Impact of information technology adoption and internal financing sources on firm performance

Harvinder S. Mand and Gaganpreet Kaur

International Journal of Business and Globalisation, 2025, vol. 39, issue 2, 167-182

Abstract: The COVID-19 pandemic has hit the Indian economy very hard and negatively impacted the firm performance. This study investigated the impact of IT adoption and internal financing sources on firm performance. We employed a survey research design (a non-experimental research design). The owners of micro, small, and medium enterprises (MSMEs) were surveyed to test the impact of IT adoption and internal financing sources on firm performance. Empirical analysis shows that IT adoption and internal financing sources enhance MSMEs' performance in India. Information technology adoption and internal financing sources increase the chances of MSMEs' performance enhancement by 26.24% and 64.05%, respectively. This research study contributes to the literature on the impact of IT adoption and internal financing sources on firm performance. This study may help scholars develop further studies on the impact of IT adoption and internal financing sources on firm performance. MSME owners may also find the study's results helpful to enhance their firm performance to survive and prosper in the future.

Keywords: IT adoption; internal financing sources; IFS; firm performance; MSMEs; India. (search for similar items in EconPapers)
Date: 2025
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