1 | INTRODUCTION

Technology has profoundly transformed business operations globally, creating new paradigms for efficiency, competitiveness, and market engagement (OECD, 2021). In the context of small and medium-sized enterprises (SMEs), technology adoption refers to the integration of digital tools and automated processes to improve operational efficiency, product quality, and overall business performance (Ocloo et al., 2020). The fashion and textiles industry exemplifies this transformation, with advanced garment manufacturing technologies such as computer-aided design (CAD/CAM) systems, 3D garment simulation, automated sewing equipment, and digital printing revolutionising production processes in developed economies (Chaudhary et al., 2020). These technologies enable firms to produce high-quality garments faster, minimise waste, facilitate better inventory management, and enhance responsiveness to market trends. Empirical evidence confirms that firms integrating new technologies achieve superior operational efficiency, reduced production costs, improved product consistency, and enhanced competitive advantage compared to those relying on traditional methods (Tu et al., 2025). For fashion SMEs, technology adoption is not merely a cost but a strategic investment that can drive long-term growth and profitability.

Despite the demonstrated benefits of technology adoption, small and medium-scale fashion enterprises (SMSFEs) in developing countries, particularly Ghana, face substantial barriers to modernisation. Ghana's fashion sector, which forms a critical component of the country's SME-driven economy (with SMEs accounting for over 90% of businesses and 80% of total employment), remains characterised by manual processes and outdated production techniques (British International Investment, 2024; Ghana Statistical Service, 2024). While apparel producers in developed countries such as France, Italy, and China have leveraged sophisticated technologies to enhance production efficiency, Ghanaian SMSFEs continue to rely on hand-cutting, manual sewing, and basic equipment, undermining their productivity and global competitiveness (Glogar et al., 2025). Key barriers include substantial upfront investment requirements, limited financial capacity, a shortage of skilled workforce to operate advanced systems, inadequate infrastructure, and weak institutional support (Asare et al., 2019; Quaye et al., 2024). Furthermore, in Ghana's fashion sector, where many businesses are owner-managed and informally structured, internal organisational conditions such as leadership vision, financial capacity, staff competence, and innovation culture vary widely and remain underexplored as determinants of adoption decisions.

The persistence of traditional production methods among Ghanaian SMSFEs has significant implications for both micro-level business performance and macro-level economic development. At the firm level, enterprises that fail to modernise face constraints in output capacity, product quality consistency, waste reduction, and delivery timeliness, rendering them unable to meet international standards or compete effectively in global markets (Abraham et al., 2022). This technological lag limits their ability to capture value-added opportunities, expand market reach, and achieve sustainable profitability. At the sectoral level, the underutilization of technology in Ghana's fashion industry, which holds considerable potential for job creation, foreign exchange earnings, and preservation of cultural craftsmanship, constrains the country's industrialisation agenda and global trade integration. Moreover, the knowledge gap regarding the specific organisational drivers and performance outcomes of technology adoption in resource-constrained, informal SME contexts limits the effectiveness of policy interventions and capacity-building programs. Without empirical evidence on the internal factors that facilitate or hinder adoption, policymakers, development agencies, and industry associations lack the targeted insights needed to design appropriate support mechanisms for technological upgrading in this critical sector.

To address this gap, this study examines how organisational-level factors influence technology adoption among small and medium-scale fashion enterprises (SMSFEs) in the Kumasi Metropolis of Ghana, and whether adoption translates into measurable performance gains. Drawing on the Technology-Organisation-Environment (TOE) framework (Tornatzky & Fleischer, 1990; Baker, 2012), the study focuses specifically on the organisational dimension, conceptualising four internal factors as predictors of adoption: leadership commitment, financial capacity, staff competence, and innovation culture. This focus is justified because organisational factors are directly controllable by management and have been shown to be critical determinants of technology uptake in resource-constrained SME settings (Baker, 2012; Gyamerah et al., 2025). The study further investigates the relationship between technology adoption levels and firm performance outcomes across operational efficiency, product quality, sales growth, and competitive positioning. Using a quantitative survey approach with 278 SMSFEs in Kumasi (Ghana's second-largest city and a major hub for textile and fashion production), the research employs structured questionnaires, regression analysis, and structural equation modelling to test hypothesised relationships between organisational drivers, adoption levels, and performance outcomes. The specific aims of this study are to:

• Assess the current levels of technology adoption among small and medium-scale fashion enterprises in the Kumasi Metropolis.
• Examine the influence of leadership commitment on technology adoption decisions among SMSFEs.
• Investigate the role of financial capacity in facilitating or constraining technology adoption.
• Determine the impact of staff competence on the willingness and ability of SMSFEs to adopt new technologies.
• Analyse the relationship between organisational innovation culture and technology adoption levels.
• Evaluate the performance outcomes of technology adoption across operational efficiency, product quality, sales growth, and competitive positioning.

