The role of information technology innovations on organisational performance: a case study of selected SMEs

Abstract

Information technologies have been widely recognised for their capability to add certain value to organisations in terms of strategy and operation. Studies regarding SMEs and IT in different contexts across the nations of the world have shown that SMEs are confronted with technological issues leading to a low adoption rate of IT. This research propounds that IT innovation is an indispensable tool for gaining a competitive edge over business rivals. This research presents empirical evidence to validate the existence of a positive influence of adopting IT innovations to improve organisational performance. This will be achieved by measuring variables, such as organisational performance and information technology using the balanced scorecard. Both qualitative and quantitative research methods were used with multiple case study designs to attain the study objectives. Convenience sampling was used to select the participating SMEs, while purpose sampling was used to select the 47 participants that were interviewed. An interview guide was designed to have a semi-structured questionnaire. Data was transcribed, coded, analysed and interpreted using content analysis to provide transparency to the findings. The findings of the study showed that SMEs rely on some IT innovations to manage and market their products and/or services. IT innovations bring about speed delivery and efficient communication, propagated by digital technologies The role of IT innovations on organisational performance should not be discarded because non-usage of IT is tantamount to poor organisational growth.