Factors Affecting SMEs Emerging Technologies Adoption in Developing Countries: A Literature Review

In South Africa, small, medium, and micro enterprises (SMMEs) have been recognized as the critical driving force to alleviate some economic challenges that the country faces. The challenges, such as the alleviation of poverty and the unemployment rate, can be addressed by policies that encourage SMME developments and sustainability. The historical background of SMMEs in South Africa has left them operating in various locations, such as cities and townships. There is a growing concern of the lack of information and communications technology (ICT) adoption by SMMEs, in particular those operating in townships. The aim of this study was to develop an ICT adoption framework using the sustainability livelihood framework (SLF) to encourage ICT adoption and improve the livelihood of township SMMEs. This study used the sustainable livelihood framework (SLF) to explore the broader socio-economic contents of the township SMMEs on human, social, financial, and physical and natural resource-based assets that enable the poor to enhance their capabilities and reduce their vulnerabilities. This study deployed a qualitative exploratory research. A sample of 21 SMME owners/managers operating in Soweto was used, and data were collected using in-depth interviews and observations. The study revealed township SMMEs are complex and dynamic and need various interventions in order for them to be sustainable. The SLF for township SMMEs can be used as a guideline for SMME owners/managers and policy makers when formulating ICT adoption policy.

PurposeThe purpose of this paper is to examine the driving forces, challenges benefits, barriers and strategies to decrease barriers to information and communication technologies (ICTs) adoption and assimilation by small‐ and medium‐sized enterprises (SMEs) in this era of globalization.Design/methodology/approachThe paper is based on a review of literature, both online and print.FindingsThe paper concludes that, ICTs adoption and assimilation in SMEs is critical to enhance their competitiveness. In addition, ICTs usage in SMEs will enhance accessibility into the international markets.Research limitations/implicationsThe major limitation of this paper is that it only reviews relevant literature and that empirical findings are not obtained to give an insight and holistic view of ICTs adoption and assimilation by SMEs.Practical implicationsEffective use of ICTs in SMEs has great impact on its competitiveness and sustainability. In addition, owners/owner managers, policy makers and other stakeholders would be in a position to understand the challenges faced by SMEs in ICTs adoption and come up with various interventions to assist SMEs.Originality/valueDespite the challenges faced by SMEs on ICTs adoption, SMEs stand to benefit from adopting ICTs in their business processes especially in accessing international markets. SMEs play a great role in the economy and thus need special attention.

Digital development for a progressive networked society

Information technology (IT) has impacted firms in different industries. IT adoption is just as impactful for small and medium enterprises (SMEs). Despite the number of studies investigating outcomes and IT adoption, there is a lack of consensus regarding the most relevant factors associated with IT adoption by SMEs (e.g. drivers and IT adoption). The study investigates the main antecedents, outcomes, and moderators of IT adoption by SMEs. A meta-analysis was conducted, integrating the findings from 59 studies. Data were analyzed by integrating meta-analysis and regression approach (MASEM). The results showed that the dimensions of TAM (usefulness and ease of use) and perceived compatibility have the strongest correlations among the nine antecedents. The findings indicated that resources and market turbulence were the main predictors of IT adoption in SMEs when testing only the direct relationships (MASEM). IT adoption significantly impacted outcomes, and SMEs from countries with low uncertainty avoidance presented stronger effects of IT adoption on firm outcomes. This research contributes to the literature by (i) addressing prior studies’ conflicts about antecedents and outcomes of SMEs IT adoption, (ii) integrating different theoretical approaches, and (iii) generating insights for managers and public policy institutions responsible for the survival and development of SMEs.

