Are ERDFs Devoted to Boosting ICTs in SMEs Inefficient? A Three-Stage SBM Approach

Abstract

We assessed the implementation of operational programs (OPs) aimed at boosting the deployment of information and communication technologies (ICTs) in small and medium-sized enterprises (SMEs). We performed a three-stage slack-based measure (SBM) data envelopment analysis (DEA) model combined with the stochastic frontier analysis (SFA), which considered data and contextual factors reported from the European Union (EU) to appraise 51 OPs from 16 countries. Overall, we discovered that by eliminating the contextual factors, almost 27% of the OPs (14) attained efficient procedural results. The OP “Multi-regional Spain—ERDF” is widely perceived as a benchmark, irrespective of its contextual factors, remaining robustly efficient for data perturbations ranging from 5% to 10%. The “Number of Operations Supported” is the indicator that requires attention, both with or without the removal of contextual factors. Our findings suggest that more developed regions, with a greater proportion of ICT professionals, are associated with a poor utilization and allocation of ERDF funds to promote ICT adoption in SMEs. This could be attributed to an inability of SMEs to handle the complex bureaucratic processes of submitting and executing European Regional Development Fund (ERDF) initiatives. Consequently, it is vital to provide additional assistance that streamlines the management formalities and satisfies the needs of SMEs.

Impact Investing: Determinants of External Financing of Social Enterprises in Brazil

“…Adopting emerging technologies such as information and communication technology (ICT) is a critical factor for sustainable development and is also fundamental for long-term business sustainability, allowing enterprises to improve their products and services [72]. This reality makes adopting technologies a fundamental factor for the success of small and medium-sized enterprises (SMEs) [73]. These technologies have already demonstrated their social function, such as helping people with disabilities [74].…”

“…In other contexts related to entrepreneurship, researchers have already described the role of new technologies. The government has encouraged the digital transformation of SMEs, stating that they can contribute to its financing [73]. ICT adoption and innovation contribute positively to access to finance in SMEs [79].…”