Small- and medium-sized enterprises constitute an integral segment of a nation’s economy, and the technological innovations can significantly increase their productivity along with optimizing their financial and operational performance. Optimism, insecurity, and innovations are Technology Readiness Index Factors which offers an illustration of the trends of technology adoption. Technology Acceptance Model illuminates different factors such as perceived ease of use and perceived usefulness of technology. This study employed Technology Readiness Index factors and Technology Acceptance Model to investigate the trend of technology acceptance and adoption in SMEs of Pakistan. The participants of this study are 200 people associated with small- and medium-sized enterprise in Multan. This study used to survey for the collection of data related to 11 variables included in the research model. The study found that optimism, perceived ease of use, perceived usefulness, competitors’ pressure, technological support, and actual use of technology are positively associated with the intention towards technology adoption in SMEs operating in different industries of Pakistan. The insecurity towards technology implementation and discomfort has a negative association with the intention to implement technology by the SMEs. The increase in the actual use of technology and its positive outcomes for the businesses is increasing the tendency of SMEs towards technology adoption. Similarly, the enterprises that are actively adopting the technology are experiencing the high prospects of the sustainable development.
The world is progressing with leaps and bounds using the technological innovations that provide sophistication as well as innovation in the workability of the operations of any business or organization. However, in order to integrate the technologysuccessfully that can benefit the business operations, effective insight, as well as research, is required in order to integrate the processes. One of the pertaining issues in the small and medium scale enterprises in Pakistan is the lack of communication regarding the use of software as well as the lack of technological awareness and knowledge, which leads to the decline in the efficiency that can be achieved with the use of technology in Pakistani market. The lack of proper integration due to ineffectiveness regarding the learning of the technological use makes it difficult for the SMEs to produce effective results, which leads to the low production of the entire sector(Pool, Asian, Arabzad, Jamkhaneh, & Lashaki, 2017). Although, financial access, effective employee pool, as well as government support, has been the contributing factors in the sector. Still, the lack of technological orientation of the work practices makes it difficult for the feasibility of the technological innovation in SMEs(Kurnia, Choudrie, Mahbubur, & Alzougool, 2015).
In addition to the pertaining issues in the use of technology in small and medium enterprises, the education of the generation that is setting the business in the sector is one of the major factors that contribute to the health of the business of SMEs. The researches made indicate that other factors such as the number of partners in the business also affect the progress of the businesses. This is due to the lack of technological background. This is due to lack of technological background as the generations are ignorant of achieving higher education. Moreover, the lack of technical knowledge leads to the ineffectiveness of the innovation implemented. Furthermore, people that are responsible for managing the tasks for such organizations often take advantage of their negligence, which not only leaves the SMEs incompetent with regards to innovation but also depletes their capital due to inappropriate technical operations by the technicians hired by the company(Martínez-Román & Romero, 2017).
With the sophistication in the methods of using technological innovations, the organizations and the businesses have grown more competitive. However, the lack of engineering orientation, as well as the vision of the company about the implementation of technology for long-term benefits, is one of the critical factors that is influencing the growth of SMEs in Pakistan. The organizations that keen on using traditional methods are unable to produce effective output. Moreover, those companies that have selected technological improvement are unable to produce the required output due to lack of focus onthe education of the use of instruments. In addition, the organization’s management is ineffective with the grooming of the workforce, as they are keen on increasing their benefit without paying the employees incentives in exchange for their efforts(Seethamraju, 2015). As a result, the workforce itself does not seek to innovate their business proceedings as well as show ignorance towards the technical growth, which affects the overall performance of the small enterprises in the country.
The lack of technological knowledge makes it difficult to implement the e-business strategies that can help improve the effectiveness of the business. Most of the users of technological innovation are unaware of the specifications of the internet. This makes it difficult to utilize the internet resources for achieving competency.
Another study indicated that the Pakistani business owners are slightly above average with only 46% of 86% e-commerce business users to be able to generate effective results by using internet facilities. In addition, the study of the cultural management, as well as employee training, was made which provided the results that 59% of the Organization had either in-house management or vendor supported management. In most cases, the organization use vendor management to develop the effectiveness of the internet connected system that can support their e-commerce. Moreover, the organization depends entirely on the performance of the vendors due to lack in the technological knowledge. 67% of the organization were observed to have an organization homepage, which allowed the users to effectively search and connect with the company. The search results also indicated that the government awareness program with respect to the implementation of e-commerce techniques as well as the adoption of such methods for achieving long-term benefits by the organization are important factors that can elevate the business proficiency(Abebe, 2014).
In addition to the knowledge of technological knowledge regarding the development of e-commerce financial management as well as the presence of the competition in the industry makes it harder for the existing organization to risk their performance for gaining a technological edge over its rivals. The companies are reluctant to innovate their processes technically, as they lack proficient knowledge regarding the applications of this improvement. Moreover, the risk of integration of the technology with the existing components as well as time and resources that will be consumed during the process are such elements that the administration of the companies need to regulate in order to successfully implement technological innovations. If such risks are not assessed the organization might face failure. This risk is highly dependent on the judgement of the administration. If the admission is reluctant towards the application of technology, then the entire process will be put at risk. According to the studies, only 56% of the admission of the organization is Keen to innovate themselves technologically in order to increase their growth. However, the same organization is reluctant in achieving the competency by gaining knowledge regarding the innovation, which leads to the use of vendors for managing their tasks. Whenever any issue occurs, the companies are unable to resolve it by themselves and are dependent on the evaluation provided by the vendors. This makes the entire management processes impractical as well as difficult to sustain that can provide competent results(Yeboah-Boateng & Essandoh, 2014).
In addition to the use of technology, the development of entrepreneurship can also increase the effectivity of the technological dynamics. The better understanding of the technological knowledge by the educated generation can allow sophistication in the technological innovation, which can increase the overall performance for the entire organization as well as allow the employees to gain significant insight regarding the applications of new technology (Khan, 2016).
The increase in the implementation of the digital technology in the business sector of the Pakistani small and medium scale industries will allow generation of exceptional revenues that can help elevate the economic growth. The estimation of the McKinsey Global Institute regarding the effects of digitization of the Pakistani business industry illustrates that the application of such innovations will lead to the potential increase of $36 billion to the country’s GDP as well as generates 4 million jobs by 2025, which are enough to sustain the growth of the country from economic point. Moreover, the estimates show that such innovations have already been implemented in India, which has allowed the country to gain 10% growth in their digitally integrated SMEs, strengthening their economy (Razi, 2017). In addition to the growth that will be enabled with the application of the digital processes, the organizations will be able to generate larger customer bases as well as enhanced revenues with the ability to reap increased profits fromthe production processes that have been elevated due to the digital integration of the technology. Moreover, the improvement in the efficiency of the processes allows the SMEs to positively influence the workability of the organizations towards the goals and objectives of the organization, which reduced the consumption of the resources as well as the time required for effective management. Moreover, the Pakistani market is becoming saturated with the increase in the cell phone usage as well as growth in the market. The increase in the demands of cell phones has increased the market demand to more than 50%, illustrating the rapid increase in the consumption of the cell phones. With the implementation of the technological innovations as well as the integration of the business processes with the cell phone technology, the streamline of smooth processes can help increase the overall efficiency of the business processes as well as help innovate the communication between the working entities in the organization. It shows that incompetency about understanding of latest technology would result decrease in overall growth rate of small enterprises SMEs.
The technology readiness index measures the workability of the organizations that are concerned with the assessment of the technologicalinnovations that can be implemented within the organization to increase the overall innovation within the organizations. The index developed by the Information Technology Groupallows the assessment of the influence that has been made by the use of technology in an organization, given the current situation of the pertaining market, political, regulatory and infrastructure of the market in which the organization is currently prevailing. The key components of the technology readiness index include optimism vies of the customers regarding the technology, the innovation based on technology implementation, discomfort regarding the application and insecurity regarding the workability of the technology being used. This also includes the stakeholders as well as the usage of the information and communication technology by the participating entities of the organization for measuring its effects on the performance of the organization(Tzokas, Kim, Akbar, & Al-Dajani, 2015).
The requirement of the efficiency in the growth of the small and medium scale industries can be related to the technology acceptance model. The model is focused on the ability of the organizational entities to accept the use of technological innovations that can help increase the productiveness in the current working components of the organization. Moreover, the model focuses on the two core elements that are necessary to be assessed in the order to effectively integrate the usefulness of the model towards the productiveness and the growth of the organization. The perceived usefulness factor of the model is based on the idea of the stakeholders and the administration of the organization to perceive the idea of the usefulness of the model applications that can help improve the overall competency of the organization’s workability. Moreover, the perceived ease of use or PEOU is based on the degree of the belief of the participating entities regarding the efforts that are required in the application of the technology. The current situation of the Pakistani SMEs is based on the communication between the resources as well as the working attitudes of the employees within the organizations. Moreover, studies indicated that the adoption of the IT infrastructure and the relative ease of use as well as the training of the employees are the pertaining factors that are required to be integrated with the use of technological innovation within the small and medium organizations(Prange & Pinho, 2017).
The increase in the expansion of the small and medium scale industries in Pakistan are a viable source of employment for the young generation in the country. However, the manufacturing process is still based on the traditional methods of working that include high intensive labour employment with low automation and the inability of the labours to work independently due to lack of skills that can be achieved through training. Moreover, this lack of skills increases the defects in the products, which reduced the efficiency of the sales that generate revenues. In addition, the skilled labour is employed for the production factories that are working for the international brands including the Sialkot sports industries that are producing international level sports goods (Méndez, Parasuraman, & Papadopoulos, 2017). The products produced in the area are beneficial for gaining global chains. However, this deprives the country of its own products and labour, which can be used to enhance the productivity in such sectors. Moreover, the organizations that are managing the sector including Small Medium Enterprise Development Authority (SMEDA) is focused on providing such organizations with the technological assistance that is required to improve their workability as well as increase the efficiency in the production processes, which can elevate the overall sustainability of the organizations. The Technology Upgradation and Skill Development Company (Tusdec) is concerned with the acceleration of the technological innovation in the processes of the SMEs in order to increase the value addition as well as add to the productivity of the manufacturing sectors that can elevate their performance as well as business proficiency. This can be achieved with the applications of technology, which not only help improve the overall performance of the entire sector but also gain excessive advantage over the rivaling countries including Thailand, Bangladesh and Vietnam that are focused to improve the technological innovations in their small and medium enterprises to support the growth of their economy (Munir, 2016).
