ICT Adoption Scale Development for SMEs

Abstract

Information systems research lacks a validated scale for assessing and measuring the adoption of information and communication technologies (ICTs) by small- and medium-sized enterprises (SMEs). The relevant literature is limited in studies mainly concentrating on developing country settings. Furthermore, the emergence of new technological elements and increasing digitalization and digital transformation efforts in the last two years have changed how an organization utilizes and adopts ICTs. Therefore, it is inevitable that the conceptual dimensions proposed in the previous literature and the definitions of these dimensions will also alter. Hence, it is essential to revisit and validate the prior work and enhance it based on current vitality and developments. This study developed and validated a scale for measuring ICT adoption and digitalization for SMEs in a developing country context. The researchers followed an eight-step scale development procedure: (1) comprehensive literature review on ICT adoption and digitalization; (2) identification of dimensions of the level of ICT adoption and digitalization; (3) generation of items; (4) item refinement through focus group; (5) pretest of the measurement; (6) scale purification; (7) data collection; and (8) measurement evaluation. Within the Turkish setting, the ICT adoption scale was determined to have sufficient reliability and validity. Data for this study were gathered from 421 respondents of 219 Turkish SMEs. Supporting the multidimensionality of ICT adoption, 14 items and five dimensions (communication, internal integration, integration with customers, interorganizational integration, and strategic integration) constituted the ICT adoption construct. Considering the dominance of conceptual frameworks that were proposed based on developed countries and the prevalence of unidimensional constructs in the field, the developed multidimensional scale is expected to contribute significantly. Practitioners and policymakers can utilize the suggested scale to discover areas where specific changes are required for the digital transformation in SME utilization efforts that need attention. The outcomes can be applied to industrial sectors and different geographic contexts. By considering stage-based integration, the developed scale can also be used in future studies to investigate the effects of different variables on the extent of ICT adoption and the impact of ICTs on several organizational outcomes.

1. Introduction

SMEs are crucial players in fostering more equitable and sustainable growth because they account for most businesses. It is impossible to accomplish sustainability without the digital transformation of SMEs [1]. Because SMEs are one of the pillars of the economy, their sustainability must be preserved. Digitization and digitalization are one of the strategies that should be employed and improved to enhance the sustainability of SMEs [2]. In addition, digitization and digitalization can help SMEs fulfil their many social and environmental commitments by reducing their concerns about their ability to survive economically. The process of sustainable development may become more accessible and participatory by integrating ICTs to a greater extent and achieving digital-enabled business models [3].

However, the COVID-19 epidemic sparked a worldwide upheaval that slowed economic progress and damaged the sustainability of SMEs [2]. COVID-19 restrictions negatively impacted how sustainably organizations can operate because they decreased company activities and caused HR problems with staffing and supply chain interruptions [3]. SME limitations might be overcome by boosting ICT adoption and digitalization, resulting in competitiveness and successful growth. The accomplishment of a sustainable competitive advantage is possible by enhancing the digitalization of SMEs [4] because digitalization facilitates ecologically sustainable growth due to its transformative capacity [5]. Particularly for SMEs, the modern economy emphasizes the significance of digital transformation as a critical engine for innovation and company rejuvenation [6].

The digital revolution forces SMEs to pursue challenging growth strategies to keep up with technological advancements and preserve their competitiveness, but it also mandates that they meet environmental sustainability goals [6]. Hence, there is a complex and multifaceted relationship between ICT adoption in SMEs and sustainability. This is a pertinent area of investigation for management research and practice that tries to reveal existing digitalization practices and their extent in supporting the competitiveness of smaller businesses in complex and developing social, environmental, and technological surroundings. In order to effectively manage the present challenges and advance toward sustainable growth, it is crucial to understand the level of ICT adoption of a firm and the sophistication of its digitalization practices.

Recently, especially after the COVID-19 pandemic, it can be easily claimed that although ICT adoption is a survival issue for all enterprises, it is especially vital for SMEs. The benefits of ICTs in SMEs have been highlighted in the relevant literature in terms of labor productivity, product/service enhancement, innovative business development, effectiveness, extending the business to foreign markets, market information, intelligence gathering, and cost reduction [7,8,9,10,11] and in terms of supporting a number of business activities including data collection, storage, processing, and dissemination [7]. During and after the COVID-19 pandemic, ICTs became vital for SMEs. While the technology solutions were available and utilized by most SMEs at specific levels for certain business functions before the pandemic, during and after COVID-19, all the above-mentioned tasks and business functions had to be performed online due to restrictions, curfews, work-from-home requirements, and other COVID-19-specific conditions and regulations. Now, we are living in a period where these habits created a new work order for all firms and all individuals and going back to three years ago is impossible.

Siqueira et al. [12] reported that organizational differences in ICT adoption would widen growth and productivity gaps, particularly between SMEs. There are obstacles for SMEs in developing countries regarding access to financial resources and the availability of institutions and organizations that finance SMEs. Obtaining external support or consultancy is constrained and costly [13]. In addition to these conditions, political instability, sensitivity to environmental conditions, and the fact that the elements in the ecosystem are not supportive and motivating are preventing organizations from taking advantage of digital-enabled growth opportunities [13]. According to Bala and Feng [14], the success of SMEs is critical to the growth and stability of developing nations because they provide job creation, alleviate poverty, generate new investments, and create wealth [15]. Accordingly, in a globalized economy, developing and strengthening the role of SMEs in the marketplace is one of the most powerful ways to alleviate poverty and inequality in developing nations [16]. As a result, countries are aggressively pursuing public policies to support SMEs [9].

Therefore, studies investigating ICT adoption in SMEs are essential, especially in developing countries. Recently, research focusing on ICT implementation within the SME context has generally investigated the adoption of particular technologies or applications, such as data analytics [17], business intelligence [18], digital marketing channels [19], e-accounting [20], and website [21]. Thus, ICT adoption is going into the next step and transforming to digitalization and digital transformation. In this context, studies focusing on ICT adoption and digital transformation in general and evaluating the sophistication of end-to-end applications in enterprises are needed. In order to carry out these studies, it is important to review the existing scales developed to propose and validate new ones.

Many researchers have studied and proposed unidimensional constructs or scales to measure ICT adoption levels. Lopez-Nicolas and Soto-Acosta [22] investigated ICT adoption and utilized a unidimensional scale. Bhatt, Sashikala, and Chakraborty [23] neglected the multidimensional characteristics of IT adoption and developed a unidimensional scale for IT adoption. Similarly, Niemand et al. [24] proposed a singular construct for measuring the level of digitalization of banks. Mohd Salleh, Rohde, and Green [25] drew attention to the shortcomings of the existing research on ICT adoption, which does not examine the extent or the level of adoption. Generally, unidimensional scales, which SMEs use to assess their self-efficacy in terms of specific digital capabilities based on their perspective, were used by the previous studies. However, proof of the multidimensionality of ICT adoption can be found in the studies of [26,27,28,29]. Nevertheless, those studies did not follow a systematic approach for scale development and did not empirically validate the multidimensionality of ICT adoption.

In this study, we specifically focused on developing an ICT adoption scale for SMEs. Our goal was to develop a scale that mainly measures the ICT adoption dimensions and evaluates the extent of ICT adoption in SMEs. Firstly, the maturity models proposed to assess the digitalization or transformation efforts were examined.

However, measurement scales are helpful instruments for assigning scores in a numerical dimension to a phenomenon that cannot be directly measured [30]. According to a number of authors [31], the scale development process contains complicated and methodical steps that need theoretical and methodological discipline [30]. Scales can be more accurate and trustworthy when examining the underlying theme they are intended to gauge [32]. Additionally, other scholars have questioned the maturity models for a variety of reasons. One of the reasons, for instance, was that some models lacked empirical basis and validity [33] and still were created based on success factors and best practices from different projects [34]. Other criticisms included poor design methodologies and documentation of the design process [35,36].

These data led us to conclude that, despite the development of different maturity models in various fields in the past, there is currently no standardized method for assessing SMEs [36]. More and more maturity models are being used to evaluate how well businesses embrace digital transformation. Many of these maturity models were created by consulting companies, were mainly geared to larger enterprises, and lacked a sound theoretical foundation [37]. According to North et al. [37], who conducted action research with SMEs, a framework intended for SME owners and managers has to be straightforward in terms of structure and have the assessment levels articulated in plain language. However, the conception of the maturity model dimensions created for this purpose in the literature is rather complicated. Some of these models are process-focused, while others are organization-focused, business model-focused, and capabilities-focused [37]. After reviewing ICT adoption and maturity studies mainly for the SME context, we specifically chose studies that proposed models for the assessment of the extent of ICT use or its sophistication. Thus, our foundational studies proposing four-, five-, or six-stage models were derived. In addition, we observed that their proposed dimensions for the level of ICT used overlap to a great extent, and they are also levels of integration.

