Abstract:
ICT has influenced greatly in changing the business structures and communication
processes along with aiding rapid globalization and spread of knowledge. The effect
of ICT on the economy, social structures and even personal development has become
an important topic on empirical studies in recent decades. Therefore, the purpose of
this study is to gain a deeper understanding of how the antecedents of ICT Adoption
influences the Business Performance of SMEs in the Colombo District of Sri Lanka.
The study observes the association between the Business Performance and the three
antecedents of ICT Adoption observed throughout the literature and used in various
models such as the Technology, Organization and Environment (TOE) model, the
Diffusion of Innovation model and the TAM Model. The three factors being Technological Factors (Relative Advantage and Complexity of ICT), Organizational
Factors (Owner’s Knowledge of ICT) and Environmental Factors (Institutional
Intervention and Competitive Pressures).
The author surveyed 385 SME owners in the Colombo district using a structured
questionnaire developed through the constructs of different adoption models. The
findings showed a positive relationship between the three factors; Technological,
Organizational and Environmental and the Business Performance of SMEs. Out of
the three factors, Environmental factors show to have the highest level of relationship
with Business Performance. This seems to indicate that Institutional Intervention and
Competitive pressures have a higher influence on BP. The implications of these
findings are presented in the study.