The intention of the acceptance of technological factors is highly necessary for the implementation of processes of e-learning. As explained earlier, the lack of technological knowledge in the generation creating new businesses allows the organizations to be ineffective in their growth of using technological effectiveness that can increase the productivity of the business processes. Moreover, the companies are also reluctant towards the training of the employees regarding the technological use, which makes it difficult for the management to produce the efficiency that can be achieved with the implementation of the modern working techniques. In addition, the focus on the e-learning of the processes from early age as well as awareness programs that can help improve the business processes can aid to the integration of the technological ventures with the existing components of the business can be elevated with regards to performance for creating substantial growth (Shah, Bhatti, Iftikhar, Qureshi, & Zaman, 2013).
Studies indicate that the implementation of technological amendments is related to the human workforce, capital structure of the organization social capital and the customer capital regarding the organization workability. These factors are required to be assessed in order to reach the conclusion for implementing the technological use for the processes of the company. Moreover, such factors are required to be assessed as they affect the administration’s intention for implementing the technological changes that can help elevate the performance. In addition, the changes in the financial capital of the organization as well as the future growth possibilities of the company can also affect the decision for implementing the technological changes, which are necessary to be used in order to create efficiency in the business processes of the company for sustainability (Ullah, Aziz, & Yousaf, 2016). In addition, owing to the weak technological awareness as well as nature of the production and the training of the employees with regards to the applications of the technology are some of the factors that can deplete as well as improve the performance of the small and medium scale organizations, which the administration needs to monitor in order to create efficiency in the processes. Furthermore, the lack of well-placed market, as well as ineffective structures,make it difficult for the small and medium enterprises to implement innovation particularly technological that can enhance the productivity of the organizations. The ineffective structures of the market make its incompetent to create opportunities for growth in the market as well as introduce innovation in the working processes that can create efficiency in the output for the company. Moreover, the smaller industries do not operate under technological operations intensively as well as being reluctant towards its application as they are more focused on using the traditional methods of production that seem accurate from their perception. This makes it difficult for them to elevate their business proficiency. Moreover, as explained earlier, the lack of technological awareness is one of the pertaining factors that the organizations are unable to improve the business competency, even with the application of the innovations in the business processes(Nguyen, Newby, & Macaulay, 2015). In addition to lack of advancement in the knowledge of the technological use, the pressure of the competitors in the market is another potential factor that is the cause of incompetent innovation in the processes.
The small and medium scale enterprises are important with regards to the affectivity in the growth of the economy of the country.The SMEs can contribute to the GDP of the country as they can balance the flow of the wealth of the country. In addition, the small-scale industries are able to create employment chances that can increase the efficiency of the per capita income. In addition, the small enterprises can also introduce innovation in the processes by identifying the errors and the organizational processes in the established organizations. However, the SMEs face difficulties regarding the improvement in the applications of technology. Hassan, Iqbal, Malik, & Ahmad (2018) focus on the idea of integrating the technological innovations within the processes of the SMEs to induce effectivity (Hassan, Iqbal, Malik, & Ahmad, 2018). The study will aim to evaluate the effectiveness of the technological implementations on the workability of the small and medium enterprises in the Pakistani industry. In addition, the research will aim to assess the influence of the adoption intention of the administration to use such innovations as well as estimation of the technological adoption via technology readiness index and technology acceptance model.
The research has the following objectives:
The research will address the following research questions:
1-Does the Technology Readiness Index Factor influence the intentional proceedings of the small and medium scale enterprises in Pakistan?
2-Has a relationship been observed between the Technology Acceptance Model and its factors on the intention of using technology for business elevation by SMEs in Pakistan?
3- Is there any influence of Competitors’ Pressure and Technological Support on the Intention to adopt technology by Pakistani SMEs?
4-Is their significance in the relationship of the intention of the Pakistani SMEs’ administration to adopt and use technological innovation?
5-Is there a significant relationship between the actual use of technology for sustainability of SMEs in Pakistan?
The objectives and the questions designed will provide the following hypothesis:
H1. Optimism is positively associated with the intention of SMEs towards technology adoption in Pakistan.
H2. Innovativeness is positively associated with the intention of SMEs towards technology adoption in Pakistan.
H3. Insecurity is negatively associated with the intention of SMEs towards technology adoption in Pakistan.
H4. Discomfort is negatively associated with the intention of SMEs towards technology adoption in Pakistan.
H5. Perceived ease of use is positively associated with the intention of SMEs towards technology adoption in Pakistan.
H6. Perceived usefulness is positively associated with the intention of SMEs towards technology adoption in Pakistan.
H7. Competitors’ pressure is positively associated with the intention of SMEs towards technology adoption in Pakistan.
H8. Technological support is positively associated with the intention of SMEs towards technology adoption in Pakistan.
H9. Intention of SMEs towards the adoption of technology is positively associated with the actual use of technology by Pakistani SMEs.
H10.Actual use of technology is positively associated with the sustainabilityby Pakistani SMEs.
The following research model has been developed to assist in the research in order to achieve the research objectives as well as address the research questions.
The research model illustrates the relation of the factors pertaining discussion with the intention of the SMEs in Pakistan to implement technological innovations in their workability to ensure their actual use as well as utilize the technology for sustainability.
Chapter 2: a literature review
Chapter 3: Research methodology
Chapter 4: analysis
Chapter 5 Conclusion
For evaluating the technology acceptance and intention to incorporate the latest technology among the SMEs of Pakistan comprehensive literature review has been conducted.
Shabir&Lussier (2016) have investigated the factors which can impact the SEMs in Pakistan and either become the reason for its success or failure. The author has collected the data from 143 small businesses of Pakistan and the implemented Lussier Model on them. The results have suggested the factors like prior proper planning, qualified staff, partnership and adequate capital flow are some of the crucial factors. The author has suggested that Lussier Model can be used by Pakistani SMEs for improving their success chances because this is from one of the most famous models which is used all across the globe (Shabir & Lussier, 2016). The author has failed to discuss the problems which the companies can face during the implementation of this model.
Ali, Ahmadani, Shaikh, & Shaikh(2012) have examined that what role SMEs are playing in boosting the economy of Pakistan. For this research, the author has taken an inclusive international literature study. The author has gathered the data from 50 different SMEs of Pakistan. The survey was conducted among 100 business owners and 200 workers of these organizations. The data analyzed with the help of descriptive statistics, Pearson’s product moment and paired t-test. The findings have revealed that SMEs are playing a positive role in the growth of Pakistani economy. Moreover, SMEs are beneficial for GDP and foreign exchange earnings. Furthermore, the SMEs are producing job opportunities and also playing a major contribution to the export sub-sector of the country (Ali, Ahmadani, Shaikh, & Shaikh, 2012).
Memili, Fang, Chrisman, & De Massis (2015) analyzed the role of SMEs in strengthening the economy of the country. The participation of SME consolidates the foundation of the economy. They serve as the backbone of the economy and makes a significant contribution to the gross domestic product. The study analyzed the data of over six years to analyze the impact of SMEs on the economy of the United States(Memili, Fang, Chrisman, & De Massis, 2015). Memili et al. found that the US has experienced significant growth in its economy as the result of the steady growth of SMEs.
MuhammadKhan (2015) has revealed that today all across the world SMEs are constituting above 90% of business entities. Pakistan is geographically located between Asia and Europe due to which it is an important trade route due to which SMEs are playing a huge role in the economy of Pakistan. The manufacturing industry is the main which is contributing toa high amount. While the Pharmaceutical industry is not as much important because it is not well developed. Even one-third population of the country has no access to the drug store. There is also not much-enhanced technology in the SMEs of pharmaceutical due to which the produced drugs are not of very high quality (Muhammad K. , 2015). The author has not suggested any significant strategy which can be used to improve the pharmaceutical industry of Pakistan.
Sarath&Sardana (2010) have debated that to survive in the tough competition of the market most of the SMEs are forming clusters. When these industries come together they share knowledge as well as support each other for increasing the strength. The concept of clustering can be described as to have enhanced networking, focused market, development of skills plus creativity and ambience of boosting productivity. By clustering, companies can enhance the technological innovation as well as its applications. The phenomenon of clustering is being practised in the developing country like Pakistan. The author has discussed in the paper that how clustering has helped the prosperity of SMEs in the countries like Pakistan, Sri Lanka and India (Sarath & Sardana, 2010). The authors have failed to discuss that either the concept of clustering equally beneficial for the other countries or not.
Ayandibu& Houghton (2017) investigated the significance of SMEs for local development. The growth of the economy at the regional level is crucial for the development of the overall economy. SMEs are contributing towards the generation of employment opportunities which are the major part of an economic system. The establishment of these enterprises enhances the productivity of the workforce(Ayandibu & Houghton, 2017). They maximize the capacity of economic to absorb the workforce. The cooperation between the small and large-sized enterprises optimizes the production capacity of the economy. The study found that SMEs add value to the economy of a country and contributes towards building its capacity.
Syed, Ahmad, & Fantazy (2014) have presented the comparison of supply chain strategy, performance relationship and flexibility for the SMEs of countries Canada and Pakistan. For this investigation, the author has used a quantitative approach. Primary data was collected with the help of a questionnaire from 170 SMEs of Pakistan and Canada. The findings have suggested that the Pakistani SMEs used all these three factors for enhancing the financial as well as non-financial performance. While Canadian SMEs use innovative plus customer-oriented strategies for enhancing the growth (Syed, Ahmad, & Fantazy, 2014). The author could have described the benefits of the customer-oriented approach and innovative strategies in the paper so the Pakistani SMEs owners could also understand their importance in business.
Madiha, Ahmed, & Raziq(2017) have studied that SMEs play an important role in the economic development of a country. However, in comparison to other countries, the contribution of SMEs in Pakistani economy is significantly low. This is mainly because SMEs are facing too many problems due to which they are unable to contribute to the GDP. By the help of this research, the author has highlighted that SMEs are having issues in financial, technological, human and physical aspects (Madiha, Ahmed, & Raziq, 2017). The author has failed to discuss any significant strategy which could help the SMEs in technological and innovation aspects. Furthermore, the author has described that how government can help in enhancing the growth of SMEs in the country.
Muhammad, Usman, Hussain, & Anjum (2014) have presented the comparison of entrepreneurial activities of Pakistan and China on the basis of factors like perceived opportunities, fear of failure, knowledge of other entrepreneurs and perceived capabilities. Muhammad et al. (2014) has collected the data from the global entrepreneurship monitor for the year 2010. For the analysis of data, the researcher has used sequential logistic regression model. The findings have revealed that perception of opportunities is not a significant factor for the entrepreneurs to engage in the entrepreneurialactivities while all the other factors are quite crucial. Moreover, gender is also a crucial factor for predicting the entrepreneurial activities in Pakistan (Muhammad, Usman, Hussain, & Anjum, 2014). However, the author has failed to discuss any strategy or policy which can help in overcoming these factors and encourage the concept of entrepreneurship in the society.