Regarding the maturity assessment, Ifenthaler and Egloffstein [38] proposed “equipment and technology”, “strategy and leadership”, “organization”, “employees”, “culture”, and “digital learning and teaching” dimensions. Focusing on the SME context, Kljaji’c, Borštnar, and Pucinar [36] suggested a capabilities-based model and defined numerous attributes under digital and organizational capabilities. North et al. [37] also proposed a complex model working for Spanish SMEs. This model concentrated on various dynamic capabilities, such as digital mindset, skills, technology, and investments. “Digital awareness”, “digital enquirement”, “digital collaboration”, and “digital transformation” dimensions were suggested by Garzoni et al. [39] for the SME digital transformation stages. Accordingly, when we examined the maturity literature, it focuses on many aspects, such as ICT adoption, culture, management, capability, human aspects, and so on. The ICT utilization level is only one of these dimensions. In our study, we focused on this component and aimed to identify and validate the dimensions of ICT utilization. Thus, this study should be considered an earlier stage for measuring the actual level of ICT utilization.

After all these explanations and reasoning, the primary purpose of this study is to develop a comprehensive measurement tool that measures the level of ICT adoption for SMEs in developing countries. Further, this study provides helpful guidance for future studies intending to analyze the antecedents and consequences of the digital gap between SMEs. With this knowledge, decisionmakers and policymakers can develop strategies for fostering ICT adoption and utilization.

2. Literature Review

Theoretical Foundation

The spread of information and communication technologies is closely related to the “Informatization” process, which pervades businesses and industries [40]. This process is affected by many factors, such as the enterprises’ resources, strategies, skills, competencies, and many more. Hence, the role of public policies to promote ICT use in the business environment is considerable for bridging the digital divide among businesses [12]. Instruments are needed for business managers to assess the organization’s use of technology [40]. Zwicker et al. [40] proposed that the Informatization Level (IL) of organizations can be assessed based on the following dimensions: IT organizational use, IT infrastructure, IT application attributes, IT governance, and IT impacts. The authors of [12] developed a digital divide index to assess the strength of ICT use. The ICT utilization of SMEs was evaluated from the aspects of internal integration, external integration, decision making, and ICT use for knowledge and innovation creation.

According to Kotelnikov [28], ICT adoption in SMEs is divided into four categories: basic communication, basic information technology, advanced communications, and advanced information technology. Basic communication capability refers to the minimum ICT capability that every business should provide. Basic information technology capability is associated with having PCs with basic software and hardware and word processing software and accounting. The capability of advanced communications means that the organization adopts technologies enabling communication and interaction of people. The advanced information technologies represent the existence of enterprise-wide applications that integrate basic business processes, such as enterprise resource planning and customer relationship management [41].

Today, Internet-based services and third platform technologies are the backbones of SME information services, and Internet-based services are the core of their business networks. Hence, ICT adoption in SMEs should be examined through the lens of Internet culture. In addition, Internet access, the utilization of basic Internet applications, and e-commerce should be considered. Accordingly, a conceptual model for assessing ICT adoption should include the evolution of Internet services in an organization [27]. A “3C’s” analysis proposes to evaluate a web portal from the aspects of content, community, and commerce [27]. Redoli et al. [27] conceptualized this analysis for the case of ICT adoption in SMEs based on the study of [42]. Further, telecommunications, information systems, and corporate culture should be other elements considered while making an assessment [27]. Alma, Coşkun, and Özşahin [26] based on the study of Redoli et al. [27], considered telecommunications and information systems aspects and suggested a conceptual framework composed of basic communication, basic ICT use, internal integration, external integration, interorganizational, and strategic integration.

According to Redoli et al. [27], ICT adoption in SMEs is divided into six stages: office automation, information and communication, interaction from inside, interaction from outside, working together, and making business together. On the other hand, Venkatraman [43] proposed a five-stage model for the IT-enabled business transformation. Some characteristics of each stage are represented in

Table 1. Five-Stage Model for IT-Enabled Business Transformation (Adapted from Venkatraman [43] (p. 74)).

Level of Business Transformation	Stage	Basic Characteristics
Level 1	Localized exploitation	Implementation of regular IT applications with minor improvements to business processes Implementation of isolated systems, such as electronic email system and order entry system
Level 2	Internal integration	A more concerted effort to integrate IT into the whole business process Technical interconnectivity and business process interdependence
Level 3	Business process redesign	Significant changes in business processes
Level 4	Business network redesign	The use of IT capabilities for the redesign of the way of communication and integration among the participants in a business network Interorganizational
Level 5	Business scope redefinition	IT-enabled expansion of the business scope

.

Internal integration is defined as the process by which an organization connects and integrates internal resources and skills in order to develop knowledge and competence outside of a particular functional area. The goal is to facilitate external integration efforts and ultimately meet the goals and improve performance [44,45].

External integration refers to collaborating with customers and suppliers to provide synchronization and coordination of processes. The accomplishment of external integration is highly dependent on internal integration [44,46]. Flynn, Huo, and Zhao [47] and Zhao et al. [48] stressed the importance of internal integration in a firm’s ability to successfully gather, anticipate, and use external information.

Shiels, McIvor, and O’Reilly [49] proposed technical integration, operational integration, interorganizational integration, and strategic integration for dimensions of ICT sophistication in SMEs based on the study of [29]. Technical integration is related to an organization’s existing ICT infrastructure, such as employee Internet and email access, network existence and networked PCs, and relevant application programs. The operational integration dimension is evaluated by the presence of ICT-enabled internal business processes, the extent of ICT integration into business processes, the existence of a website, and its effectiveness. Interorganizational integration is associated with integrating ICTs throughout the supply chain and its sophistication. The strategic integration dimension explicitly analyses the role of ICTs within the organization’s strategic issues and its expanded business network by combining the characteristics of operational integration and interorganizational integration stages [49].

According to Platts [50], strategic integration includes two main aspects as internal and external integration. The challenges associated with applying a strictly technical integration seem to have prompted the creation of organizational and strategic integration concepts. These concepts are meant to resolve concerns, such as interorganizational and interindividual communications, coordination of corporate interests, improved communication efficiency, and knowledge exchange [29]. Consequently, based on the literature review, the ICT adoption dimensions proposed are presented in

Table 2. Mapping Existing Research to the Proposed ICT Adoption Dimensions.

ICT Adoption Dimensions	Communication		Internal Integration	Integration with Customers	Interorganizational	Strategic Integration
[49]		Technical	Operational	Operational	Interorganizational	Strategic
[43]		Localized exploitation	Internal integration	Business process redesign	Business network redesign	Business scope redefinition
[27]	Office automation	Information and communication	Interaction from inside	Interaction from outside	Working together	Making business together
[28]	Basic communication	Basic information technology	Advanced communications	Advanced information technologies
[26]	Basic communication	Basic ICT use	Internal integration	External integration	Interorganizational	Strategic

.

All studies presented in Table 2 developed conceptual models that propose an evaluation framework for the extent of ICT/IT use. We observed that the recommended dimensions for the level of ICT use overlap to some extent. Except for the study of Venkatraman [43], which models IT-enabled business transformation, all studies focused specifically on SME adoption behavior. The model of Venkatraman [43] was also considered in this study because it was previously reported that the many elements of this model could be applied to the examination of even smaller businesses [49].

The models of Venkatraman [43] and Kotelnikov [28] analyzed ICT adoption from a technical integration standpoint and emphasized structural changes of the organization regarding ICTs. Only Redoli et al. [27] and based on their study Alma, Coşkun, and Özşahin [26], provided a rich conceptualization of ICT adoption and proposed that the investigation of ICT adoption in SMEs should be analyzed from an Internet culture aspect. Hence, the suggested frameworks considered Internet access, the utilization of basic Internet applications, and the evolution of e-commerce.

From the office automation and information and communication levels Redoli et al. [27] differentiated, office automation shows the availability of basic office automation programs and basic communication tools. There is no Internet use in the organization, and computers are used at an elementary level. The information and communication dimension is characterized by using the Internet, especially email, a simple website, and information systems for some essential functions.

Because ICT ownership was challenging in the 1970s and 1980s, ownership and the use of ICTs in different areas were considered an indicator of maturity. Therefore, in earlier studies, the first step in conceptualizing the extent of ICT utilization was characterized by the ownership or use of ICTs in different fields. This situation continued until the 2000s when the Internet became widespread. However, after the 2000s, there has been a need to redefine the stages that evaluate the sophistication of ICT adoption.

As a result of advances in hardware and software and emerging technologies, ownership has become cheaper, easier, and more widespread. In this context, technologies and applications that were previously thought to be advanced have become simple with ICT diffusion. The communication dimension became one of the first maturity levels with the Internet and third platform technologies. Further, after 2010, there was a revolution in technology ownership and ownership capability with cloud technologies, which was considered the first step in technology adoption and lost its importance. Along with companies that could reach ICT without investment, instruments that assess their ICT maturity levels also had to be restructured.

