Determinants of the adoption of Information Technology: a case study of electrical and electronic goods manufacturing firms in India

The results of Ordered Probit Model suggest that the qualification and information base of entrepreneurs and their attitude towards innovative activities and market share are significant determinants of the degree of IT adoption.

Abstract

This study measures the intensity of adoption of Information Technology (IT) and identifies its determinants. In this paper, it is argued that the degree of IT adoption will be determined by the variables such as entrepreneurship, skill intensity, government policy, openness of economy, competitive environment, and other firm-specific factors. The results of Ordered Probit Model suggest that the qualification and information base of entrepreneurs and their attitude towards innovative activities and market share are significant determinants of the degree of IT adoption. The results also indicate that size of operations and skill intensity of the firms influenced the extent of IT use.