ICT Technology must for SMEs
SMEs are in a dilemma to adopt ICT technology. Studies have revealed the endless problems and threats faced by SMEs with regard to ICT adoption. The study points out the anxiety of SME managers when it comes to the use of contemporary technology, and in many cases, as far as decision making is concerned, they are in the hands of people who are oblivious of their businesses. Several times it has been found that they are not aware of what to do and due to lack of skills and information; they sometimes make reckless decisions with the adoption approach. The company’s strategy will be the focal point which assists an SME with adoption and future growth and will be displayed on the right-hand side of the conceptual framework.
It is highly recommended that if someone interacts with the employees within your organization, it allows for multiple inputs from these employees which could help you in your decision-making (Steyn and Leonard, 2012). Similarly, when ICT is adopted by SMEs the results show different facets. It has become clearer that not only an increasing number of small businesses actually are on the internet; they are actually attempting to implement strategies to move from merely using basic Internet technologies, such as using the Internet for research and e-mail, to browse the Internet to accomplish marketing and business objectives. However, this study points out that substantial differences are seen in the use of e-business applications among firms of various sizes.
We get a clear picture of the more sophisticated use of the Internet by both larger firms and those that consider themselves more innovative and entrepreneurial-oriented. Smaller firms, despite having human and physical resource constraints, involve in using ebusiness technologies that are relatively simple. Since smaller firms having a website are fewer, many discover its importance in helping the firm to realize higher profits. As a result, due to their growth in ebusiness experience and astuteness, they may be forced to adopt more complex and sophisticated applications.
The results mentioned here suggest that while many small firms perceive the benefits of e-business, others simply don’t. Mom and pop establishments that employ few, if any, might see little need for engaging in e-business because their small size and nature of engagement may simply not vindicate the cost associated with that of acquiring a website (Levenburg et al. 2005).
Moreover, when ICT adoption by SMEs in Malaysia is debated, there are different types of data available. The results of this study show that SME owners in Malaysia possess below-average ICT skills and rarely use the Internet at their workplace. Adoption of ICT technology in Malaysia is late compared to their counterparts in other countries. This has resulted in their ICT skills, ICT use, and innovation characteristics significantly connected to their adoption category. SMEs in Malaysia have a very low ICT skill; they seldom use it, find ICT adoption difficult, and are slow in the adoption process. There is ample proof that the level of ICT adoption among SME owners in Malaysia is lower than expected. This has led Malaysia to launch a major push to induce SMEs to adopt the Internet as a novel and more efficient way of doing business. Despite these efforts, SMEs in Malaysia is lagging behind as far as digital technology is concerned. The results of the ongoing study show that one of the basis of ICT adoption is ICT skills. If the government invests in providing incentives and helps to improve the country‘s IT infrastructure, then that can be a game-changer otherwise it would be futile if significant improvement is not made to improve the ICT skills of business owners. The government has to enhance its effort to make aware of the various SMEs regarding the potential benefits of ICT to small and medium-sized businesses. The government, in that case, can either impose mandatory training or provide some stimulus to encourage SMEs to implement ICT training (Hashim, 2007).
Besides, there are constraints that obstruct the adoption of ICT by SMEs. As a result, SMEs in developing countries are confronted with plenty of impediments to ICT adoption both from within and outside. This study also revealed the level of ICT adoption by SMEs in developing countries. Extensive evaluation of obstacles to ICT adoption by SMEs is quite uncommon. While it is known fact that while SMEs agree that the adoption of ICT is important in today’s business, they are faced with many constraints, some of which are more precise for developing countries like Zimbabwe.
Obviously, the next move should be to derive ways to overcome these hindrances and construct a framework – a methodology that can help transform SMEs by changing the mindset of the owners and managers to encourage the need to adopt ICT. This study aimed to provide detail information about the factors that restrain SMEs from adopting ICT in Zimbabwe. The early focus, therefore, was to ascertain the hindrances and to find out supporting activities necessary for SMEs to help expedite ICT adoption. Legal and regulatory hassles require direct mediation from the government for solutions. At the same time, interference from industry is required for providing external support. The aim of this study was to scrutinize and figure out the nitty-gritty of the impediments faced by SMEs in adopting ICT and to further enquire about the importance of supporting activities (Manuere et al. 2012).
Additionally, the various principles that play a crucial role in technology adoption in SMEs have been debated for long. Studies reveal the effect of each factor on SME business categories and suggested a model for logistical regression analysis to project the effect of each factor. This was based on elementary factor analysis, which was primarily used to confirm each factor is appropriately structured with influences from technology, organization or environmental viewpoint. The results from this research revealed that SMEs in South Africa are impressed by ICT technology, ease of use and relative advantage of broadband technology.