Information systems research lacks a validated scale for assessing and measuring the adoption of information and communication technologies (ICTs) by small- and medium-sized enterprises (SMEs). The relevant literature is limited in studies mainly concentrating on developing country settings. Furthermore, the emergence of new technological elements and increasing digitalization and digital transformation efforts in the last two years have changed how an organization utilizes and adopts ICTs. Therefore, it is inevitable that the conceptual dimensions proposed in the previous literature and the definitions of these dimensions will also alter. Hence, it is essential to revisit and validate the prior work and enhance it based on current vitality and developments. This study developed and validated a scale for measuring ICT adoption and digitalization for SMEs in a developing country context. The researchers followed an eight-step scale development procedure: (1) comprehensive literature review on ICT adoption and digitalization; (2) identification of dimensions of the level of ICT adoption and digitalization; (3) generation of items; (4) item refinement through focus group; (5) pretest of the measurement; (6) scale purification; (7) data collection; and (8) measurement evaluation. Within the Turkish setting, the ICT adoption scale was determined to have sufficient reliability and validity. Data for this study were gathered from 421 respondents of 219 Turkish SMEs. Supporting the multidimensionality of ICT adoption, 14 items and five dimensions (communication, internal integration, integration with customers, interorganizational integration, and strategic integration) constituted the ICT adoption construct. Considering the dominance of conceptual frameworks that were proposed based on developed countries and the prevalence of unidimensional constructs in the field, the developed multidimensional scale is expected to contribute significantly. Practitioners and policymakers can utilize the suggested scale to discover areas where specific changes are required for the digital transformation in SME utilization efforts that need attention. The outcomes can be applied to industrial sectors and different geographic contexts. By considering stage-based integration, the developed scale can also be used in future studies to investigate the effects of different variables on the extent of ICT adoption and the impact of ICTs on several organizational outcomes.

This paper deals with the factors affecting an adoption of information technology (IT) in micro, small and medium enterprises (SMEs) within the transition economies of the Czech–Polish region. The basic determinants of IT adoption which were identified include data sources, the use of function modules in information systems, the required IT properties and the way IT operations are implemented. The results of the questionnaire survey carried out in 2012 are evaluated by the asymmetric dependence testing and estimation of ordinal regression models. The paper describes the impact of selected determinants on IT adoption. The analysis results show a different effect of determinants in relation to the size of an economic entity (individual SME segments). When we are aware of the importance of these indicators, it can help us to improve the understanding, monitoring and support of the further development of IT adoption in SMEs as an important condition for the successful economy transformation.

Guidelines for the Successful Adoption of Information Technology in Small and Medium Enterprises

Information and Communication Technology (ICT) has emerged as a crucial determinant in business transformation, particularly for Micro, Small, and Medium Enterprises (MSMEs). This research aims to delve deeply into how the implementation of ICT in MSMEs contributes to enhancing their competitiveness. The research method employed is descriptive analysis with a qualitative approach, where data were collected through interviews with MSME owners who have implemented information technology in their operations.The results indicate that the integration of ICT has provided significant positive impacts on MSMEs. One of the key benefits is the enhancement of operational efficiency, where the use of information systems has expedited business processes and reduced operational costs. Additionally, MSMEs that adopt information technology also have broader market access through online platforms and social media, thereby enhancing sales potential and business growth. However, the implementation of ICT in MSMEs also faces several challenges, such as high implementation costs, limited access to infrastructure, and concerns about data security. Therefore, strong support from the government, non-governmental organizations, and the private sector is needed to provide training, technical assistance, and necessary infrastructure for MSMEs to harness the full potential of ICT.

The purpose of this study is to review the literature on the relationship between information and communication technology (ICT), small and medium enterprises (SMEs) and poverty reduction. The first dimension looks at the role of ICT use in SMEs. The second dimension investigates how the use of ICTs by SMEs can enable poverty reduction. A systematic literature review methodology is rigorously employed to analyse the literature in order to reach conclusions. In addition, this study meticulously captures some important gaps in the current literature and proposes novel future directions of research. This paper concludes that ICTs can be used as a tool for driving socio-economic development, such as poverty reduction, by SMEs. A systematic literature review on the interaction between ICT use by SMEs and poverty reduction, as conducted in this study, has not been undertaken before. This study will benefit scholars, business owners, government and non-government agencies that focus on the development of the SME sector to understand the role of ICT use in SMEs to enable development and poverty reduction. Copyright © 2016 John Wiley & Sons, Ltd.

