Small and Medium Enterprises (SMEs) form an integral part of every economy as they are the leading
providers of revenue and employment. However, as the global economy becomes more reliant on
Information Communication and Technology (ICT), some SMEs are yet to reap the benefits that ICT
has to offer. The low rate of adoption and innovative use of ICT amongst SMEs has become significant
research topics in recent times. One of the many contributing factors towards the above is the failure
of SMEs to recognise ICT as a technological innovation, thus affecting their decision to adopt ICT.
This and the lack of dynamism between ICT firms and SMEs further impede the development and
innovation of ICT for SMEs. Using a technology-organization-environment framework, this study
attempts to address the above issue by introducing a perception-based model for technological
innovation in SMEs. The model is to be further tested against data collected from an Australian
context. The model has both research and practical contributions. For research, the model attempts to
study the key determinants and processes of technological innovation and ICT adoption in SMEs.
Further, the model attempts to help SMEs recognize that adopting ICT as a technological innovation
is important but more of an adaptive than a technical challenge.