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What drives the ICT adoption in unorganized firms in India: An application of ordinal probit models

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  • Soumen Ghosh

    (School of Economics and Public Policy, RV University)

Abstract

This study identifies the key drivers of Information and Communication Technologies (ICT) adoption in India's unorganised sector across four major industries. We employ an ordinal probit regression model to analyse microdata from the recent round of the Annual Survey of Unincorporated Sector Enterprises (2023). Our findings highlight that various individual, firm-level, and aggregate-level factors significantly influence the likelihood of ICT adoption. Moreover, this adoption varies across industries. The results further indicate that establishments led by educated owners and those with access to finance exhibit a higher propensity to adopt ICT. Additionally, younger enterprises and those located in urban areas are more likely to integrate ICT into their operations.

Suggested Citation

  • Soumen Ghosh, 2025. "What drives the ICT adoption in unorganized firms in India: An application of ordinal probit models," Economics Bulletin, AccessEcon, vol. 45(3), pages 1544-1553.
    • Handle: RePEc:ebl:ecbull:eb-25-00337
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    JEL classification:

    • L2 - Industrial Organization - - Firm Objectives, Organization, and Behavior
    • L1 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance

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