Abstract:
The main objective of the current empirical research study is to understand the significant factors that favor
or challenge the IT adoption among the small enterprises of the auto ancillary industry. A detailed survey was
conducted among the small enterprises and the data was collected through the survey. The data was analyzed
using exploratory factor analysis (EFA) and multivariate regression analysis (MRA). The exploratory factor
analysis was conducted to establish the validity (through unidimensionality) and reliability (through
Cronbach’s Alpha) of IT adoption constructs. The MRA was carried out to evaluate the relationship among
the favoring and challenging factors of IT adoption in auto ancillary small enterprises sector. The favoring
factors such as perceived benefits of IT use and government supporting initiatives are in positive relation with
IT Adoption, whereas perceived competitive pressure and firm innovativeness are not statistically significant.
The challenging factors such as lack of financial capacity, lack of in-house IT manpower, small scale operation
and rigidity to change are found to be statistically significant for IT adoption. The current research study
identified that the variables such as government supporting initiatives, rigidity to change are found to be
statistically significant for IT adoption. The key government supporting initiatives such as low interest rates,
subsidies and associated schemes have to be enhanced and ensured that they reach the intended sector of the
automobile industry. Also, a range of relevant training programs for the employees in the domain of
personality development and information technology utility and its implementation have to be initiated by the
small enterprises of the auto ancillary industry to overcome the element of rigidity to change.
