Prioritizing Technology Adoption Dynamics among SMEs

Abstract

Though Small and Medium Enterprises (SMEs) are engines of growth, due to multiple reasons they are low in adoption of digitalization and technology. This paper seeks to provide a framework to prioritize the factors/dynamics towards adoption of information and communication technologies (ICT). Through review of literature and applying Analytical Hierarchy Process (AHP), relevant factors have been chalked out and arranged in terms of priority. The findings indicate SMEs adopt ICT to have a relative advantage over competitors. Affordability, ease of use, value creation and productivity are top priority reasons. Profitability and top management support are other prime factors that stimulate ICT adoption. Other relevant factors include technological self-efficacy and personal characteristics of entrepreneurs.

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