Abstract
This note analyzes the usage intensity of digital advertising platforms by small and medium enterprises (SMEs); it does so by integrating the technology readiness (TR) and unified theory of acceptance and use of technology (UTAUT) models. SMEs are characterized by a lack of sophisticated marketing tools and risk aversion when dealing with investments associated with uncertain outcomes. To understand this character, this study aims to understand the drivers and barriers that lead to varying levels of usage intensity of digital advertising platforms at the organizational level. While TR encompasses individual predispositions to adopt and use technologies, UTAUT captures technology-specific attributes oriented to accomplish tasks in work settings. Hence, we attain a holistic view of the usage intensity of these platforms by integrating the models. We theoretically substantiate the integration of both models and subsequently propose a TR-UTAUT model to explain and frame research hypotheses. Using 207 questionnaires from Mexican SMEs and using partial least squares (PLS) to test a structural model, we show that SMEs positively perceive the attributes of digital advertising platforms; however, individuals lack the readiness to use them at a full scale. SMEs need to gain knowledge of the benefits and clear outcomes of advertising in the digital realm. This practitioner note research intends to address the issue and show how the SMEs invest on digital advertising.
