Allocating Resources for New Technology within Entrepreneurial Firms
This study seeks to determine the influence of the underlying factors and barriers that may inhibit the implementation of new technological investments by entrepreneurial firms. These factors and barriers may include the potential costs, risk of failure, low technological awareness, lack of an outside organization to facilitate development, lack of approachable organizations with which to form partnerships, and lack of contact with other organizations that have implemented technology successfully. Using structural equation modelling (LISREL VIII), results revealed that the value and importance that entrepreneurs placed on learning and adopting new technologies, in addition to the risk of failure, mediated the relationship between many of these barriers and the firms' technological investment during the past year, as well as their willingness to spend on new technology in the future.