A Benefits Assessment Model of Information Systems for Small Organizations in Developing Countries

Abstract

The influence of information systems (IS) on small and medium-sized enterprises (SMEs) has enjoyed much attention by managers and policy makers. Despite the hype and eagerness to commit extensive levels of investment, very little research has focuses on assessing the benefits of IS for SMEs in developing counties. Existing literature has been skewed towards developed countries and large organizations. Consequently, the purpose of this paper is to develop a model for evaluating the benefits of IS for SMEs in Saudi Arabia as a case of a developing country. In order to achieve this, the study builds on and extends past IS-impact literature. Based on quantitative results of 365 responses from SMEs, the model comprises 44 measures across five dimensions: ‘Individual impact’, ‘Organisational impact’, ‘System quality’, ‘Information quality’ and ‘Vendor quality’.  Applying confirmatory factor analysis and structural equation model, the validated model contributes to theory development of IS impact within the context of SMEs in developing counties. Additionally, it provides critical insights to policy makers and managers on assessing the benefits of IS for SMEs in developing countries.