SMEs are making large contribution in development of Pakistani econmy and technological integration can increase its impact.
Nadeem, Qureshi, & Sajid (2010) have assessed the current quality management practices in the SMEs of Pakistan. For this research, the author has collected the data from the various different 100 SMEs via the help of e-mail surveys plus focused interviews. All these SMEs were located in northern Pakistan. The survey contained 19 techniques of quality management which were shortlisted by the help of Delphi research. The results have suggested that there is a significant knowledge gap between procedures of quality management and their implementation by SMEs owners. Most of the owners implement CRM related techniques while there is the fewer usage of statistically extensive techniques (Nadeem, Qureshi, & Sajid., 2010). Nadeemet al. has failed to describe the techniques in detail and also their usefulness for the SMEs.
Imran, Akhter, Afzal, & Zia(2010) have discussed the impact of knowledge management on the performance of the firm. The authors have collected the primary data from various different SMEs of Pakistan. While analysing the data SEM (Structural Model Equation) has been used. The findings of the research have suggested that knowledge management has a positive effect on the innovativeness as well as the performance of the SEMs (Imran, Akhter, Afzal, & Zia., 2010). This is mainly because the knowledge management is a crucial strategic resource of any organization. Yet Imranet al. has failed to discuss the importance of SEMs for the developing countries like Pakistan. Furthermore, the author has not described that how SEMs can be empowered in Pakistan and how their performance productivity and performance can be enhanced.
Ahmad, Khan, Eunice, & Akoorie(2016) have identified the barriers which restrict the growth SMEs in the SEA (South East Asia) countries like Pakistan. The author has used comparative approach and for analysing the countries such as China, India and Pakistan. The author has collected the data from Enterprise Survey Data Repository databases related to the 1443 different SMEs of these countries. On this data, the author has implemented the ordinary least-squares for analysing it statistically. The findings have revealed that foreign finance has a positive impact on the growth of SMEs of India and Pakistan while it is ineffective for China (Ahmad, Khan, Eunice, & Akoorie, 2016). Ahmad et al. has failed to provide the list of factors which could enhance the growth of SMEs in the developing countries. The author has also not mentioned the problems which the SMEs encounter over the period of time.
Arsalan, Khan, Malik, & Razzaq(2011) have suggested that the marketing is a significant tool which can increase the growth of SMEs. Although the marketing strategies vary from country to country they always work. This is the main reason that most of SMEs of Karachi, Pakistan practices the peculiar marketing technique. The data was collected from restaurant SMEs of Karachi. The findings have suggested that marketing helps in increasing the sales and acquiring new customers due to which the business prosperous (Arsalan, Khan, Malik, & Razzaq, 2011). Arsalanet al. has failed to state the research methodology and findings in an effective way. Furthermore, the author could have described some other significant market techniques which help in enhancing the business growth such as digital and social media marketing.
Jawad, Ismail, & Akhtar,(2015) have inspected the impact of market orientation on the performance of SMEs. For this research, the author has conducted a survey among 367 SMEs of Pakistan for collecting the primary data. The findings have proposed that market orientation, as well as its dimensions; have a positive impact on the performance of SMEs (Jawad, Ismail, & Akhtar, 2015). Jawad et al.has failed to discuss the role of technology in enhancing the growth of SMEs. Furthermore, the author could have discussed the crucial strategies and techniques by which the companies can enhance their performance and ultimately contribute a major portion to the economy of the country.
Kamran, Iqbal, Rehman, & Shah (2013) have investigated the issues which SMEs of Pakistan have to face in the way of progress. The author has conducted primary research with the help of a questionnaire. The data was collected from SMEs of Islamabad and Rawalpindi. After the analysis of the data, the obstaclewas ranked according to the principal component approach. The major obstacle in the growth of SMEs is financial constraints while the 2nd major problem is corruption. Moreover, training, social plus technological along with management and infrastructure are also the significant problems which companies have to deal with (Kamran, Iqbal, Rehman, & Shah, 2013). Kamran et al. has failed to state the necessary recommendations incorporated with significant techniques and procedures which can help the SMEs to overcome these problems.
Naveed& Khan (2012) have suggested that HRP (human resource practice) is playing a significant role in the growth and development of SMEs, especially in developing countries like Pakistan. The author has investigated the HR practices in Pakistani SMEs. Data is collected from 195 SMEs with the help of a structured questionnaire. Findings have purposed that although owners and managers are aware of the importance of HR practices they are only implementing a moderate level of HR practices in the company. Employee selection, development, training, performance and recruitment are the crucial HR practices in the SMEs organizations (Khan & Khan, 2012). The author has failed to discuss that how HR practices can be increased in the SMEs for gaining competitive advantage.
SMEs have lack of competent control or leadership that can affect management performance and emerged as key challenges for better performance. Sobho, Anka, & Khooharo(2010) have analyses the development of SMEs in Pakistan. SMEs are the backbone of the Pakistani economy. However, still they are facing too many problems due to which their growth constraints and ultimately they contribute a low amount in the GDP. SMEs are not only struggling in the domestic market but they also have to face challenges in showcasing the products at an international level (Sobho, Anka, & Khooharo, 2010). The major challenge there is lack of innovation in the products. Furthermore, the business organizations are deprived of latest technology due to which they miserably fail in producing the high-quality products. Soho et al. has failed to discuss the crucial strategies which could help the SMEs to improve their performance at the international level.
Azra&Zulfiqar (2011) have identified the performance as well as the structure of Pakistani manufacturing SMEs in terms of productivity plus employment. For this research, the author has collected data from 349 SMEs of Pakistan and then implemented the transcendental logarithmic cost function model on it for evaluating the true production structure of the organization(Azra & Zulfiqar, 2011). The findings have revealed that SMEs of Pakistan is based on non-homogenous, non-unitary elasticity’s and non-homothetic. Moreover, pro-SMEs guide the new entrants in terms of productivity as well as employment generation. In addition, it could be said that employment generation is possible in a densely populated country without business expansion. The author has failed to discuss the role of technology and innovation in the development, performance and growth of organizations.
NaqeebRehman (2016) has studied that SMEs face financial problems due to which they are able to do investment in the innovative products or in R&D department as well as hire well-qualified staff. The author has conducted this research by using the unbalanced panel data of Pakistani 391 SMEs. The author has suggested that SMEs can do joint ventures plus adopt network alliances inovercoming these problems. By this, the productivity plus an innovative performance of an organization can be enhanced (Naqeeb, 2016). The author has failed to discuss the role of technology in the development of the firm. Furthermore, the author has not suggested any criteria for hiring the highly qualified staff.
Alam, Iqbal, Shaukat, & Yong., (201) have explored the impact of TQM (Total Quality Management) practices on the non-financial performance of SMEs. During research, it was evaluated that the commitment of top management, supplier relationship, employee empowerment, involvement and work environment are the significant factors which can have a positiveinfluence on the performance of SMEs. All these elements are related to international standards of quality. TQM approach is mainly used for continuously enhancing the quality of goods or services. Data were collected from 60 different SMEs of Punjab province of Pakistan (Alam, Iqbal, Shaukat, & Yong., 2010). Alamet al. has failed to suggest any significant strategy which could help the SMEs in improving these factors in the company and increase the quality of their products.
Abubakar& Sameer (2015) have evaluated that how the financial restrains can impact on the small businesses. The author has collected the data from 368 SMEs of Pakistan which were listed in the cross-industrial panel over the time period of 2001-2009. For estimating the dynamic panel data model Generalized Method of Moments has been used. The findings have proposed that SEMs of Pakistan are financially constrained by the banks. But reduced bank concentration can ease the financial constraints, especially for SMEs. Moreover, the opaque organizations suffer more financial constraints than others (Abubakr & Sameer, 2015). The author has failed to suggest any strategy to the opaque organizations to deal with such kind of problem.
Salman Khan (2015) has studied that how various kind of funding sources can impact on the growth of SMEs in the developing nations such as Pakistan. The author has used the Enterprise Survey Data of Pakistani 78 SMEs firms. The data was for over 3 years such as 2002, 2007 and 2010. The findings have confirmed that banks play a significant positive role in the growth of firms. Furthermore, the informal sources had a negative impact on the growth. While policies of government also linked positively with the development of SMEs (Salman, 2015). The author has not suggested any scheme which helps the SMEs to avoid informal financial sources which inhibit the growth of the organization. The author could have described the importance of SMEs for economic growth of the country.
Tariq, Khan, & Malik(2010) have debated about the innovation in SMEs of Pakistan’s province NWFP. For this research, the author has collected data from 304 different firms and then analyzed this data. The results have unveiled that almost 50% of organizations do not have any scientist or engineers hire in the research and development department. While there were only 14% of companies which have an in-house research and development department. The author has suggested that S&T (Science and Technology) policy should be implemented in all the businesses for enhancing innovation in them (Tariq, Khan, & Malik, 2010). Tariq et al. has failed to suggest the significant strategies and techniques which can help these organizations to develop an R&D and enhance the performance of the firm.
Aqueel, Blundel, & Schaefer (2018) have investigated the factors of sustainable entrepreneurial practices in SMEs of the developing countries like Pakistan. For this research, the author has done the grounded analysis. He has used a case study approach for conducting this research. All the case studies were related to leatherworking industry of Pakistan. While for the analysis of data institutional theory has been used. The findings have suggested that coercive normative plus mimetic isomorphic pressure is the two main drivers of sustainable entrepreneurial activities in Pakistani SMEs. It is also observed that awareness among the business owners is increasing due to which they are adopting the latest technology for sustainability of business (Aqueel, Blundel, & Schaefer, 2018). Aqueel et al.has failed to discuss the problems which the company owners face in implementing the latest technology.
Naveed, Taha, Ghouri, Khan, & Ken(2013) have inspected the relationship between HRM (Human Resource Management) and SCM (Supply Chain Management) in SMEs of Pakistan. The author has collected the data from various 195 SMEs of manufacturing and service industries. For the analysis of data, the author has used Pearson’s correlation plus multiple regression model. The results have suggested that both these entities are positively linked to each other and contribute toenhancing the performance of SMEs. Furthermore, the training component of HRM contributes more to the success of SCM than any other factors. But SMEs only implement them to the moderate level (Naveed, Taha, Ghouri, Khan, & Ken, 2013). Naveed et al. has suggested the techniques by which SMEs can apply HRM policies and enhance the success of SCM which will help them in gaining the competitive advantage over the competitors which is the strength of this paper.
