Organizational Structure Influence on the Technological Adaptation by the SMEs in Sri Lanka: With Special Reference to Automobile Industry

Abstract

In most of the developing countries the development in the Small and Medium Enterprises (SMEs) is a critical factor in the economic development in the country. However, SMEs have disadvantages related to the lack of technological and financial resources which can lead not only to problems in their ability to source technology but also in their capability to absorb it into their organization and diffuse it into their industrial sector (Jones-Evans, 1998). In this context the adopting the new technology is an important factor in the development in the SMEs. According to the Mirmahdi Darbanhosseiniamirkhiz et al (2012) the mostly the SMEs in non-adapting the technology due to the internal organizational factors. The objective of this study is to assess the level of influence by the organizational structure in the adapting the new technologies in the Small and Medium Enterprises (SMEs) in the Sri Lankan context. The objective of the paper provides better understanding to the SMEs to organize their organizational structure to achieve the desired goals and objectives by utilizing the hard technologies in the organizational context. In this context the research problem is to identify the relationship between the organization structure and the technological adaptation by the SMEs in Sri Lanka. This study consists with the comprehensive literature review and also with the primary data gathering based on the questionnaire. This paper is a theoretical construction that synthesizes previous studies, and centers on the internal organizational structure which influence adoption of hard technologies. According with the research finding of close relationship between the organizational structure and the technology adaptation by the SMEs. This model can provide managers with practical solutions through granting in-depth understanding of whole internal environment, and awarding empirical insight into overcoming barriers to the adoption and implementation of hard technologies and other process innovations in automobile sector SMEs in Sri Lanka.