The role of information technology innovations on organisational performance: a case study of selected SMEs
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
Kondo, N., Oosterwyk, G., Van Belle, J.-P. (2022). Factors Influencing the Adoption of Infrastructure as a Service by South African Small and Medium-Sized Enterprises. Information Systems and Technologies Aargau, Cham: Springer, 253–262. doi: https://doi.org/10.1007/978-3-031-04829-6_22
Mazidi, A. R. K., Amini, A., Latifi, M. (2014). The impact of Information Technology Capability on Firm Performance: a Focus on Employee Customer Profit Chain. Iranian Journal of Management Studies, 7 (1), 95–120.
Enhancing the Contributions of SMEs in a Global and Digitalised Economy Meeting of the OECD Council at Ministerial Level Paris (2017). Paris: OECD, 21.
Mgunda, M. I. (2019). The Impacts Information Technology On Business. Journal of International Conference Proceedings, 2 (3), 149–156. doi: https://doi.org/10.32535/jicp.v2i3.656
The Banking Association South Africa (2019). The Banking Association South Africa. Available at: https://www.banking.org.za/what-we-do/sme/#:~:text=Small%20and%20Medium%20Enterprises%20(SMEs,Africa%20and%20around%20the%20world.&text=SMEs%20are%20considered%20an%20important,sector%20continues%20to%20shed%20jobs Last accessed: 05.10.2021
Asare, E. N., Prempeh, K. B. (2017). An Empirical Assessment of Factors that Influence the Implementation of E-Procurement in Technical Universities in Ghana. Journal of Logistics Management, 6 (2), 52–60.
Macdonald, S., Anderson, P., Kimbel, D. (2000). Measurement or Management?: Revisiting the Productivity Paradox of Information Technology. Vierteljahrshefte Zur Wirtschaftsforschung, 69 (4), 601–617. doi: https://doi.org/10.3790/vjh.69.4.601
Benková, E., Gallo, P., Balogová, B., Nemec, J. (2020). Factors Affecting the Use of Balanced Scorecard in Measuring Company Performance. Sustainability, 12 (3). doi: https://doi.org/10.3390/su12031178
Ardekani, S. S., Sharifabadi, A. M., Jalaly, M., Zarch, M. E. (2013). Comprehensive Performance Evaluation Using FAHP-FVIKOR Approach Based on Balanced Scorecard (BSC): A Case of Yazd's Ceramic and Tile Industry. Iranian Journal of Management Studies, 6 (2), 81–104.
Ogwu, K. (2021). The Influence of Information Technology Innovations on the Performance of Organisations: a Case Study of Selected SMEs in the Western Cape. Cape Town: Cape Peninsula University of Technology.
Panicker, S., Vinita, S. (2013). Devising a Balanced Scorecard to determine Standard Chartered Bank's Performance: A Case Study. International Journal of Business Research and Development, 2 (2), 35–42. doi: https://doi.org/10.24102/ijbrd.v2i2.286
Nkosana, T., Skinner, J., Goodier, C. (2016). Challenges of ICT adoption and utilisation in small rural restaurants: a case study of the KwaZulu-Natal Midlands. African Journal of Hospitality, Tourism and Leisure, 5 (4), 1–11.
Savani, F. (2022). What is Digital Information Technology in 2023? Tech Arbiters. Available at: https://techarbiters.com/digital-information-technology/#:~:text=August%203%2C%202021%20by%20Fenil%20Savani%20Digital%20Information,the%20form%20of%20images%2C%20texts%2C%20sounds%2C%20and%20videos Last accessed: 07.07.2022
Okechi, O., Kepeghom, O. M. (2013). Empirical Evaluation of Customers’ Use of Electronic Banking Systems in Nigeria. African Journal of Computing & ICT, 6 (1), 7–20.
The importance of SMEs role in achieving sustainable development (2019). Sustainability Knowledge Group. Available at: https://sustainabilityknowledgegroup.com/the-importance-of-smes-role-in-sustainability/ Last accessed: 07.07.2022
Osorio-Gallego, C., Londono-Metaute, J., López-Zapata, E. (2016). Analysis of factors that influence the ICT adoption by SMEs in Colombia. Intangible Capital, 12 (2). doi: https://doi.org/10.3926/ic.726
Nwakanma, I., Ubani, E., Asiegbu, B., Nwokonkwo, O. (2014). Factors Affecting the Adoption of ICT in the Hospitality Industry in Imo State. IJCSI International Journal of Computer Science Issues, 11 (4), 170–181.
