Technology Adoption in Small and Medium Enterprises and Its Impact on Business Growth, Innovation, and Digital Sustainability
List of Authors
  • Mohamed Suhaimi Yusof

Keyword
  • Digital Transformation, Information Technology, IT Adoption, Policy Support, Innovation

Abstract
  • The adoption of information technology (IT) has significantly transformed small and medium-sized enterprises (SMEs), offering substantial benefits in operational efficiency, market expansion, and competitive positioning. Despite the increasing necessity for digital transformation, many SMEs face persistent barriers, including financial limitations, technological constraints, cybersecurity risks, and a lack of digital literacy. This paper explores the multifaceted nature of IT adoption in SMEs, examining key drivers, challenges, and the role of institutional support in fostering digital integration. By analyzing theoretical frameworks such as the Technology-Organization-Environment (TOE) model and the Unified Theory of Acceptance and Use of Technology (UTAUT), this study highlights critical factors influencing SME technology adoption. Furthermore, emerging trends, including artificial intelligence (AI), blockchain, cloud computing, and the Internet of Things (IoT), are discussed as potential catalysts for SME growth. The findings suggest that while IT adoption enhances SME sustainability and competitiveness, a collaborative effort between governments, industry stakeholders, and financial institutions is crucial to overcoming digitalization challenges. This paper concludes by providing policy recommendations to facilitate IT adoption and ensure the long-term resilience of SMEs in an increasingly digital economy.

Reference
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