Digital Media Adoption: A Case for Digital Assistance Program for Micro Agribusiness Enterprises

The rapid growth of the World Wide Web and the digitalization of customer facing channels have forced many businesses to adapt for survival in the digital competitive landscape. Today, businesses must maintain a strong... [ view full abstract ]

The rapid growth of the World Wide Web and the digitalization of customer facing channels have forced many businesses to adapt for survival in the digital competitive landscape. Today, businesses must maintain a strong presence in the online digital world through utilization of technologies such as traditional e-commerce, social media, and mobile computing to capture and maintain customer attention, provide services and products, and accrue financial value. Adding to the challenge faced by businesses is the rapid rate of change of online digital technologies. While many small and medium sized businesses adapt and evolve in their use of online digital technologies through interventions provided by consulting, practitioner, and academic literature, little is known about the challenges and constraints faced by micro-businesses, i.e. businesses that employ nine people or less. To address this shortcoming in academic research our study focuses on four constraints (system-fit, human capital, infrastructural, and financial) faced by micro-businesses.Our work draws upon the results of an ongoing research project which is investigating the adoption of digital technologies by entrepreneurial businesses in Southeastern United States. Based on data collected from 1200 micro businesses, we contend that these constraints significantly diminish the ability of micro-businesses to maintain active and passive online presence through the use of online digital technologies. Diminished online presence, in turn, adversely affects the ability of micro-businesses to accrue financial value while also constraining their ability to grow reputational capital. We conclude that State and/or Federal assistance programs can go a long way to help these businesses adopt new technologies and increase digital capacity.