Strategy for adoption of information and communication technology in the development of small and medium enterprises in the emerging market

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Abstract

Small and medium enterprises (SMEs) play a crucial part in the Indian economy. However, SMEs in India are currently operating in a highly competitive environment (Rajamani et al., 2022). Information and communication technology (ICT) can be intended in helping SMEs to become more competitive. The aim of this research is to develop a strategy for the adoption of ICT in SMEs of India. In empirical research methodology, variables are identified, through literature review, that impact ICT acceptance in SMEs and based on this a research model is developed. Then hypotheses are formulated on the basis of identified variables and data is gathered to test these hypotheses. The value of the path coefficient has been used to prioritize the identified variables. The key result highlights that seven of the eleven hypotheses for ICT adoption in SMEs are being accepted and, a validated model for ICT adoption in SMEs is developed. The relevance of the study is that the evolved model can be used to predict higher rates of ICT adoption in SMEs, which fuels the expansion of businesses. Thus, different strategies are recommended for entrepreneurs and the government for the adoption of ICT in SMEs in India, which will help in the growth of SMEs.

Keywords: Small and Medium Enterprises, Information and Communication Technology, Cronbach’s Alpha Test, Confirmatory Factor Analysis, Regression Analysis, Strategy Development

Authors’ individual contribution: Conceptualization — P.D. and G.P.S.; Methodology — G.P.S.; Formal Analysis — P.D.; Data Curation — P.D. and G.P.S.; Writing — Original Draft — P.D., V.S., and V.P.; Writing — Review & Editing — V.S. and V.P.; Supervision — G.P.S.

Declaration of conflicting interests: The Authors declare that there is no conflict of interest.

JEL Classification: C1, C8, L2, L8, O3

Received: 30.08.2023
Accepted: 15.03.2024
Published online: 20.03.2024

How to cite this paper: Dwivedi, P., Sahu, G. P., Singh, V., & Patel, V. (2024). Strategy for adoption of information and communication technology in the development of small and medium enterprises in the emerging market [Special issue]. Corporate & Business Strategy Review, 5(1), 440–449. https://doi.org/10.22495/cbsrv5i1siart17