Technology Assimilation Across the Value Chain: An Empirical Study of Small and Medium-Sized Enterprises

In this paper, the authors study technology assimilation, aggregating technologies and assimilation stages for SMEs. The authors employ the twin lenses of organizational innovation and elements of institutional theory. The research validates some institutional actors and most firm characteristics as important determinants. The relative weaknesses of the institutional actors provide evidence of structural isolation in the SME environment that is inhibiting information flow from intermediaries like government support agencies and vendors. The authors recommend a proactive role on the part of technology and enterprise intermediaries to design SME-appropriate solutions.