Entrepreneurship is crucial to raising the standard of living and promoting the development of the economy. Small and medium-sized enterprises are recognized as solutions for economic growth, modernization, job creation, and income generation. The focus of this study is on how SMEs can contribute to job creation and economic growth in Somalia. This study uses a descriptive research design and a quantitative approach to gain insight into variables. A sample size of 201 participants was chosen and determined using a method of purposive or judgmental sampling. The researcher developed the questionnaire as a data collection tool which was collected using a Google forms Survey program, then edited, collated and tabulated using SPSS -statistical computer software- Version 22 and Excel 2010. Finally researchers corrected certain mistakes and anomalies to improve validity and reliability. Our study found that lack of funding, poor management skills and certain government policies are key barriers for small and medium-sized enterprises in Somalia. Our study also indicated that countries’ poor policies on imported products, humanitarian aid and unregulated competition have a negative effect on developing small and medium enterprises in the region. In this study concluded that providing access to finance through banks and large companies, giving enough knowledge and skills and introducing effective policies for the growth of small and medium enterprises by the government will enhance small and medium enterprises in Somalia.

Technology management plays a crucial role in enhancing the competitive advantage of Micro, Small, and Medium Enterprises (MSMEs), particularly in the evolving digital economy. In Davao Oriental, where MSMEs account for 99.67% of registered businesses, effective technology adoption is essential for ensuring business sustainability and growth. This paper explores the role of technology management in improving MSME competitiveness by examining key areas such as technological innovation, adoption strategies, market positioning, and challenges in implementation. This highlights the significance of government initiatives, including the Shared Service Facility (SSF) and the Small Enterprise Technology Upgrading Program (SETUP), in promoting technology adoption among MSMEs. It discusses technology-driven strategies that enable MSMEs to enhance operational efficiency, reduce costs, and expand market reach. Additionally, it identifies financial constraints, digital literacy gaps, and organizational resistance as barriers to technology adoption. Emerging trends, such as artificial intelligence (AI), the Internet of Things (IoT), and blockchain technology, present new opportunities for MSMEs to strengthen their market positioning. This concludes that overcoming technological barriers through strategic planning, capacity-building programs, and policy support can significantly enhance MSME resilience and sustainability. By leveraging digital transformation and innovation, MSMEs in Davao Oriental can remain competitive and contribute to long-term economic growth.

Introduction/Main Objectives: This study regularly examines the role of digital literacy in empowering MSMEs by exploring its impact on business performance, innovation, and sustainability. Background Problems: State the problem or economic/business phenomena studied in this paper and specify the research question(s) in one sentence. Novelty: Using a systematic literature review approach, this research identifies key challenges and opportunities MSMEs face in adopting digital technologies. Research Methods: Micro, Small, and Medium Enterprises (MSMEs) play a vital role in fostering economic growth at both global and local levels. In many countries, MSMEs significantly contribute to job creation, Gross Domestic Product (GDP) growth, and poverty reduction. However, despite their significant contributions, MSMEs often need help with structural and operational challenges that hinder their growth and competitiveness, particularly in the increasingly competitive digital era. Finding/Results: Digital transformation offers substantial opportunities for MSMEs to enhance their operational efficiency, access broader markets, and increase productivity. Nevertheless, one of the primary obstacles to adopting digital technologies is the low level of digital literacy among MSME actors. Digital literacy, encompassing the ability to understand, use, and effectively leverage digital technologies, is a critical factor in the success of MSMEs in this era. Conclusion: Furthermore, the study highlights the importance of digital literacy training and supportive policies to bridge the digital gap and enhance MSME competitiveness in the digital economy. The findings provide insights and recommendations for policymakers and practitioners to develop strategies that support digital literacy development and empower MSMEs to thrive in the dynamic digital era.

