Author(s): Sujeet Shivaji Patil, Ashutosh Vashishtha and Vikram Neekhra,
Background: Micro Small Medium Enterprises (MSMEs) has a pivotal role in industrial growth in Indian economy. The MSMEs have noteworthy contribution to national GDP, export shares, industrial output and employment. MSMEs have provided large scale employment opportunities ensuring regional balance alleviating social disparity with inclusive growth. MSMEs encountered major challenges post globalization and economic reforms with free flow of goods, capital and technology. The technology adoption by MSMEs is major constraint to competitiveness and growth of MSMEs.
Purpose: This study investigates the factors affecting the technology adoption by MSMEs in India. The factors are identified through systematic literature review and opinion of experts to capture industry and academic perspective. The hierarchical structure and contextual relationship of factors is established through Interpretive Structure modelling (ISM) followed by classification of factors with Fuzzy-MICMAC analysis.
Findings: The study has identified ten factors affecting technology adoption by MSMEs in India. Based on analysis, top management commitment, financial capability and human capital are significant factors with high driving power and require emphasis. The regulatory norms, adequacy of infrastructure and policy management have less driving power and factors are positioned at higher level in the model.
Conclusion: The integrated ISM and MICMAC analysis illustrate the hierarchical structure and significance of factors based on driving and dependence power to assist in strategic decision making.
Practical Implication: The policy makers and entrepreneurs can use the results of the study for operational and tactical planning for overall growth of respective enterprises depending upon the hierarchy and classification of factors.
Original Contribution: This study presented extensive literature review and industrial and academic perspective of experts for factors affecting technology adoption by MSMEs in India. These findings were cemented with statistical approach with integrated ISM-MICMAC analysis.