Abstract
Based on the environmental context of the T-O-E framework, this study proposed to find out how environmental factors (competitive pressure, government role, availability of external expertise and industry type) affected the adoption practice of ICT in garment sector SMEs, in the District of Faisalabad, Pakistan. Emphasizing the environmental context of TOE framework, data were collected from owners/managers/executives of 269 SMEs, through survey questionnaire. Structure Equation Modeling (SEM), with smartPLS, was used for the data analysis. Findings indicated that all environmental factors significantly affected the SMEs, decision to adopt and use ICTs. The proposed model will be helpful to SMEs in Pakistan, in making investment decision regarding adoption of ICT, which, in turn, would enhance their performance and increase their capabilities to survive in the competitive market place.