This study aims to analyze the effect of digital literacy and e-commerce utilization on the performance of Micro, Small and Medium Enterprises (MSMEs) in Batam City. Digital literacy is an individual's ability to understand, manage, and utilize information technology effectively in supporting business activities. On the other hand, e-commerce has become a strategic tool that helps MSMEs reach a wider market, improve operational efficiency, and strengthen competitiveness. This research is motivated by the rapid development of technology and the need for MSMEs to adapt to the digital era. The object of this research is MSMEs in Batam city with a sample size of 71 MSMEs. The research data were obtained with the help of questionnaire distribution. The data is processed using the SPSS application. The results of the study are partially digital literacy and ecommerce utilization have a significant effect on MSME performance. Simultaneously, digital literacy and e-commerce utilization have a significant effect on the performance of MSMEs in Batam city. From the results of this study, it is hoped that MSME players can adopt digital in an effort to increase the benefits obtained.

The substance of this study is to investigate the efficient and effective utilization of intangible resources by Christian entrepreneurs in Ambon city as a determinant of the performance of Small and Medium Enterprises (SMEs). The purpose of this study, (1) To test the direct influence of spiritual intelligence on manejerial skills of Christian entrepreneurs in Ambon City. (2) To test the direct influence of emotional intelligence on manejerial skills of Christian entrepreneurs in Ambon City. (3) Testing the direct influence of entrepreneurial manejerial skills on SME's performance. (4) Examine the direct influence of spiritual intelligence on the performance of SMEs. (5) Examine the direct influence of emotional intelligence on the performance of SMEs. (6) Examining the influence of spiritual intelligence on SMEs performance through entrepreneurial manejerial skills. (7) Examine the effect of emotional intelligence on SME performance through entrepreneurial manejerial skills. The result using Path Analysis resulted (1) Spiritual intelligence proved to have direct positive and significant direct effect to the managerial skill of Christian entrepreneur in Ambon City. (2) Spiritual intelligence proved to have direct positive and significant direct impact on the performance of SMEs of Christian entrepreneurs in Ambon City. (3) Spiritual intelligence proved to positively indirectly affect the performance of SMEs of Christian entrepreneurs in Ambon City through managerial skills (although not dominant influences). (4) Emotional intelligence proved to have direct positive and significant direct impact on the managerial skills of Christian entrepreneurs in Ambon City. (5) Emotional intelligence proved to have a direct positive and direct significant impact on the performance of SMEs of Christian entrepreneurs in Ambon City. (6) Emotional intelligence proved to positively indirectly affect the performance of SMEs of Christian entrepreneurs in Ambon City through managerial skills (although not dominant influences). (7) Managerial skill has proved directly and directly positive to the performance of SMEs of Christian entrepreneurs in Ambon City. Keywords: Spiritual intelligence, emotional intelligence, manejerial skills, SME performance.

Objective: This study analyzes the impact of Information and Communication Technologies (ICT) on the operational efficiency of Chilean Small and Medium Enterprises (SMEs), aiming to identify the most relevant digital tools to support their development and guide public policy. Method: We used microdata from the Fifth Longitudinal Survey of Enterprises (ELE5). An ANOVA was applied to assess differences in ICT adoption across economic sectors, and a factorial analysis was conducted to identify the most influential technological dimensions. Results: Four key ICT dimensions—transactional, informational, infrastructure, and strategic—were found to significantly influence SME operations. The results highlight that ICT adoption varies notably across sectors, suggesting that its impact is not uniform. Limitations: The analysis relies on cross-sectional data from 2017, limiting causal interpretations and excluding post-pandemic digital developments. Furthermore, binary variables reduce the granularity of technological usage assessment. Main findings: ICTs play a strategic role in enhancing the operational efficiency of SMEs in Chile. The study provides empirical evidence to inform policy design aligned with the Digital Agenda 2030, offering a valuable baseline for future research and decision-making in emerging economies.