Impact of Technology Adoption on the Performance of Small and Medium Enterprises in India

Abstract

Technological innovation is believed to improve organization’s performance stimulates growth and the survival of the organization. Many factors influence the SME performance on technology adoption, such as formal strategy, Organization size, customer and supply relationship, technical capabilities, innovative cost and innovative support. The current study examines the performance of SMEs on technology adoption. It also examines the business performance along with the manufacturing performance of SMEs on adoption of newer technologies. The study uses logistic regression and linear regression to estimate manufacturing and business performance of SMEs. The results convey that the adoption of technologies by SMEs influence their manufacturing performance. Further, it can be concluded that, drivers of technology adoption partly influence the business performance of SMEs.