Abstract

Consulting, in its various forms, supports the survival, development, and competitiveness of small businesses. While prior studies have examined its effects and benefits, research remains limited on how small businesses adopt and engage with these services. This study applies the Diffusion of Innovation (DOI) theory and the Resource-Based View (RBV) to develop a new framework that explains not only the levels of small service firms’ Awareness, Access, and Engagement with consulting services but also how they perceive the benefits and which resources they lack to facilitate adoption.

To test the model, a survey of 418 small service firms in the Greater Toronto Area (GTA) was analyzed using covariance-based structural equation modeling (SEM), supported by exploratory and confirmatory factor analyses (EFA and CFA) and partial least squares (PLS) modeling. Results indicate that Awareness strongly influences Access, Perceived Value, and Engagement, while Access further enhances Perceived Value and Engagement. Perceived Value is the strongest driver of Engagement. Resource Constraints, particularly financial and time pressures, moderate these relationships. Awareness also varies by industry, firm size, and network involvement, and referral-based channels are identified as the most trusted sources.

The framework provides a nuanced and generalizable lens to understand consulting adoption, capturing both determinants and engagement levels, and can be applied to study the adoption of other innovations (e.g., AI and emerging technologies). The research findings offer practical insights for consultants, support organizations, and policymakers to enhance awareness, strengthen trusted channels, tailor services, and address adoption barriers.

This work is licensed under a Creative Commons Attribution 4.0 License.