Evaluating the Adoption of Enterprise Applications by Small and Medium Enterprises in Sri Lanka

Abstract

Adoption of information and communication technology has various factors’ influence; Enterprise Applications’ (EAs) adoption is not an exception. Small and Medium Enterprises (SMEs) that share around 80 percent of Sri Lankan economy also confront the same kind of influence from various factors. Although the adoption of EAs brings various advantages for such enterprises, many firms are reluctant to make adoption decision. Vendors of such applications would be willing to know about which factors to address to motivate these SMEs’ to adopt their applications. This study aims to delineate the factors influencing SMEs’ adoption of EAs. Many adoption models have been studied in many contexts by researchers; however, these studies address selected fragmented variables. In order to provide a holistic view of factors influencing such adoption by SMEs, this study used Technology, Organization and Environment (TOE) framework.  Population for this study is from the North and the Eastern provinces of Sri Lanka. Analysis revealed that technological, organizational and environmental factors significantly influence SMEs’ adoption of EA.

Keywords: Small and Medium Enterprises, Enterprise Applications, Adoption, TOE Framework, Sri Lanka