ment policy initiatives will require their expertise to be integrated with an awareness of how
technology can benefit sole proprietor micro-enterprises and, in particular, fit with their unique
business model, ICT knowledge or skills and resource availability, as well as appreciating the role
of personal, social and commercial contexts. This will enable their interventions to be complemen-
tary to the attitudes towards ICT adoption that they will encounter, and facilitate focused and rel-
evant interventions that support strategic responses in ICT adoption.

17. Jones et al. 301
Recommendations for future research
This article contributes to the small business literature focused on ICT adoption with a study of
sole-proprietor micro-enterprises, which represent an economically significant category of small
firms and a unique context with regards to ICT adoption. The longitudinal study provides a greater
understanding of sole-proprietor micro-enterprise attitudes towards ICT adoption, influencing fac-
tors and subsequent strategic responses in adoption. We have developed a framework which inte-
grates the findings to illustrate the relationships between sole-proprietor micro-enterprise attitudes
towards ICT adoption, endogenous and exogenous influencers of these attitudes, and subsequent
strategic response in ICT adoption. The study reveals a diversity of ICT experiences and practices
among sole-proprietor micro-enterprises that differ from the wider SME population. For example,
the focus on sustainability appears to be particularly pronounced in defining attitudes towards ICT
adoption and strategic responses. Critical to this are uniquely challenging constraints as well as
opportunities in ICT deployment.
The framework developed provides a basis for future research in relation to further probing of
the relationships presented. However, as Wolcott et al. (2008) previously noted, more must be done
to understand, educate and influence sole-proprietor attitudes and strategic responses towards ICT
adoption. We recognise the limitations of this study regarding case study research, and the need for
further empirical quantitative studies in different industry sectors and with more sample sizes that
can be generalised. Furthermore, further fine-grained qualitative and longitudinal studies could
explore ways of effectively embedding ICT within sole-proprietor micro-enterprises in a manner
to encourage business growth or even business model transformation. Moreover, further research
must be undertaken to explore the impact of external ICT support bodies upon the sole-proprietor
I
C
Ta
do
pt
i
o
n a
t
t
i
t
ude
s
General technology disposition
• Perceptions of ICT adoption value
E
ndo
g
e
no
usi
nf
l
ue
nc
e
s
• Resource availability
• ICT knowledge/skills
• Business model fit
St
r
a
t
e
g
i
cr
e
s
po
ns
e
• Planning framework: formal/informal
• Online goals: short-term/long-term
• Offline goals: sustainability/growth
• ICT applications deployed
E
x
o
g
e
no
usi
nf
l
ue
nc
e
s
• Customer relationships
• Fast broadband access
• Advice and support
Figure 1. Sole-proprietor micro-enterprise ICT adoption framework.

18. 302 International Small Business Journal 32(3)
micro-enterprise as potentially a highly significant exogenous influencer on attitudes towards
adoption. This could explore ICT knowledge and skills and resource availability, as well as appre-
ciating the unique role of personal, social and commercial contexts for sole-proprietor
micro-enterprises.
Funding
This research received no specific grant from any funding agency in the public, commercial of not-for-profit
sectors.
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Author biographies
Paul Jones is Deputy Director of the Centre for Entrepreneurship, and Reader in Entrepreneurship at
Plymouth University. His areas of research interest include information technology usage in the small
business sector, entrepreneurship education, business incubation and SME training.
Geoff Simmons is a Lecturer in Marketing at Ulster Business School, University of Ulster. His research
interests are in marketing, focused on the strategic influences of digital technology and marketing. His
research has been published in Journals such as European Journal of Marketing, International Small Business
Journal, Industrial Marketing Management, Environment Planning A and Journal of Strategic Marketing.
Gary Packham is Deputy Dean (Research and Development) of the Lord Ashcroft International Business
School, Anglia Ruskin University. His research covers a wide range of topics including small business
management, entrepreneurship education, economic development, construction management, innovation and
knowledge transfer.
Paul Beynon-Davies is Professor of Organisational Informatics at Cardiff Business School, Cardiff University.
He has published widely in the field of e-business and information systems, having published 11 books and
more than 70 articles. He was director of the eCommerce Innovation Centre at Cardiff University from
2006–2008, which had as a major part of its remit knowledge transfer to SMEs in the area of e-business.
David Pickernell is Professor of Economic Development Policy at the Business School in the Faculty of
Business and Society, and Director of the Centre for Enterprise, University of Glamorgan. His publications
cover a wide range of topics related to economic development policy, and his current research interests
revolve around enterprise, entrepreneurship, clustering and the role of universities in innovation and
enterprise.