The study examines the intensity of the adoption of information and communication technologies in Jamaican Small and Medium-Sized Enterprises (SME) and their ability to use them in augmenting performance of firms. Most of the firms which participated in this study had access to and utilized Information and Communication Technologies (ICT) such as office automation technologies, E-mail, and the Internet. However, only a limited number of firms were using advanced ICT tools like Computerized Numerically Controlled machine tools (CNC), Computer Assisted Design (CAD)/ Computer Assisted Manufacturing (CAM), Computer Assisted Engineering (CAE), and Web-enabled technologies. Majority of the firms surveyed did not report any major constraint to the use of ICTs apart from the speed of communication and the Internet access. An analysis of data in neo-classical production function framework suggests that firms that adopted more advanced ICTs performed better than others that were users of low level of ICTs. The other factors that emerged significant in influencing performance of firms were size of operation, skill intensity of workforce, age of managing directors, communication technology infrastructure, and international orientation. It is concluded that the Jamaican Government needs to strengthen technical training institutions so that they can produce persons with appropriate skills who can use and encourage the use of ICTs which is expected to consolidate the position of SMEs in the domestic as well as in international markets.
Small
and Medium-Sized Enterprises (SMEs) are the growth engines
of developing economies through the provision of employment
opportunities, and overall contributions to the Gross Domestic
Product (GDP). However, there are a number of constraints
limiting the growth of SMEs such as inadequate credit facilities,
infrastructural and technological problems which hamper
the development of this vital sector of the economy and
limit the growth, global competitiveness and the formation
of linkages in the global commodity chain by SMEs.
Governments
in several developing countries have taken initiatives to
retain/strengthen competitiveness of SMEs in the era of
globalization which is characterized by global business
environment. These measures could be technological upgradation
support, new opportunities for human resource development,
and marketing support. Technological support is not only
limited to make SMEs aware of advanced technological development
which has taken place in the world market, but also, to
help them in acquisition of new technologies. One of the
possible ways to encourage firms to adoption new technology
is through the reduction of cost of accessing such technologies.
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