A 4IR framework for ICT evaluation : a case from South African SMEs

Abstract

The rapid advancement of information and communication technologies (ICTs) and the immense benefits they present to organisations have made ICT innovations prominent. However, there is a constant contention between ICTs that already exist in organisations and emerging digital technologies (DTs). The exponential rate at which these DTs evolve often overwhelms decision-makers. This study focused on the decisions of small medium enterprises (SMEs) whether to adopt emerging DTs or to continue using their existing ICTs: SME owners need to evaluate existing ICTs to gauge their usefulness before adopting emerging DTs. Existing decision tools are often insufficient, being based only on either financial evaluation models or ICT usage/adoption models. This study therefore reviewed ICT use, acceptance and adoption theories, as well as financial models, in identifying both the non-financial and financial factors relevant to the evaluation of existing ICTs. Using the Updated Information Systems Success Model as the base model, the study developed an integrated conceptual framework for the evaluation of existing ICTs. The conceptual framework was tested per the positivist philosophical paradigm using data collected from SME owners. Structural equation modeling was used to test and validate the framework. The key findings from the study are that the psychological views and personal experiences of SME owners play the most important role in the evaluation of existing ICTs; and are primarily driven by the social environment surrounding them. The thesis recommends that SME owners should not base their decisions to continue using the existing ICTs on their psychological views and personal experiences only. Such owners may be deceived into believing that emerging DTs are better than the existing ICTs, or vice versa. Rather, SME owners should also consider the performance of software and hardware; and the quality of the information from the existing ICTs. Some features of the existing ICTs, such as database, network, and cloud computing, do not seem to matter to the SME owners; nevertheless these factors are important to consider. The study contributed to Information Systems theory by scoping a body of literature specific to the evaluation of existing ICTs within SMEs in South Africa. The study also contributes to practice, in creating a framework that could assist SME owners to objectively evaluate existing ICTs before adopting emerging DTs. Future research, however, should consider qualitative methods to elicit other factors which may be relevant to the evaluation of existing ICTs