Internet advertising adoption: a structural equation model for Iranian SMEs

Purpose - The purpose of this paper is to provide some insights regarding the adoption of internet advertising by Iranian small and medium-sized enterprises. The recent negative trends leading to a lack of competitive advantage in small businesses and the advantages of internet advertising makes it...

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Bibliographic Details
Published in:Internet research 2012-01, Vol.22 (4), p.499-526
Main Authors: Hanafizadeh, Payam, Behboudi, Mehdi, Ahadi, Fahimeh, Ghaderi Varkani, Fatemeh
Format: Article
Language:English
Subjects:
Advantages
Advertising
Advertising agencies
Brand loyalty
Business models
Communication
Communication (Thought Transfer)
Competition
Computer programs
Construction
Costs
Customization
Definitions
Developing countries
Directories
Globalization
Governments
Internet
Internet access
Iran
LDCs
Literature Reviews
Marketing
Mathematical analysis
Mathematical models
Online advertising
Publishing
Questionnaires
Small & medium sized enterprises-SME
Small business
Small firms
Studies
Technology adoption
Websites
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Summary:Purpose - The purpose of this paper is to provide some insights regarding the adoption of internet advertising by Iranian small and medium-sized enterprises. The recent negative trends leading to a lack of competitive advantage in small businesses and the advantages of internet advertising makes it imperative to study various factors affecting this area of marketing.Design methodology approach - This study reviewed 59 previous related studies, resulting in a comprehensive theoretical framework which explains the advantages of internet advertising for small to medium-sized enterprises (SMEs). Via questionnaire, the paper compiles 346 Iranian experts' opinions in order to test the validity and applicability of variables in Iran. A structural equation model and LISREL software were used to analyze the data.Findings - A total of seven latent variables of internet advertising adoption were examined: advertising agencies, internet publishers, small and middle-sized enterprises, government role, e-commerce development and user types. The paper found that these constructs successfully explain internet advertising adoption by incorporating readiness and globalization stages. The small and medium-sized enterprises were found to be the most significant for explaining internet advertising adoption.Research limitations implications - The sample was restricted to Iranian experts.Originality value - This study offers one of the first attempts to build a comprehensive theoretical model explaining internet advertising adoption. Second, this study offers a new scale for internet advertising adoption with higher content validity.
ISSN:1066-2243
2054-5657
DOI:10.1108/10662241211251015