Information and Communication Technology Diffusion in Indian Small and Medium scale Enterprises: An overview

1. AMIT SINGH
(Under the Guidance of )
Prof. M. Jenamani & Prof. J. J. Thakkar
Indian Institute of Technology, Kharagpur
Information and Communication
Technology Diffusion in Indian Small and
Medium scale Enterprises: An overview
Research
Guidanc
e
Methods
Dedicati
on
Facts

2. MSME Sector in India: An Overview
 India has 36 million SMEs that provides employment over 80
million persons. They produce more than 6000 products, but
contribute only 8% to National GDP.
 83% of SMEs are involved in manufacturing activities and
17% of them are providing service.
 MSMEs in India contribute 40% of industrial output and 35%
direct export.
 Indian MSMEs lack in terms of their reach to national as well
as international market.
http://msme.gov.in/WriteReadData/eBook/MSME_at_a_GLANCE_EN.pdf

3. MSME Sector in India: An Overview
Developing global Competitiveness of the Indian MSMEs: National
Manufacturing Competitiveness Council (NMCC) initiatives-
1. Lean Manufacturing Competitiveness Scheme
2. Design Clinic Scheme
3. Marketing Assistance and Technology Up gradation
4. Technology and Quality Up gradation
5. Promotion of Information and Communication Tools (ICT)
6. Tolling and Training Centres
7. Improving Quality in Products
8. Awareness on Intellectual Property Rights (IPR)
9. Barcode Certification
10. Nurturing Innovative Business Ideas

4. ICT Adoption in SMEs: World View
Sub Saharan Africa and South Asia, two poorest regions of the
world, are also those with the lowest access to information and
communication technologies. The gap in access to and use of
ICTs, the so-called ‘digital divide’ often follows and reinforces
existing inequality and poverty patterns. For example, in March
2000 out of the 304 million people with Internet access, only 2.6
million were in Africa while 137 million were located in the U.S.
and Canada. A huge difference in ICT adoption is noticed
between developing and developed countries. Developing Sub
Saharan countries and countries in south Asia are specifically
backward in terms of ICT deployment in their enterprises,
specifically in MSMEs. The ICT sector is socially and economically
relevant to developing countries as it has been the major
economic driver in Sub-Saharan Africa over the past decade.

5. ICTs in Developing countries: World bank
recommendations
1. Reduce the cost of access for mobile and broadband
2. Support government/private-sector collaboration
3. Improve the e-commerce environment
4. Improve ICT worker skill levels
5. Encourage innovative business models that drive
employment, such as micro work
6. Create ICT parks in countries that meet infrastructure
requirements
7. Support ICT entrepreneurs.

6. Level of ICT adoption in MSMEs: Indian
Scenario
ICT adoption level in Indian MSMEs is sector specific. Sectors
such as auto components, chemical products and electrical
machinery are relatively ahead to other sectors. This is
promoted by the extended support from large scale
enterprises. They have provided technological as well as
financial support to their Tier I suppliers to ensure high ICT
adoption levels among the suppliers. This has had a cascade
effect with the Tier I suppliers providing a similar ‘pull effect’ to
the Tier II suppliers and beyond.
http://nmcc.nic.in/pdf/NMCC_Report_2010.pdf

7. ICT Adoption in SMEs: Research
Directions (countrywide)
http://www.scopus.com/term/analyzer.uri?sid=8D2D466F97B43B86E0302147F0906AF5.aXczxbyuHHiXgaIW6Ho7g%3a80&origin=resultslist&src=s&s=TITLE-ABS-KEY%28ICT+in+SMEs%29&sort=plf-
f&sdt=sisr&sot=b&sl=26&count=64&analyzeResults=Analyze+results&ref=%28ICT+in+SMEs+research+directions%29&txGid=0#zip

