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B. Barriers to Adoption

A barrier to adoption is another category of variables, which is negatively related to technological adoption. There are five main types of such barriers by Ollo-Lopez and Aramendia-Muneta [9]. Firstly, investment cost and unfavorable financial conditions such as high price of technology, large investment requirements, and liquidity constraints [12] are potential barriers to investment in general. Furthermore, technological solutions are often costly, and the results are unpredictable [13], and they perceived that technological adoption is costly compared to its benefits [14]. Secondly, adoption of TI may be hampered by human capital restrictions, generally shortage of highly skilled workers, lack of IT specialists, and lack of training. The availability of skilled workers and the need for implementing reorganizations of the internal functioning of the firm, which act as capital adjustment costs to the extent that these costs are fixed and too high to smalland medium-size firms, appear as barriers to IT investment [15]. Thirdly, most organizations will adopt it only if they see a clear need for it in the organization. Adopters have made the decision strongly believing that the technology will deliver its promised benefits, even though there have been some misgivings about whether all the benefits can really be realized [16]. In fact, “uncertainty of benefits” has been found to be one of the major barriers. Fourth are the managerial barriers on their perception toward technological adoption. Top management decision-making might be influenced by the nature, i.e., cooperative and non-cooperative firm. Cooperative firms have a distinctive culture, based on principles of democracy and equity [17]. The decision to adopt TI should be agreed by all members. Insufficient awareness of managers of the potential gains of technological and top management decision-making influences technological adoption. The critical success of technological implementation is the top management commitment. Technology adoption, with its significant impact on organizational work practices, possible internal resistance to adoption, and lack of immediate payoffs, clearly requires top management support for adoption [16]. Without their support, many managers may be reluctant to take this high-risk, high-investment decision. Finally, sunk cost barriers may imply and incur high substitution cost firms in order to intensify the use of TI, for example, the insufficient compatibility between new and existing technology.

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