Sme It

Topics: Management, Business, Change management Pages: 49 (16559 words) Published: June 20, 2013
Information 2012, 3, 36-67; doi:10.3390/info3010036

ISSN 2078-2489 Review

Strategies for Successful Information Technology Adoption in Small and Medium-sized Enterprises Morteza Ghobakhloo 1,*, Tang Sai Hong 1, Mohammad Sadegh Sabouri 2 and Norzima Zulkifli 1 1


Department of Mechanical and Manufacturing Engineering, Universiti Putra Malaysia, 43400 UPM Serdang, Selangor, Malaysia; E-Mails: (T.S.H.); (N.Z.) Department of Agriculture and Young Researchers Club, Garmsar Branch, Islamic Azad University, Garmsar, Iran; E-Mail:

* Author to whom correspondence should be addressed; E-Mail: Received: 31 October 2011; in revised form: 22 January 2012 / Accepted: 31 January 2012 / Published: 13 February 2012

Abstract: Information Technology (IT) adoption is an important field of study in a number of areas, which include small and medium-sized enterprises (SMEs). Due to the numerous advantages of IT, SMEs are trying to adopt IT applications to support their businesses. IT adoption by SMEs differs from larger organizations because of their specific characteristics, such as resources constraints. Therefore, this research aims to provide a better and clearer understanding of IT adoption within SMEs by reviewing and analyzing current IT literature. In this research, the review of literature includes theories, perspectives, empirical research and case studies related to IT adoption, in particular within SMEs from various databases such as Business Premier, Science Direct, JStor, Emerald Insight and Springer Link. The proposed model of effective IT adoption is believed to provide managers, vendors, consultants and governments with a practical synopsis of the IT adoption process in SMEs, which will in turn assist them to be successful with IT institutionalization within these businesses. Keywords: initial adoption; implementation; post adoption; information technology; information system; small and medium-sized enterprises

Information 2012, 3 1. Introduction


In this 21st century, a worldwide system of commerce is evolving, in much the same way as national markets evolved from local and regional networks. The modern economic environment which is dominated by globalization, hyper-competition and the knowledge and information revolution has revolutionized the way business is conducted [1]. This new technological epoch is apparent through intensified investment in computer-processing and data preparation appliances in the manufacturing and service industries and telecommunications infrastructure, and also to its widespread usage in government agencies, educational organizations, and, more recently, in the household. As a result of this technological progress, the implementation and application of IT is a significant driving force behind many socioeconomic changes [2]. As the utilization and commercialization of IT becomes more widespread throughout the world, the adoption of novel IT can generate new business opportunities and various benefits. Nowadays, both large organizations and small and medium-sized enterprises (SMEs) are seeking ways to reinforce their competitive position and improve their productivity [3]. Accordingly, there is an increasing consciousness of the necessity to derive profit through investment in IT within SMEs. IT tools can significantly assist SMEs by supplying the required infrastructure, which is necessary for providing appropriate types of information at the right time. IT can also provide SMEs with competitiveness through integration between supply chain partners and inter-organizational functions, as well as by providing critical information [4]. However, prior IT literature has shown that only a small number of studies focused on the adoption and use of IT in SMEs [5]. Moreover, it has been found that in spite of the...
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