Abstract

Whilst many studies have looked at the issue of diffusion of technology in a myriad of settings, few have focused on the impact of disruptive innovation in the field of information systems (IS) and even fewer on the impact of disruptive innovation on technology diffusion in the context of small-to- medium (SME) sized businesses such as holiday parks. Those that have investigated this topic have commonly examined it through the perspective of the interaction between the vendor and businesses concerned, without considering any interactive role by the end-user customers. The objective of this study is to investigate the impact of disruptive innovation on technology diffusion in SMEs and the factors that accounted for the belated diffusion of on-line reservation systems with payment gateways in this context. Findings show that beyond the interplay between vendors and businesses in the diffusion of IS, there is a third important social group to consider, namely the end-user, or in the context of this study, the guest. Consideration of such third party social factors as a component of organizational decision making may enrich current theoretical models about diffusion of technology.

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