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ICT Usage and Business Performance of SMEs in Sri Lanka: The Mediation Effect of Bounded Rationality

Authors:

H. M. S. Priyanath ,

Sabaragamuwa University of Sri Lanka, Belihuloya, LK
About H. M. S.
Department of Economics and Statistics
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R. G. N. Megama

University of Sri Jayewardenepura, LK
About R. G. N.
Department of Computer Science
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Abstract

The study examined empirically how Information & Communication Technology (ICT) usage affects the bounded rationality and business performance of Small & Medium Enterprises (SMEs) in Sri Lankan. Data were collected from 400 of SMEs employing structural questionnaire having the face to face interviews. The Partial Least Squares-Structural Equation Modelling (PLS-SEM) was utilized to analyze the data. The results discovered that ICT usage in the organization perfectly makes a significant positive impact on business performance as well as negatively influenced the bounded rationality. Simultaneously, the study uniquely found that bounded rationality makes a negative impact on business performance. Meanwhile, bounded rationality plays a dominant role in the relationship between ICT usage and business performance. The study strongly recommends SMEs to strengthen the usage of ICT especially, mobile technology with applications that play a leading role to develop the SMEs by enhancing the decision-making power.
How to Cite: Priyanath, H.M.S. and Megama, R.G.N., 2020. ICT Usage and Business Performance of SMEs in Sri Lanka: The Mediation Effect of Bounded Rationality. Wayamba Journal of Management, 11(2), pp.1–24. DOI: http://doi.org/10.4038/wjm.v11i2.7470
Published on 30 Dec 2020.
Peer Reviewed

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