Readiness factors for information technology adoption in SMEs: testing an exploratory model in an Indian context

• Published in: Journal of Asia business studies 2019-10, Vol.13 (4), p.694-718
• Main Authors: Nair, Jessy, Chellasamy, Aarthy, Singh, B.N. Balaji
• Format: Article
• Language: English
• Subjects: Business process reengineering; Case studies; Communication; Competition; Consultants; Decision making; Distribution costs; Enterprise resource planning; Environmental factors; Information technology; Infrastructure; Literature reviews; Manufacturing; Mixed methods research; Organizational change; Research design; Small & medium sized enterprises-SME; Small business; Software; Success factors; Technology adoption; User training
• ISSN: 1558-7894; 1559-2243
• DOI: 10.1108/JABS-09-2018-0254

Purpose Extant literature regarding factors essential for successful information technologies (IT) implementation in small and medium enterprises (SMEs) does not significantly address readiness factors for IT implementation in an Indian context. This exploratory research develops and tests a framework to analyse the antecedents to organisational preparedness for adoption of IT infrastructure in SMEs. Design/methodology/approach This exploratory research adopts a mixed-method approach to test the technology, organization and environment (TOE) framework. In-depth interviews with SME owners are conducted to develop the case study, and the measures obtained are tested through a survey at a small and medium business industrial cluster in Southern India in SMEs. Findings The case study indicates SME owners’ drive to initiate technology preparedness for organisational sustainability is a key factor, a measure not seen during the literature review. An empirical study tests the measures. Pressure from customers, owner’s age, sales of SME, owner’s attitude towards IT and owner’s knowledge of IT was confirmed, which indicates organisational factors have more impact compared to technological and environmental factors. Research limitations/implications The academic scope of this research paper can be extended to contexts such as readiness in IT infrastructure for digital transformation. Practical implications The validated research framework can be used by organisation stakeholders and SME IT practitioners for successful IT adoption. Social implications SMEs contribute significantly to gross domestic product (GDP) and provide employment opportunities. Hence, this research provides a tested model that SMEs owners/managers can adopt as a framework to augment competitiveness to implement IT. Originality/value The study adopts a mixed-method research design and is, perhaps, a first in the Indian context to explore variables through case study and validate identified measures through an empirical study. The model can be used by SME owners and practitioners to ascertain factors for organisational preparedness for IT adoption.