The influence of digital literacy, financial readiness, and government support on the information and communication technology adoption

Abstract

The contemporary business environment is profoundly shaped by Information and Communication Technologies (ICT), which are now integral to global commercial operations. Drawing on Eshet-Alkalai's Digital Literacy Framework, the Finance Readiness Framework, and the Advocacy Coalition Framework, this study aimed to explore how digital literacy, financial readiness, and government support influence ICT adoption among small businesses in Vigan City. It also assessed the levels of digital literacy, financial readiness, government support, and ICT adoption. Using descriptive and correlational research designs, the study surveyed 150 owners and employees of small businesses in Vigan City, selected through non-probability quota sampling. The data were collected using a researcher-designed questionnaire. The findings revealed that increased digital literacy enhanced ICT adoption by reducing barriers to technology integration, while financial readiness positioned businesses to invest effectively in ICT solutions. Moreover, substantial government support—through initiatives like subsidies, training programs, and infrastructure development—created an enabling environment for ICT adoption by addressing challenges such as high costs and inadequate infrastructure. These factors collectively enhanced operational efficiency and competitiveness among small businesses. To optimize ICT adoption further, the study recommended implementing training programs, workshops, and conducting additional research to identify other influencing factors and strategies for effective technology integration in small business operations.