Determinants of Basic IT Adoption by Auto Ancillary SMEs in India
Year: 2011
Type: preprint
Abstract: Though Information Technology (IT) has offered many benefits to enterprises all over the world, its adoption by Small and Medium-sized Enterprises (SMEs) in India remains relatively low. The auto ancillary industry is one of the key growth drivers of the Indian economy and is rapidly becoming a hub for many of the global and Indian auto majors. Although there is a wide spread use of IT in different areas of business since the 1960s, IT adoption in Indian auto ancillary SMEs has lagged behind its global peers. The non-adoption of IT by auto ancillaries is a major constraint for improving organizational performance and business productivity. This study aims to identify the determinants of adoption of basic information technologies. A survey was carried out in 85 auto ancillaries throughout India. The findings show that lack of financial capacity, lack of in-house IT manpower and small-scale operation are the major determinants which cause the low rate of basic IT adoption among auto ancillary SMEs in India. At the same time, perceived benefits, perceived competitive pressure and awareness of changes in business environment are motivating the firms to adopt the basic information technologies. The paper is concluded with implications for practitioners.
Source: SSRN Electronic Journal
Authors: P. Dharmalingam, Ganesan Kannabiran
Institution: National Institute of Technology Tiruchirappalli
Language: English
Subfield: Information Systems and Management
Field: Decision Sciences
Domain: Social Sciences
Open Access status: green
OpenAlex ID: W2235323321