Nugroho, Susilo, Fajar, & Rahmawati (2017) investigated different factors which influence the readiness of enterprises towards the adoption of technology. The organizations are employing technology to enhance their competitiveness as the technology is helpful in increasing their productivity. The perceived benefits of technology are increasing which is forcing the SMEs to adopt technology for maximizing the efficiency of their business processes(Nugroho, Susilo, Fajar, & Rahmawati, 2017). Nugroho et al. found that different urgency factors such as ease of use, pressure from the stakeholders including customers and competitors, and the availability of financial resources determine the readiness of SMEs for the implementation of new technology.
Afzal, Awais, Shamail, & Abbas(2004) have investigated the extent of e-commerce adoption plus the factors which enhance the adoption of technology in SMEs of Pakistan. The researched included almost 54 SMEs of Pakistan. Findings have suggested that around 84% of firms have an internet account while more than 46% of organizations have claimed to adopt EC in their business. Factors like management support plus organizational culture, technological as well as environmental motivate the adoption of technology among SMEs. Government support is also an important factor which increases the intention of technology adoption. Moreover, some static revealed that almost 59% of firms have in-house web-servers (Afzaal, Awais, Shamail, & Abbas, 2004). Afzal et al. has failed to mention the importance of SMEs for the economic growth and development of the country. Furthermore, the author has not mentioned the role of technology in the success of SMEs.
Tasweer, Javed, & Syed(2013) have reported the factors which can impact the internationalization of Pakistani businesses. For this research, the author has done a theoretical analysis of 6 research papers. The analysis has suggested that the factors like government support, entrepreneurial relationship, research, development of the export industry and innovation are the key factors which can trigger the growth of SMEs in Pakistan (Tasweer, Javed, & Syed, 2013). Moreover, the factors like insufficient finance, lack of strong economic policies, infrastructure and research facilities constrain the growth of SMEs. The author has done only research analysis of 6 papers which seems not comprehensive for the research. The author could have done a comprehensive literature review for suggesting the factor and also prove their significance from the comprehensive literature.
Ishfaq et al. (2010) have described that CMM certification is quite attractive for the Pakistani software SMEs and they are striving to achieve it. This is mainly because the offshore outsourcing phenomenon is quite common now and with CMM certification the Pakistani firms can significantly profit from offshore customers. CMM is globally accepted criteria for measuring the capability and quality of IT firms. But the author has suggested that Pakistani technology SMEs should move first towards agile development because they are new in the field of technology (Ishfaq, Qureshi, & Abbas, 2010). The author has failed to describe the other important factors which can help SMEs grow faster and survive in the world of competition. The author could also have discussed the role of government in enhancing the growth of these firms.
Sarfraz et al. (2010) have discussed that building knowledge regions in the developing countries like Pakistan is crucial. The author has analyzed that innovation infrastructure is emerging in various metropolitan regions of the country. The author has examined the present structure and policies of innovation in the countries like Pakistan and Mexico. It is evaluated that in the start some efforts were made but their results are only limited to the industrial areas. Furthermore, there is a significant gap in innovation infrastructure development mainly due to the lack of entrepreneurial culture and scarce of resources (Sarfraz, Corona, & Doutriaux., 2010). After laying out the problems in SMEs development the author has suggested significant policies which can help in improving the current situation, which is the strength of this paper.
Awa, Ojiabo, & Emecheta (2015) employed the technology acceptance model to analyze the pattern of adoption of e-commerce by small and medium-sized enterprises. E-Commerce is a major technological advancement which facilitates the activities of small businesses. The advancements boost the growth of entrepreneurial activities which are significant for the sustainable growth of the local economy. The study found that the mission of enterprises, perceived benefits, confidence of small business owners in the benefits of adopting the technology and the quality of available technologies are the key factors of the framework which shape the intention of SMEs towards the incorporation of technology for carrying out the business operations (Awa, Ojiabo, & Emecheta, 2015).
Muhammad et al. (2011) have proposed that in the knowledge base economy it is crucial for the organizations that they evaluate, maximize as well as utilize the intellectual capital for gaining the competitive advantage. The author has investigated the effect of intellectual capital on the performance of SMEs operating in Pakistan. The questionnaire is conducted among the SMEs owners of Gujranwala and Gujrat cities. Data is analyses by the help of Pearson Correlation as well as Multiple Regression techniques. Findings have suggested that intellectual capital is positively linked to the performance of SMEs (Muhammad, et al., 2011). The author has not discussed the technology and innovation factor for the performance and development of SMEs. By discussing it the author could have increased the significance of the paper.
Muhammad Khalique (2012) has debated that intellectual capital is more important for the growth of SMEs than the physical assets. Author has argued that in this competitive environment SMEs are facing tremendous challenges for surviving in the market. The paper suggests that the organizations should try to increase intellectual capital including innovation, technological advancement, knowledge and database as well. The author has suggested these factors after comparing the SMEs of developing countries like Pakistan and Malaysia(Khalique, 2011). The author has failed to discuss that how government can help the SMEs to grow and make a greater contribution to the GDP. Furthermore, the author has not mentioned the role of a financial factor in the growth of SMEs.
Ndubisi&Iftikhar (2012) have discussed the relationship between innovation, quality performance and entrepreneurship for SMEs. For this research, the author has collected the data from 124 different SMEs of Pakistan. The data was analysed with the help of hierarchical multiple plus factor regression tools. The findings have suggested that these three factors are positively related to each other. The three dimensions; autonomy, risk-taking and risk-taking of entrepreneurship are significantly linked to the quality performance and innovation (Ndubisi & Iftikhar., 2012). These factors have the same effect on SMEs regardless of their size. The author has failed to describe the government and technology factor for the growth of SMEs.
Qazi, Mahmood, & Sattar(2014) have argued that innovations are crucial for the development and growth of the nation’s economy. The author has investigated the impact of innovation on the economic development of Pakistani SMEs over the time period of 1980 to 2013. Findings of the research have suggested that process innovations are positively linked to economic development. SMEs are contributing almost 13.3% in the overall GDP of the country(Qazi, Mahmood, & Sattar, 2014). The author has failed to discuss the role of technology in the growth and development of SMEs in Pakistani. The author could have suggested specific strategies and techniques which could help the SMEs to increase innovations.
Fazli, Shamsuddin, & Abdullah(2013) have presented the comparison between characteristics of innovative SMEs and ordinary SMEs of Pakistan. The author has used a qualitative approach to conducting this research. The author has conducted the interview with 13 owners of SMEs. While for the analysis of data the author has used Miles and Huberman (1994) technique. The findings of the research have suggested that the performance of innovative SMEs is higher than the ordinary one. Furthermore, the sales of the innovative SMEs are quite higher than the other one (Fazli, Shamsuddin, & Abdullah, 2013). The author has failed to discuss that how SMEs are contributing to the GDP of the country. The author has also not discussed the importance of the latest technology for enhancing the quality of products.
Aamer&Manarvi (2010) have unveiled that in developing countries like Pakistan economy is knowledge-based so quality measures are not sufficient for increasing the sales of SMEs. Innovation in procedures, products and services are necessary for gaining the competitive advantage in the market. The author has evaluated the dominant and lacking dimensions scorecards for SMEs. The collected data analyzed with the help of a statistical tool. The author has argued that SMEs are crucial for the economic development of Pakistan because they consist of 90% of all private enterprises and contribute almost 30% in the overall GDP of the country. Furthermore, 78% of labor is employed in these organizations(Aamer & Manarvi, 2010). The author has failed to discuss that how the performance of these organizations can be enhanced so they could contribute a higher value in the overall GDP of the country.
Muhammad, Bontis, Abdul, Shaari, & Hassan(2015) have studied the relationship between intellectual capital plus its sub-components and organizational performance of SMEs. The author has collected the data with the help of a structured questionnaire. Almost 247 SMEs owners filled the questionnaire. For the analysis of data, multiple regression testswere used. The findings have revealed that intellectual capital has a positive impact on the performance of the organization. Only one component which is human capital is ineffective for the performance (Muhammad, Bontis, Abdul, Shaari, & Hassan, 2015). The author has failed to discuss the technology factor for the growth and development of SMEs.
Hussain, Angappa, & Sohag(2007) have investigated that how AMTs (Advance Manufacturing Technologies) can be implemented in the SMEs of Pakistan. For this purpose, the author has conducted a quantitative research. The author has done a thorough literature review for evaluating the answers to the research question. While for the empirical analysis questionnaire was conducted from the SMEs of Province Sindh. Findings have revealed that there is a lack of in-house skills, engineering orientation as well as a long-term vision which is crucial for the acceptance of new technologies. Moreover, it is observed that SMEs give little or no importance to arranging educational and training classes (Hussain, Angappa, & Sohag, 2007). The companies also do not like to give incentives to employees and there is also a lack of reward scheme in the organization. However, the author has not suggested any specific criteria which can be used to overcome this problem in the SMEs.
Shahzad, Liang, & Shahzad (2014) have revealed that SMEs in Pakistan have adopted E-commerce plus E-SCM (Electronic Supply Chain Management) due to which the performance of business procedures has enhanced. For entering in the global market and enhance the competency of business the SMEs of Pakistan are adopting the latest technology. The author has investigated the benefits of e-commerce plus E-SCM for SMEs. Primary research was conducted with the help of a questionnaire from 210 SMEs located in cities like Karachi, Faisalabad and Gujranwala. Findings have suggested that the SMEs who are using e-commerce and E-SCM they are enjoying a higher level of sales than non-adopters (Shahzad, Liang, & Shahzad, 2014). Furthermore, their growth rate, delivery process and on-time order management are also effective. The author has failed to discuss the role of SMEs in economic development.
Zulfiqar, Zeng, Latif, &Memon(2017) have examined the present situation of ICT plus integration factors of ICT in SMEs of Sindh province of Pakistan. For conducting this research the author has used mix approach. The data was collected by random sampling from the business owners and managers especially from the manufacturing sector. For analysis of data, SPSS tool was used. The author has identified that the factors like finance, competition, personal decision and innovation perspective increase the intention of technology adoption in the SMEs (Zulfiqar, Zeng, Latif, & Memon, 2017). Most of the time senior management of the company handle the ICT application in an effective manner and increase the chances of growth of the organization. The author has failed to discuss the training and research and development factor for the growth of SMEs.
Ansir Rajput (2011) has explored the necessary key factors which can impact on the success of SMEs in Pakistan. The author has conducted the research with the help of a structured questionnaire. Almost 29 factors were added to the list. The questionnaire was filled by the 257 successful fast food entrepreneurs of Pakistan. The data wereanalyzed by the help of statistical tool while for the test of hypothesis stepwise as well as a linear regression tool was used. The findings have suggested that factors like culture, innovation, opportunity, environment and resources can have a significant impact on the success and profitability of the business. So, constructive synergies are needed which can ensure the availability of these factors for promotion and growth of SMEs (Ansir, 2011). The author has failed to discuss that how these factors can be ensured in a developing SME.
