Koloba, HabofanweDikana, Zoleka2024-07-192024-07-192023http://hdl.handle.net/11660/12665Dissertation (MCom.(Business Management))--University of the Free State, 2023Information and Communication Technology (ICT) enables Small and Medium Enterprises (SMEs) to operate with flexibility, provided they possess the necessary ICT tools. However, ICT adoption can exacerbate the digital divide among SMEs. Therefore, this study aimed to investigate the factors that influence ICT adoption among SMEs in South Africa, using the digital divide approach. The study used the Technological, Organisational, and External (TOE) model developed by Tornatzky and Fleischer in 1990 as the theoretical framework. SMEs play a crucial role in the economy by creating employment, promoting exports, and encouraging entrepreneurship. It is important to note that there is no global definition of SMEs. Instead, institutions often base the definition on the number of employees, turnover and business assets (European Commission, 2020). Furthermore, the integration of ICT has become a centrepiece in SMEs. However, SMEs in rural areas still lag behind with the adoption of ICT. As a result, SMEs in rural areas remain with a challenge of digital divide. A quantitative research method was adopted for this study. The study's target population was SME owners, managers, and representatives from marketing and IT departments across various industries in urban and rural areas. Data collection was facilitated through the use of a questionnaire. Also, through non-probability (quota) sampling, the study visited 200 SMEs, located in the Free State Region. The study's findings indicated a positive correlation between TOE factors and ICT adoption. The ICT adoption is influenced by relative advantage, compatibility, top management, resource availability, ICT knowledge, and external support. In contrast, government support does not influence ICT adoption in SMEs. Moreover, the results demonstrated that factors, such as location and industry, slightly strengthened the relationship between TOE factors and ICT adoption. Furthermore, studying the factors influencing ICT adoption, highlighted the disparities in access and use among different types of SMEs, potentially leading to policies aimed at reducing the digital divide. In this way, the study made a valuable contribution to the existing body of literature on ICT adoption.enSMEsdigital divideICT adoptiontechnological environmentorganisational environmentexternal environmentDissertationUniversity of the Free State