Factors Influencing IoT adoption in Botswana's SMEs: A Multi-Theory Perspective Framework

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Research proposal for the Dissertation for the
degree in Doctor of Information Systems
Factors Influencing IoT adoption in Botswana's
SMEs A Multi-Theory Perspective Framework
Student Name Ofaletse Mphale Student Number
40469986 Supervisor Professor Koga Gorejena
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Background and Introduction
Recent studies in information systems have
predicted that applications of emerging
technologies, particularly the Internet of Things
(IoT) will revolutionise various business sectors
including Small to medium sized enterprises
(SMEs). SMEs are play a pivotal role in any
country's economy contributing significantly to
job creation, global economic income, and
long-term innovation (Elhusseiny Crispim,
2022). In Botswana, SMEs constitute of over 95
of all enterprises and contribute to more than
35 of the country's Gross Domestic Product (GDP)
and approximately 75 of the labour market (Nkwe,
2013). Presentations
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Background and Introduction
The increasing prevalence of IoT innovations,
urges small businesses to incorporate them into
their operations in order to boost their
performance (Rejeb et al., 2020). IoT is
frequently referred to as a subsequent internet
stage that permits for the connection of people
and ICT objects (Humayun, 2020) Thus, by
integrating IoT technologies into their
operations, SMEs can streamline their processes,
automate tasks, and gather real-time data,
allowing them to make informed decisions and
optimize their resources (Parab et al., 2023).
This enables SMEs to better their
competitiveness, creativity, profitability, and
business agility (Ghobakhloo et al., 2022).
Additionally this enables them to compete
effectively with large enterprises and their
industry peers (Mitake et al., 2021).
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Background and Introduction
However, despite the touted benefits of IoT, SMEs
remain hesitant in adopting this innovative
technology compared to their larger
industrialized counterparts (Ghobakhloo et al.,
2022). This is because SMEs are faced with
various limitations unique to their context,
including limited technological resources,
financial constraints, shortage of skilled
personnel, and low awareness levels (Parab et
al., 2023) This constraints, has been linked to
their low success rates (Pillay, 2016).
Therefore, there is a compelling need to device
strategies to support SMEs to adopt technology as
a tool for survival and development, particularly
in the era of globalization and digitalization
during fourth industrial revolution (Gupta et
al., 2013).
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Problem Statement
As the Internet of Things begins to grow into
almost all aspects of business, SMEs must not
remain get behind. Nonetheless, SMEs face
numerous constraints which are unique to their
context and operational environment (e.g. limited
resources, budget constraints, and a lack of
technical expertise, as such are less likely to
succeed (Elhusseiny Crispim, 2022 Parab et
al., 2023) SMEs often rely on traditional
strategies to remain competitive, but do not
leverage available ICT resources (Eniola
Ektebang, 2014). Yet, unlike their larger
rivals, SMEs depend heavily on innovation for
success, making it crucial for them to stay
abreast on technological trends and issues
(Radziwon Bogers, 2019).
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Problem Statement
However, despite the high failure rates of SMEs
worldwide, research attention in this area has
been scarce, with literature mostly focusing on
large organizations (Ongori, 2009 Ghobakhloo et
al., 2022). The existing literature on IoT
adoption in SMEs is fragmented, leading to
inconsistent and inconclusive research results
(Parab et al., 2023 Ullah et al., 2021). In
developing countries, majority of studies have
focused on application of individual theories to
explain IoT technology adoption in SMEs, and
often overlooked the integration of multiple
theories to tackle the same subject matter
(Alshamaila et al., 2013 Group et al., 2015).
In Botswana, academic literature on technology
adoption in SMEs had been scarce (Ongori, 2009
Morakanyane, 2014 Khanda Doss 2018), and
particularly no study was found that explicitly
investigates the adoption of IoT technology in
Botswana's SMEs context.
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Problem Statement
Furthermore, there is no known holistic framework
that provides adequate guidance on the adoption
of emerging technologies, which is specifically
tailored to the unique requirements and
characteristic of Botswana SMEs (Khanda Doss,
2018). In this regards, this study attempts to
bridge the gap in the previous research by
developing and validating a multi-theory
perspective framework to study IoT adoption
factors surrounding SMEs in Botswana. To the
researchers best knowledge, the current study
will be the first of its kind that employs a
multi-theory perspective analysis to study
factors of IoT adoption in Botswana SMEs context
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Research Aim and Objectives
Research Aim

