Investigating successful Government Digital Economic Framework Adoption in Indian MSMEs: The Interplay of Perceived Organisational E-Readiness and Intention to Adopt

Abstract

The digital economy is growing in India. At the same time, the digital shadow economy is also growing. Economists and intellectuals warn that the digital shadow economy threatens the global economy. If left unchecked, it could hinder a country's social and economic development. This study analyzed the success factors that enable Indian micro, small, and medium enterprises (MSMEs) to adopt the Indian government's Digital Economic Framework (GDEF) to prevent the growth of digital shadow economy (DSE). The study looked at the relationship between the government's intention to create a digital framework and successful adoption. In addition, the latent elements affecting the organizational and external readiness of Indian MSMEs, the intention to adopt the GDEF, and the successful adoption were examined. Finally, the study examined whether the intention to adopt GDEF influences Indian MSMEs' organizational preparation and effective adoption. In this quantitative study, 372 managers of MSMEs were surveyed. The results of the study show that market forces, government support, and supplier industry support significantly influence the propensity of Indian MSMEs to adopt the GDEF compared to organizational readiness. In contrast, the organizational preparation of the Indian MSME, comprising awareness, human resources, and top management commitment, had little impact on the GDEF adoption. This study also found a partial mediating relationship between Indian MSMEs' internal readiness and effective adoption. The study's findings can be used by policymakers, governments, and international organizations to strengthen or create e-business-enabling strategies and policies to safeguard their traditional economies against threats posed by the digital economy.