Determinants of technology adoption by micro and small enterprises (MSEs) in Awi zone, Northwest Ethiopia

Adino Andaregie and Tessema Astatkie

African Journal of Science, Technology, Innovation and Development, 2022, vol. 14, issue 4, 997-1006

Abstract: Adoption of technology can enhance the development of micro and small enterprises (MSEs). But in Ethiopia, there is a very low adoption of broadband connections, mobile phones, computers, printers, scanners, copiers, and other technologies by MSEs. The main objective of this study was to identify the determinants of technology adoption by MSEs in Northwest Ethiopia. Cross-sectional data were collected from 327 MSEs selected using the stratified random sampling method and analyzed using the Heckman two-stage model. The first stage probit model estimation results showed that sex, educational level, source of start-up capital, size of the enterprise, and whether the owner of the enterprise has had technology related trainings were significant factors determining technology adoption decisions of MSEs. The second stage estimation results showed that sex, education level, experience, age, family size of the owner, and access to credit significantly influence the degree of technology adoption. The findings indicate that MSEs need more education (information) on technology, greater access to credit, and incentives provided by the government of Ethiopia and other agencies in order to increase their adoption of technology.

Date: 2022
References: Add references at CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
http://hdl.handle.net/10.1080/20421338.2021.1923385 (text/html)
Access to full text is restricted to subscribers.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:taf:rajsxx:v:14:y:2022:i:4:p:997-1006

Ordering information: This journal article can be ordered from
http://www.tandfonline.com/pricing/journal/rajs20

DOI: 10.1080/20421338.2021.1923385

Access Statistics for this article

African Journal of Science, Technology, Innovation and Development is currently edited by None

More articles in African Journal of Science, Technology, Innovation and Development from Taylor & Francis Journals
Bibliographic data for series maintained by Chris Longhurst ().