• To develop a multi-theory IoT adoption framework
  for SMEs in Botswana

Research Objectives

• RQ1. To assess the status of IoT adoption in
  Botswana SMEs
• RQ2. To identify contextual factors
  (technological, organizational, social and
  environmental) influencing the IoT adoption in
  Botswana SMEs.
• RQ3. To identify barriers to IoT adoption in
  Botswana SMEs,
• RQ4. To develop a comprehensive multi-theory
  perspective framework for IoT adoption in
  Botswana SMEs
• RQ5. To validate the multi-theory perspective
  framework for IoT adoption within SMEs in
  Botswana

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Research main question and Sub questions
Research Main Question

• How can IoT adoption be enhanced among SMEs in
  Botswana?

Research Objectives

• RQ1. What is the status of IoT adoption in SMEs
  in Botswana?
• RQ2. What contextual factors (technological,
  organisational, social and environmental)
  influence the IoT adoption in SMEs in Botswana?
• RQ3. What are the barriers to IoT adoption in
  Botswana SMEs, considering the identified
  contextual factors?
• RQ4. How can a comprehensive multi-theory
  perspective framework for IoT adoption, be
  developed for Botswana SMEs,
• RQ5. How can a multi-theory perspective framework
  for IoT adoption be validated within Botswana
  SMEs?

