Articles
ICT Usage and Business Performance of SMEs in Sri Lanka: The Mediation Effect of Bounded Rationality
Authors:
R. V. S. P. K. Ranatunga ,
Sabaragamuwa University of Sri Lanka, Belihuloya, LK
About R. V. S. P. K.
Center for Computer Studies
H. M. S. Priyanath,
Sabaragamuwa University of Sri Lanka, Belihuloya, LK
About H. M. S.
Department of Economics and Statistics
R. G. N. Megama
University of Sri Jayewardenepura, LK
About R. G. N.
Department of Computer Science
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:
Ranatunga, R.V.S.P.K., 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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