Toward a Digital Competency Framework: An Assessment Model for Micro Small and Medium Enterprises in the Era of Digital India

Abstract

Small and medium enterprises are the key engines for the economic development of nations. Their role in sustained growth even during the pandemic era is established. Numerous initiatives thus were planned by the government for their growth, sustenance and expansion. Digitalisation is one such initiative as well as a solution in the ‘new normal’. Despite its availability, access and government support, there is considerable digital divide in micro and small businesses. Experience and research confirms that the lack of digital skills and IT literacy is an important reason for this digital divide in India. Studies also reveal a lack of assessment framework to measure the basic digital skills/competencies that cater to micro small and medium enterprises (MSMEs). This paper is an attempt to fill this gap by building a conceptual framework using evidence-centred assessment design (ECD) model that can comprehensively assess the Digital literacy skills/ levels among the MSMEs. This framework will benefit the stakeholders in understanding the current level of digital literacy, skill gap and digital adaptability among the MSMEs and provide a basis for planning digital literacy initiatives and skill development programs. The framework facilitates scale development for empirical testing thus adding to the theoretical rigor. In addition, the paper will open up avenues for future research through scale development to test the measurement of measure digital literacy in different contexts.