Qazi, Moinuddin, Ahmed, & Arshdi(2011) have investigated the relationship between innovation, entrepreneurship and dynamic capabilities. Entrepreneur’s insights, as well as foresight of ICT, tend to impact on the selected resources of their choices which ultimately lead to the various innovations. The author has done the comparison of two textile SMEs of Pakistan. The results have suggested that for doing continuous innovations it is crucial that organizations have strong leaders who have behavior and attitude of entrepreneurship, along with the ability to effectively capture the opportunities by ICT. Insight is also necessary for advocating and managing the internal resources for achieving the ICT-enabled innovations (Qazi, Moinuddin, Ahmed, & Arshdi, 2011). The author has failed to discuss the challenges which the companies can face during the process of ICT-enabled innovations.
Zulfiqar, Jianqiu, Akram, Khan, Latif&Tunio(2017) have revealed that SMEs of Pakistan are re-orienting their IT for incorporating the cloud computing in them. The author has investigated the purpose of cloud computing adoption in SMEs of Pakistan with the help of Innovation diffusion theory (IDT). A structured questionnaire was conducted among 101 participants. For the data analysis, SEM, reliability and validity tests were used. The results have suggested that factors like cost reduction, relative advantage and compatibility increase the intention of technology adoption in SMEs (Zulfiqar, et al., 2017). The author has failed to discuss that how many SMEs in Pakistan are using cloud computing and further how much intended to adopt it in the near future.
Syed Kazmi (2018) has reported that the use of ERP (Enterprise Resource Planning) is increasing in SMEs. This is mainly because it is easy to manage all the functions of business with one software. The author has analyzed the benefits of ERP for Pakistani SMEs. Results of the research have indicated that most of the SMEs in Pakistan are using SAP software. Most of the firms are getting operational benefits. Furthermore, they are able to generate reports, manage cost planning, quick and easy access to the critical information and reduce corruption with the help of ERP software packages (Kazmi, 2018).
Naeem, Shaikh, & Sarim(2017) have studied that ERP system integration is increasing in SMEs because it has the capability to handle all the functions of the business effectively. In Pakistani SMEs, this trend is also increasing because ERP enhances the overall efficiency of the organization. With the help of this research, the author has identified the key factors which are necessary for the successful implementation of ERP. For this research, the author has conducted a questionnaire from SMEs which were using ERP. The results have revealed that management support and commitment along with motivation and support are the most crucial factor for the success of ERP in the organization(Naeem, Shaikh, & Sarim., 2017).
Iftikhar, Farooq, & Akhtar(2012) have investigated the current situation of SMEs in Pakistan. Furthermore, the author has also examined that how public-private partnership can affect the SMEs development. For this purpose, the author has done a comprehensive literature review. Furthermore, a questionnaire was conducted among the SMEs owners plus managers for evaluating their developmental strategies. Results have suggested that SMEs are very necessary for the developing nations like Pakistan because they account for the 90% of organizations other than the agricultural sector. Moreover, there are problems like lack of finance, technological capabilities as well as human resource capabilities which restrain the prosperity of business but the government can be proved effective in clearing these barriers (Iftikhar, Farooq, & Akhtar, 2012). The author has failed to mention the role of SMEs in economic growth.
Javed&Herani (2011) have investigated that how financial constraints can restrict the growth of SMEs as well as undermine their liquidity and financial position. The author has used a mix method approach for conducting this research. The questionnaire was conducted among the 500 SMEs owner of Karachi, Pakistan. While formal and informal one-on-one interviews were conducted with the businessmen and bankers. The findings have suggested that the SMEs owners are forced to take a loan from the banks to fulfill their financial needs. Although there is a lot of potential for the growth of SMEs but it constraints due to a lack of government and policymakers’ support (Javed & Herani, 2011). The author could state significant recommendations for the government and policy maker which urge them to change the policies accordingly and help the SMEs to grow.
SMEs in Pakistan are going through from challenges of increasing competitiveness because of increasing local companies in different industries. Ammad& Mustafa (2017) have unveiled those SMEs sales in Pakistan are around Rs. 250 million per year. It is also observed that SMEs are contributing 40% to the GDP of the country from which around 30% comes from the exports. The noteworthy contribution is majorly from province Punjab which is 65.4% while the least contribution is from the province Baluchistan which is only 2.3%. SMEs in the big cities are providing employment opportunities to more than 90% youth. This chance helps the young generation in professional growth and their skills also improve with the time (Ammad & Mustafa, 2017). The author has failed to discuss that how SMEs can be enhanced in the provinces of Baluchistan and Sindh.
Muhammad, Obaid, She, Memon, Syed, Hussain, Irfan(2013) have argued that business intelligence is one of the best methods which can help in analyzing the critical abilities of the company but technology adoption can be difficult in the SMEs. The author has investigated the critical factors which can be the reason forthe failure of technology implementation in Pakistani and Chinese SMEs. The author has collected data from 450 SMEs owners which were selected through random sampling. The data were analyzed with the help of SPSS tool. The research has revealed that financial problems are the main issue due to which they are unable to implement it successfully. Even if it is implemented in business then they do not have the cost to manage it (Muhammad, et al., 2013).
Shima&Shirazi (2014) have inspected the factors which encourage the adoption of cloud computing in SMEs. For this research, the author has conducted the survey among 101 SMEs owners with the help of an online website. While for the analysis of data convergent, discriminant and internal validity of instrument test were performed. On the other hand, for the test of hypothesis regression logistic was used. The results have indicated that mainly knowledge of decision-maker mattered the most (Shima & Shirazi., 2014). The author has failed that how the awareness can be increased among owners.
Pathan, Zeng, Akram, Latif, Khan, Tunio(2017) have deliberated that ICT and cloud computing help in enhancing the performance of SMEs. The author has investigated the factors which influence the adoption of cloud computing among Pakistani SMEs. The author has used a quota and convenient sampling method for collecting the data from 103 SMEs for the analysis of data CFA (Confirmatory Factory Analysis) and multiple regression testswere used. The results have suggested that firm size, regulatory support, compatibility, managerial support and relative advantage are some of the key factors which urge the adoption of cloud computing (Pathan, et al., 2017).
This chapter elaborates the research methodology employed to investigate the problem under study. The first section of this chapter discussed the research philosophy and approach of this study. The section describes the research design, data collection strategies, target population, sampling, reliability and validity. The last section focuses on the ethical considerations of the research and appropriate techniques for the analysis of data collected to test the hypothesis.
In this research, the researcher will use the inductive research philosophy allowed the researcher to collect the quantitative information as well as allowing effective assessment of the collected data. In addition, the inductive research philosophy was selected because it was suitable for the current nature of the research as it helped in the collection of information based on the new theories and the context of the perception of the small and medium scale enterprises. This theory also helped in generating the new theory which emerged from the data.
However, the same thing was not possible with the deductive approach as it is more concerned about testing the old theories. This research philosophy allowed the researcher to dictate the processes of research towards the application of the research designs that can help improve the research methodology. For the pertaining research, the researcher has utilized the inductive research philosophy to assist in the processes (Woo, et al., 2017).
In this research, the researcher has determined the effects of technology adoption, technology readiness index factors, the intention of the organizations to perceive the influence of the technology innovation within the company for success as well as other pertaining factors that influence this decision by using the primary research methodology.
The bottom-up approach allows the researcher to study the patterns while making observations. It helps in developing deep understanding of the dynamics of the problem rather than limiting the study to only few factors or dimensions. It offers a high degree of freedom to study the issue not only from the perspective of previous studies but also with the analysis of data collected according to the conceptual framework of the study. It provides flexibility to construct an argument on the base of evidences collected through comprehensive analysis of data while interpreting the trends.
Saunders (2012) illustrate the research methodology as the collection of various processes that can help understand the operations of the research conducted(Saunders, 2011). It helped to bring a systematic activity of the research that is to determine the rationality of the pertaining research objectives and questions. With the help of primary research methodology, the researcher do detailed analysis about technology adoption in SMEs working in Punjab region of Pakistan while the Multan city has selected to collect sample for collecting questionnaire.
In this research, the researcher has used the primary research approach using the quantitative methods which allowed the researcher to collect the data quantitatively. The advantage of primary research was that it allowed the researcher to gather accurate, first-hand information timely. Furthermore, this approach gave the leverage to get direct feedback from the SMEs owners. So, it could be claimed that the results of the research are reliable. It facilitates the collection of empirical evidence to support a specific argument. It helped in approaching the accurate information which is in accordance with the research framework.
It also allowed the researcher to gather the information regarding the applications of research processes applied during the procedure to gain significant data. Using primary research helped the researcher to get new set of information from the targeted customers. The primary research is the information that has been collected first hand from the participants in the sample considered for the research.
The method is preferred in comparison to the secondary research as it provides real-time information regarding the research objectives. However, the research process is time-consuming in comparison to the secondary research. Moreover, the primary research is based on the information that has been provided to the researchers. This data can be biased as the participants can perceive different idea regarding the questions asked in the questionnaires presented to the participants.
In this research, the researcher has used survey strategy to collect primary data from selected research participants. In this regard, a self-administered questionnaire has been used. The design of this questionnaire was flexible enough and according to the needs of participants. This type of questionnaire facilitates the process of recording response from the participant without any external intervention. The simple language, format and questions of the questionnaire facilitated the input of participant in an effective manner. The questionnaire fulfilled the criterion of a quality self-administered questionnaire. It enhanced the accuracy of the collected data as the questions included in it directly targets the information required for the analysis.
One of the most commonly used methods to gather quantitative information is through the use of a questionnaire. A questionnaire is the defined set of questions that are based on the requirements of the research objectives, which allows the researcher to gather information from the targeted population. In addition, this method of collecting information was selected as it helps to gather information from an effective number of participants. The questionnaire included the questions related to the variables included in the conceptual framework of this study. The questions focused on the collection of information which is crucial for the study of the proposed framework, investigation of research problem and testing of formulated hypothesis.
For the pertaining research, the researcher has distributed the designed questionnaire to 200 small and medium scale enterprise owners in the country. These included small-scalebusinesses including OMNI and easy paisa shops, PTCL and network franchises, entrepreneur businesses, software houses, computer shops and other relevant segments that can be considered as small businesses.
The use of the quantitative measurement for the collection of the information is based on the requirement of the assessment in the primary research. The common method for collecting the information allows the researcher to assign numeric values to the variables included in the information that cannot be analyzed easily with the qualitative analysis. Moreover, the questions formed in the questionnaire were closed-ended questions. This thing helped in minimizing the errors that can arise with the misunderstanding of the information by the participants. So, the researcher has given four specific option to the population.
