Factors affecting Information & Communication Technology (ICT) adoption among MSMEs

Abstract

The purpose of this study is to determine the factors influencing the Information & Communication Technology (ICT) adoption by the managers or owners of Micro, Small, and Medium Enterprises (MSME) operating in India. Based on two established theories of technology adoption - Technology acceptance model and Unified Theory of Acceptance and Use of Technology - the factors influencing ICT adoption behaviour were hypothesized. The adequate sample was selected through the combination of random, judgmental and snowball sampling. Using structural equation modelling approach, the proposed model was tested. Findings reflect that perceived usefulness and social influence emerged as the dominating factors influencing ICT adoption decision. The study has also highlighted the barriers encountered by MSMEs in adopting ICT. The obtained barriers were categorized into three categories: resource/infrastructure, human resource, and technological environment. Government, MSME owners and ICT industry can benefit from the findings of this study.