Determinants of ICT Adoption and Usage: Evidence from Rural-Based SMEs in Nuwara Eliya District, Sri Lanka

Abstract

The phenomenon of the Internet has helped businesses and organizations to understand their existing business application and practices as well as adopt new methods of working, both for existing and potential customers among small and medium-sized enterprises (SMEs). This has enhanced firms' ability to gain a competitive advantage not only locally, but also internationally. This study examined the factors influencing ICT adoption, as well as its usage among SMEs in the Rural sector in Sri Lanka. The study took into consideration innovation diffusion theory (IDT) and characteristics influencing the adoption and usage of ICT among SMEs. in Sri Lankan context there is little empirical research conducted in rural sector SMEs. both primary and secondary data were used. the primary data was collected from 50 SMEs in the Nuwara Eliya district. The findings of this study indicate that the cost of using ICT discourages SMEs in the Nuwara Eliya District from adopting and using those facilities in their businesses. While, the adoption and use of ICT among SMEs in the Nuwara Eliya District is promoted and encouraged by SME owners and managers' ICT knowledge, available ICT infrastructure, and perceived benefits of ICT infrastructure, according to this study. The theoretical implications of this study are the contribution to the literature on ICT adoption and diffusion. and also, practical implications apply to SMEs, training institutions, ICT vendors, and consultants.