Linkage of Digitalization and Perceived Organizational Performance of Small and Medium Enterprises

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Authors

  • K. Latha
     Post-Doctoral Fellow of KSHEC, Government of Kerala, Mahatma Gandhi University, Athirampuzha – 686560, Kottayam, Kerala ,IN
  • E. Sulaiman
     Professor, School of Management and Business Studies, Mahatma Gandhi University, Athirampuzha – 686560, Kottayam, Kerala ,IN
  • Siby Yohannan
     FPM Scholar, Rajagiri Centre for Business Studies, Autonomous Institute affiliated with Mahatma Gandhi University, Kochi – 682039, Kerala ,IN

DOI:

https://doi.org/10.18311/sdmimd/2023/32687

Keywords:

Adoption of Digital Technology, Digitalization, Perceived Organizational Performance, Rubber Products Manufacturing Industry, Small and Medium Enterprises (SMEs), Sustainable Development, Web Portal

Abstract

The purpose of this empirical research is to assess the impact of digitalization on perceived organisational performance in all areas of Small and Medium Enterprises (SMEs) in India’s rubber products manufacturing industry. The study employs a quantitative research method with an explanatory research design. The study’s primary data is gathered through surveys of top-level officials and IT managers from SMEs in the rubber products manufacturing industry. The normality and reliability of the data are assessed first using SPSS 22, followed by assessments of internal consistency, divergent validity, convergent validity, and discriminant validity using maximum likelihood estimation of the CFA. The structural equation modelling approach was chosen as the statistical instrument that enables researchers to look at complex interactions between several variables in parallel based on the nature of the research questions, the data that are available, and the theoretical underpinnings of the study. It is identified through this study that major digital technology measures such as Usefulness of Web Portals (UWP), Customer Interface through Web Portals (CIWP), and Major Functionalities of Web Portal (MFWP), Use of Online Activities in Marketing Efforts (OAME), Online Advertisements and Promotion (OAP), Availability of Trained and Skilled Employees (ATSE), and Technological Resources (TR) have a statistically significant impact on the performance of SMEs. The study results provide policymakers with insights into how to provide special incentives and exemplary services to SMEs in order to promote the digitalization in the rubber products manufacturing industry. This study expands the scope of the investigation of the adoption and diffusion of digital technology by measuring the impact of a broad range of digital technologies on SMEs.

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Published

2023-10-09

How to Cite

Latha, K., Sulaiman, E., & Yohannan, S. (2023). Linkage of Digitalization and Perceived Organizational Performance of Small and Medium Enterprises. SDMIMD Journal of Management, 14(2), 47–60. https://doi.org/10.18311/sdmimd/2023/32687

Issue

Volume 14, Issue 2, September 2023

Section

Articles

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Copyright (c) 2023 K. Latha, E. Sulaiman, Siby Yohannan

Creative Commons License

This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.

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