The Impact of ICT Adoption on the Organizational Performance of SMEs

Abstract

Information and Communication Technology (ICT) is a wide word that encompasses all computing, data management, telecommunications, and Internet-based technologies and services. All of these technologies are related to data transmitters and receivers in some way. ICT pervades all aspects of life; allowing individuals to interact, networking, seeking assistance, accessing information, and learning new, better, and faster ways. As a result, the purpose of this research is to explain how ICT adoption influences the organizational performance of SMEs in Matara district, Sri Lanka. This study investigates the impact of ICT adoption on organizational performance using four components described in the literature and applied to numerous theories, including the E-Value model and the Resource Base View (RBV) Theory. In this study authors have used Technological competency, management belief, regulatory backing, and pressure intensity to measure ICT adoption (Independent variable) while organizational performance of SMEs used as the dependent variable. The study adopted quantitative approach using 150 businesses in the Matara district. The collected data analyzed through SPSS 25 version. Moreover, the findings of this study revealed that there was a significant positive impact on ICT adoption on organizational performance. This study offers practical implications as, government, entrepreneurs and marketing managers to identify what type of things should be developed for SME’s Organizational Performance in Sri Lanka. Further, government should take actions such as providing training programs for SME’s owners about ICT as it is useful to survive within this VUCA environment.