The small- and medium sized enterprises are the key focus of this study. These enterprises operating in Multan are the target population for the analysis of subject under study. The enterprises selected for study fulfilled the criterion of small and medium-sized firms. For this research, the researcher selected the small and medium scale enterprises such as easy paisa shops, mobile shops, franchises and other small industries from the city of Multan. The population is the selected area or the sector from which the researcher will obtain a sample of the participants to carry out the processes of the research.
For the current objectives of the research, the researcher has used the sample of 200 small and medium scale enterprises from Pakistan who helped the researcher in completing the research. The questionnaire was distributed among them and then the author collected them after 2 days. The selected sample size is appropriate for the analysis of different factors influencing the intention of enterprises to implement technology.
The sample is the part of the population that is chosen in order to represent the entire population of the research. The chosen sample is the subgroup and reflects the effects of the research processes over the entire population. The sample selected for study included enterprise operating in different sectors such as manufacturing, retail and services. Research population has divided with following criteria in questionnaire
For the current research, the researcher has used the convenience sampling technique, which facilitated the researcher to the formula the sample from the population. This technique was selected because it was most suitable for this research. The people of city Multan were selected on the random basis for the distribution of the questionnaire. Convenience sampling technique has used in order to support the sampling of the population under consideration for the pertaining research.
Questionnaire has designed with following measuring factors
|1= Strongly Disagree||2= Disagree||3= Neutral||4= Agree||5= Strongly Agree|
On the other hand, the questionnaire has divided in 11 section/variables with individual set of question for each. These variables are OPT, INN, PU, PEOU, PR, TS, COMP, GS, INT, SUS, AUT. For each variable, there are corresponding questions which constitute a section for each variable. Likert Scale has been employed in the questionnaire which measures the degree of willingness of the participant for the respective statement. Each section of the questionnaire is the measure of different variable.
The researcher, in order to minimize the risks and the errors in the designed questionnaire, has used a small sample of the sample under focus. This allowed the researcher to gain insight regarding the errors as well as the perception of the sample under consideration regarding the questionnaire prepared. The errors in the questionnaire were revised in order to complete the questionnaire accordingly to the requirements of the current research objectives. After doing the revision once again the questionnaire was checked with the help of pilot test when there were no errors then the structured questionnaire was distributed among the participants for collecting the data.
The pilot test was performed on a sample of ten participants which has attributes related to the requirements of this study. This test provided the opportunity to test the quality of attributes of sample. The findings of this pilot test were used to make modification in the questionnaire. This pilot test improved the quality of self-administered questionnaire which was used for data collection from the targeted population.
The validity is a measure of the accuracy or truthfulness of results. It measures the extent to which results are accurate and according to the concept. It indicates whether the results of study are according to intended results or not. The internal validity of research measures whether there are some factors which are influencing the results of study or not, and to which extent they are reducing the accuracy of results. The external validity is the assessment of results according to a specific criterion.
It assesses the effectiveness of results in different contexts. It measures the correlation between the theoretical results and actual results. The high correlation between the outcomes of actual measure and theoretical measures shows high validity. The convergent and discriminant validity of the data has been ensured through different statistical tests measuring the correlation between the actual outcomes and supposed outcomes.
For this research, the researcher testified the validity of the information by conducting the pilot test of the questionnaire, which allowed effective insight regarding the application of the processes which were used during the research. It also helped in correcting the errors present in the questionnaire. The validation of the research element is based on the authorization of the research investigation process, which allows the affectivity of the questionnaire used as well as the processes of research methods conducted for collecting the information(Yin, 2013).
The reliability is a measure of the quality or accuracy of method or procedure used for the collection of the data to investigate the problem. It informs whether the research instrument is capable of producing the accurate results or not. It measures the extent to which the research method is giving the intended results. It also accounts for the assessment of tools and the degree of error which could occur in the results owing to inaccuracy of data. In addition to it, the reliability measures the consistency of research method.
The internal consistency refers the extent to which the same method, instrument or procedure gives the same result. For instance, if a research instruments offers different results for each measurement, it is inconsistent and have minimum reliability. The highly reliable research instrument offers consistent results on consecutive repetitions. It provides insight into the degree of error which could be introduced by different methods. The researcher can select an appropriate research method which could offer the minimum level of error.
It is imperative to analyze the reliability of psychometric instruments which focuses on behavior of individuals. There are many statistical tests which could be used for the analysis of the reliability of research method. The researcher assessed quality and consistency of all possible research instruments and selected the suitable method which has the highest level of consistency. The data collection tool of this study is based on psychometric test and the researcher has measured the consistency of each measure used in the questionnaire.
The amount of error for each measure is calculated and ensured that it is within acceptable level. For this purpose, Cronbach Alpha is computed for each measure. This measure of error is based on the correlation of outcomes of different measures to ensure the consistency. The researcher confirmed the reliability of the information collected with the assessment of the questionnaires in an effective manner that can ensure that the data collected is efficient and can be used as the benchmark to produce results. The reliability factor is based on the credibility of the research processes that are used in order to collect the information.
One of the important tasks for the researcher is to be bound by the ethical boundaries of the research process. This requires the researcher to minimize the interference in the personal workability of the participants of the sample considered (Connelly, 2014). In addition, the reliability of the process is also based on the researcher’s ethical privileges regarding the safeguarding of the information collected as well as the details of the participants.
Moreover, the researcher ensured that no such questions that prove to be unethical in terms of the research processes are included or asked of the participants during the research processes. Only those contestants were selected for the research who were willing to fill out the questionnaire. The author has used the collected information strictly only for the research purpose.
For the current situation, the author has used the primary research methods in order to collect the data regarding the research objectives. The data collection process comprises of the methods that are employed for collecting the information.
For the analysis of the information, the researcher has used the PLS-SEM approach through Smart PLS in order to analyze the quantitative information that has been collected through the questionnaires. Firstly, the measurement data analysis is carried out to examine the validity and reliability of the measurement method. It included the calculation of Cronbach’s Alpha, composite reliability, convergent validity and discriminate validity.
Secondly, analysis of structure model included the coefficient of determination, variance inflation factor, fit model, and path model. These model gives the relationship between different measures. The application of statistical tests gives the output which could be used for the testing of hypothesis. The fit model gives the probability values for each measure which constituted the base for the justification of proposed relationship between different variables.
It gives the extent to which each variable is related to other variable and whether the relationship supposed between those variables is true or not. The results of these tests are interpreted to accept or reject the hypothesis related to each variable. Moreover, these results gives insight into the relationship between the dependent and independent variables and how some external and internal factors influenced this relationship.
This chapter analyzes the results of statistical tests performed on the dataset to test the hypothesis. The first section would offer the demographic analysis of the dataset. It would comprehensively discuss the different characteristics of the dataset. The second section would focus on the validity and reliability of the results. The third section would discuss the results of different statistical tests applied to variables of the study to examine their relationships and to analyze the proposed model.
|Form of Enterprise Ownership||Sole Proprietor||70||35.1%|
|Sector of Enterprises’ Operation||Manufacturing||27||13.5%|
|Wholesale and Retail||78||39.2%|
|No. of Full-Time Employees||1-9||8||4.1%|
|Annual Sales (Approx.) in Rs. MM||Up to 5 MM||6||2.7%|
|5 MM – up to 50 MM||58||28.4%|
|50 MM – up to 150 MM||98||48.6%|
|150 MM – up to 250 MM||38||18.9%|
|Gender of Respondent||Male||189||94.6%|
|Age of Respondent
|Level of Education of Respondent
|12 Years Edu.||13.6||6.8%|
|14 Years Edu.||129.6||64.8%|
|16 Years Edu.||51.4||25.7%|
|>16 Years Educ.||5.4||2.7%|
|Position of Respondent in the Organization
The first section of the questionnaire gathered the information related to the respondent and its position in the organization. Approximately 64% of the enterprises under study have a partnership as a form of the enterprise ownership. These imply that the small and medium-sized enterprises areoperating in partnership rather than a sole proprietor. About 47% of the enterprises operate in the services industry. The enterprises operating in the services industry constitute a significant percentage of the dataset. More than 30 enterprises in the sample have 150-249 employees. Only 4% of enterprises have 1-9 full-time employees.
The percentage of enterprises in the dataset having annual sales of 50 MM to 150 MM PKR is about 48%. Merely two enterprises have annual sales up to 5MM PKR. Most respondents to the questionnaire were male. Approximately 41% of the respondents have an age between 40 to 50 years. More than 64% of the respondents have 14 years of education. Only 6% of the respondents have 12 years of education. This figure shows that a significant percentage of respondents have a medium level of education. About 33% of the respondents were the owner of the enterprises. This figure is followed by the percentage of the respondents who were director of the enterprises. Only 16% of the respondents were a manager.
The participants of this study were mainly OMNI, easy paisa franchises, retailers, computer shops, software houses, and other entrepreneur business. OMNI and easy paisa franchises are businesses offering the money transfer services to the customers. The software houses offer software development and related services to the local customers. The computer shops provide tech services related to computer, information technology along with addressing the software and hardware issues related to the computers. Other entrepreneur businesses include services and manufacturing enterprises including processed food products, wood, plastic, and metal products manufacturers.
All these enterprises have employees ranging from 1 to 300 employees. Most of these enterprises operate at the local level or exist as the franchise of some large company. For instance, OMNI operates under the name of United Bank Limited. It offers the robust mechanism to transfer money at the reasonable cost to different regions of the country as well as at the international level. It facilitates the customers by offering bill payment, money transactions, and pop-ups. The people associated with these enterprises were the participants of this study.
Similarly, easy paisa is a mobile application based money transfer system by a reputable telecommunication company Telenor. The branchless banking system under the auspices of this company has a nationwide network which serves the money transactions needs of millions of customers in different cities. The franchises of these money transaction facilities have been mushrooming in Multan as the technology is facilitating the establishment of such enterprises.
All these enterprises which are included in the study are located within Multan District. There were approximately 47 OMNI and easy paisa franchises which were mainly located in Dolat Gate, Rasheedabad and New Multan. Similarly, about 48 software houses were included in the study. These houses were located in Gulghast. Secondly, the computer shops located in the region of Multan Cantonment and Gulghast were approximately 50 in number. The retail businesses including the retailers of consumer goods were included from areas of Mumtazbad and GhantaGhar. There were about 78 participants from these retail enterprises. The local processes food manufacturing companies that produce snacks and instant food items at a small scale. These companies have the capacity to serve a limited number of customers in areas of Walyatad and Mumtazabad.In addition to it, companies manufacturing wood products located in Timber Market were also part of the survey.
