ICT ADOPTION AND SME’S: A CONTEXTUAL FRAMEWORK

The present paper is based on the objective of impact of ICT on small scale industrial units of India. An attempt to discuss the different challenges in the sector and overcoming them to make the small scale industries competitive through academic literature. SME’s plays central role in the overall growth of the industrial economy of the country. SME’s in India are known as the backbone of the economy. The reason behind is that these enterprises are employing about 40% of India's workforce and contributing 45% to India's manufacturing output, they play a significant role in generating millions of jobs, especially at the low-skill level. The country's 1.3 million SME account for 40% of India's total exports. The current scenario clearly states that the growth of our economy is impossible without the growth and development of these enterprises but these enterprises are far behind the large counterparts in the economy. The aim of this paper is to study how and why SMEs acquire or adopt ICT and the challenges surrounding the process.


INTRODUCTION
In many developing countries, small and medium enterprises (SME's) account for a significant share of production and employment and are therefore directly connected to poverty alleviation. Especially in developing countries, SME's are challenged by the globalization of production and shift in the importance of the various determinants of competitiveness. Through the rapid spread of ICT and ever decreasing prices for communication, markets in different parts of the world have become more integrated. Whether the use of ICT can help them to cope with the new challenges is unclear. This study deals with the impact of ICT in SMEs and also focuses on generic barriers in adoption of the same. (Abdullah, 2014) ICT adoption is an emerging topic of study in a number of areas including small scale industries. ICT can reduce production and labor costs, add value to products and services and increase company's competitive advantage (Corso et al., 2003). Some studies and reports have shown that ICT is a means that could enhance the business process. Information and communication technologies are not just tool but these are techniques to be understood before any capital investment is made (Ballantine et al., 1998). Due to the uncertainty, misconception and inability, ICT adoption rate is very low in large no of small scale industries. Many studies indicate that there is large no of unsuccessful ICT implementation in small scale industries. Carson and Gilmore (2000) suggests that SME's specially new one's often have to face the problem of ambiguity and uncertainty when it comes to ICT adoption. Adoption of ICT is very important for the ongoing survival of Small Scale organization. ICT improves the ability of small scale organizations to compete with large scale organizations. ICT also enables the small scale firms to operate on an international scale.
The aim of this paper is to study how and why SMEs acquire or adopt ICT and the challenges surrounding the process.

INFORMATION AND COMMUNICATION TECHNOLOGY (ICT)
The term 'ICT' refers to a wide range of computerized information and communication technologies. These technologies include products and services such as desktop computers, laptops, handheld devices, wired or wireless Internet, business productivity software such as text editor and spreadsheets, enterprise software, data storage and security, network security and so on (Ashrafi & Murtaza, 2008). ICT is any technology that enables communication and the electronic capturing processing and transmission of information. Similarly, the parliamentary office of Science and Technology (2006) describes ICT as any technology that facilitates communication and assists in capturing, processing and transmission of information electronically. Wangwe (2007) refers to ICT as myriad of stand-alone media, that includes telephone and mobile telephony, radio, television, video, teletext, voice information systems and fax, as well as computer mediated networks that links a personal computer to the internet. ICT is an integrated system that incorporates the technology and infrastructure requires storing, manipulating, delivering and transmitting information. Adeosun et al. (2009) simply describe ICT as working with computers. ICT can be described as any tool that facilitates communication, process and transmit information and share knowledge through electronic means.

SMALL AND MEDIUM ENTERPRISES (SMES)
Indian SMEs represent the model of socio-economic policies of Government, which emphasis on the job creation at all levels of income stratum and diffusion of economic power in the hands of few thereby discouraging monopolistic practices of production and marketing and in all prospects contributing to growth of economy and foreign exchange earning with low importintensive operations.
Indian SMEs also play a significant role in Nation development through high contribution to domestic production, significant export earnings, low investment requirements, operational flexibility, location wise mobility, low intensive imports, capacities to develop appropriate indigenous technology, import substitution, contribution towards defense production, technology oriented industries, competitiveness in domestic and export markets thereby generating new entrepreneurs by providing knowledge and training. Despite their high enthusiasm and inherent capabilities to grow, SMEs in India are also facing a number of problems like sub-optimal scale of operation, technological obsolescence, supply chain inefficiencies, increasing domestic and global competition, fund shortages, change in manufacturing strategies and turbulent and uncertain market scenario. To survive with such issues and compete with large and global enterprises, SMEs need to adopt innovative approaches in their operations. SMEs that are innovative, inventive, international in their business outlook, have a strong technological base, competitive spirit and a willingness to restructure themselves can withstand the present challenges and come out successfully to contribute 22% to GDP.

NEED OF THE STUDY
This research is very important as it will emphasize on the relationship between ICT and the performance of small scale industries. It will also highlight if ICT has a greater influence on a company's productivity. It is very important for the students to know how far ICT is used especially in manufacturing sector of small scale industries as ICT students learn a lot about the application of ICT in industry. In view of the benefits and opportunities offered by ICTs, it is acknowledged that small scale industries cannot effectively forge ahead with their economic agenda without putting in place an appropriate framework of information and communication technology.

FINDINGS AND CONCLUSION
To summarize we can draw into conclusion that Information and Communication Technology change the work style of Organizations as well as increased the efficiency and employees performance another most important thing which the existing literature related to ICT adoption in SME's revealed that in Indian studies conducted on ICT adoption are limited in scope. So far no study has analyzed the important factor of ICT adoption or impact of ICT on SMEs especially in North India region. The extent of ICT adoption in small scale industries in this region has also not been assessed. From the existing literature review following recommendations are suggested:  [1][2][3][4][5][6][7][8][9][10][11]  Enhancement in the Information and Communication Technology is very important in order to improve the performance of employees in the organization in terms of speed, quality and quantity of work achievement.  Information and Communication Technology culture should be encouraged and exhilarated in the organization through articulating training program with regard to technology.