TECHNOLOGY ISSUES IN SMALL AND MEDIUM SCALE ENTERPRISES (SMES) IN SRI LANKA: A CASE STUDY BASED ON RUBBER PRODUCTS MANUFACTURING SECTOR

Abstract

Small and medium scale Enterprises (SMEs) play a significant role I economic development in sri lanka. Hence, there is a need to strengthen their level of technological capability. Technology is often considered ass a determinant factor of their competitiveness and sustainability. According to the research, new basic technologies will not only lead to fundamental changes in their level of technological capability, but a new SME will emerge and existing ones will change their profile rather than enhancing their level of technological capability. This study was designed to analyze the level of technological capability in SMEs as well as organizations involving SME development, and how it has depended on the issues and effective factors of technology. A questionnaire survey covering SMEs and organizations were done the results of the investigation revealed that there is a necessity to enhance the level of technological capability of SMEs and organizations through assistance from the government, public sector and foreign donor organizations.  The model of technological development for SMEs in Sri Lanka was well supported by the findings showing a regression relationship between the level of technological capability, and issues and effective factors of technology. Having a clear legislative definition for SMEs in Sri Lanka with a national policy framework for the protection and development of technology and business sphere of SMEs including adopting an appropriate technology, ensuring technology commercialization and enhancing the public sector level of technological capability are some of the key areas to be taken in to account.

Keywords: capability, Commercialization, Competitiveness, SMEs, Sustainability, Technology

For full Paper: fmscresearch@sjp.ac.lk