Factors Influencing ICT Adoption in SMEs

  • Prasanna Raravi, Shivanand P. Prabhuswamimath, Vijayakumar Chavan

Abstract

Upliftment of economy, new job creation, industrialization of small regions, removing economic disparity and improving social development of undeveloped areas are the result of contribution from the small and medium-sized enterprises (SMEs) Sector. Information and Communications Technology (ICT) has given leverage to SME sector through which they can compete with global industries and cope up with market conditions. Present stage of small industries demand the usage of ICT in their work activities to improve productivity and bring quality into the products. In India different studies about ICT usage in SMEs show that, the factors affecting the ICT implementation in a holistic approach was missing and also the list of factors does not elaborate all the parameters. The focus of this research work is to find the factors that affect ICT implementation in SMEs, establish relationship between SMEs performance and to suggest a conceptual framework for SMEs to adopt ICT. Data (During December 2019) was collected from 100 SMEs through questionnaire design covering the all the identified factors and analysis was done through Statistical Package for Social Sciences (SPSS) software. The research work revealed that ICT is important for SMEs to enhance their performance. Organizational management (Internal Factor) concentrates on employee skills and Extraneous and Stability conditions (External Factor) focusing on the demographic existence. Internal factors can be controlled by the organizations themselves, whereas the external factors need to be taken care by the Government Agencies and Industrial Associations. The purpose of this research work was to identify both external and internal factors that affect ICT adoption and to analyze the factors and their impact on organizational performance.

Published
2020-05-07
Section
Articles