A Heterogeneous Factors Influencing Adopting Online Transaction in Small Scale Industries in Bangalore

Abstract

The proliferation of digital technologies and the internet has brought about a significant transformation in the way businesses operate worldwide. This study explores the heterogeneous factors influencing the adoption of online transactions in small-scale industries in Bangalore, India. Small-scale industries play a vital role in the local economy, and understanding their transition to online transactions is critical for their sustainability and growth. This research employs a mixed-method approach, combining surveys and interviews, to collect data from a diverse sample of small-scale industry owners and managers across Bangalore. The study aims to identify and categorize the various factors that affect the adoption of online transactions in this context. The findings suggest a complex interplay of factors, reflecting the diverse nature of small-scale industries. Economic, technological, social, and organizational factors emerged as primary determinants influencing the adoption of online transactions. Economic factors include cost-effectiveness, financial incentives, and profitability, while technological factors encompass infrastructure, digital literacy, and the availability of user-friendly platforms. Social factors revolve around customer demand, peer influence, and the local market dynamics, while organizational factors pertain to the firm’s size, structure, and adaptability. Additionally, the study reveals that government policies, regulations, and industry-specific associations have a significant impact on the decision to adopt online transactions in small-scale industries. External factors, such as competition, industry trends, and the COVID-19 pandemic, have also played a role in accelerating this transition. Understanding these heterogeneous factors and their interactions is crucial for policymakers, industry associations, and businesses in creating tailored strategies to promote online transaction adoption. By recognizing the multifaceted nature of these factors, small-scale industries can overcome barriers and leverage opportunities to transition into a digitally empowered future. In conclusion, this research sheds light on the complex landscape of online transaction adoption among small-scale industries in Bangalore, providing valuable insights into the challenges and opportunities these businesses face. It underscores the need for a holistic approach to support their journey towards a digital future, enhancing their competitiveness and contributing to the growth of the local economy.