Entrepreneurial identity and Its influence on technology adoption in small and medium enterprises

Abstract

This study examines the impact of entrepreneurial identity on the digital technology adoption of South African small and medium enterprises (SMEs). This study is significant because it goes beyond the structural barriers to examine the influence of personal identity on technology use. Owners of SMEs across various industries were interviewed using semi-structured interviews and thematic analysis was employed to determine key trends. It identified four primary identity archetypes, namely, Innovator, Pragmatist, Strategist, and Traditionalist, which helps explain why entrepreneurs with comparable challenges act differently when embracing technology. Innovators focused on using digital tools for growth, Pragmatist addressed the practical issues using digital tools, Strategists used technology to fulfil the long-term objectives, and Traditionalists liked stable solutions that could be trusted. Market pressure, competition and regulation further influenced identity, which demonstrated that resources and knowledge do not solely determine the decisions to be adopted. The main limitation of the research is that it is restricted in its sample size and specific to South African SMEs and therefore cannot be generalised. It is recommended that policymakers and support agencies design programs that match these identity types, such as innovation grants for Innovators and trust-building mentorship for Traditionalists. Future studies are needed to confirm these results with larger and more diverse samples and to investigate such effects as gender, age, and business industry. This study contributes to the formation of new policy, formation of theory, and creation of practical support that can lead to growth and change in SMEs and other emerging economies by illustrating the links between entrepreneurial identity and digital adoption.