This study makes three important contributions to theory and practice. First, it extends the TOE framework by providing empirical validation of organisational antecedents of technology adoption in an underexplored context: informal, resource-constrained fashion SMEs in a developing economy. While prior research on technology adoption in the apparel sector has focused predominantly on large manufacturers in Asia and Europe, this study addresses the unique challenges and enablers in Ghana's owner-managed, artisanal fashion enterprises. Second, the study provides evidence on the performance implications of technology adoption, demonstrating whether and how the integration of digital design tools, automated cutting equipment, and digital marketing platforms translates into tangible business benefits for SMSFEs. This address calls for further empirical work linking adoption decisions to measurable outcomes in developing-country SME contexts. Third, the findings offer actionable insights for policymakers, industry associations, financial institutions, and development agencies seeking to support technological upgrading in Ghana's fashion sector. Identifying which organisational factors most strongly predict success, the study informs the design of targeted interventions such as leadership training programs, access-to-finance schemes, skills development initiatives, and innovation support services that can accelerate the modernisation of this economically significant but technologically underserved industry.

2 |  LITERATURE REVIEW

2.1|  Technology in Apparel Manufacturing

The global apparel industry has undergone a substantial technological transformation, with Computer-Aided Design (CAD) and Computer-Aided Manufacturing (CAM) systems now central to modern garment production. CAD software enables digital pattern creation, fabric simulation, and material optimisation, while CAM systems automate cutting and sewing processes, reducing waste and improving quality (Pattathil et al., 2019). The adoption of CAD technology offers enormous benefits to apparel manufacturers, enabling quick and efficient revisions in design changes, colour adjustments, and garment resizing (Chaudhary et al., 2020). Automated cutting technologies, including laser and ultrasonic systems, enhance precision and minimise waste, while programmable sewing machines accelerate production cycles. Software platforms such as CLO3D and Browzwear facilitate virtual prototyping, reducing sample production costs and lead times. Emerging technologies such as 3D printing have further transformed production capabilities, enabling mass customisation and reducing material waste (Viziteu et al., 2024). In the fashion industry, 3D printing offers an array of designs and unique patterns, enabling customisation while embracing sustainability by reducing overproduction and material waste (Dhiwar et al., 2023). However, adoption patterns vary considerably across global contexts. Large manufacturers in developed economies have integrated advanced systems and achieved operational efficiencies (Niinimäki et al., 2020), whereas SMEs in developing countries face barriers including high capital costs, limited technical expertise, inadequate infrastructure, and weak supply chain integration (Park-Poaps et al., 2021; Anzolin, 2021). Consequently, many fashion SMEs in resource-constrained contexts rely on manual or semi-automated processes, constraining scalability and competitiveness.

 

2.2|  Garment Manufacturing in Ghana and the Kumasi Context

Ghana's garment sector comprises predominantly micro, small, and medium-scale enterprises (MSMEs), with Kumasi serving as a major production hub (Dotse, 2025). The sector is characterised by owner-operated structures, apprenticeship-based skill transfer, and production for local and regional markets (Amankwah et al., 2022). Traditional production methods, including hand-cutting, manual sewing, and bespoke tailoring, remain prevalent. According to the National Board for Small Scale Industries (NBSSI), now officially the Ghana Enterprises Agency (GEA), SMEs in Ghana are classified according to both the number of employees and fixed assets. Small enterprises employ 6 to 29 people with fixed assets up to USD 100,000 (excluding land and building), and medium enterprises employ 30 to 99 people with fixed assets up to USD 100,000 (GEA, 2023). Despite their significance, SMEs in Ghana face constraints such as limited access to finance, outdated technology, and a shortage of skilled labour, particularly due to their predominantly family-owned structure (Ghana Statistical Service, 2024). Ghanaian fashion SMEs face systemic constraints that limit technology adoption. Capital constraints are widespread, with limited access to formal credit or investment (Asare et al., 2019). The study conducted by Asare et al. (2019) on challenges facing small and medium-scale enterprises in Ghana's textile industry identified inadequate access to capital markets due to perceived hostile credit repayment terms and high collateral requirements as major barriers. Infrastructure deficits, particularly unreliable electricity supply, disrupt production and constrain the use of power-dependent technologies (Forkuoh & Li, 2015; Abeberese, 2022). Skills gaps persist, as formal training in digital design and production management remains limited. Market dynamics, including intense price competition and limited global value chain integration, further reduce incentives for capital-intensive investments (Siaw et al., 2025). Within this context, organisational factors such as leadership commitment, staff competence, and innovation culture become critical determinants of technology adoption and performance outcomes.