4.2 Measurement Model Analysis
This section analyzes the validity of the measurement model. The reliability, convergent validity, and discriminant validity would be checked for each variable. There are some statistical tests which are used toanalyzing the validity. The values of these tests for each variable would be compared with the standardized value to analyze the internal consistency of each item.
Reliability refers to the assessment of the quality of research instrument, method or procedure of measurement. For the collection of data for each variable, the quality of instrument or design of data collection influences the accuracy of results. The degree of error which could be introduced by the research instrument gives insight into the reliability of research. Cronbach’s Alpha gives the internal consistency of the data by the computation of the correlation of each item of the scale with the total items of scale. The value of Cronbach’s Alpha greater than 0.9 indicates the high internal consistency of the data. This shows that the degree of error is minimum. The values between 0.8 and 0.9 are considered good, values ranging from 0.7 to 0.8 are considered acceptable.
Table 4.2 Internal consistency reliability
|Cronbach’s Alpha||Composite Reliability|
NOTE: AUT=Actual Use of Technology, CP= Competitor’s Pressure, DIS=Discomfort, INN= Innovation, INS=Insecurity, INT=Intention of SMEs towards technology adoption, OPT= Optimism, PEOU= Perceived Ease of Use, PU=Perceived Usefulness, SUS= Sustainability, TS=Technological Support
For the dataset of this study, the value of Cronbach’s Alpha is greater than 0.7 which indicates that data of all items is consistent internally. The amount of error is within the acceptable level, and it would not significantly influence reduce the accuracy of results. Similarly, the value of the composite reliability for each item is greater than the threshold value of 0.7.
The validity refers to the assessment of the correctness of the research model. It measures the extent of accuracy to which the research instrument is measuring the intended elements. It is the measure of the effectiveness of the research model to give the supposed results.
The convergent validity measures the extent to which two different measures of the theoretical construct are actually related. The high correlation between the measures of actual and theoretical constructs is an indication of high convergent validity. The average variance extracted is a measure of the convergent validity of the research design or model. It is used to test the convergent validity of data collected through psychometric tests.
Table 4.3 convergent validity
|Average Variance Extracted (AVE)|
NOTE: AUT=Actual Use of Technology, CP= Competitor’s Pressure, DIS=Discomfort, INN= Innovation, INS=Insecurity, INT=Intention of SMEs towards technology adoption, OPT= Optimism, PEOU= Perceived Ease of Use, PU=Perceived Usefulness, SUS= Sustainability, TS=Technological Support
The value of the average variance extracted greater than 0.5 is an indication of the high convergent validity. The table shows that the values of AVE for each item is greater than 0.5. This implies each item has high convergent validity. The research model or theoretical construct has the maximum ability to give the intended results.
The discriminant validity is the measure of the extent to which the two measures of the theoretical construct which are supposed to be unrelated are actually unrelated. The low value of correlation between these two measures indicates the high discriminant validity. Fornell and Larcker Criterion are used to measure the discriminant validity of the data. It measures the shared variance of each variable with other items by comparing the square root of average variance extracted with a correlation of different items. If the value of the square root of AVE is greater than the correlation of lateral constructs, the data has discriminant validity. The table shows that for each item of the study, the value of square-root of AVE is higher than the correlation of the corresponding lateral construct. It implies that the data has high discriminant validity.
Table 4.4 Fornell and Larcker criterion
NOTE: AUT=Actual Use of Technology, CP= Competitor’s Pressure, DIS=Discomfort, INN= Innovation, INS=Insecurity, INT=Intention of SMEs towards technology adoption, OPT= Optimism, PEOU= Perceived Ease of Use, PU=Perceived Usefulness, SUS= Sustainability, TS=Technological Support
Table 4.5 cross Loading
4.3 Structure Model
4.3.1 Coefficient of Determination (R2)
The coefficient of determination is a measure of the extent to which the variance in the output of the dependent variable can be predicted from the independent variable. It is the square of the correlation between the predicted values and actual values of the dependent variable. Its value could vary from 0 to 1. If the value of the coefficient of determination is close to zero, it shows that the independent variable has the greater ability to predict the variance in the dependent variable.
Table 4.6 Coefficient of determination
The coefficient of determination for the variable actual use of technology is 0.5 which shows that the 50% variance in this dependent variable could be predicted from the independent variables. Similarly, for intention and sustainability, the values of R2 are 0.802 and 0.546 which are greater than 0.5 which shows the predictability of variance in the dependent variables is high.
4.3.2 Path Model
Partial least square (PLS) path modeling or partial least square structural equation modeling is the method of structural equation modeling that permits estimating difficult cause-effect relationship models relates to latent variables.
After operating PLS model, evaluates is provided for pathcoefficients that represent a hypothesized relationships connecting a constructs.Path coefficient value is standardized on a range from -1 to +1, along coefficientscloser to +1 representing strong positive relationships and coefficients closer to -1indicating strong negative relationships. However, value close to +1 or -1 isprobably consistently statistically significant; the standard error should be obtained usingbootstrapping to test for significance (Helm et al., 2009).
Table 4.7 Hypothesis Results
|Hypothesis||Path||Β||T- Value||P Values||Result|
|H1||OPT -> INT||0.162||2.495||0.013||Supported|
|H2||INN -> INT||0.283||3.582||0.000||Supported|
|H3||INS -> INT||-0.287||2.838||0.005||Supported|
|H4||DIS -> INT||-0.350||5.031||0.000||Supported|
|H5||PEOU -> INT||0.286||3.632||0.000||Supported|
|H6||PU -> INT||0.188||2.035||0.042||Supported|
|H7||COMP -> INT||0.515||5.631||0.000||Supported|
|H8||TS -> INT||0.157||2.868||0.004||Supported|
|H9||INT -> AUT||0.731||14.407||0.000||Supported|
|H10||AUT -> SUS||0.739||17.556||0.000||Supported|
Hypothesis results are show above in table 4.7 and also in figure 1.
Hypothesis results are shown above in table 4.7 and also in figure 1. Thus H1 is support when optimism is positively associated with the intention of SMEs towards technology adoption in Pakistan (β = 0.162, p <0.013). The increase in optimism towards the use of technology and its potential benefits do not increase the tendency of the enterprise to technology adoption.
H2 is support when innovativeness is positively associated with the intention of SMEs towards technology adoption in Pakistan (β = 0.283, p <0.000). The increase in technological innovations increases the tendency of SMEs to implement the technology. The direct relationship between the technological innovation and intention of technology implementation is justified.
H3 is support when insecurity is negatively associated with the intention of SMEs towards technology adoption in Pakistan (β = -0.287, p <0.005). The insecurity and intention to adopt technology are negatively associated. The increase in insecurity towards the use of technology reduces the tendency of SMEs to implement new technology.
H4 is supported when Discomfort is negatively associated with the intention of SMEs towards technology adoption in Pakistan (β = -0.350, p <0.000). The discomfort of adopting new technology negatively influences the perception of SMEs in Pakistan. There is a negative association between the intentional perception and the discomfort of enterprises to adopt new technology.
Perceived Ease of Use
H5 is support when perceived ease of use is positively associated with the intention of SMEs towards technology adoption in Pakistan (β = 0.286, p < 0.000).The increase in perceived ease of use has significant impact on the intention of implementing the technology in SMEs.
H6 is support when perceived usefulness is positively associated with the intention of SMEs towards technology adoption in Pakistan (β =0.188, p <0.042).The increase in the perceived usefulness of the technology for the efficiency and productivity of the business is increasing the inclination of SMEs towards the use of technology.
H7 is support when competitors’ pressure is positively associated with the intention of SMEs towards technology adoption in Pakistan (β = 0.515, p <0.00). The increase in competitors’ pressure has a positive influence on the intention of adopting the technology.
H8 is support when Technological support is positively associated with the intention of SMEs towards technology adoption in Pakistan (β =0.157, p < 0.004).The availability of technological support promotes the adoption of the technology in SMEs.
Actual Use of Technology
H9 is support when intention of SMEs towards the adoption of technology is positively associated with the actual use of technology by Pakistani SMEs (β =0.731, p <0.000). This acceptance implies that the actual use of technology chnages the intention to implement technology in SMEs of Pakistan.
H10 is support when actual use of technology is positively associated with the sustainability by Pakistani SMEs (β = 0.739, p < 0.000). The actual use of technology is directly related with the sustainability of the SMEs in Pakistan.
Figure 4.1 Structure Model
The implementation of technology is indispensable for the improvement in financial and operational of the SMEs which are the backbone of Pakistan’s economy. These enterprises constitute the foundation of the national economy and the engage millions of people through diverse employment opportunities. The technical assistance, government support, insecurity of business owners, technological innovation, attitude of businesses towards technology, perception of businesses to usefulness and eases of use, the trend of actual use of technology, and pressure of competitors are some key factors which influence the intention of small and medium-sized enterprises to adoption of technology.
The impact of technology readiness index factors changes the intention of technology adoption to some extent. The factors of innovation and insecurity are relatively more dominant than the factor of optimism. The improvement in technical support is encouraging the enterprises to enhance their business efficiency through implementation of new technologies. However, the participation of government is influencing the intentions of the enterprise to a minimum extent.
The technology application model is applicable to the situation of technology adoption in SMEs of Pakistan. The enterprises are not yielding the maximum benefits of the technology owing to the uncertainty in the local economic conditions. The government should focus on stabilizing the economic conditions to change the perception of enterprise towards the use of technology. Furthermore, the technology would be capable of increasing the financial and operational sustainability of the enterprises. The growth of enterprises would perpetuate the development of the local economy.
The business efficiency and other potential positive outcomes of the technology which encourage the implementation of technology in businesses, but the degree of their influence are not significant in Pakistani SMEs. A significant percentage of people think that the introduction of technology has increased the efficiency of their businesses. However, there is a common notion among business owners and managers that the ordinary people face challenges in the adoption of new technologies and this factor reduce their ability to use those technologies for increasing efficiency and productivity.
The sustainability of enterprises is largely influenced by the methods of operations and business processes of the organizations. The use of technology has made the business processes more robust and encouraging the enterprises to implement the technology. Furthermore, the technical help has the enhanced the utility of technology for the companies and they are addressing their problems with relatively more sustainable technology solutions to enhance their productivity.
Most enterprises are adopting the modern technologies as the local banks are offering a variety of financial product which is feasible and cost-effective for the SMEs. There is a significant improvement in the trend of adoption of new technologies owing to improving technological infrastructure. Most business owners opinionate that features of the technology as well as the security, is imperative for the businesses. The technologies with security features tend to prevail at a rapid pace among the businesses. The competition is a significant factor which is contributing to the technology adoption trend. The increasing competition in the local markets is forcing the enterprises to engage in the use of new technologies. The increased production level and efficiency complement the factor of competition. The enterprises actively indulging in the adoption of new technologies are gaining the competitive advantage over their competitors.