8. Literature Review: ICT in SMEs (Worldwide)
Author Title Description
Bloom, et al. (2014) The distinct effects of information
technology and communication
technology on firm organization.
This study has reported the impact of the information and communication
technology on management and workers autonomy and span of control.
They have presented these technologies as two different technologies.
Information technology is presented as the decentralizing force while
communication technology as a decentralizing force for decision making
process.
Bala, H., &
Venkatesh, V.
(2013)
Changes in Employees' Job
Characteristics During an
Enterprise System
Implementation: A Latent Growth
Modeling Perspective
This paper has examined the change in employees’ job characteristics while
the implementation more specifically in the shakedown phase of the
Enterprise System.
Sin Tan, et al.
(2009)
Internet-based ICT adoption:
evidence from Malaysian SMEs.
The investigated, what was innovative uniqueness of internet based ICT
adoption in SMEs, how it helped SMEs, what were associated barriers.
Antlová, K. (2009) Motivation and barriers of ICT
adoption in small and medium-
sized enterprises.
They performed an study on the effect of the owner's approach on
performance of SMEs, The research had also investigated how the complex
relationships among the owner group family members negatively affects the
performance of the organizations. In this research ICT adoption was analysed
in thirty SMEs. In second part of the study they have studied the barriers in
ICT adoption. this paper concluded that, to make ICT the tool of competitive
advantage, organizations should have the clear future vision and they should
know the approach or strategy of ICT adoption.
Forman, et al.
(2014)
Special Section Introduction-
Information, Technology, and the
Changing Nature of Work.
This paper reports that despite of higher interdependencies, of information
and technology on work, detailed studies to understand relationship among
these are lacking. This special issue has felt the need for longitudinal analysis
to clearly understand the work related changes as till only surveys and case
studies were only available.

9. Author Title Description
Ismail, et al. (2011). Using ICT as a value adding tool
in South African SMEs.
This paper has empirically investigated, how ICTs were the value addition in
case of SMEs in South Africa, specifically in field of retail, production and
service sector. They performed this study keeping three things in mind. First,
the type of then used ICTs in South African SMEs, Second, the value added
by the ICT the operations, third, study about various barriers during ICT
implementation. They concluded that ICT added values in terms of higher
customer satisfaction and increased service level, and their use was
differently used for different sectors
Mpofu, K. C., et al.
(2013)
ICT adoption and development of
e-business among SMEs in South
Africa.
They have studied the influence of key ICT adoption factors in small hotel
establishment in South Africa supported by case studies. results reflects that
internet, websites and other formal and informal networks are important
factors for ICT adoption. This research identified that skills, knowledge and
background experience were most critical among them.
Touray, A., et al.
(2013)
ICT barriers and critical success
factors in developing countries.
They focused on barriers of ICT adoption in SMEs and identified that
micromanaging and lack of internet exchange points was a most critical one.
These empirical findings were compared with the existing literature to
categories the barriers into success factors.
Antlova, K. (2014) Main factors for ICT adoption in
the Czech SMEs.
They mentioned that with the increased use of e-mail packages, mobile
computing and electronic devices, smart phones and personal networking and
storage, SMEs were enriching their business in current environment. This
research noticed that cloud computing, specifically, software as a service
(SaaS), supported SMEs a lot in ICT adoption by decreasing the dependency
on trained ICT experts.
Adeniran, T. V., et
al. (2014)
ICT Utilization within
Experienced South African Small
and Medium Enterprises.
They identified the purpose and the level of ICT utilization in South African
SMEs. This study presented that ICT utilization in South Africa was sector
specific and it also depends on the firm size and age an maturity level of
organization. they mentioned that Internet/Intranet was used to improve the
information collaboration and extending the trade over the globe.

10. Literature Review: ICTs in SMEs (In India)
Author Title Description
Mitra, et al. (2016) The distinct effects of information
technology and communication
technology on firm organization.
They have analysed the impact of ICT in Indian manufacturing firms and
identified that it has a significant impact on manufacturing productivity in
the context of total factor productivity (TFP) and technical efficiency (TE).
They have noticed that the impact is sector specific.
Todd, P. R., &
Javalgi, R. R. G.
(2007).
Internationalization of SMEs in
India: Fostering entrepreneurship
by leveraging information
technology.
They have focused on determinants influencing the internationalization of
small and medium-sized enterprises (SMEs) in India. They have investigated
and evaluated the business environment and, then, examined the
importance of developing and promoting entrepreneurship to allow SMEs in
India to develop a competitive position in the international marketplace. This
paper has proposed that the primary method for fostering or promoting the
growth of entrepreneurship is through the utilization of technology
Thakkar et al.
(2008).
Internet-based ICT adoption:
evidence from Malaysian SMEs.
They, using interpretive structural modelling (ISM), have identified the
interrelationship among the drivers of IT in Indian SMEs. They have further
classified these factors into four categories; autonomous, drivers, dependent
and linkage to dray higher managerial insights.
Kannabiran, G., &
Dharmalingam, P.
(2012).
Enablers and inhibitors of
advanced information
technologies adoption by SMEs:
An empirical study of auto
ancillaries in India.
They have done a survey-based study to identify enablers and inhibitors of
advanced IT (Information technology) adoption in SMEs. They have identified
several technological, economical and organizational factors that enable or
inhibit the adoption of advanced IT. They have took the case of auto
ancillaries in India and identified five specific barriers in IT adoption.