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An exploratory study of the extent of information technology adoption in SMEs: an application of upper echelon theory

Purpose – The paper aims to investigate the effect of compositions of managerial/demographic characteristics of the top management team (TMT) on the extent of information technology (IT) adoption in small businesses (SMEs), where such strategic decisions made by TMT have direct and significant influence on all aspects of business operations and its competitive position in a market.Design/methodology/approach – Based on the upper echelon theory, the study formulated four hypotheses relating the compositions of TMT characteristics to the extent of IT adoption in different functional areas. Multiple regression analysis was employed to analyze the data.Findings – The age average and the education average of TMT in small businesses are significant predictors of the extent of IT adoption. However, the group heterogeneity (either gender or ethnicity), contrary to the prediction, has negative impact on the extent of IT adoption.Practical implications – The research findings indicate that the age and education com...