Investigation of Technology Usage and Its Impact on Business Sustainability of Micro Entrepreneurs in Salem District
Keywords:
Digital Technology, Micro Entrepreneurs, Business Operations, Technology Adoption, Digital Literacy.
Abstract
The advent of digital technology has reshaped the operations systems of micro enterprises by redefining the communication, transaction, and resource management processes between entrepreneurs. The present study examines the level of utilisation of digital technology by micro entrepreneurs in Salem District considering the identification of the levels of adoption, operational barriers and consequent improvement in their business. The research design is empirical research work with the use of primary data obtained from 223 respondents using structured interview schedule. The research uses systematic random sampling in order to ensure representativeness across retail, service and small scale manufacturing sectors. The study used advanced analytical tools like K-Means clustering, Conjoint Analysis and Canonical Correlation The analysis are used to understand usage patterns and relationships between adoption behaviour and business outcomes. The findings show digital technology has become a crucial enabler of efficiency but the adoption of the technology is still uneven across sectors. The micro-entrepreneurs are highly willing to use digital tools while struggling in terms of cost, infrastructure and digital literacy.
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References
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Ahmad, S. Z., & Xavier, S. R. (2019). Entrepreneurial ecosystems and digital transformation in emerging markets. Technological Forecasting and Social Change, 146, 873–882.
Al-Qirim, N. (2017). The adoption of eCommerce communications and applications technologies in small businesses in New Zealand. Electronic Commerce Research and Applications, 6(4), 462–473.
Amankwah-Amoah, J., & Adomako, S. (2019). Big data analytics and business failures in small firms: A resource-based perspective. Industrial Marketing Management, 82, 127–138.
Anwar, M., & Abdullah, A. (2021). Digital orientation and performance of small and medium enterprises: Mediating role of dynamic capabilities. Technological Forecasting and Social Change, 163, 120420.
Ardito, L., Raby, S., Albino, V., & Bertoldi, B. (2021). The duality of digital and environmental transitions in manufacturing SMEs: The role of digital technologies in green innovation. Business Strategy and the Environment, 30(8), 3745–3762.
Asongu, S., & Odhiambo, N. M. (2019). Inclusive finance and inclusive development: A review. Sustainable Development, 27(3), 550–557.
Bai, C., Quayson, M., & Sarkis, J. (2021). COVID-19 pandemic digitization lessons for sustainable development of micro and small enterprises. Sustainable Production and Consumption, 27, 1989–2001.
Banker, R. D., & Kauffman, R. J. (2020). The evolution of digital transformation research: From IT alignment to digital ecosystems. MIS Quarterly, 44(2), 555–577.
Chatterjee, S., Rana, N. P., & Dwivedi, Y. K. (2021). Assessing consumers’ co-creation behaviour in digital platforms: The role of empowerment and social identity. Information Systems Frontiers, 23(5), 1187–1205.
Chen, J., Tong, T. W., & Wu, Z. (2022). Digital technology adoption and its performance implications for micro enterprises: Evidence from developing economies. Journal of Small Business Management, 60(3), 545–566.
Chinomona, R. (2018). The influence of perceived ease of use and perceived usefulness on entrepreneurial adoption of ICT: The case of SMEs in Zimbabwe. African Journal of Business Management, 12(3), 55–67.
Davidson, E., & Vaast, E. (2010). Digital entrepreneurship and its socio-material foundations. Information and Organization, 20(4), 238–259.
Dwivedi, Y. K., Hughes, L., Kar, A. K., Baabdullah, A., Grover, P., & Abbas, R. (2022). Climate change and digital innovation: A research agenda for responsible digital transformation. Information Systems Frontiers, 24(2), 421–438.
Eze, S. C., Chinedu-Eze, V. C., & Bello, A. O. (2019). Determinants of dynamic process of e-business adoption among small and medium-sized enterprises in Nigeria. Cogent Business & Management, 6(1), 1609253.
George, G., Lakhani, K. R., & Puranam, P. (2020). What has changed? The impact of digitization on business models and strategy. Academy of Management Review, 45(1), 1–10.
Ghobakhloo, M. (2020). Industry 4.0, digitization, and opportunities for small and medium-sized enterprises: A systematic review. Journal of Manufacturing Technology Management, 31(5), 943–964.
Gupta, S., Chen, X., Hazen, B. T., & Kaur, S. (2020). Digital transformation and sustainability in small and medium-sized enterprises: A literature review. Sustainability, 12(22), 9132.
Haron, H., Alias, N., & Rahman, A. (2020). Barriers of digital technology adoption in micro and small enterprises: A Malaysian perspective. International Journal of Business and Society, 21(3), 1220–1237.
Kumar, V., & Ayedee, N. (2019). Technology adoption and the digital transformation of small businesses: Lessons from India. Journal of Asia Business Studies, 13(2), 154–172.
Lai, Y., Sun, H., & Ren, J. (2018). Understanding the determinants of digital transformation in micro enterprises: Evidence from China. Industrial Management & Data Systems, 118(4), 964–983.
Maduku, D. K., Mpinganjira, M., & Duh, H. (2016). Understanding mobile marketing adoption among micro enterprises: The moderating role of gender. Journal of Small Business and Enterprise Development, 23(1), 123–146.
Mittal, S., Khan, M. A., & Romero, D. (2018). A critical review of smart manufacturing and Industry 4.0 maturity models: Implications for small and medium enterprises. Journal of Manufacturing Systems, 49, 194–214.
Nambisan, S., Wright, M., & Feldman, M. (2019). The digital transformation of entrepreneurship: Progress, challenges, and future directions. Entrepreneurship Theory and Practice, 43(1), 5–20.
Ntiamoah, E. B., Li, D., & Kwamega, M. (2020). Factors influencing digital technology adoption among micro enterprises in developing economies. Journal of Global Entrepreneurship Research, 10(1), 17–33.
Okundaye, K., Fan, S. K., & Dwyer, R. (2019). Impact of information and communication technology on small and medium enterprises (SMEs): Evidence from developing countries. International Journal of Management, 36(1), 124–138.
Olanrewaju, A. S., Hossain, M. U., Whiteside, N., & Mercieca, P. (2020). Social media and entrepreneurship research: A literature review. International Journal of Information Management, 50, 90–110.
Rahayu, R., & Day, J. (2017). E-commerce adoption by SMEs in developing countries: Evidence from Indonesia. Eurasian Business Review, 7(1), 25–41.
Rao, S., & Mittal, P. (2022). Digital inclusion and technology adoption among Indian small enterprises: Role of digital literacy and perceived barriers. Journal of Entrepreneurship and Innovation in Emerging Economies, 8(2), 170–189.
Sahoo, S., & Yadav, S. (2018). Entrepreneurship and digital transformation: The Indian context. IIMB Management Review, 30(4), 357–368.
Salam, M. A. (2021). Adoption of digital financial technologies among micro enterprises in developing nations. Journal of Small Business and Enterprise Development, 28(3), 456–476.
Singh, R. K., & Hess, T. (2020). How digital transformation shapes micro business resilience: Evidence from developing economies. Information & Management, 57(8), 103345.
Subramanian, N., & Gunasekaran, A. (2022). Digital ecosystems and value creation in micro enterprises: Toward an integrative model. Technological Forecasting and Social Change, 180, 121654.
Published
2025-11-14
How to Cite
M. Ravikumar, & Dr. S. Deepa. (2025). Investigation of Technology Usage and Its Impact on Business Sustainability of Micro Entrepreneurs in Salem District. IJRDO - Journal of Business Management, 11(5), 17-24. https://doi.org/10.53555/bm.v11i5.6487
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