2.3|  Theoretical Framework: Application of TOE Theory in This Study

This study employs the Technology-Organisation-Environment (TOE) framework as a predictive lens to identify and test organisational-level antecedents of technology adoption among fashion SMEs. The TOE framework, developed by Tornatzky and Fleischer (1990), explains organisational adoption of innovations through the positioning of firms within three interrelated contexts: the technological options available, the organisation's internal capabilities, and the external environment that enables or constrains change. TOE has been widely applied to SME and sectoral studies (Baker, 2012; Religia et al., 2025) and provides a comprehensive structure for understanding firm-level adoption decisions. The framework is applied in this study in the following ways. First, the study uses TOE to conceptualise organisational factors (leadership commitment, financial capacity, staff competence, and innovation culture) as predictors of technology adoption. These internal organisational characteristics represent the core elements of the organisational context that determine whether firms possess the readiness and capability to integrate new technologies into their operations. Second, the study employs TOE to hypothesise directional relationships between these organisational factors and adoption levels. Rather than merely describing organisational conditions, the framework enables testable predictions about which factors facilitate or hinder adoption, and the strength and direction of these relationships. Third, the study uses TOE to test the explanatory power of the organisational context in determining adoption outcomes. The focus on organisational factors examines whether internal firm characteristics can account for variations in adoption levels across enterprises operating in similar external environments. Fourth, the framework is extended to link adoption to performance outcomes, treating technology adoption as an intermediate variable that mediates the relationship between organisational readiness and firm performance.

While the full TOE model encompasses technological, organisational, and environmental contexts, this study focuses specifically on the organisational dimension. This focus is justified on two grounds. First, organisational factors are directly controllable by management, making them actionable targets for intervention (Baker, 2012). Unlike environmental factors such as regulatory regimes or technological factors such as system complexity (which are largely exogenous to the firm), organisational characteristics such as leadership support, resource allocation, and workforce development can be shaped through managerial decisions and strategic choices. Second, organisational capacity has been shown to be a critical determinant of adoption in resource-constrained SME settings where financial, human, and strategic resources are often limited (Gyamerah et al., 2025; Awiagah et al., 2016). In Ghana's Kumasi Metropolis, where all fashion SMEs face similar external conditions (unreliable infrastructure, limited technology vendor ecosystems, weak institutional support, and comparable competitive pressures), variations in adoption levels are more likely to be explained through internal organisational differences than environmental factors. This approach allows the study to isolate the organisational mechanisms that enable or constrain adoption, providing targeted insights for capacity-building interventions. In the technological context, the focus is on both existing and emerging technologies relevant to fashion enterprises, along with attributes that shape managerial perceptions. Core attributes include relative advantage, compatibility with current processes and systems, perceived complexity, trialability, and observability, as well as practical concerns such as acquisition and integration costs, reliability, and data security (Religia et al., 2025; Rogers, 2003). For Small and Medium-Scale Fashion Enterprises (SMSFEs), this spans digital design tools (CAD/CAM), automated cutting and sewing equipment, inventory and point-of-sale systems, and e-commerce or social commerce platforms. Adoption decisions in Kumasi's fashion ecosystem turn on whether these tools clearly improve speed, quality, and waste reduction, and whether they can be integrated with artisanal workflows without excessive retraining or downtime (Ocloo et al., 2020; Wen et al., 2019).

The organisational context captures internal characteristics that condition adoption, including leadership commitment, resource slack and access to finance, firm size and structure, human capital and ICT skills, prior technological experience, and an innovation-supportive culture (Gyamerah et al., 2025). In owner-managed SMSFEs, leadership support is pivotal for allocating budgets, acquiring equipment, and sustaining training. Financial capacity determines whether firms can cross the initial investment hurdle. Staff competence and openness to change influence whether new tools are effectively routinised (Awiagah et al., 2016). The environmental context concerns external pressures and supports such as competitive intensity, customer and buyer requirements, supply-chain partner readiness, regulatory and standards compliance, government incentives, vendor and training support, and infrastructure quality (Faiz et al., 2024). For SMSFEs in Kumasi, market competition from imports, client demands, access to reliable power and connectivity, availability of local vendor maintenance, and policy initiatives that reduce financing costs or provide skills upgrading can accelerate or impede adoption (Quaye et al., 2024). In effect, this study uses TOE as a predictive framework to test whether organisational readiness factors explain variations in technology adoption among fashion SMEs, and whether adoption subsequently drives performance improvements. The employment of TOE in this manner generates testable hypotheses about the organisational antecedents and performance consequences of technology integration in Ghana's fashion sector.