In addition, instead of the basic ICT use level, which is characterized by the use of information systems in specific business functions and defined as the next step from the basic communication level in some studies [26,27,28,43], after the communication level, it has recently been common for SMEs to switch to platforms that provide integration. However, the studies defining the basic ICT use dimension are not up-to-date enough to reflect today’s dynamics. For example, today, cloud-based technologies and the fact that integrated systems have become more affordable for SMEs have led to changes in the ICT deployment plans of enterprises.

In addition, in recent years, SMEs are directly turning to corporate integration solutions rather than using different information systems for various functions and departments. Therefore, it is common to take integration steps before the basic ICT use level is fulfilled in this context. Accordingly, in this study, we incorporated five dimensions of ICT adoption to develop a multidimensional construct. The conceptualization process of this measurement instrument was performed as described below.

Communication: The office automation dimension from [27], basic communication from [28], technical dimension from [49], and basic communication from [26] were integrated into communication. Redoli et al. [27] used a more inclusive view of communication, which considered the availability of basic office automation programs and basic communication tools. There is Internet use in the organization, and computers are used at an elementary level. Alma, Coşkun, and Özşahin [26] considered basic communication tools, desktop PCs or laptops with limited use, and limited Internet use with basic communication elements. Following Alma, Coşkun, and Özşahin [26], communication may be defined as the initial level of ICT adoption in an SME. The beginning of the implementation of ICTs initiates the introduction of communication tools and the Internet. Desktop PCs or laptops are also available, but their utilization for business purposes is not regular.

Internal Integration: The internal integration dimension primarily comes from [26,27], and operational integration from [49] and advanced communications from [28] are integrated. Internal integration denotes the presence of enterprise-wide applications that integrate basic business processes, such as enterprise resource planning and customer relationship management [28]. According to Alma, Coşkun, and Özşahin [26] and Redoli et al. [27], the fundamental properties of this level are the use of the corporate Intranet for internal information sharing and the integration of management applications through an enterprise resource planning system. Alma, Coşkun, and Özşahin [26] suggested that all employees use PCs having networking hardware/software solutions and security services. Following these perspectives, SMEs that are at this level have accomplished these goals: provided internal communication and information flow through an Intranet, automated internal processes by means of an ERP implementation, and all employees access to PCs equipped with ERP, networking hardware/software solutions, and security services.

Integration with Customers: According to Shiels, McIvor, and O’Reilly [49] operational integration dimension is evaluated by the presence of ICT-enabled internal business processes, the extent of ICT integration into business processes, the existence of a website, and its effectiveness. Based on this definition, there is some conceptual overlap between internal and external integration, and the operational integration contains both. The authors of [44,46] also adopted a more integrative approach and viewed external integration as the use of ICTs for integrating the processes with customers and suppliers.

However, the approach of [26,27] defined two different stages for integrating with customers, suppliers, providers, and distributors. The working together dimension suggested by [27] and the external integration dimension proposed by [26] viewed external integration as being composed of the automation of external processes with customers and the existence of a dynamic website. External communication with suppliers and trading partners is viewed as a step further. Drawing from the studies of [26,27], in this study, integration with customers is defined as the level of ICT adoption that organizations achieved and direct communication with customers through a dynamic website, and entire business processes comprising order-reservation systems and after-sales services are supported by the enterprise system.

Interorganizational Integration: The interorganizational dimension comes from [26,49]. In addition, the business network redesign dimension from [43] and working together dimension from [27] supported the conceptualization of this dimension. Interorganizational integration is related to the integration of the supply chain using ICTs and the degree of its sophistication [49]. Redoli et al. [27] defined this level as a small step after external integration. Organizational information systems are opened to their suppliers, distributors, and other trading partners. Electronic communication and information exchange take place throughout the supply chain. Customer relationship management software (CRM) is available for operational purposes [26,27]. Based on the prior literature, we view this level as the integration of the value chain that allows all agents to collaborate and communicate.

Strategic Integration: The last dimension is mainly comprised of strategic dimensions from [26,49], business scope redefinition from [43], and making business together from [27]. By merging the characteristics of internal, external, and interorganizational integration levels, the strategic integration level requires the use of ICTs for strategic issues of the organization and its business network [49]. Siqueira et al. [12] considered decision making in addition to internal and external integration aspects. ICT use for decision-making purposes was also emphasized by [26,27]. At this level, the organization implements decision support systems with advanced analytic tools to support strategic decision making for managerial purposes. In this study, we thus define strategic integration as the level that an organization starts to use ICTs for strategic decision making by implementing data analytics and decision-support systems.

3. Methodology

3.1. Research Goal

This study aims to develop an ICT adoption and digitalization scale for SMEs in a developing country context. Scale development and construct validation studies in ICT literature are rare, and most of the studies on relevant issue have been conducted in developed countries. However, SMEs in developing countries have unique challenges affecting their digitalization efforts. Accordingly, this study mainly focuses on developing country SME settings.

3.2. Scale Development and Sampling

The researchers followed an eight-step scale development procedure based on the studies [51,52]: (1) comprehensive literature review on ICT adoption and digitalization; (2) identification of dimensions of the level of ICT adoption and digitalization; (3) generation of items; (4) item refinement through focus group; (5) pretest of the measurement; (6) scale purification; (7) data collection; and (8) measurement evaluation.

Based on a comprehensive literature review on ICT adoption and digitalization, three researchers identified five aspects for the level of ICT adoption: communication, internal integration, integration with customers, interorganizational integration, and strategic integration. Then, each researcher generated 20 items individually to measure five dimensions of ICT adoption (four items for each construct). Drawing on the work of [26,27], three researchers generated a pool of 60 items (3 researchers × 20 items) and prediscussed the items altogether. After they realized the benefit of obtaining input from SME and practitioner perspectives, they invited two faculty members, who are experts in the SME area and two practitioners with IT managerial experience, and created a focus group. Then, this focus group evaluated and modified all 60 items for the SME and developing country context in a brainstorming session and eliminated 25 items by applying the below criteria:

• items that overlap among two or more researchers;
• items for which the focus group could not reach a consensus;
• each category should have a balanced number of items (parsimony principle was applied).

The remaining 35 items (seven for communication, seven for integral integration, seven for integration with customers, eight for interorganizational integration, and six for strategic integration) were included in the preliminary survey questionnaire for pretesting and piloting. A preliminary survey was conducted on 67 MBA students who actively work in managerial positions in SMEs. Data obtained were analyzed to pretest. After correcting the reverse items, a reliability analysis was conducted on 35 items.

According to the pretest analyses results, five items, which were intended to measure the communication (three items) and internal integration (two items), were eliminated because of having low corrected-total correlation scores (0.145, 0.184, 0.175, 0.027, and 0.046, respectively). Afterward, the remaining 30 items with 0.866 Cronbach’s alpha coefficient were included in the survey questionnaire to measure ICT adoption. Items were assessed based on a 5-point Likert scale: strongly agree (5); agree (4); neither agree nor disagree (3); disagree (2); strongly disagree (1).

Following the scale purification process, the survey was conducted on 219 SMEs operating in the Marmara Region in Turkey. This region has the most industrialized cities, such as Istanbul, Bursa, and Kocaeli, where a considerable portion of SMEs in Turkey are located. The institutions of the two researchers are also located in this region, and the institutions are in relationships and cooperation with several associations formed by SMEs in the region. With the support and reference of those associations, the researchers contacted 300 firms via email and telephone and invited them to participate in the survey. Convenience sampling with nonprobability sampling was employed because nonprobability sampling is more preferable when working with large populations, and randomization is not achievable, as Etikan et al. [53] indicated. Out of these 300 SMEs, 108 firms accepted face-to-face interviews, while 192 firms stated that they would participate by completing the questionnaire form via email. However, at the end of the data collection period, 112 out of these 192 firms returned the forms via email.

The owners, top-level managers, middle-level managers, and first-line managers were preferred to fill out the questionnaire form, because they are expected to know more about their organizations’ business processes and strategies. At least two respondents from each organization were targeted to fill out the questionnaire to provide more reliable and valid results. As a result, 442 respondents from 220 organizations answered the survey questions. However, 21 forms were eliminated because they did not meet the minimum requirements. Data obtained from 421 respondents of 219 SMEs during the COVID- 19 pandemic period in 2020–2021 were analyzed through SPSS and AMOS statistical packages. Descriptive analyses results of the sample are given in

Table 3. Descriptive Findings of the Sample.

