Factors Influencing Strategic Use of Information Technology and Its Impact on Business Performance of SMEs

In this paper, we study the relationship between factors influencing the strategic use of IT and business performance by conducting a survey of small and medium-size enterprises (SMEs). From the results of our survey we came to several conclusions which are presented here. First, IT investment has a significant impact on the strategic use of IT, and the strategic use of IT has a significant impact on business performance. Second, SME investment in IT and strategic use of IT are influenced by both the intensity of competition in the market environment and partnership with other organizations. Third, the support from the management group in SMEs is a core factor for IT investment and strategic use of IT. Finally, for SMEs to use IT strategically and successfully, it is necessary to combine members’ participation with a flexible organizational structure and culture.

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