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New Technologies and Indian SMEs

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Author Info
Kaushalesh Lal

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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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Publisher Info
Article provided by Icfai Press 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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References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
  1. 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. [Downloadable!] (restricted)
    Other versions:
  2. Lal, K., 1999. "Determinants of the adoption of Information Technology: a case study of electrical and electronic goods manufacturing firms in India," Research Policy, Elsevier, vol. 28(7), pages 667-680, September. [Downloadable!] (restricted)
  3. Kramarz, F., 1998. "Computers and Labour Markets: International Evidence," Research Paper 152, World Institute for Development Economics Research.
  4. Erik Brynjolfsson, 1992. "The Productivity of Information Technology: Review and Assessment," Working Paper Series 130, MIT Center for Coordination Science. [Downloadable!]
    Other versions:
  5. 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.
    Other versions:
  6. 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.
  7. Donald Siegel & Zvi Griliches, 1991. "Purchased Services, Outsourcing, Computers, and Productivity in Manufacturing," NBER Working Papers 3678, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
    Other versions:
Full references

Cited by:
(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. K.J. Joseph, 2008. "Information Technology and Productivity: Evidence From India's Manufacturing Sector," Working Papers id:1418, esocialsciences.com. [Downloadable!]
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