Respondent Base Statistics		Frequency	%
Title	Owner/Partner	145	34.4
	Top Manager	47	11.2
	Middle Manager	72	17.1
	First-line Manager	143	34.0
	Missing	14	3.3
Education	Primary School	25	5.9
	High School	98	23.3
	Undergraduate	28	6.7
	College	224	53.2
	Master’s	38	9.0
	Doctorate	6	1.4
	Missing	2	0.5
Gender	Female	119	28.3
	Male	298	70.8
	Missing	4	1.0
Age	18–23 years	50	11.9
	24–29 years	111	26.4
	30–35 years	91	21.6
	36–41 years	53	12.6
	42–47 years	51	12.1
	48 years and over	60	14.3
	Missing	5	1.2
Organization Base Statistics		Frequency	Valid %
Industry	Manufacturing	97	44.3
	Service	122	55.7
Scale	Local scale	99	45.2
	National scale	62	28.3
	International/Global scale	58	26.5
Size	Microenterprises (1–9 employees)	56	25.6
	Small-sized enterprises (10–49 employees)	90	41.1
	Medium-sized enterprises (50–249 employees)	73	33.3
Company age	0–10 years	84	38.4
	11–20 years	54	24.7
	21–30 years	32	14.6
	31–40 years	20	9.1
	41 years and over	16	7.3
	Missing	13	5.9

.

4. Construct Validation of ICT Adoption Scale

Construct validation is an essential step for the scale development process, which deals with the accuracy of the measurement. It refers to “the extent to which a set of measured variables actually represent the theoretical latent construct they are designed to measure” Hair et al. [54]. Based on the frameworks of [54,55], this study included four steps for construct validation: (1) content, (2) convergent, (3) discriminant, and (4) predictive validity, see Figure 1.

4.1. Content Validity

The degree to which the measurement items encompass the elements of the measured variables is referred to as content validity [56]. Hence, a comprehensive review of the literature for the determination and selection of items ensured the content validity of a scale [57]. Content validity evaluation can be considered as a rational judgmental process rather than a numerical evaluation.

Researchers should perform a thorough literature study to grasp the definitions of the constructions of interest and ensure that a comprehensive list of components was found, according to the guidelines [58]. In this work, researchers conducted a literature review to clarify the meaning of ICT adoption and digitalization. Furthermore, it was discovered that ICT adoption is multidimensional [12,26,27,43,49], and it is necessary to include the constructs of communication, internal integration, integration with customers, interorganizational integration, and strategic integration to design a comprehensive instrument for measuring the level of ICT adoption.

Communication refers to availability of basic communication tools [27] and using the Internet, especially using email, a simple website, and information systems for some essential functions. Following [26], communication is the first stage of ICT adoption for a small business. Desktop PCs or laptops are also available; however, they are rarely used for business purposes, which are covered by items such as “Although desktop PCs and laptops are available, computers are rarely used for business purposes”, “The Internet is rarely used for business purposes”, and “Internet is often used for personal non-work related purposes/research”.

Internal integration refers to the process by which an organization connects and integrates internal resources and skills to develop knowledge and competence outside of a particular functional area [44,45]. According to Alma et al. [26] and Redoli et al. [33], the critical aspects of this level are more related to ERP adoption, Intranet, broad employee access to computers supported by ERP applications, data storage applications, and network security. These are covered by items such as “Most employees have computers supported by enterprise software applications, network software/hardware solutions, and security services”, “Data storage applications and network security solutions are available”, and “Wireless network hardware is available, and some employees have remote access to enterprise systems”.

Amoako et al. [44] and Stank et al. [46] took a more integrative approach, defining external integration as the use of information and communication technologies (ICTs) to integrate processes with consumers and suppliers. However, external integration was conceptualized as the automation of external operations with clients and the presence of a dynamic website, according to [26,27]. Integration with suppliers and trading partners on the outside is seen as a step forward. Based on Alma et al. [26] and Redoli et al. [27], external integration is defined in this study as the integration with customers. It incorporates the automation of entire processes with customers, dynamic website supporting online sales order/reservation systems, and sales support, which are covered by items, such as “Our website includes visual brochures and interactive search options, and customers can follow publications and promotions on the website”, “Orders, inquiries, comments are received through the website and online order processing is carried out”, and “The website supports customers to track orders and shipments”.

Interorganizational integration refers to the integration of ICTs throughout the supply chain and its sophistication [49]. This level is defined by [27] as a small step following external integration. Hence, it is more related to collaborative planning and information exchange (EDI) throughout the supply chain and supply chain technologies for stock tracking (barcoding and RFID), which are covered by items, such as “Information systems support inventory management”, “Information systems enable joint information sharing and inventory tracking throughout the supply chain”, and “Purchasing and online document exchange systems are available”.

When it comes to the strategic integration level, Siqueira et al. [12] took into account the decision-making dimension as well as internal and external integration. The need of using ICTs for decision making was also stressed by [26,27]. At this stage, the organization deploys decision support systems with powerful analytic tools to help managers make strategic decisions. Therefore, strategic integration includes integrating data from internal and external platforms, combining data into a single database for allowing analysis of customer and market data, and the main indicators of the organization. These aspects are covered by items, such as “For managerial purposes, I have access to an interactive portal/platform that enables data analysis and generates customized reports”, “For long term strategic decisions, I have summarized reports from internal systems as well as some access to external data sources”, and “There are interactive communication platforms that provide data sharing for design and basic operational tasks”.

4.2. Convergent Validity

Convergent validity refers to “extent to which indicators of a specific construct converge or share high proportion of variance in common” [54]. In other words, convergent validity indicates the consistency in multiple operationalization measurements and the large common variance sharing the same construct’s measures [57]. Several methods can be utilized to indicate the convergent validity of the measures, such as reliability coefficients, factor loadings, and AVE (average variance extracted) values [54].

In this study, firstly, reverse coded items were adjusted before the analyses. A reliability analysis was conducted on data obtained from the 421 managers, and the Cronbach’s alpha coefficient for all variables was evaluated. The test results reveal that two items (ICT2 and ICT9) have low corrected-total correlation scores (−0.132 and 0.202). Accordingly, those items were eliminated, and the remaining 28 items with 0.924 Cronbach’s alpha coefficient, which indicate high reliability, were subjected to an exploratory factor analysis.

As Podsakoff et al. [59] stated “The exploratory factor analysis is generally used in the early stages of research when there is an insufficient theoretical or empirical basis to hypothesize the number of underlying factors and/or which specific indicators these factors are likely to influence”. Thus, firstly, an EFA analysis was executed to identify constructs of ICT adoption. Becuase ICT adoption constructs are conceptualized as independent dimensions [26,27,28,43,49], varimax rotation was utilized. The items with cross-loadings and a factor loading less than 0.55 were removed for a better factor structure. Hence, seven items (ICT23, ICT22, ICT20, ICT17, ICT16, ICT12, and ICT10) with factor loadings less than 0.55 were removed. The remaining 21 items were loaded on five different factors without any cross-loadings. The factor analysis results are depicted in

Table 4. Exploratory Factor Analysis (EFA) Results.

Items	Communication	Internal Integration	Integration with Customers	Interorganizational Integration	Strategic Integration
ICT1	0.665
ICT3	0.832
ICT4	0.802
ICT5		0.554
ICT6		0.674
ICT7 (Eliminated in CFA)		0.784
ICT8 (Eliminated in CFA)		0.606
ICT11		0.645
ICT13 (Eliminated in CFA)			0.791
ICT14			0.597
ICT15			0.713
ICT18				0.700
ICT19 (Eliminated in CFA)				0.662
ICT21 (Eliminated in CFA)			0.647
ICT24			0.600
ICT25				0.713
ICT26				0.626
ICT27 (Eliminated in CFA)				0.728
ICT28 (Eliminated in CFA)					0.684
ICT29					0.697
ICT30					0.666
Cronbach’s Alpha (α)	0.731	0.785	0.803	0.826	0.683
Bartlett’s Test of Sphericity	Approx. Chi-Square				3271.721
	Df				210
Kaiser–Meyer–Olkin Measure of Sampling Adequacy	0.869
Total Variance Explained	60.995

Extraction Method: Principal Component Analysis, Rotation Method: Varimax with Kaiser Normalization. Rotation converged in 8 iterations.

.

Then, CFA with maximum likelihood (ML) estimation method was conducted on remaining 21 items. Multiple fit indexes, including goodness of fit index (GFI), comparative fit index (CFI), normed fit index (NFI), Tucker–Lewis index (TLI), and incremental fit index (IFI) were considered for the overall model fit. Hair et al. [60] indicated that for the perfect fit value, those indexes (GFI, CFI, NFI, TLI, and IFI) should exceed 0.90. However, some researchers also stated that the index values above 0.85 were acceptable for a better fit [61,62,63].

The root mean square residual of approximation (RMSEA) value was also evaluated, which is suggested between 0.03 and 0.08 for a perfect model fit [54]. The normed chi-square (X²/df) statistics were also considered to assess the parsimonious fit [54].

