Small and Micro Business Enterprises (SMBEs) in Addis Ababa, Ethiopia: development and poverty reduction through Information and Communication Technologies (ICTs), with particular reference to the hotel industry and associated businesses

Demeke, Wegene (2014) Small and Micro Business Enterprises (SMBEs) in Addis Ababa, Ethiopia: development and poverty reduction through Information and Communication Technologies (ICTs), with particular reference to the hotel industry and associated businesses. Doctoral thesis, University of West London.

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Abstract

The role of Information and Communication Technologies (ICTs) as a facilitator and enabler for development and poverty reduction has been increasingly recognised by many international organisations. ICTs need to be diffused in
society to have their effects realised. The diffusion of ICTs in developing countries is lagging behind the developed countries creating the digital divide. Although the divide is reducing in many sub-Saharan countries, in Ethiopia it is increasing. The purpose of this study is to find the factors that affect the adoption and nonadoption
of ICTs in small and micro businesses in Addis Ababa, Ethiopia. A number of sectors were explored and the hotel and tour operator sector was found to have both adopters and non-adopters. The hotel and tour operator business in
Addis Ababa was selected to be the study population. The main research question was to find the connection between the political, economic, and social factors and the adoption and use of ICT in this sector.

While cultural, social-economic, political and legal factors affect the adoption of innovation in both developed and developing countries, these factors are more pronounced in the developing countries. Rogers’ diffusion of innovation theory is a good initial theoretical candidate for understanding the ICT diffusion factors. However, to include the national level factors, a theoretical framework was proposed based on Rogers’ diffusion of innovation theory.

An exploratory research method was used to shed light on the adoption and non-adoption factors. It uses mixed methods research methodology in two phases to collect data from owners/managers. In the first phase in-depth interviews were conducted with 16 hoteliers who adopted ICT in their businesses. In the second phase survey questionnaires were used to collect data from 128 hoteliers and 57 tour operators. In this phase both adopters and non-adopters of ICT were included. Data were analysed using NVivo and Statistical Package for Social Sciences (SPSS) software packages.

This study argues that the telecommunications monopoly, the non-affordability of ICT products and services, the general economic situation, lack of knowledge and awareness of the technology, and lack of legal protection for small hotels affect the adoption negatively. On the other hand, network externalities, competition among hoteliers, and major customers (foreign) act as a facilitator agent and have a positive impact on the adoption of ICT.

The researcher argues that the political, social, economic, technological and legal policies are the sources of the adoption and non-adoption factors of ICTs in the hotel and tour operator business.

Item Type: Thesis (Doctoral)
Subjects: Computing
Hospitality and tourism
Business and finance
Depositing User: Rod Pow
Date Deposited: 19 Dec 2014 15:39
Last Modified: 22 Feb 2017 14:18
URI: http://repository.uwl.ac.uk/id/eprint/1056

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