The UK micro/SME (known here as SME) retail sector is very important to the economic well being of the country. Its ability to generate jobs as well as income makes it a key part of the drive towards economic growth, and as such it is supported by government through a variety of initiatives. One initiative in 2003 aimed to energise and invigorate practitioners into using internet based technologies more fully in their business practices. This supported the widely held belief that the internet can and does enhance and improve business efficiency. It also suggests that SMEs were not fully engaging with the technology and that the government felt that it was not at the desirable level. This thesis looks at the issues surrounding technology acceptance for the SME and in particular internet adoption in the retail sector. This work explains technology acceptance and the main determinants and moderators connected with this in an organisational setting providing the practitioner with insight into why some technologies are embraced and others underutilised, or not adopted at all. Previous academic work in this area has tended to focus on the larger organisation. This thesis uses the technology acceptance literature to explore the situation of the SME. Through qualitative and quantitative research the specifics of the SME situation relating to technology acceptance are explored with the determinants and moderators being evaluated and changes made where appropriate. The specific internet based technology of online procurement is used to measure levels of acceptance and the issues relating to it. The result is an adapted model that better reflects the technology acceptance situation of the SME retail organisation. In the model three of the original constructs remain, however the moderators have been changed to reflect the SME and the relationships the constructs have with the moderators are also developed. As a new addition to the field it can be seen from the developed model that the frequency of re-ordering is an important determinant not only of online procurement but technology acceptance in general. This work will benefit practitioners in SME retail and also the wider SME field when it comes to evaluating whether or not to accept a new technology and how this is best achieved.

The Internet is becoming a more and more influencing factor in our everyday life. It affects many of our daily tasks and it is a determining factor we built our decisions on. Especially in Sweden, retrieving information about products or services online prior to the purchase is a matter of course and emphasizes therefore its importance. A website offers a costefficient potential for smaller firms with limited resources to be visible for consumers and to compete on the larger market. However, the website adoption has been neglected amongst 41% of Swedish micro Small- and Medium sized Enterprises (SME), which raises the question why this phenomenon exists. Existing literature does not provide a solid explanation of this occurrence and this is where our study steps in. In order to answer our research question and to fill this gap, the study is designed as a qualitative multiple-case study with twelve semi-structured interviews conducted amongst the owner-managers of micro SMEs in different parts of Sweden. The study aims to fill the theoretical gap by identifying and explaining the reasons why micro SMEs in Sweden do not adopt a website. The empirical contribution is the development of managerial recommendations about how micro SMEs can overcome the barriers to adopt a website.  This research was guided by a conceptual framework, including strategic, consumer and customer, communication and interaction perspectives, as well as the perspective of the perception of websites. In order to carry out a profound analysis, we decided to apply two steps. The first step of the analysis was to connect the themes itself to theory in order to explore what the collected data represents so that reasons explaining why micro SMEs do not adopt a website could be found. The second step of the analysis included the exploration of the identified reasons in order to understand why these exist. The results from this study are expressed as six reasons why the owner-managers of micro SMEs in Sweden have not adopted a website. These reasons are: a wrong perception of a website, the lack of resources and competences, precaution, being a contractor to an umbrella company, being unaware of a website’s impact on the business and having successful network and offline-communication methods. The findings leave practitioners and researchers with an idea about what reasons are leading owners of micro SMEs to neglect a website and why these reasons exist.