Table 5. Acceptable–Perfect Fit Index Values and Research Model Fit Index Values.

Fit Index	Perfect Fit Value	Acceptable Fit Value	Model 1 CFA with 21 Variables	Model 2 CFA with 14 Variables
χ2/df	≤3	≤4–5	3.113	2.311
CFI	≥0.95	≥0.94–0.90	0.885	0.960
NFI	≥0.95	0.94–0.90	0.841	0.932
IFI	≥0.95	0.94–0.90	0.887	0.960
TLI	≥0.95	0.94–0.90	0.866	0.945
GFI	≥0.90	0.89–0.85	0.887	0.951
RMSEA	≤0.05	0.06–0.08	0.071	0.056

Resources for Acceptable and Perfect Fit Index Values: [60,61,62,63,64].

represents the accepted index values in the relevant literature.

The CFA results of the initial model (21 item–five factor structure), which was extracted from the exploratory factor analysis, displayed values depicted on Table 5 (X²/df = 3.113; GFI = 0.887; CFI = 0.885; NFI = 0.841; IFI = 0.887; TLI = 0.866; RMSEA = 0.071; and RMR = 0.097). These values revealed the need for a re-evaluation of the initial model for a better model fit. Accordingly, respective procedures were performed to improve the model.

The results of modification index analysis reveal a large error covariance among some variables. Thus, ICT7, ICT8, ICT13, ICT19, ICT21, ICT27, and ICT28 were removed because their standardized residual covariance was above three, and the regression weight scores were low [52]. The scale was reduced to 14 items after the elimination of seven items. The model fit indexes for the 14-item–five-factor structure were found as X²/df = 2.311; CFI = 0.960; GFI = 0.951; NFI = 0.932; TLI = 0.945; IFI = 0.960; RMSEA = 0.056; and RMR = 0.069, which indicated a better model fit.

The remaining 14 items loaded on five factors: three items for communication, three items for internal integration, three items for integration with customers, three items for interorganizational integration, and two items for strategic integration. The factor loadings of the adjusted model with 14 items were between 0.580 and 0.847, which is presented in

Table 6. CFA and Reliability Analysis Results with 14 Items.

Items	Communication	Internal Integration	Integration with Customers	Interorganizational Integration	Strategic Integration
ICT1	0.580 (10.202)
ICT3	0.847 (11.868)
ICT4	0.700
ICT5		0.783
ICT6		0.813 (14.948)
ICT11		0.597 (11.449)
ICT14			0.723 (11.779)
ICT15			0.748 (11.955)
ICT24			0.702
ICT18				0.598 (12.285)
ICT25				0.851 (17.467)
ICT26				0.835
ICT29					0.789 (12.141)
ICT30					0.744
Cronbach’s Alpha Coefficients	0.731	0.770	0.772	0.801	0.746
Composite Reliability	0.757	0.778	0.768	0.810	0.740
AVE	0.515	0.543	0.525	0.593	0.588

. Cronbach’s alpha (α) values were above 0.70 for all constructs.

Because Cronbach’s alpha does not guarantee unidimensionality [60], composite reliability was chosen as an alternate construct reliability metric based on the suggestions of [54,65,66]. How well the observed variables adequately represent the relevant latent variable refers to composite reliability [51]. Moreover, to expose the convergent validity among the item measures, the AVE (average variance extracted) values were also calculated.

As displayed in Table 6, the composite reliability (CR) coefficients of the dimensions exceeding 0.70 and the AVE values exceeding 0.5 demonstrated the adequacy of convergency and construct reliability [60].

Ultimately, in addition to the better fit model indexes, exceeding 50% of the AVE estimates, and the 0.70 CR coefficients demonstrated adequate evidence for convergent validity of the 14-item five-factor ICT adoption scale.

4.3. Discriminant Validity

Discriminant validity indicates the independence of the dimensions and slight variance shared by measures of different constructs [55]. According to Hair et al. [60], EFA or CFA that does not embody cross-loadings among the measuring items or the error terms supports discriminant validity. All items were loaded on their corresponding construct without any cross-loadings (Table 4 and Table 6), which demonstrates the discriminant validity of the 14-item five-dimension ICT adoption level measurement model. Moreover, AVE estimates exceeding 0.50 (Table 6) indicated the discriminant validity of the scale.

4.4. Predictive Validity

Predictive validity is also called nomological validity or criterion validity [54], which refers to the correspondence level of a measure to the criterion variable [67]. In other words, the predictive validity emphasizes “to find support for the construct validity by investigating whether it exhibits relationships with other constructs that are in accordance with theory” [57]. ICT adoption was mostly associated with ICT awareness [68,69], organizational innovativeness [70,71,72], owners’ ICT skills and innovativeness [73], information processing requirements and competitive pressure [74], CEO innovativeness and attitude toward IT [75], and perceived net benefits [25] by the previous literature.

Prior studies revealed the significant relationship of ICT adoption with ICT awareness and organizational innovativeness [76,77,78,79,80].

Hence, to test the predictive validity of the ICT adoption construct, the relationship of ICT adoption components with ICT awareness and organizational innovativeness was examined. Consistent with the previous literature, it was revealed that ICT adoption is positively associated with ICT awareness and organizational innovativeness.

In this context, the 16-item innovativeness scale adopted from Wang and Ahmed [81] and 15-item ICT awareness scale adopted from Tan et al. [82] were included in the questionnaire. Scales were adopted from [81,82] because they are widely used in the literature and provide higher reliability and validity [83,84]. Confirmatory factor analyses and reliability analysis results also confirmed the reliability and validity of those scales, as depicted in

Table 7. CFA and Reliability Analysis Results.

Constructs		Reliability			Model Fit Indexes
		# Items	Composite Reliability (CR)	Cronbach’s Alpha (α)	χ2/df	CFI	GFI	AGFI	NFI	IFI	TLI	RMR	RMSEA
ICT Awareness	AoB	8	0.924	0.924	4.121	0.925	0.894	0.856	0.904	0.925	0.911	0.060	0.086
	AoC	7	0.871	0.875
Organizational Innovativeness	INV-B	4	0.814	0.874	3.625	0.928	0.905	0.862	0.903	0.928	0.908	0.053	0.079
	INV-P	3	0.838	0.840
	INV-PR	4	0.762	0.814
	INV-M	3	0.677	0.682
	INV-S	2	0.716	0.633

AoB = Awareness on ICT Benefits; AoC = Awareness on ICT Costs; INV-B = Behavioral Innovativeness; INV-P = Product Innovativeness; INV-PR = Process Innovativeness; INV-M = Market Innovativeness; INV-S = Strategic Innovativeness.

.

Regression analyses incorporating the ICT adoption level, organizational innovativeness, and ICT awareness were conducted for predictive validity. Before regression analyses, data were aggregated based on the firm level because organizational innovativeness is an organizational issue. Moreover, the dimensions of organizational innovativeness were combined into a single dimension by computing the means of the relevant dimensions.

According to findings presented in

Table 8. Regression Analyses between ICT Adoption Components and Organizational Innovativeness.

Independent Variable	Dependent Variable	β	t	Sig	Adjusted R2	F
Awareness on ICT Benefits	Communication	0.197 **	2.817	0.005	0.199 ***	27.202
Awareness on ICT Costs		−0.327 ***	−4.684	0.000
Awareness on ICT Benefits	Internal Integration	0.377 ***	5.818	0.000	0.318 ***	50.227
Awareness on ICT Costs		−283 ***	−4.357	0.000
Awareness on ICT Benefits	Integration with Customers	0.423 ***	6.068	0.000	0.211 ***	29.091
Awareness on ICT Costs		−0.082	−1.181	0.239
Awareness on ICT Benefits	Interorganizational Integration	0.336 ***	4.914	0.000	0.233 ***	32.964
Awareness on ICT Costs		−0.232 ***	−3.403	0.001
Awareness on ICT Benefits	Strategic Integration	0.298 ***	4.211	0.000	0.178 ***	23.956
Awareness on ICT Costs		−0.201 **	−2.836	0.005
Communication	Organizational Innovativeness	0.031	0.694	0.488	0.724 ***	113.443
Internal Integration		0.634 ***	11.884	0.000
Integration with Customers		0.154 ***	3.545	0.000
Interorganizational Integration		0.152 **	2.865	0.005
Strategic Integration		0.036	0.715	0.475

**: p ≤ 0.01; ***: p ≤ 0.001.

, both components of ICT awareness have a significant relationship with five components of ICT adoption. The only exception is the link between cost awareness and integration with customers. Moreover, the regression results indicate that awareness related to ICT benefits was positively associated with all constructs of ICT adoption; while awareness related to ICT costs was negatively associated with those constructs. This finding is consistent with the literature and provides evidence for the predictive validity of the ICT adoption scale. The regression analysis results also reveal the significant effect of ICT adoption on organizational innovativeness (R² = 0.724; p = 0.000; F = 113,443), which is consistent with previous research findings [70,71,72,85]. However, when the components of ICT adoption are examined one by one, it was observed that two components of ICT adoption (communication and strategic integration) did not have a significant link with organizational innovativeness. Nevertheless, the significant positive effects of most ICT components on organizational innovativeness provided strong evidence for the predictive validity of the 14-item five-dimension ICT adoption scale.

