INFORMATION AND COMMUNICATION TECHNOLOGY ADOPTION AND ITS INFLUENCING FACTORS: A STUDY OF INDIAN SMEs

Abstract

Purpose: The current study intends to estimate empirically the factors, which more likely influence the ICT adoption by Indian SMEs. Methodology: Exploratory research has been applied and the current study uses a logistic regression model to estimate the data. The Database was selected as a DV to estimate the model. Main Findings: The summary result of all the five models show that there is one significant variable that explains the ICT adoption among SMEs, i.e. complexity. This shows that the adoption of the innovative process is complex for small enterprises since these innovative processes are beyond the scope of these enterprises. The other independent variables are also significant except Trialability, Observability, Owner IS, Employee IS, Management Support, Image, etc.  Implications / Applications: The role of SMEs has become more crucial in developing nations because they have the ability to significantly improving income distribution, creation of employment, poverty eradication, as well as export growth. Technology up-gradation is the most significant factor in capacity building for enhancing competitiveness in SMEs. The main aim of innovation policy is to promote new ideas, such as products, processes, and organization techniques. Novelty/Originality of this study: Numerous factors like social, economic, political, human and other factors that influence ICT adoption have been examined in previous literature. In addition to this, there are some other factors like technological, organizational and environmental also impact ICT adoption. In this aspect, none of the studies in previous was well-studied in Indian SMEs context. Therefore the present paper bridged this gap by examining the factors, which more likely influence the ICT adoption by Indian SMEs. Understanding this importance would enable suitable policy reviews and intervention measures that help ICT adoption.