Antecedents and Consequences of ICT Adoption in MSME

Abstract

The Fourth Industrial Revolution stimulated by digital transformation hasimproved the way we live in this world, do our jobs and communicate with each other. The businesses have started to use ICT extensively to improve operations.In fact,Van et al. (2003) findings revealed that investments in technologywere a significant factor in United States better productivity growth than that of Europe in late 1990s.Thus, it becomes imperative for developing nations to devoteresources and adopt ICT in order to increase productivity and beat competition. The present research is an attempt to understand the factors that determine the adoption of ICT by MSMEs that enable them to perform better inemerging economies like India. The present study uses Technology Organisation Environment framework to elicit factors that determine ICT adoption intentions  in MSMEs. The results reveal the relative advantage, compatibility of technology and management support have a strong impact on ICT adoption intention of MSMEs.  Also complexity of technology has a significant inverse (negative) impact on ICT adoption intention while as decentralised decision making has no impact on ICT adoption intention. Lastly the firms that have high ICT adoption intention tend to have better firm performance.