5. Findings and Realization of the Scale

In order to develop an ICT adoption and digitalization scale for SMEs, content validity, convergent validity, discriminant validity, and predictive validity analyses were conducted based on the construct validation process [54,55]. As a part of the content analysis, an extensive literature review was performed. Accordingly, the constructs of communication, internal integration, integration with customers, interorganizational integration, and strategic integration were included in ICT adoption and digitalization instrument. After the item refinement process, 35 items were included to measure five dimensions of ICT adoption. However, because five items were eliminated in the pretest process, the remaining 30 items were included in the questionnaire. Firstly, an exploratory factor analysis (EFA) was conducted on data obtained from 421 respondents of 219 SMEs, and after the elimination of some items in this process, the remaining 21 items were operated in a confirmatory factor analysis (CFA). The confirmatory factor analysis results reveal a better model fit for the 14-item five-factor structure (X²/df = 2.311; GFI = 0.951; CFI = 0.960; NFI = 0.932; IFI = 0.960; TLI = 0.945; RMSEA = 0.056; and RMR = 0.069). Fourteen items loaded on five factors: three items for communication, three items for internal integration, three items for integration with customers, three items for interorganizational integration, and two items for strategic integration were obtained. Cronbach’s alpha (α) values above 0.70 and AVE estimates above 0.50 for all constructs indicated adequate evidence for the convergent and discriminant validity of the 14-item five-factor ICT adoption and digitalization scale.

Regression analyses incorporating ICT adoption, organizational innovativeness, and ICT awareness were conducted for predictive validity. The positive link of ICT adoption with ICT awareness and organizational innovativeness was revealed.

Consistent with the literature, the regression results reveal that organizational innovativeness and awareness of ICT benefits were positively associated with all constructs of ICT adoption. In contrast, the awareness of ICT costs was negatively associated with those constructs. Accordingly, evidence for the predictive validity of ICT adoption and digitalization scale was provided.

Consequently, construct validation employing content, convergent, discriminant, and predictive validity analyses revealed a reliable and valid ICT adoption and digitalization scale for SMEs with 14 items and five factors: communication, internal integration, integration with customers, interorganizational integration, and strategic integration.

Our research also conducted some analyses based on demographic factors. In this context, t-test and one way ANOVA were employed to check if there was a statistical difference in terms of industry (manufacturing and services), company scale (local, national, and international), company size, and subindustries. The results are presented in

Table 9. t-Test and ANOVA Results.

		# of Firms	Communication		Internal Integration		External Integration		Interorganizational Integration		Strategic Integration
			µ	SD	µ	SD	µ	SD	µ	SD	µ	SD
Industry	Manufacturing	97	4.117	0.905	3.758	1.094	2.909	1.023	3.307	1.189	2.890 *	1.218
	Service	122	4.150	0.825	3.613	1.001	3.198	1.079	3.425	1.054	3.278 *	1.061
			t = −0.281 df = 196.691 p = 0.196		t = 1.009 df = 197.068 p = 0.256		t = −2.005 df = 209.563 p = 0.536		t = −0.765 df = 193.556 p = 0.072		t = −2.477 df = 191.527 p = 0.013
Scale	Local	99	3.813 **	0.946	3.256 **	1.080	2.925	1.098	3.159 *	1.119	2.933 *	1.178
	National	62	4.260 **	0.743	3.791 **	1.025	3.069	1.065	3.392 *	1.189	3.093 *	1.207
	International/Global	58	4.552 **	0.569	4.275 **	0.588	3.315	0.965	3.698 *	0.952	3.414 *	0.966
			F = 16.488 p = 0.000		F = 21.289 p = 0.000		F = 2.745 p = 0.087		F = 4.249 p = 0.015		F = 3.293 p = 0.039
Size	Micro	56	4.038	0.921	3.403 **	1.027	3.161	1.076	3.300 *	1.005	3.074	1.055
	Small	90	4.047	0.946	3.500 **	1.146	2.901	1.152	3.209 *	1.227	3.015	1.210
	Medium	73	4.319	0.656	4.106 **	0.762	3.207	0.911	3.629 *	1.013	3.242	1.136
			F = 2.523 p = 0.083		F = 10.194 p = 0.000		F = 1.955 p = 0.144		F = 3.074 p = 0.048		F = 0.816 p = 0.444
Subindustry
	Gastronomy	25	3.613	0.777	3.075	0.826	3.213	1.030	3.127	0.916	3.335	0.926
	Construction	23	3.951	0.840	3.729	1.083	2.930	1.160	3.133	1.384	2.792	1.112
	ICT services	20	4.797	0.250	4.305	0.677	3.216	1.132	3.800	0.773	3.673	1.077
	Food	18	3.792	1.100	3.055	1.187	2.824	1.197	3.071	1.190	2.730	1.238
	Automotive	15	4.416	0.731	4.172	0.639	3.266	0.688	3.851	0.973	3.402	0.763
	Clothing– Textiles– Leather	14	3.916	0.874	3.269	1.212	3.309	1.222	3.186	1.236	2.964	1.619
	Health	14	4.341	0.694	3.918	0.876	2.744	1.086	3.759	0.789	3.371	1.024
	Tourism	10	3.933	0.441	3.494	0.910	3.894	0.852	3.494	1.139	2.748	1.191
	Furniture	10	4.288	0.995	3.777	1.200	2.500	0.934	3.666	1.133	3.000	1.247
	Education	6	4.344	1.065	4.175	0.742	2.740	1.034	3.876	0.460	3.338	0.459
	Finance	5	4.633	0.649	4.311	0.363	3.900	0.764	3.466	1.391	4.233	0.446
	Transportation- Logistics	5	3.639	1.503	3.694	1.333	3.077	1.072	3.303	1.445	3.238	1.304
	Metal	5	4.466	0.505	3.733	0.862	3.266	0.829	3.100	0.547	2.550	0.908
	Electrical–Electronics	4	4.00	1.360	2.250	1.101	2.583	0.957	2.416	1.641	2.00	0.816
	Mining	3	4.777	0.384	4.222	1.347	2.555	0.693	3.333	1.201	3.000	1.732
	Agriculture	3	4.222	0.693	4.222	0.509	3.481	0.833	3.333	1.452	3.388	1.205
	Petroleum Chemical	2	4.111	1.257	4.333	0.942	3.888	1.099	4.555	0.628	4.000	1.077
	Retail	1	4.77		3.555		3.444		4.000		3.833
	Others	36	4.179	0.803	3.651	1.160	2.904	1.080	3.196	1.192	2.879	1.206

µ = Mean SD = Standard Deviation * p < 0.05 ** p < 0.001.

. According to the results,

(a)

The strategic integration level of companies in the service sector is significantly higher than those in the manufacturing sector (t = −2.477 df = 191.527 p = 0.013).

(b)

There is a meaningful relationship between ICT adoption levels and specific industries. According to the analysis results, excluding external integration, the ICT adoption levels are significantly related to the subindustry of the enterprises. In other words, ICT adoption levels differ significantly based on the subindustry.

(c)

In addition, another finding is that when the size of the SMEs increases geographically, the ICT adoption level rises as well. In other words, as the company’s scale grows from local to international, the level of internal integration increases. Furthermore, internal integration and interorganizational integration differ according to the size of the business. We observed that the interorganizational integration levels of medium-sized and microenterprises are higher than small enterprises.

6. Discussion and Implications

This study makes several contributions to the literature. Firstly, SME ICT adoption and digitalization efforts are multidimensional. Although there are some similarities in the dimensions and measurement items used in previous studies, the findings of this study explored some important differences.

The sophistication levels of the adoption are likely to increase and alter with the dramatic changes in digital technologies and their pace of diffusion. If we refer back to Table 2, showing the existing research that proposed dimensions for measuring the level of ICT adoption, we observed that the studies other than Alma et al. [26] were carried out before 2010. In support of our argument, we found that basic ICT use, which was reported as the second step for ICT adoption in prior studies, is no longer suitable for SMEs in developing countries. Given the rise of third platform technologies, cloud-based technologies, SaaS, PaaS, and IaaS services and more affordable and subscription-based enterprise-wide systems, after the communication level, which is the most basic level, SMEs may utilize integrated systems instead of using functional or departmental information systems. These technologies can change and are changing the whole picture. Since the availability of these technologies, ICT adoption levels are changing, and the adoption time for the entire process has been shortened significantly.