2.4| Conceptual Framework and Hypothesis Development

2.4.1| Organisational Drivers and Technology Adoption among SMSFEs

Organisational conditions are central to whether Small and Medium-Scale Fashion Enterprises (SMSFEs) adopt new technologies. Within the Technology-Organisation-Environment (TOE) lens, the organisational context captures a firm's internal readiness: leadership commitment, resource slack, human capabilities, structures, and culture that enable or constrain adoption (Faiz et al., 2024; Tornatzky & Fleischer, 1990). Evidence across SME settings shows that when owner-managers visibly champion technology, commit budgets, and signal strategic priority, adoption likelihood rises. Conversely, weak sponsorship is a recurrent cause of stalled or abandoned initiatives (Gyamerah et al., 2025). In Ghana's fashion ecosystem, where many firms are owner-managed and informally structured, leadership support is especially pivotal for mobilising funds, authorising workflow changes, and sustaining staff training (Ocloo et al., 2020). Resource availability and organisational readiness also matter. SMEs with greater financial capacity are better positioned to afford acquisition, integration, and maintenance costs, making adoption decisions feasible rather than aspirational (Quaye et al., 2024). However, limited capital and credit access often slow down the adoption of necessary tools like CAD/CAM systems or e-commerce platforms, even when the benefits, such as improved quality and efficiency, are clear (Ocloo et al., 2020; Wen et al., 2019). For SMSFEs that blend artisanal techniques with modern equipment, competence in digital design, machine operation, and basic data handling is critical to translating investments into performance gains (Wen et al., 2019). Organisational culture and structures shape the climate for change. Cultures that value learning, experimentation, and collaboration, and structures that allow flexible decision-making, tend to reduce resistance and speed assimilation. Rigid or risk-averse settings often slow or derail adoption (Alabi, 2025). In Ghana's fashion sector, where production practices are frequently craft-based and customer-responsive, an innovation-supportive culture can align artisanal identity with process modernisation, easing the integration of new tools into established workflows (Ocloo et al., 2020). Taken together, prior work across the SME and fashion/textile literature indicates that strong leadership commitment, adequate financial and human resources, staff and managerial competence, and an innovation-supportive culture constitute the core organisational drivers of adoption under TOE (Kannan & Gambetta, 2025; Tornatzky & Fleischer, 1990).

Hypothesis 1: SMSFEs' organisational drivers positively influence technology adoption.

 

2.4.2| Effects of Technology Adoption on Performance in the Fashion Industry

Technology adoption is widely associated with superior firm performance because digital tools and advanced production technologies reconfigure processes, reduce waste and cycle times, and improve information quality for decision-making. In SMEs, adoption of e-business, CAD/CAM, and workflow digitalisation has been tied to shorter lead times, higher throughput, better on-time delivery, and improved customer engagement, which are mechanisms that translate into both financial and non-financial performance improvements (Marczewska & Weresa, 2024). In fashion and textiles, technologies such as digital patternmaking, 3D garment simulation, automated cutting/sewing, PLM systems, and integrated POS/Inventory platforms enable precision, reduce fabric waste, accelerate sampling, and enable rapid responses to demand fluctuations. These operational advantages underpin quality consistency, faster order fulfilment, and margin protection (Glogar et al., 2025).

Evidence from developing-country SMEs indicates similar payoffs when adoption is accompanied by basic organisational readiness, such as skills, training, and process alignment (Díaz-Arancibia et al., 2024). Under the TOE framework, successful adoption is expected to enhance organisational outcomes such as productivity, cost efficiency, market competitiveness, and innovation capacity because technologies are assimilated into routines that improve how work is done (Faiz et al., 2024; Tornatzky & Fleischer, 1990). For Ghanaian Small and Medium-Scale Fashion Enterprises (SMSFEs), which often operate with tight resource constraints and artisanal workflows, the incremental benefits of adoption are realised through concrete channels: reduced rework and material losses, faster turnaround from design to finish, better coordination with clients and suppliers, and data-driven merchandising. Each of these is linked to measurable performance gains (Ocloo et al., 2020; Wen et al., 2019).

Hypothesis 2: The level of an enterprise's adoption of technology positively influences its performance.

2.4.3| Conceptual Framework 

Adapted from the Technology–Organisation–Environment (TOE) framework, this study conceptualises organisational drivers as key determinants of technology adoption and subsequent performance outcomes. As shown in Figure 1, technology adoption functions as the central mechanism through which organisational drivers influence organisational performance.

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Figure 1. Conceptual Framework for the study

3 |  METHODOLOGY