An Analysis of Implementation of Digitalisation in SMEs in India

Abstract

This article attempted to analyse the implementation of digitalisation in small and medium manufacturing enterprises in India. The objective of the study is to determine the impact of the size of the firm on the adoption of digitalisation, and motives for the adoption and challenges faced during the adoption process. Logistic regression, t-Test and descriptive statistics have been used to analyse the data. The study found that the size of the firm is an important factor for the adoption of digitalisation. An increase in sales, profitability, competitive capability and awareness of the brand were found as the most motivating factor for the adoption of digitalisation. Satisfaction with the current system, high cost, the lack of appropriate technology and the lack of top management support were the most important challenges faced by the organisations during the adoption process of digitalisation. The study recommended firms which have not adopted digitalisation to think in this regard as there are several benefits associated with the adoption of digitalisation.