Another critical point is that previously ownership-basic ICT utilization–integration - and strategic utilization steps had to be sequential. Today, based on company needs, SMEs can focus and adapt any of these levels without a strong prerequisite. Similar to the study of Alma et al. [26], in this study, the basic level of adoption is characterized by not owning but having access to communication tools and the Internet. Similarly, when we compare with the study of Redoli et al. [27], which proposed office automation as the first step of ICT adoption, we confirmed that technology ownership capability lost its importance with the emerging technologies and easy access to digital technologies and the Internet. The second level is utilizing the Internet, social media, and integrated systems regardless of owning them or subscribing to systems available on the cloud. These steps may also give an opportunity to include internal and external integration. However, we need to mention that previously a first internal integration needed to be completed before an external integration. Thanks to customer-focused efforts and the abilities provided by new technologies, such as social media and the third platform technologies, especially in SMEs, based on company conditions, an SME can first focus on integration with customers. Then comes the integration with other organizations, which is called interorganizational integration. Finally, the strategic integration level is the final step for an SME to focus on long-term and unstructured decisions. We believe that these five levels better represent the current situation of ICT adoption, especially after the benefits and usability of social media, cloud, and third platform technologies.

Another important finding of the study is that in contrast to the studies of [44,46], conceptualizing external integration from the aspects of integration with both suppliers and customers, this stage was found related to the use of ICTs for integrating business processes with customers. Hence, the dimension corresponding to external integration in previous studies is defined as the integration with customers in our study. Similar to [26,27], the existence of a dynamic website supporting online sales order/reservation systems, and sales support was found as an indicator of integration with customers. Some SMEs even use social media and communication applications for customer integration. Interorganizational integration characterized by digital communication and information exchange throughout the supply chain for collaborative planning, stock tracking, and improvement of operations was explored as another component of ICT adoption. In our study, the integration with governmental offices would also be considered part of this level.

With regard to the strategic integration dimension, some researchers have a more holistic view of strategic integration, which encapsulates integral and external integration, and the implementation of ICTs to resolve issues associated with strategic operations [49]. However, similar to [12,40] who propose the use of ICTs for internal integration, external integration, and decision-making purposes as dimensions of ICT use in SMEs, we found that the adoption of ICT for internal, external, and interorganizational integration was a gradual process in which SMEs implement ICTs step by step. Organizations adopt ICTs in a more advanced stage for the decision making of owners/managers. This finding shows us that the information technologies used by SMEs for strategic purposes are used to make long-term and usually semistructured or unstructured decisions. These organizations, which have limited resources, focus on external factors, such as market share and market circumstances, customers, and competitors, rather than internal processes and operations, and support the strategic decisions. Thus, contrary to the belief that strategic integration is an extension of internal and external integration and the use of ICTs for all strategic operations, it was determined that strategic integration in the context of SMEs in developing countries is only related to the mid- and long-term decision-making aspect.

Another significant finding of the study is that the results of the tests for nomological validity reveal a significant link of ICT adoption with ICT awareness and innovativeness of SMEs similar to prior studies [68,69,70,71,72]. This also supports the validity and reliability of our scale.

Limitations and Future Research

Regarding the generalizability of the validated instrument, we believe that although the fundamental dimensions may be the same throughout different types of businesses and cultures, it is expected that different items might become important in different contexts. The instrument was tested and confirmed in Turkish SMEs. This survey would be repeated in other developing countries for the reliability of instrument; however, it is believed that this is not a serious limitation because SMEs in developing countries competing in a global economy beyond some unique aspects have several common features and goals, regardless of their country of origin [58]. For that reason, the items listed in

Table A1. Scale items.

ICT Adoption Items	Constructs	Sources
ICT1. “Although desktop PCs and laptops are available, computers are rarely used for business purposes” (R)	Communication	[26,27]
ICT2. “A landline phone, fax, or mobile phone is usually used for business communication”	Communication (Eliminated before EFA)
ICT3. “The Internet is rarely used for business purposes.” (R)	Communication
ICT4. “Internet is often used for personal non-work related purposes/research”(R)	Communication
ICT5. “Most employees have computers supported by enterprise software applications, network software/hardware solutions, and security services”	Internal Integration
ICT6. “Data storage applications and network security solutions are available”	Internal Integration
ICT7. “All employees have e-mail and Internet access.”	Internal Integration (Eliminated in CFA)
ICT8. “Intranet is used to share information and documents within the organization”	Internal Integration (Eliminated in CFA)
ICT9. “Product and service-related information is provided on the website, but e-commerce and online order capabilities are very limited”	Integration with Customers (Eliminated before EFA)
ICT10. “The IT infrastructure is ready to support sales-related e-commerce and online activities such as returns and customer feedback”	Integration with Customers (Eliminated in EFA)
ICT11. “The wireless network is available, and some employees have remote access to enterprise systems”	Internal Integration
ICT12. “Enterprise software supports all sales-related business functions (including order/reservation systems, after-sales customer service)”	Integration with Customers (Eliminated in EFA)
ICT13. “Our firm conducts B2C transactions”	Integration with Customers (Eliminated in CFA)
ICT14. “Our website includes visual brochures and interactive search options, and customers can follow publications and promotions on the website”	Integration with Customers
ICT15. “Orders, inquiries, comments are received through the website, and online order processing is carried out”	Integration with Customers
ICT16. “IT infrastructure is suitable for communication with suppliers and business partners”	Interorganizational Integration (Eliminated in EFA)
ICT17. “Information systems support functions such as electronic data interchange (EDI), video conferencing, and e-invoicing with our partners”	Interorganizational Integration (Eliminated in EFA)
ICT18. “Information systems support inventory management”	Interorganizational Integration
ICT19. “There is CRM software used only for operational level”	Strategic Integration (Eliminated in CFA)
ICT20. “There are interactive communication platforms that provide data sharing for design and basic operational tasks”	Strategic Integration (Eliminated in EFA)
ICT21. “Systems to support B2C and B2B are available”	Interorganizational Integration (Eliminated in CFA)
ICT22. “Purchasing, procurement and online document exchange systems are available”	Interorganizational Integration (Eliminated in EFA)
ICT23. “The majority of purchasing and procurement can be conducted online and via the Internet”	Interorganizational Integration (Eliminated in EFA)
ICT24. “The website supports customers to place orders and track shipments”	Integration with Customers
ICT25. “Information systems enable joint information sharing and inventory tracking throughout the supply chain”	Interorganizational Integration
ICT26. “Information is shared to improve planning, forecasting and operations, and all these processes are carried out electronically”	Strategic Integration (Interorganizational Integration in EFA and CFA)
ICT27. “Technologies such as barcode, RFID and EDI are widely used throughout the entire supply chain”	Interorganizational Integration (Eliminated in CFA)
ICT28. “Our firm utilizes social media actively”	Strategic Integration (Eliminated in CFA)
ICT29. “For managerial purposes, I have access to an interactive portal/platform that enables data analysis and generates customized reports”	Strategic Integration
ICT30. “For long term strategic decisions, I can create or have access to summarized reports from internal systems as well as some access to external data sources”	Strategic Integration
ICT31. “Basic software programs (such as Microsoft Office) are used for document records, storing and processing information, and performing basic office activities”	Internal Integration (Eliminated in pretesting)
ICT32. “Computers include software programs that support only basic business functions (accounting, sales management, purchasing, invoicing and stock control, etc.)”	Internal Integration (Eliminated in pretesting)
ICT33. “Employees’ Internet use is limited to searching for general information about business processes and sending e-mails”	Communication (Eliminated in pretesting)
ICT34. “Email is used by a limited number of employees”	Communication (Eliminated in pretesting)
ICT35. “The company has a website that contains basic information such as a home page, product & service information, but is not open to customer submissions/feedback” (R)	Communication (Eliminated in pretesting)
ICT Awareness
1.  “ICT reduces our communication costs”	ICT Benefits	[82]
2.  “It increases the speed and reliability of our internal and external communication”	ICT Benefits
3.  “It reduces inefficiencies caused by lack of coordination in our relationships with our business partners and stakeholders”	ICT Benefits
4.  “Allows us to communicate more closely with our commercial partners”	ICT Benefits
5.  “It allows us to communicate better with our customers”	ICT Benefits
6.  “Creates new business opportunities”	ICT Benefits
7.  “Increases our access to market information”	ICT Benefits
8.  “It provides new opportunities and positive contributions for the management and organization of our business”	ICT Benefits
9.  “We do not have any personnel with ICT competence in our company”	ICT Costs
10.  “There is no network infrastructure in our company”	ICT Costs
11.  “Hardware and Internet is very expensive”	ICT Costs
12.  “Software is very expensive”	ICT Costs
13.  “Failure to receive a return on investment in ICTs”	ICT Costs
14.  “Uncertainties about legal regulations and laws in the field of information systems”	ICT Costs
15.  “Security concerns”	ICT Costs
Organizational Innovativeness
1.  “We get a lot of support from managers if we want to try new ways of doing things”	Behavioral Innovativeness	[81]
2.  “In our company, we tolerate individuals who do things in a different way”	Behavioral Innovativeness
3.  “We are willing to try new ways of doing things and seek unusual, novel solutions”	Behavioral Innovativeness
4.  “We encourage people to think and behave in original and novel ways”	Behavioral Innovativeness
5.  “In new product and service introductions, our company is often first-to-market”	Product Innovativeness
6.  “Our new products and services are often perceived as very novel by customers”	Product Innovativeness
7.  “In comparison with our competitors, our company has introduced more innovative products and services during the past five years”	Product Innovativeness
8.  “We are constantly improving our business processes”	Process Innovativeness
9.  “Our company changes production methods at a great speed in comparison with our competitors”	Process Innovativeness
10.  “During the past five years, our company has developed many new management approaches”	Process Innovativeness
11.  “When we cannot solve a problem using conventional methods, we improvise on new methods”	Process Innovativeness
12.  “New products and services in our company often take us up against new competitors”	Market Innovativeness
13.  “In comparison with our competitors, our products’ most recent marketing programme is revolutionary in the market”	Market Innovativeness
14.  In new product and service introductions, our company is often at the cutting edge of technology	Market Innovativeness
15.  “Key executives of the firm are willing to take risks to seize and explore “chancy” growth opportunities”	Strategic Innovativeness
16.  “Senior executives constantly seek unusual, novel solutions to problems via the use of “idea men””	Strategic Innovativeness

