Technology Adoption in Small and Medium Enterprises and Its Impact on Business Growth, Innovation, and Digital Sustainability

Mohamed Suhaimi Yusof (2025) Technology Adoption in Small and Medium Enterprises and Its Impact on Business Growth, Innovation, and Digital Sustainability. International Journal of Advanced Research in Economics and Finance, 7 (3). pp. 84-100. ISSN 2682-812X

Text Technology Adoption in Small and Medium Enterprises and Its Impact on Business Growth, Innovation, and Digital Sustainability.pdf Download (262kB)

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.

Item Type:	Article
Uncontrolled Keywords:	Digital Transformation, Information Technology, IT Adoption, Policy Support, Innovation
Divisions:	Faculty of Business and Accountancy (FABA)
Depositing User:	LIBRARY2 UPTM
Date Deposited:	22 Sep 2026 04:54
Last Modified:	22 Sep 2026 04:54
URI:	http://eprints.uptm.edu.my/id/eprint/6214

Actions (login required)

View Item