Factors influencing the Usage of information and Communication Technology in Smes in Balangoda Area

Abstract

Small and medium enterprises are the main influencing business sector of the Sri Lankan economy as well as all the developing countries. Information and Communication Technology is playing a major role in Small and Medium Enterprises. The main objective of this study is to examine the factor influencing the ICT adoption in SMEs in Balangoda area. The study examined the effect of cost of ICT, knowledge about ICT, ICT infrastructure and Perceived benefits associated with Information and Communication technology on its usage. Primary data were used as the data source of the study. As the sample of the study, researcher selected 50 SMEs established in the Balangoda area. Data were collected using a structured questionnaire and analyzed those using descriptive statistics, correlation and regression analysis. The results reveal that cost, knowledge, infrastructure and benefits of information and communication technology effect its use in small and medium enterprises. According to finding of the research, cost of ICT negatively affect for the usage of ICT in SMEs. But knowledge about ICT, ICT infrastructure and perceived benefits positively affect for the usage of ICT in SMEs. Therefore, owners of the SMEs should increase their knowledge about new ICT usage within the business organizations, should know how use ICT infrastructure to increase ICT usage in the organization. Perceived benefits is the strongly affective variable than the other Therefore, SME must apply the effective, efficient and employee friendly ICT system.