Technological Adoption and Organizational Performance of SMEs in Sri Lanka

Abstract

Modernity is rapidly accelerating, causing changes in every single element of the
world, starting from individuals, organizations, and then influencing a country as a
whole. Today, technological changes have become more frequent than ever. In Sri-
Lanka Small and Medium Enterprises (SMEs) are one of the major contributors of
employment generation and source of living for the Sri Lankan citizens thus increasing the country’s GDP growth. Even if so, the slowness associated with technology adoption among the SMEs, might be one of the prime grounds hindering the optimum organizational performance of SMEs. Therefore, the purpose of this study is to evaluate
the level of technological adoption within the SMEs in Sri-Lanka while investigating
the impact of technology adoption on the overall organizational performance of SMEs. The author has followed a qualitative research approach to investigate deeply on the
subject matter. The study was conducted by interviewing 06 SME owners and managers
in Western, North-western and Sabaragamuwa provinces, Sri-Lanka. The purposive
sampling technique was followed in selecting the respondents, where the author’s inclusive criteria were to select the SMEs that have already adopted technology for at least two years. In order to generate solutions for the study a thematic analysis was
followed where 05 major themes were generated as: theme 01-Decision for adoption, theme 02- technology adoption process, theme 03- Level of technology adoption, theme 04- Impact on organizational performance and theme 05- Improving technology adoption. The findings obtained through the analysis point out that the level of technology adoption in SMEs depend on the functions performed by and relevant to
that particular organization and they involve in step-by-step implementation of technology. Moreover, the findings highlight SMEs in Sri-Lanka often adopts the basic levels of technological applications in their organizations. Further the results of the study conclude that technology adoption has an overall positive impact on the organizational performance of SMEs in Sri-Lanka. The findings of the study will guide SMEs in the technology adoption process as well as help the government in implementing different strategies to uplift technology adoption among the SMEs.