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Purpose

This paper aims to assess information and communication technologies (ICT) policies for digital transformation in Colombia to determine their effectiveness in technology readiness for Internet of Things (IoT) adoption in small and medium enterprises (SMEs) in the trading sector.

Design/methodology/approach

The authors conducted a longitudinal study using the ICT module of the Annual Trade Survey (2017–2018) to determine the relationship between SMEs in the trading sector adopting ICT applications and ICT policy enforcement. In this sense, this study applied a chi-square test for independence and addressed a descriptive analysis to determine SMEs’ causes for adopting or rejecting ICT applications.

Findings

This study presents the state of ICT adoption in Colombian SMEs in the trading sector between 2017 and 2018, highlighting that technology readiness is crucial for adopting technological trends.

Research limitations/implications

The data source used for the study is only available for analysis one year after implementing ICT policies focused on digital transformation.

Practical implications

The results support the need for the National Government to formulate IoT policies that favor the adoption of e-commerce based on IoT technologies in SMEs in the trading sector.

Social implications

IoT adoption can mitigate e-commerce problems strengthening SMEs’ competitiveness in the trading sector leading the digital transformation in Colombia.

Originality/value

This study presents the need to formulate IoT policies in Colombia focused on deploying IoT applications to strengthen e-Commerce in SMEs in the trading sector.

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