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Factors that Prevent Businesses from Adopting New Technologies 1 EXAMINING FACTORS THAT PREVENT BUSINESSES FROM ADOPTING NEW TECHNOLOGIES By Student’s Name Code + Course Name Professor’s Name University Name Date

Factors that Prevent Businesses from Adopting New Technologies 2 Examining Factors that Prevent Businesses from Adopting New Technologies Question #1: Wider Business Challenges and Specific Research Questions Nearly every manager or leader understand the benefits of new technologies on improving business processes. However, most managers would be reluctant when it comes to implementing new technologies. In Australia, for instance, one in every five managers acknowledge that they are reluctant to implement new technologies until they see the effects. Most managers use a wait-and-see approach when it comes to implementing new technologies. However, being too slow or reluctant to adopt new technologies may create significant business challenges. Some technologies are able to render an existing business idea irrelevant. For example, the ride-sharing technology is almost making traditional taxi services irrelevant. Fossil powered vehicles may soon be irrelevant if more efforts are placed on the production and distribution of electric cars. My study aims at addressing wider business challenges such as inadequate research, poor time management, high cost of business operations, and ineffective waste management. Time management is a challenge in areas where technology is lacking or inadequate. Technology introduces ways that can be used to increase the level of production within a specified duration. For instance, the use of artificial intelligence may assist companies to deliver large projects within a short duration. Lack of technology also prevents companies from conducting enough research needed to improve business activities. Technology also assists in reducing the cost of operations by introducing new ways of communication, transport, and production. Thus, failure to implement new technologies may expose companies to various challenges and regrets. The

Factors that Prevent Businesses from Adopting New Technologies 3 study examines factors that prevent businesses from adopting new technologies. The following are the research questions. 1. Why are some companies ready to adopt new technologies while others are reluctant? 2. Are managers afraid or confident about new technologies? 3. What factors make managers afraid of adopting new technologies? 4. What factors encourage managers to adopt new technologies? 5. Are there tools that managers can use to determine which technologies are suitable for their businesses? Question #2: Research Questions Answers to these research questions are needed because they explain factors that prevent companies from adopting new technologies. Information obtained from these questions will assist managers to evaluate readiness or willingness of their companies to adopt new technologies in the market. The first question examines why some companies are quick while others are slow to adopt new technologies. Answer to this question will give insights into attitudes that companies have towards change or technology. Organizations that perceive new technologies as potential business opportunities are likely to grow faster than other companies where technologies are perceived as threat to future business development. The second question examines whether managers are afraid or confident about new technologies. Again, this question will determine the type of attitude that managers have towards technologies. Positive attitude, for instance, may increase the level of confidence that managers have towards new technologies. The third question will determine factors that make managers afraid of implementing new technologies. In other words, the question investigates barriers that prevent managers from embracing new technologies. For example, managers may express reluctance to new

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Factors that Prevent Businesses from Adopting New Technologies 4 technologies because employees do not have the skills needed to implement changes. The fourth question examines various factors that encourage managers to adopt new technologies. The strategic use of technology to improve business processes and minimize the level of competition may encourage managers to adopt new technologies. Thus, the fourth and third questions will increase awareness about barriers to new technologies and how such barriers can be addressed. Managers may use the information obtained from the study to address issues that prevent their business from using new technologies. Addressing such challenges may assist businesses to make significant progress in the market. The fifth question assists managers to identify tools needed to determine the effectiveness of a new technology to business needs. According to Wang et al. (2016), most managers rely on a wait-and-see concept to determine the effectiveness of new technologies on business operations. However, the wait-and-see scenario is not effective because it may deny businesses an opportunity to gain competitive advantages in the market. For instance, companies that succeed in implementing new technologies ahead of others usually become first movers. The first mover advantages include loyalty among consumers and reduced competition in the market. Thus, the above questions provide useful insights that can assist managers to reduce resistance towards technology and grow their organizations. Question #3: Professional Experience My experience in business management provides essential background needed to understand the above research questions. I come from a family that owns one of the largest businesses in the gulf region. Although there are managers to who run the business on behalf of the family, I have had an opportunity to experience some of the business challenges including stiff competition in the market. While our company has benefitted in many ways from the

Factors that Prevent Businesses from Adopting New Technologies 5 implementation of new technologies, there are some challenges that prevent the implementation of new technologies. First, the company must determine ways in which the new technology will improve business activities before it is implemented. Sometimes, it takes longer for managers to investigate the effects of a new technology. The wait-and-see approach is often used in determining the effects of a new technology on other companies or certain internal business processes. However, the wait-and-see approach has given some companies advantage over our business. Thus, I will rely on this experience to explain some of the factors that prevent managers from using new technologies. As a teacher, I have interacted with many teachers and students on various platforms including electronic media. Most students prefer using social media sites such as Instagram, Facebook, and Twitter, for communication. Many teachers have also adopted modern platforms such as Facebook and emails to engage their students. However, the social media is one of the technologies that many companies are reluctant to implement. In most companies where I have worked, the use of social media is highly restricted especially when employees are on duty. However, since the current generation of workers are difficult to separate from technology, most companies are likely to develop new ways of using the social media without compromising a company’s security or image. In my study, I will ask managers why most companies are reluctant to authorize the use of social media among the employees. I will also ask if there are negative effects of technology that deter managers from using digital platforms for communication. Question #4: Literature Review What is known about my topic are the factors influencing the adoption of new technologies. Several studies have investigated factors that drive companies into adopting new technologies. The study conducted by Oliveira et al. (2016) argues that most of the decisions to

