WiMax technology adoption by SMEs in the city of Jeddah, Saudi Arabia

Abstract

This research focuses on developing a framework for Worldwide Interoperability for Microwave Access (WiMax) technology adoption by Small and Medium Enterprises (SMEs) in the Kingdom of Saudi Arabia (KSA). WiMax has emerged as a technology to overcome the limitations of traditional and existing broadband technologies and support a great number of organisations and consumers/citizens in providing a higher speed over substantial distances i.e. in areas that are difficult for wired infrastructure to reach. Despite all the interest in the types of broadband adoption as demonstrated by SMEs in several countries, there seems to be slow progress and lack of information supporting the decision making process for WiMax technology adoption by SMEs specifically in the context of KSA. This may illustrate that SMEs adopt WiMax technology solutions at a slower pace and make them characterised as laggards in terms of new technologies adoption. This research takes into consideration this literature gap and makes a step forward and investigates on WiMax technology adoption by SMEs in KSA with an organisational cultural view, vendors’ commercialisation strategies and government policies by analysing the normative literature related to this research. The data collection of this study was carried out in two phases including quantitative and qualitative approaches. The first phase of the research provided results indicated that, the Saudi SMEs who participated in this research are strongly dominated by clan culture and adhocracy culture. These cultures also have a positive impact on the Internet technologies adoption such as WiMax by SMEs. It is found that, the combination of clan and adhocracy cultures in Saudi SMEs is making them more likely to adopt latest Internet technologies. In the second phase, the results showed a wide difference in views among SMEs, WiMax vendors and government agencies involved in WiMax technology diffusion to SMEs in Saudi Arabia. Although WiMax technology started as an innovation that has the potential to be disruptive and could replace the widely diffused fixed wire line Internet connection, the research findings showed an interesting deviation from this path. In particular, the WiMax technology market analysis in Saudi Arabia highlighted the vendors’ tendency to treat WiMax technology as a sustaining innovation. Research findings also indicated that, the Saudi government provided funds for Information and Communications Technology‘s diffusion in the country. However, the level of awareness displayed by SMEs is persistently low. Knowledge deployment, mobilisation, innovation directive and subsidy have been emphasised by SMEs as the most important government interventions that might have an impact on WiMax adoption by them. Finally, further important issues have been uncovered by the research such as taxation, experience exchange, herd culture/bandwagon, consumer right protection and customer service in relation to the adoption of WiMax by SMEs. The perceived future prospect of these additional issues has been considered as an influence on adoption of WiMax technology by SMEs. The findings of this research can be useful to guide analysts and researchers in determining critical aspects of the complex issues involved in technologies adoption, and lead to suggestions for further valid research.