The technology adoption is not only beneficial for the enterprises, they are also useful for the government and other stakeholders who are devising ways to improve the national economy. The optimized efficiency of the small businesses is crucial for increasing the Gross Domestic Product of the country. The increase in technology adoption is supplementing the measures taken by the government and policy-makers to boost the economy.
The scope of research could be increased further by considering a specific industry. The results of this study could be used to investigate the influence of the technology readiness index factors for a specific industry. It could be analyzed how a specific factor influences the intention independent of the other factors. Furthermore, the inclusion of more variable would allow the investigation of the degree or intensity of the impact of each factor.
The findings of this study could be generalized for different regions as the economic conditions of Asian countries are experiencing the similar trend. However, it is challenging to generalize the results of this study for European and American counties as they have different economic conditions and quite strong technological infrastructure.
The use of technology is facilitating the interaction with the customer and improving the quality of customer relationship management. Most business owners are recommending the new technologies to other enterprises to enhance their sustainability. However, the increase in the actual use of technology is not significantly contributing to the sustainable development of SMEs as there are many other external and internal factors which either explicitly or implicitly influence the sustainability of businesses. The engagement with business partners in the adoption of new technology is shifting the trends. However, the management of enterprises opinionates that they intend to adopt new technologies, but the need forstrong technological infrastructure is essential to operate at the maximum potential. Furthermore, the increasing optimism is not shifting the trends of technology adoption by the small and medium-sized enterprises
The government policies and support are facilitating the adoption of new technologies in different countries. In Pakistan, the local, as well as the federal government, are promoting the implementation of technology to optimize the efficiency of businesses but this practice is not significantly increasing the tendency of small and medium-sized businesses to implement the technology. The government is focusing on the development of technological infrastructure which could encourage and facilitate the businesses to adopt technologies. A significant percentage of the respondents agree that the enterprises are focusing their attention on the technology resources and allocating more financial resources for this purpose. In addition to the increased business efficiency, the adoption of new technology is allowing the enterprises to improve the relationship with their customers.
The use of a more objective factor to investigate the technological readiness of the enterprises can improve the accuracy of results. This practice can fill the gaps which influence the accuracy of results. The trend of technological adoption in SMEs of Pakistan demands the attention of stakeholders.
There is a range of social, economic, political and behavioral factors which influence the readiness or intention of business owners to opt for the technological innovations. The study has focused on limited number factors to investigate the extent to which the small and medium-sized enterprises are willing to adopt technology. In addition to it, the sample size for data collection laid some constraints on the generalization of results for different regions.
The attributes of the sample are limited which minimizes analysis of the issue from different perspectives. The study only accounted for the enterprises operating in manufacturing, services and retail industries for the data collection. This approach has reduced the diversity of sample. Therefore, it offers limited view of the trend for other industries. The study has the only targeted the population of a specific region. This approach reduced the validity of research for other regions. Furthermore, in the developing countries including Pakistan, the help lines are not feasible for getting the technical help related to use of new technology. Most SMEs face challenges in availing the maximum features of new technologies owing to lack of sufficient technical support from the external sources. The employees do not get enough technical help from the internal as well as external sources. This factor often has a negative influence on their efficiency.
The small and medium-sized enterprise operating in different regions are influenced by different factors with different intensities. The comprehensive analysis of technology adoption trend in relation to attributes of an area could have offer a broad view of the problem. Furthermore, the measures used for analyzing the issue focused on only limited points. For each variable, there are a few questions which relate it with other variables. The study has considered the relationship between the dependent variables and independent variables but ignored the relationship between the variables of different categories.
The small- and medium-sized enterprises are the key focus and the findings of this study have implications for these enterprises and their confidence towards the implementation of new technology. Similarly, it has implications for the decision-makers, policy-makers, technology manufacturers and other institutions that are related to the regulation of organizations. The government can use the findings of this study to develop the policies which could promote the technology adoption in SMEs.
The study provided insight into different factors which influence the intention of enterprises to adopt technology. The measure of these factors would enable the government to provide the suitable environment for technology adoption. For instance, the local or federal government could facilitate the enterprises to optimize their efficiency and profitability. The policy-makers can make the enterprise aware of the positive outcomes of technology adoption while make the appropriate policies to boost the technological help.
The tech manufacturers can get information related to the problems of enterprises and their attitude towards new technologies owing to the discomfort and perceived usefulness. They could develop a mechanism for the mitigation of issues related to the technical help to boost the confidence of business owners. This approach would be mutually beneficial for the tech manufacturers as well as the enterprises.
Furthermore, they can enter into strategic alliance with the local enterprises to strengthen the system for technical help. The decision-maker can consolidate the technological infrastructure by the identification and mitigation of deficiencies in the existing system which is hindering the technology adoption in SMEs.
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This letter requests your kind assistance in completing the attached Survey Questionnaire.
We are currently working on research project, entitled “Technology Acceptance among Small and Medium Enterprises (SMEs) of Pakistan.” Your assistance in completing this survey willcompletely confidential and be highly appreciated. Please give your most thoughtful and honestanswers. The survey will take about 20-25 minutes to complete. All responses, once received arecompletely confidential and reported in summary format. If you want to receive the results of thisstudy, please write your Email Address at the end of this questionnaire.
Thanks for your assistance.
If you have any query about this survey please feel free to contact us via e-mail:
Prof. Dr. Masood Ul Hassan (Ph.D. Business Management & Organization, Turkey)
Department of Commerce, BahauddinZakariya University, Multan-Pakistan.
1– Form of Enterprise Ownership Sole Proprietor Partnership
2– Sector of Enterprises’ Operation Manufacturing Wholesale and Retail Service Organization
3– No. of Full-Time Employees 1 – 9 10 – 49 50 – 149 150 – 249
4– Annual Sales (Approx.) in Rs. Up to 5 MM 5 MM – up to 50 MM 50 MM – up to 150 MM
150 MM – up to 250 MM
5– Gender of Respondent Male Female
6– Age of Respondent 18 – 30 Years 31 – 40 Years 41 – 50 Years > 50 Years
7– Level of Education of Respondent 12 Years Edu. 14 Years Edu. 16 Years Edu. > 16 Years Edu.
8– Position of Respondent in the Organization Owner Director Manager
Please rate the following questions on this scale:
|1= Strongly Disagree||2= Disagree||3= Neutral||4= Agree||5= Strongly Agree|
|OPT||New technologies contribute to a better quality of business processing||1||2||3||4||5|
|Technology gives me more freedom of mobility of resources in an enterprise||1||2||3||4||5|
|Technology makes me more productive in my professional life||1||2||3||4||5|
|Technology makes me more efficient in my occupation||1||2||3||4||5|
|I feel confident that technology-based systems will follow through with what I instruct them to do||1||2||3||4||5|
|INN||I can usually figure out new high-tech products and services without help from others||1||2||3||4||5|
|I keep up with the latest technological developments in my areas of interest||1||2||3||4||5|
|I prefer to use the most advanced technology available, to complete the business operations||1||2||3||4||5|
|Other people come to me for advice on new technologies||1||2||3||4||5|
|DIS||When I get technical support from a provider of a high-tech product or service, I sometimes feel as if I ambeing taken advantage of by someone who knows more than I do||1||2||3||4||5|
|Technical support lines are not helpful because they don’t explain things in terms I understand||1||2||3||4||5|
|Sometimes, I think that technology systems are not designed for use by ordinary people||1||2||3||4||5|
|It is embarrassing when I have trouble with a high-tech gadget while other employees are watching||1||2||3||4||5|
|INS||People are too dependent on technology to do things for them||1||2||3||4||5|
|Too much technology distracts people to a point that is harmful||1||2||3||4||5|
|Technology lowers the quality of relationships by reducing personal interaction||1||2||3||4||5|
|I don’t feel confident doing business/ job with a place that is based on latest technologies||1||2||3||4||5|
|PU||Technology adoption would enable our enterprise to market our products/services in a better way.||1||2||3||4||5|
|Technology adoption would enable our enterprise to operate effectively.||1||2||3||4||5|
|We would be able to reach our vendors and customers timely with technology adoption.||1||2||3||4||5|
|Technology adoption would assist us to develop better relationships with our customers and suppliers.||1||2||3||4||5|
|PEOU||Using of technologieswill not require a lot of mental effort.||1||2||3||4||5|
|The functionality of different technologies is clear and understandable||1||2||3||4||5|
|Use of business associated is easy.||1||2||3||4||5|
|FR||Our enterprise would have the financial resources for adopting new technologies||1||2||3||4||5|
|Our enterprise budgets would be significant enough to support the adoption of new technologies||1||2||3||4||5|
|It would be easy to obtain financial support for technology adoption from local banks and/or other financial institutions||1||2||3||4||5|
|Our enterprise would take technology adoption more seriously because of the adequate financial support we receive from local banks||1||2||3||4||5|
|TS||Advances in technology associated security features provide for safer usage of technologies.||1||2||3||4||5|
|The qualitiesof technologies is important for its adoption||1||2||3||4||5|
|Available technological infrastructure Pakistan triggers businesses to adopt new technologies.||1||2||3||4||5|
|COMP||The choice to adopt technologies would be strongly influenced by what competitors in the industry are doing.||1||2||3||4||5|
|Our enterprise is under pressure from competitors to adapt to new technologies.||1||2||3||4||5|
|Our enterprise has would adopt new technologies in response to what competitors are doing.||1||2||3||4||5|
|GS||The government endorses technology adoption in Pakistan||1||2||3||4||5|
|The Pakistani government is active in setting up the facilitiesto enable technology adoption in the business operations.||1||2||3||4||5|
|The Pakistani government promotes the use of the new technologies for businesses.||1||2||3||4||5|
|INT||Our enterprise intends to adopt new technologies.||1||2||3||4||5|
|Our enterprise intends to start using technologies regularly in the future.||1||2||3||4||5|
|Our enterprise would highly recommend new technologies to other enterprises.||1||2||3||4||5|
|Our organization try to produce sustainable products||1||2||3||4||5|
|Latest technology help in increasing sustainability||1||2||3||4||5|
|Does increased efficiency of business increase the sustainability||1||2||3||4||5|
|AUT||Discuss needs and wants related to the new technologies.||1||2||3||4||5|
|Engage in communications with business partners about new technologies||1||2||3||4||5|
|Suggest improvements to senior management about current available technologies within enterprise.||1||2||3||4||5|