might be relevant and applicable in other countries, not only in Turkey, with some slight adjustments to a particular country setting or unique features.

Another limitation of the study is that while it is believed that the major facets of ICT adoption were identified, there may be changes with emerging technologies. Accordingly, in parallel with the diffusion and diffusion rates of new technologies, it is thought that there may be changes in the ICT-enabled business transformation and digitalization or digital transformation levels of the organizations. Hence, there will be a requirement to review and re-validate the instruments for fast technological changes and settings. The newest technologies for SMEs, such as cloud, social media, big data, and analytics are included in our items indirectly, but the validated measurement tool also brings up new research opportunities while incorporating the newest technologies to the measurement tool. It is important to examine antecedents and consequences of the extent of the ICT utilization and digitalization of organizations. For instance, future studies might examine how different technological, environmental, and organizational factors affect the level of ICT adoption and digitalization in SMEs and how owner/manager-related factors are related to ICT use and digitalization. Future research with a longitudinal study design might also analyze how ICT positioning is established, reinforced, and reshaped over time in SMEs.

7. Conclusions

This study developed and validated a scale for the measurement of ICT adoption and digitalization for SMEs in a developing country context. Within the Turkish setting, the ICT adoption scale was determined to have sufficient reliability and validity. Even though the digitalization and digital transformation of businesses are receiving more attention, limited empirical work has attempted to give a conceptualization of the level of ICT adoption for SMEs in a developing country setting. Studies mainly focusing on the sophistication of ICT use presented conceptual frameworks [26,27,28,49]. The study of Venkatraman [43] proposed a conceptual model for the ICT-enabled transformation for large organizations.

Nevertheless, conceptual frameworks that are not specific to SMEs may not be directly applicable to SMEs in developing countries because, unlike many other large organizations, these organizations suffer from budget constraints, lack of awareness related to digital technologies, security concerns, lack of understanding pertaining to benefits of ICT adoption [86], organizational size and the ICT competence and awareness of the owner/manager [87], insufficient technological infrastructure and qualified employee skills [88].

In today’s global world, business and ICT conditions would have commonalities in all developing countries in general terms. Nevertheless, today, ICT applications are worldwide, and thanks to the cloud and third platform technologies, we do not see significant differences from country to country in technology ownership and utilization. However, this changes when we compare developing and developed nations. For instance, SME gaps are significant in terms of the adoption of enterprise resource planning, customer relationship management, and use of ICT specialists compared to developed countries. While Turkey is similar to countries, such as Bulgaria, Greece, and Romania in terms of usage patterns, there is a gap with developed countries, such as Finland. For example, while cloud computing usage is around 50% in Finland, it is below 15% in countries, such as Turkey, Bulgaria, Greece, and Romania [89,90].

Even while developed and developing nations utilize and embrace ICTs quite differently and have diverse characteristics, some longer-term impediments to digital transformation still exist for all SMEs. Significant gaps exist in the adoption of ERP, social media, CRM, electronic invoicing, high-speed broadband, and e-commerce [91]. In line with SME requirements, many theoretical studies focused on evaluating the digital transformation journey of SMEs.

The maturity models developed for SMEs in developed countries, such as in North et al. [37], Stich et al. [92], and Williams et al. [93], are valuable tools and may contribute to anticipating the current status of the firm in terms of numerous capabilities. However, the applicability of those complex tools for SMEs in developing countries is questionable. While many concerns have already been expressed for these mechanisms (maturity models), it is important to have much simpler, easily understandable, and applicable tools when it comes to developing countries.

Further, the prior studies concentrating on the sophistication levels of adoption were not empirically tested; therefore, it cannot be concluded that the previously proposed components of ICT adoption may be relevant to SMEs. This study tested the developed measurement scale empirically in Turkish SMEs. Additional studies are required for the reliability and validity of the measurement scale in other developing countries, and this study can be used as a guide.

Consequently, in contrast to prior studies, this study empirically validated a measurement tool for assessing the five dimensions of ICT adoption of SMEs in a developing country context. Hence, a valuable foundation for future studies is provided. The scholars working in this field can use this study as a foundational study and adapt the measurement scale to different settings with some adjustments. The critical literature review revealed that studies related to the use and adoption of ICTs generally focused on the use and ownership of specific technologies. Those studies examined various antecedents of technology adoption and outcome variables. However, studies examining the sophistication of ICT adoption and the factors affecting it are limited.

By considering stage-based integration, the scale developed in this study can be used in future studies to investigate the effects of different variables on the extent of ICT adoption and the impact of ICTs on several organizational outcomes. Different theoretical models can be constructed in different cultures and contexts by making the necessary adjustments to the developed scale, especially for SMEs in developing countries. Although maturity models have been studied extensively in the literature, there are serious criticisms about these models. When emphasizing the complexity of the models, their lack of methodological rigor, and the weakness of their theoretical foundations, the value of simple and easily applicable tools was also mentioned. In this context, the scale developed as five dimensions and 14 items and is a simple and easily understandable measurement tool with methodological and theoretical foundations.

The outcomes have the potential to be applied to specific industrial sectors and different geographic contexts. It is believed that this measurement tool would be utilized by digital transformation managers and practitioners in SMEs because they cannot obtain consulting company experience due to financial issues. They can use this measurement scale to assess their current ICT adoption level and plan their digitalization or digital transformation priorities accordingly. Practitioners and policymakers can utilize the suggested scale to discover areas where certain changes are required and target SME ICT practices and digitalization efforts that need attention. In addition to determining the problematic issues, strategies and tactics for boosting the adoption of ICTs in SMEs can be established. Further, the digital divide among SMEs and the reasons behind can be analyzed to address and identify gaps by structured plans. Decisionmakers may design new regulatory frameworks and initiatives. Accordingly, giving technology support and e-business solutions, enhancing management capabilities, offering initiatives for technical assistance, creating awareness programs, increasing opportunities for data and technology access, and enabling appropriate ICT infrastructure can be provided. Proper training programs can be designed, and ICT investments can be allocated accordingly for further diffusion of ICTs among SMEs.

Additionally, because the data for this study were collected in the 2020–2021 period, the scale also included and incorporated COVID-19’s significant impacts on the ICT adoption level categories. This does not mean the full COVID-19 impacts are incorporated because some SMEs in developing countries may lag in adopting all ICT-related changes immediately due to the previously mentioned developing country SME characteristics and conditions. Nevertheless, the study may contribute to changing ICT adoption dimensions for SMEs in developing countries in the COVID-19 pandemic era.

Considering the dominance of conceptual frameworks proposed based on developed countries and the prevalence of singular constructs in the field, the developed multidimensional scale is expected to contribute significantly to the field. One of the critical contributions of the study is the empirical validation of the multidimensionality of ICT adoption in SMEs in developing countries. It was suggested by past studies but has not been empirically tested. The proposed measurement tool is important in reviewing and validating past studies in line with current trends and technological developments. Along with the technological developments, the maturity stages of the SMEs related to their ICT-enabled digital transformation process, which were proposed by the past studies, have also changed. In the case of SMEs with limited resources, the extent to which these technologies are used and adopted, rather than the ownership of digital technologies, comes to the fore in evaluating the sophistication of their ICT adoption.