The organizational perspective across different businesses, especially between retail versus manufacturing entities. Actually, regulatory matters have the most repercussion on larger size businesses, over small and mid-size businesses. Aspects affecting this factor higher will lead to profitability, business excellence and top management support to use it. Eventually, the natural factors showed the least positive impact on diffusion. This was primarily scaled down by the lack of government and telecommunication operator support, in terms of encouraging broadband demand, managing drivers of affordability and ensuring strategic policy design and enforcement in the country. However, components of Supplier and buyer pressure do measure on the minds of SMEs, motivating them to adopt broadband technology (Gareeb and Naicker, 2015).
Moreover, there are certain factors that help in the adoption of technologies by SMEs, and there are also a few challenges faced by these SMEs in technology adoption. Information and communications technologies have become part and parcel of the daily activities of consumers and businesses alike. Small and medium-sized enterprises are researching the use of or are using ICTs more than ever before to improve their business processes in order to link with customers and business partners. A Study was conducted to identify the key factors and challenges of ICT adoption by SMEs in Accra – the capital city of Ghana. The debate first reveals the six key points of ICT adoption which are the desire to 1.) Improve customer service, 2.) Increase the ability to compete with other organizations, 3.) Improve communication within and outside the organization, 4.) Increase profit from online sales and web marketing, 5.) Provide managers better access to information, and 6). The relative benefits of ICT adoption.
The research discloses six key challenges to ICT adoption amongst SMEs in Accra metropolis which is 1), financial ability to invest in ICTs, 2). Abysmal infrastructure due to low bandwidth, and erratic electric power supply, 3). shortage of skilled personnel to engage in ICT, 4). Lack of time to implement ICTs, 5). Uncertainty of the benefits or return on investment, and 6). High level of intricacy associated with ICT Implementation. The review also clarifies that ICT adoption can provide them a better tool to process and store information, communicate with customers and business partners and thereby improving efficiency (Agboh, 2015).
The embracement of information technologies by SMEs depends upon their strategic plans. Technology introduction into SMEs and changes include discovering the newest ways of doing business, developing unique products and services, or entry into a new market. The technology change specifies institutions involved with creating new knowledge and translating that knowledge into new outputs, products, processes, and materials. For SMEs, innovation is the result of the introduction of new technology or market access. Executives must continuously monitor the external ambiance to spot possible technologies change and point out the newly emerging technologies from which their firm could extract competitive advantage. Knowledge is the ultimate source of any competitive advantage. Continuously creating new business knowledge, circulating it widely throughout the company, and quickly building the new knowledge into their products or services are disastrous for business growth.
Companies imparting knowledge or a training program in a organization must be equipped with two kinds of knowledge. Information technology is indispensable for a company’s growth and development. There is a critical analysis of the competitive advantages, the relationship between IT adoption, implementation, and SMEs expansion. Information technology can bolster the competitive strengths of companies from process reengineering, cost reduction, electronic business, etc. (Jin, 2007). In addition to constituting an effective model for technology adoption by SMEs, the research opined that organizational preparedness, national readiness, and environmental pressure would have a positive impact on the adoption of information technology.
However, being industry-friendly would have a positive impact on the adoption of information technology. The adoption of IT was influenced by organizational compatibility and industrial maturity, while national preparedness and environmental pressure didn’t have a positive impact on the adoption of information technology. Moreover, the adoption of IT was shaped by organizational readiness, national readiness, and environmental influences; while industrial dexterity didn’t have a positive impact on the adoption of information technology. The Government should lay stress on developing the adoption of information technology in SMEs batik. There is greater emphasis on the advantages of using information technology. In addition to that, the government can also pump in financial aid to purchase computers and other devices as a whole which is needed for the adoption of information technology. The craftsman must show interest and be curious about the benefits of using information technology. Someone would be encouraged to use information technology if he or she knows the benefit of using it (Susanty et al. 2012).
The approval of Electronic Data Interchange (EDI) has few implications for Nigerian SMEs. Their development and their further advancement have not been undertaken seriously in Nigeria; this has resulted in a slight impact on the economy. In Nigeria, various governments introduced various programs aimed at developing the SME sector but most of the programs were not given the appropriate support and as such, and as a result the effect of the programs could not be felt in the economy. SMEs with institutional support and commitment to EDI from the SME management are more likely to adopt EDI at a faster rate. In the absence of any commitment from the SME management, it can be overcome through education and skill development. The management of all SMEs should be encouraged towards personal learning so that it creates an awareness of the necessity and significance of EDI adoption in Nigeria.
If there is serious execution of ICT technology then there is a likelihood for Nigerian SME management to develop interest and favor EDI. Moreover, SMEs having suitable IT and business skill competence will stand a better chance of adopting EDI. Here also the key to success depends on education. Apart from the Nigerian government’s need to invest in IT education for its citizens, SMEs also should undertake the training of staff to keep abreast of current trends in technology and required knowledge. Due to this the required IT skills could be covered and hence SMEs will have the courage to adopt EDI. If IT skills are made mandatory at work, then it could result in the promotion of employees and even gaining employment into various industries would be feasible. (Musawa and Wahab, 2012).