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Literature Review
Literature Summary and Research Gaps Scholars
define IoT in various perspective and scope.
However in its broadest sense, IoT is described
as the integration of network technologies that
connect various objects. It is the fusion of the
physical and digital realms, achieved through the
utilization of sensors and actuators. The IoT
technology presents significant promises for
SMEs, as it improves their competitiveness,
creativity, profitability, and business
agility. However, SMEs are reluctant to adopt
this emerging technology despite its touted
benefits. Studies indicate that SMEs encounter
several obstacles that are unique to their
context and operational surroundings.
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Literature Review
Literature Summary and Research Gaps Thus, the
presence of these obstacles poses barriers to IoT
adoption, prohibiting SMEs from fully
capitalizing on the potential advantages offered
by this technology. While significant amount of
research has been conducted regarding IoT
adoption, there is paucity in the quantities of
studies conducted in SMEs within developing
nations context. In addition, majority such
limited studies conducted, have placed high
emphasis on the technical standpoint explain IoT
adoption, therefore, neglecting the impact of
organizational, environmental, technological, and
human factors that are essential within the SMEs
context (Sethi Sarangi, 2017). In Botswana,
academic literature on emerging technology
adoption in SMEs had been scarce, and
particularly no study was found that explicitly
investigates the adoption of IoT technology in
Botswana's SMEs context.
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Information Systems theoretical frameworks
The theoretical underpinning for this study will
draw from five main models, namely
Technology-Organisation-Environment Model (TOE),
Diffusion of Innovation Model (DOI), Resource
Based Theory (RBT), Trust Theory (TR) and the
Unified Theory of Acceptance and Use of
Technology (UTAUT). The rationale behind
selecting these theories lies in their popularity
as cited in the IS literature and their
applicability in comprehending the adoption and
diffusion of innovation at both the
organizational and individual levels. This study
will integrate theoretical models in a
multi-theory paradigm to provide an in-depth
understanding of SMEs behaviour in relation to
the adoption of IoT in Botswana. Therefore the
study will employ TOE its overarching research
framework, and will integrate it with four
popular theoretical lenses.
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Conceptual Framework
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Methodology
The research will be guided by the research onion
framework presented in the works of Saunders et
al. (2012) in order to answer the research
questions (see Figure 5-1).
Figure 5-1 The research onion framework Source
(Saunders et al., 2012)
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Methodology
Research Onion Layer Choice Justification
Research Philosophy Positivism This study is concerned with researching the cause-and-effect relationship between constructs
Research Approach Inductive approach This study intends to collecting and analysing data in an unbiased manner. In this sense, new patterns, relationships, and insights can be discovered, contributing to a deeper understanding of how SMEs in Botswana adopt emerging technologies like IoT.
Research Strategy Survey research strategy Surveys are popular because they facilitate the highly cost-effective collection of large amounts of data from a large population
Choice of Methods A mono method which is a survey questionnaire method This aligns with the positivist research philosophy
Time Horizon cross-sectional time This aligns with the time restrictions and the objectives of the research
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Methodology
Research Onion Layer Choice Justification
Data collection and analysis Quantitative method Quantitative research quantifies attitudes, views, behaviours, and other specific factors in order to generalize findings
Target Population IT managers, IT Officers, IT team leaders, owners of SMEs in Southern District of Botswana, particularly in Gaborone City.  
Sampling techniques and sample size Random sampling method, Non-Probabilistic Sampling (Judgmental or Convenience Sampling) Random sampling to randomly choose a specific number of SMEs from the list. Selecting survey participants based on the researcher's judgment or expertise Selecting survey participants based on their convenient accessibility
Sample size Saturation formula is used to calculate the sample size of the unknown SMEs participants Required sample size 106 SMEs participants  
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Reliability and Validity
Reliability The Cronbach coefficient method will
be used for testing the reliability of the
questionnaires Likert-type scale measurement.
From this test, the Cronbach alpha level that
is more than 0.9 is considered as excellent
reliability, from 0.8 until 0.9 is very good
reliability, from 0.7 until 0.8 is considered as
good reliability, from 0.6 until 0.7 is
considered as moderate reliability, less than 0.6
will be consider as poor reliability (Bryman,
2008). Validity The questionnaire validity will
be evaluated and examined by several experts on
this area, including academics, PhD students, and
statisticians for any errors and consistency
issues. The questionnaire will also be piloted
and pre-tested with a random number of 15
participants including IT managers, SMEs owners
and IT employees in SMEs, which will also lead to
further modification of the research instrument.
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Ethical Consideration
In this study the ethical research issues that
needs to be considered includes informed consent,
confidentiality, privacy, and protection from
physical and psychological harm. Essentially,
this study will adhere to the ethical guidelines,
processes, and procedures of the North West
University department of research. The process
involves filling out an ethical clearance form
and submitting the required documentation for
review and approval. The ethical clearance
letter issued by the Department of Research at
North West University, along with other relevant
supporting documents (i.e. the research proposal,
research instrument, and gatekeepers letters),
will be submitted to the Department of
Information Technology at the Ministry of
Technology in Botswana. These documents will
undergo evaluation and approval to ensure that
the study adheres to ethical guidelines before
data collection can commence in Botswana.
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Informed Consent and anonymity
All the participants partaking in the study will
be requested to read and sign the informed
consent forms, by which will be informed about
anonymity and that they are voluntarily
participating in the study. Participants will be
asked to provide their email addresses
voluntarily and give consent to participate in
the study. Participation in this study will
consequently be completely anonymous. The data
collected from respondents will be assigned to a
number rather than the participants name e.g.
participants 1, 2, 3 and etc. The researcher
will take all necessary precautions to safeguard
the confidentiality and privacy of the
participants. This will involve securely storing
any identifying information in a manner that
prevents unauthorized access. These measures are
in full compliance with the data protection
policy of North West University. All responses
will be stored in a Google Drive location in the
Cloud, which will be preserved for at least 5
years then they will be permanently deleted. Only
the researcher will have access to the data
gathered from the respondents since the Google
Drive will only be accessible through the
researchers email.
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Contribution and significance of the study
This study makes an effort to fill in many gaps
in the body of knowledge regarding the adoption
of new technologies by SMEs in developing
countries. Presently, no study was found that
investigates IoT adoption by SMEs in Botswana
context. Furthermore, there is not known holistic
framework that provides a standard guideline on
the adoption process of emerging technologies,
particularly IoT, which is fit for Botswana SMEs
context. Therefore, this studys primary
contribution is the development and validation of
multi-theory perspective framework to support
Botswana SMEs leverage IoT in their
organisations. Practitioners will use the study
findings as a reference model and a decision
making tool to assess SMEs technology readiness
before planning to adopt new technologies in
their respective businesses. This study will
help SMEs to recognise barriers to new technology
adoption and ways to overcome such barriers to
inspire organizational success The quantitative
portion of the research will contribute to
statistics on the number of SMEs that adopt
emerging technologies in Botswana. The
qualitative components of the research will
contribute to the body of knowledge on innovative
technology adoption in Botswana.
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THE END
Thank You.
Questions and Answer Session
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