Barriers Preventing South African Small and Medium Enterprises From Adopting Green Information Technology

Abstract

Green information and communication technology (GICT) is the practice of effectively managing the negative effect of information and communication technology by reducing the amount of CO₂ released into the environment. Organizations can reduce pollution while making sufficient profit, and one of the ways of doing this is through the adoption of GICT. Although GICT offers numerous benefits, the adoption rate among South African small and medium enterprises (SMEs) remains low. The primary objective of the study was to identify the most prominent barriers to GICT adoption in South African SMEs. These barriers were identified from the literature and then incorporated into a measurement instrument. An electronic survey involving a self-administered questionnaire was used to collect data. The perceptions of respondents relating to barriers to GICT adoption were tested. An exploratory factor analysis identified the most prominent barriers to the adoption of GICT. The lack of funding was identified as the greatest barrier to GICT adoption, followed by insufficient capital, uncertainty about return on investment, high research and development costs, and finally continuous investment required. Based on the study, it is recommended that SMEs align themselves with GICT initiatives such as cloud computing, and that policy makers consider offering tax benefits and rebates for SMEs that adopt GICT.