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Adoption of modern weaving technology in the handloom micro-enterprises in Assam: A Double Hurdle approach

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  • Hazarika, Bhabesh
  • Bezbaruah, Madhurjya Prashad
  • Goswami, Kishor

Abstract

Technological uplift is imperative for enterprises to achieve and sustain competitiveness in terms of both cost and quality of products. While the literature on technology adoption is voluminous, studies focused on adoption related issues concerning rural, nonfarm, and informal micro-entrepreneurs in developing economies are few and far between. In view of significance of these enterprises in employment and income generation at the lower end of income distribution in developing countries, a study of factors influencing adoption of modern technology in such enterprises assumes importance. Using firm-level data collected through a primary survey, the present paper analyses the determinants of adoption and extent of deployment of weaving technologies in the handloom micro-enterprises in rural areas of Assam. The results of the Cragg's Double Hurdle model reveal the significance of financial inclusion, availability of family labor, and social network on adoption and extent of deployment of weaving technologies. The presence of proper market linkages also appears to be crucial for adoption and use of such technologies in the rural areas. The study urges for a comprehensive policy framework to tackle the existing bottlenecks related to access to credit/capital, market linkages, and extension services to promote the technology adoption among the rural micro-entrepreneurs.

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  • Hazarika, Bhabesh & Bezbaruah, Madhurjya Prashad & Goswami, Kishor, 2016. "Adoption of modern weaving technology in the handloom micro-enterprises in Assam: A Double Hurdle approach," Technological Forecasting and Social Change, Elsevier, vol. 102(C), pages 344-356.
    • Handle: RePEc:eee:tefoso:v:102:y:2016:i:c:p:344-356
    DOI: 10.1016/j.techfore.2015.08.009
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    6. Bhattacharjya, Bibhuti Ranjan & Kakoty, Sashindra Kumar & Singha, Siddhartha, 2019. "A feedback mechanism for appropriate technology development and dissemination: Case study approach," Technology in Society, Elsevier, vol. 57(C), pages 104-114.
    7. Kehinde, Ayodeji Damilola, 2021. "The Distributional Impact of Non-Farm Income on Output and Farm Income of Cassava Farmers in Southwestern Nigeria," 2021 Conference, August 17-31, 2021, Virtual 315857, International Association of Agricultural Economists.
    8. Gladys Mireya Valero Córdoba & Manuel Rodenes & Gladys Elena Rueda, 2016. "La internacionalización de las empresas exportadoras. Estado de la cuestión," Revista Lebret, Universidad Santo Tomás - Bucaramanga, vol. 8, pages 127-147, December.
    9. Bhabesh Hazarika, 2020. "Gender income gap in rural informal micro-enterprises: an unconditional quantile decomposition approach in the handloom industry," Eurasian Business Review, Springer;Eurasia Business and Economics Society, vol. 10(3), pages 441-473, September.
    10. Agyekum, Francis K. & Reddy, Krishna & Wallace, Damien & Wellalage, Nirosha H., 2022. "Does technological inclusion promote financial inclusion among SMEs? Evidence from South-East Asian (SEA) countries," Global Finance Journal, Elsevier, vol. 53(C).
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    12. Hewa Wellalage, Nirosha & Hunjra, Ahmed Imran & Manita, Riadh & Locke, Stuart M., 2021. "Information communication technology and financial inclusion of innovative entrepreneurs," Technological Forecasting and Social Change, Elsevier, vol. 163(C).

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