An increasing number of studies into the adoption behaviour of Information systems (IS) have focused on small- and medium-sized enterprises (SMEs). These past studies provide an understanding of the contextual factors offering a simple dichotomous measure such as adopters and non-adopters rather than the manner of usage (from adoption to utilisation). This study introduces the construct of enacted capabilities and examines the enacted capabilities that activate and stimulate SMEs to use an IS to it fullest potential. The construct is derived from the resource-based view of the firm and allows the integration of the technology acceptance model with diffusion of innovation theory. A model of how enacted capabilities affect IS adoption behaviour through perceived net benefits is developed. Results indicate that enacted capabilities possessed by SMEs play a prominent role in determining the adoption behaviour by these enterprises (i.e. active adopters and non-active adopters).
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