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New Technologies and Indian SMEs

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  • Kaushalesh Lal

Abstract

The study identifies and analyzes the factors that influence the adoption of new technologies in Small and Medium-sized Enterprises (SMEs). The study suggests that industry-specific characteristics such as skill- and export-intensiveness have bearings on the degree of the adoption of Information and Communication Technologies (ICTs) led technologies. The size of operation in terms of sales turnover as well as employment also influences the adoption of new technologies. The results suggests that there are marginal differences between the labor productivity and profitability of firms between advanced users of new technology and others. The study suggests that government must provide basic and technological infrastructure to SMEs without which firms cannot use these technologies effectively. And without adoption of new technologies, firms may not remain competitive in the era of liberalization and globalization. As Multi-Fiber Arrangement (MFA) provisions are no longer available to garments sector firms since January 1, 2005, the government must provide basic infrastructure like technological, physical and communication at a globally competitive level so that SMEs can face the stiff competition from large firms and Multinational Enterprises.

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Bibliographic Info

Article provided by IUP Publications in its journal The IUP Journal of Applied Economics.

Volume (Year): VI (2007)
Issue (Month): 1 (January)
Pages: 20-41

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Handle: RePEc:icf:icfjae:v:06:y:2007:i:1:p:20-41

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  1. Doms, Mark & Dunne, Timothy & Troske, Kenneth R, 1997. "Workers, Wages, and Technology," The Quarterly Journal of Economics, MIT Press, vol. 112(1), pages 253-90, February.
  2. DiNardo, John E & Pischke, Jorn-Steffen, 1997. "The Returns to Computer Use Revisited: Have Pencils Changed the Wage Structure Too?," The Quarterly Journal of Economics, MIT Press, vol. 112(1), pages 291-303, February.
  3. Hargittai, Eszter, 1999. "Weaving the Western Web: explaining differences in Internet connectivity among OECD countries," Telecommunications Policy, Elsevier, vol. 23(10-11), pages 701-718, November.
  4. David Card & Francis Kramarz & Thomas Lemieux, 1996. "Changes in the Relative Structure of Wages and Employment: A Comparison of the United States, Canada, and France," NBER Working Papers 5487, National Bureau of Economic Research, Inc.
  5. Catherine J. Morrison & Ernst R. Berndt, 1991. "Assessing the Productivity of Information Technology Equipment in U.S. Manufacturing Industries," NBER Working Papers 3582, National Bureau of Economic Research, Inc.
  6. Donald Siegel & Zvi Griliches, 1991. "Purchased Services, Outsourcing, Computers, and Productivity in Manufacturing," NBER Working Papers 3678, National Bureau of Economic Research, Inc.
  7. Drew, Stephen, 2003. "Strategic Uses of E-Commerce by SMEs in the East of England," European Management Journal, Elsevier, vol. 21(1), pages 79-88, February.
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