Receptivity of India's small and medium-sized enterprises to information system adoption

Abstract

This study surveys the receptivity of India's small and medium-sized enterprises (SMEs) to the adoption of information systems (IS). Utilising a portion of Rogers' model of innovation diffusion as the framework, and treating IS as a form of new innovation, this study analyses factors affecting IS diffusion. A multiple regression analysis is carried out, with the five attributes of innovation highlighted by Rogers, to determine the attributes that affect the willingness to adopt. Out of the five factors affecting the adoption of IS by SMEs, only relative advantage, compatibility and trialability appear significant, with the overall regression explaining around 39% of willingness to adopt.

Keywords:

• industrial applications
• inter- and intra-organisational information systems
• strategic information systems
• business information integration
• electronic business (e-business)

Acknowledgements

The author thanks the anonymous referees for their helpful and constructive comments. This paper was produced during the research project sponsored by the University Grants Commission, New Delhi, under grant number F.No./32-75/2006(SR).