THE IMPACT OF INFORMATION TECHNOLOGY INVESTMENTS ON THE ORGANIZATIONAL STRATEGIC VARIABLES AND PERFORMANCE OF MICRO AND SMALL ENTERPRISES (MSEs)

Abstract

Objective: We aim to measure the impact of Information Technology (IT) investments on the organizational strategic variables and performance of micro and small enterprises (MSEs). Method: An explanatory and quantitative research was conducted by applying a survey with 235 MSEs. Originality / Relevance: The growth in investments in Information Technology have led to an increasing number of companies adopting IT as a strategic tool in order to improve performance and gain competitive advantage. The more financially accessible these investments become the more popular they are with MSEs. Nevertheless, despite the seemingly obvious benefits of IT, there are doubts about its impact, especially on MSEs. To fill this gap, we examined the strategic and performance variables of the MSEs. Results: IT investments were found to have a positive impact on customer management associated with cost performance, sales and productivity. We also found IT investments in MSEs primarily impact clients and internal organizational efficiency variables, suggesting that when IT investments are directed towards managing customers and the company, the benefits of IT on organizational performance will be greater. Theoretical / methodological contributions: As for theoretical contributions, this study presents an important discussion on IT investments made in a sector for which there is little research, the MSE. Another contribution is the combination of strategic elements of IT investments with different performance variables.