The Impact and Factors Affecting Information and Communication Technology Adoption in Small and Medium-Sized Enterprises: A Perspective from Pakistan

Abstract

SMEs are one of the main contributors to job creation and GDP. To ensure the sustainability of their business and meet market needs, the owner-managers these days, switch the functioning of SMEs from traditional to latest technological frameworks. However, even after adoption, local SMEs are still not fully able to exploit and reap the benefits of information and communication technologies (ICTs). To understand this issue, this research focuses on two research objectives. First, it highlights the impact of ICT usage on SMEs. And, second, it tries to identify different factors that affect the ICTs adoption in SMEs. Main contribution of this research is that it extends the Technology Acceptance Model (TAM) on two antecedents of Perceived Usefulness (PU) and Perceived Ease of Use (PEOU) as a theoretical framework. For this research, qualitative interviews were conducted from ten (10) owner-managers of SMEs in Pakistan. A careful thematic analysis of interview data reveals the emergence of five different themes: the impact of ICT usage on SMEs, cultural decisions, factors affecting the adoption of ICT in SMEs, entrepreneurial characteristics of owner-managers, and the role of governments and institutional support leading to successful adoption of ICT in SMEs. Findings of this study have significance for SME’s owner-managers, government bodies, and relevant business authorities who wish to address issues pertaining to the adoption and increase in ICT usage among SMEs in Pakistan.