IT Adoption Factors by Small Enterprises in the Auto Ancillary Industry

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.