Propelling MSMEs towards automation adoption and sustainable development

Vysakh Kani Kolil, M.C. Sarath Chandran and Krishnashree Achuthan

International Journal of Productivity and Performance Management, 2026, vol. 75, issue 5, 1626-1651

Abstract: PurposeThis study examines key factors influencing automation adoption among micro, small, and medium enterprises (MSMEs), focusing on the cashew industry. It explores how automation contributes to sustainable development while addressing financial, infrastructural, and digital literacy constraints.Design/methodology/approachUsing the Unified Theory of Acceptance and Use of Technology-2 (UTAUT2) framework, data from 234 MSMEs were analyzed via structural equation modeling to assess behavioral intention (BI) and use behavior. Additionally, it maps adoption factors to sustainable development goals (SDGs).FindingsPerformance expectancy (ß = 0.533), effort expectancy (ß = 0.319), social influence (ß = 0.128), and facilitating condition (ß = 0.156) emerged as the significant predictors of BI. The moderation analysis showed mixed results, with education influencing performance expectancy (p = 0.043), and age (p = 0.001) and operational duration (p = 0.035) influencing effort expectancy. This study reveals that the automation adoption factors contribute to seven SDGs (#4, #8, #9, #10, #12, #16, and #17) through workforce upskilling, improved job conditions, industrial efficiency, sustainable production, financial inclusivity, governance transparency, and business resilience.Originality/valueThis study is unique in systematically mapping automation adoption factors in MSMEs to SDGs that go beyond economic and industrial outcomes, addressing social equity, governance, and sustainability. Applying UTAUT2 in the cashew sector, it bridges research gaps in digital transformation for resource-constrained industries.

Keywords: MSME; UTAUT2; Automation; Adoption; SDGs; Artificial intelligence (search for similar items in EconPapers)
Date: 2026
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Persistent link: https://EconPapers.repec.org/RePEc:eme:ijppmp:ijppm-02-2025-0146

DOI: 10.1108/IJPPM-02-2025-0146

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