Agribusiness Small and Medium Entrepreneurs’ Overall Perceptions of Institutional Support Towards Facing Technology Challenges: A Case of Sri Lanka

Abstract

Purpose: Technology challenges have been recognized as one of the growth retarding factors of Small and Medium Enterprises (SMEs), which further reduced their potential contribution to the national economy. Hence, this research aims to study the Sri Lankan agribusiness SMEs’ overall perception of institutional support towards facing technology challenges.Research Method: A qualitative case study-based methodology was adopted, and a series of key informant interviews were held with 10 SME owners in the Agribusiness sector, using purposive sampling. An in-depth thematic area analysis was used to analyze the data gathered from the interviews and identified five technology challenges faced by SMEs. Findings: SMEs repeatedly stated weak financial base, lack of technical know-how, lack of institutional support, and practical problems that arose when commercializing new products. Many respondents showed a low tendency towards adopting E-Commerce/M-Commerce/E-Marketing and database management systems. The study revealed that they had built network partnerships with other SMEs in the industry on their own. Most SMEs are currently facing difficulties in connecting with Multi-National Companies (MNCs)/ Trans-National Companies (TNCs)/ Large-scale companies. According to the SMEs' overall perception of institutional support, many had low satisfaction in most of the areas. Value: This study is important for the government institutions and relevant policymakers to identify the requirements of SMEs, and thereby, organize customized supportive programs to overcome technology challenges.