Factors that Prevent Businesses from Adopting New Technologies 6 acquire and implement a new technology is often determined by market demands. For example, the decision to adopt a mobile banking technology is often driven by market demands. The mobile banking is driven by the need for efficiency in conducting financial transactions (Alalwan, Dwivedi and Rana, 2017). If the market is not ready for a new technology, many companies may be hesitant to adopt it. Before adopting a mobile banking technology, many companies conduct research to determine if the demand is sustainable (Shaikh and Karjaluoto, 2015). Once the level of demand has been established, managers begin training employees to give skills needed to run the new technology (Alalwan, Dwivedi and Rana, 2017). After training, the employees will also educate customers on how to use the new technology. Apart from market demands, the adoption of new technologies is also influenced by the need to reduce the cost of business operations. A study conducted by Matthews et al. (2016) found that most small and medium enterprises (SMEs) rely on new technologies to reduce the cost of marketing and promotions. The social media sites such as Facebook and Twitter, assists companies to raise awareness about their new products and services (Wang et al. , 2016). The cost of advertising over the social media is higher compared to using traditional channels such as television, radio and newspapers. Most small and medium enterprises may not have the resources needed to market their products over the traditional channels (Alalwan, Dwivedi and Rana, 2017). The social media is not only cost effective but also interactive making it more effective than the traditional channels. A study conducted by Matthews et al. (2016) found that the need to reduce competition also drives companies into adopting new technologies. The study gives an example of Lyft, a medium taxi company that adopted a new technology to reduce competition. The company adopted the ride-sharing technology from a rival company known as Uber

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Factors that Prevent Businesses from Adopting New Technologies 7 (Alalwan, Dwivedi and Rana, 2017). Most taxi companies that were hesitant to adopt the technology are struggling to become relevant in a market that has been transformed significantly. According to Shaikh and Karjaluoto (2015), technology assists companies to minimize business downtime. The study defines downtime as a period of delays either caused by incompatible technology or manual activities. A good example, is case where customers cannot view the contents of a website, make purchase, or perform business transactions (Matthews et al. , 2016). Downtime can occur because of backup challenges especially in companies using data to store customer information. Technology reduces downtime by providing copies of data that can be used to recover stolen or damaged files (Wang et al. , 2016). Companies that handle sensitive information requires some of the latest technologies to improve backup and storage. Cloud computing provides sufficient storage for sensitive data (Matthews et al. , 2016). While the effectiveness of cloud computing is well-documented, some companies are still hesitant to use it. In some cases, the desire to improve security drive many companies into using some of the latest technologies in the market. Security is significant issue in a digital era because of cyber hacking. The recent attacks on major companies such as Anthem have driven many companies to invest on security (Matthews et al. , 2016). Most of the security software are designed to keep hackers away by using file encryption or adding more layers to prevent hackers from gaining access. Apart from security, some companies adopt new technologies because it is a legal requirement (Matthews et al. , 2016). For instance, most hospitals use the electronic health records because it is both a legal and business requirement. The electronic health records assist hospitals to maintain records while minimizing unauthorized access of patient data (Alalwan, Dwivedi and Rana, 2017). From the above studies, it is evident that the use of technology in companies is determined by market demands, need for security, the desire to reduce the cost of

Factors that Prevent Businesses from Adopting New Technologies 8 business operations and increase profit margins (Alalwan, Dwivedi and Rana, 2017). However, very little research has been conducted on the factors that prevent companies from using new technologies. Significant focus has been placed on the factors influencing the use of new technologies than factors preventing the implementation. The limited research on the barriers to new technologies provide incentives for this study. This study focuses on specific issues that prevent businesses from rolling out new technologies. Question #4: Available Data Currently, a few studies have been conducted on the factors preventing the use of new technologies. The study will rely on these secondary sources to explain issues that bar managers from exploring available technologies. Apart from the secondary sources, the paper will investigate by interviewing managers. Having worked in many companies in a professional capacity, I have access to a few managers whom I can interview. The purpose of the interview is to obtain information from persons tasked with the responsibility of implementing new technologies. My plan is to interview at least five managers who have or plan to implement new technologies in their organizations. Since some managers may not prefer being recorded on tape of paper, the interview will be conducted primarily via face-to-face conversations.

Factors that Prevent Businesses from Adopting New Technologies 9 References Alalwan, A. A., Dwivedi, Y. K. and Rana, N. P. (2017) ‘Factors influencing adoption of mobile banking by Jordanian bank customers: Extending UTAUT2 with trust’, International Journal of Information Management . Pergamon, 37(3), pp. 99–110. doi: 10.1016/J.IJINFOMGT.2017.01.002. Matthews, D. C. et al. (2016) ‘Factors Influencing Adoption of New Technologies into Dental Practice’, JDR Clinical & Translational Research . SAGE PublicationsSage CA: Los Angeles, CA, 1(1), pp. 77–85. doi: 10.1177/2380084415627129. Oliveira, T. et al. (2016) ‘Mobile payment: Understanding the determinants of customer adoption and intention to recommend the technology’, Computers in Human Behavior . Pergamon, 61, pp. 404–414. doi: 10.1016/J.CHB.2016.03.030. Shaikh, A. A. and Karjaluoto, H. (2015) ‘Mobile banking adoption: A literature review’, Telematics and Informatics . Pergamon, 32(1), pp. 129–142. doi: 10.1016/J.TELE.2014.05.003. Wang, Y.-S. et al. (2016) ‘Factors affecting hotels’ adoption of mobile reservation systems: A technology-organization-environment framework’, Tourism Management . Pergamon, 53, pp. 163–172. doi: 10.1016/J.TOURMAN.2015.09.021.

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