Technology Adoption Strategies and Challenges of SMEs in Packaging Industry

Abstract

Purpose – This paper contributes to the existing literature available on the Technology Adoption model and the challenges faced by the SMEs in implementing e-commerce strategies to expand the business. This study adds to the pool of knowledge on adoption of technology and can lead to collaboration, information sharing, and teamwork among SMEs.

Design/methodology/approach – The study uses cross-sectional and qualitative research methods to conduct research on SMEs involved in the packaging industry in PCMC, Maharashtra, India. Non Probability sampling was used to conduct face to face interviews with owners of SMEs from the PCMC area. These interviews were conducted over a period of 3 months to unearth the data by using a semi-structured questionnaire.

Findings – The study found that though some of the SMEs had reservations on using the TAM model however they all were in agreement that the model can be effectively used to expand the business. SMEs used a combination of strategies involving online payment mode, website, and efficient IT infrastructure to adopt e-commerce for marketing their product and to gain a competitive advantage in the local and the global market.

Practical implications – The study can help the SME owners by providing them various e-commerce strategies that could enable them to respond to business stimuli so that they can align their adaptation to any extraneous change. They can also understand the challenges in implementing e-commerce in their business. The study also suggests a direction to potential policy changes that can help SMEs in adoption of ecommerce strategies.

Originality/value – The findings of this study adds to the literature by studying the challenges of SMEs in the packaging industry and studies their awareness, readiness and current strategies adopted and also gives a direction for further study in other sectors and with larger samples.