What is a sales and inventory management system? (2020). Digital School of Marketing. Available at: https://digitalschoolofmarketing.co.za/blog/what-is-a-sales-and-inventory-management-system/ Last accessed: 11.10.2021
Jenkins, A. (2020). Benefits of Inventory Management and Inventory Management Systems. Oracle Netsuite. Available at: https://www.netsuite.com/portal/resource/articles/inventory-management/inventory-management-benefits.shtml Last accessed: 27.07.2021
Ngubane, N., Mayekiso, S., Sikota, S., Fitshane, S., Matsoso, M., Juan-Pierré, B. (2015). Inventory Management Systems used by Manufacturing Small Medium and Micro Enterprises in Cape Town. Mediterranean Journal of Social Sciences, 6 (1), 382–390. doi: https://doi.org/10.5901/mjss.2015.v6n1p382
Baye, M. R., De los Santos, B., Wildenbeest, M. R. (2015). Search Engine Optimization: What Drives Organic Traffic to Retail Sites? Journal of Economics & Management Strategy, 25 (1), 6–31. doi: https://doi.org/10.1111/jems.12141
Charlesworth, A. (2014). An Introduction to Social Media Marketing. Oxfordshire: Routledge. doi: https://doi.org/10.4324/9780203727836
Wahrman, J. (2020). The Top 10 Benefits of SEO for Your Business RivalMind. Available at: https://www.rivalmind.com/what-are-the-benefits-of-seo Last accessed: 04.01.2021
Kent, P. (2012). Search Engine Optimisation for Dummies. Hoboken: Wiley and Sons.
Onaifo, D., Rasmussen, P. D. (2013). Increasing Libraries' Content Findability on the Web with Search Engine Optimisation. Library Hi Tech, 31 (1), 87–108. doi: https://doi.org/10.1108/07378831311303958
Vaughan, L. (2014). Discovering business information from search engine query data. Online Information Review, 38 (4), 562–574. doi: https://doi.org/10.1108/oir-08-2013-0190
Pohludka, M., Stverkova, H. (2019). The Best Practice of CRM Implementation for Small- and Medium-Sized Enterprises. Administrative Sciences, 9 (1), 22. doi: https://doi.org/10.3390/admsci9010022
Alderton, M. (2021). Tips and Tricks to Using CRM for Customer Service Business News Daily. Available at: https://www.businessnewsdaily.com/10058-crm-customer-service.html Last accessed: 14.10.2021
Lulalend (2021). Why your SMME should consider a Customer Relationship Management (CRM) system. South African Business. Available at: https://www.southafricanbusiness.co.za/06/2021/south-africa/why-your-smme-should-consider-a-customer-relationship-management-crm-system/ Last accessed: 14.10.2021
Demmers, J., Weltevreden, J. W. J., van Dolen, W. M. (2020). Consumer Engagement with Brand Posts on Social Media in Consecutive Stages of the Customer Journey. International Journal of Electronic Commerce, 24 (1), 53–77. doi: https://doi.org/10.1080/10864415.2019.1683701
Saunders, J. (2021). Mobile money has huge potential to change the lives of South Africans. IOL. Available at: https://www.iol.co.za/the-star/opinion-analysis/mobile-money-has-huge-potential-to-change-the-lives-of-south-africans-4d584c49-806b-40ac-88d4-e85e6210bd9a Last accessed: 18.10.2021
Jooste, R. (2020). Mobile money making profits for mobile operators. Daily Maverick. Available at: https://www.dailymaverick.co.za/article/2020-09-03-mobile-money-making-profits-for-mobile-operators/ Last accessed: 18.10.2021
State of the Industry Report on Mobile Money 2019 (2020). GSMA. Available at: https://www.gsma.com/mobilefordevelopment/resources/state-of-the-industry-report-on-mobile-money-2019/#:~:text=2019%20marked%20a%20major%20milestone,just%20over%20a%20decade%20old Last accessed: 18.10.2021
Weeks, K. (2021). How To Approach Human Resource Management In SMEs. People Managing People. Available at: https://peoplemanagingpeople.com/topics/role-human-resource-management-small-medium-enterprises/ Last accessed: 18.10.2021
Hung, Y.-T., C. Cant, M., A. Wiid, J. (2016). The importance of human resources management for small businesses in South Africa. Problems and Perspectives in Management, 14 (3), 232–238. doi: https://doi.org/10.21511/ppm.14(3-1).2016.09
Dusmanescu, D., Bradic-Martinovic, A. (2011). The Role of Information Systems in Human Resource Management. IDEAS, 1–20.
Vinikas, I. (2021). The Complete Guide to Web Conferencing Technology. Kaltura. Available at: https://corp.kaltura.com/blog/web-conferencing-guide/ Last accessed: 18.10.2021
Diethart, M., Zimmermann, A. B., Mulà, I. (2019). Guidelines for Virtual Conferencing- inspired by the Copernicus Alliance Online Conference 2019. Bern, Copernicus Alliance – European Network on Higher Education for Sustainable Development.
Mike, F., Eagle, T., Preset, A. (2019). Gartner: Magic Quadrant for Meeting Solutions. Available at: https://b2bsalescafe.files.wordpress.com/2019/09/gartner-magic-quadrant-for-meeting-solutions-september-2019.pdf Last accessed: 24.04.2020
Osborne, K. (2021). 28 Best Task Management Software & Tools  Nifty. Available at: https://niftypm.com/blog/12-best-task-management-software-for-small-businesses/# Last accessed: 18.10.2021
Bersier, F. (2021). The Project Management Guide All SMEs Need Gmelius. Available at: https://gmelius.com/blog/project-management-guide-sme Last accessed: 18.10.2021
Meister, W. (2006). Successful Project Management for Small to Medium Enterprises (SMEs). Bangkok: Project Management Institute.
Freefind, 2019. Best project management software in South Africa. Freefind Business. Available at: https://www.freefind.co.za/best-project-management-software-in-south-africa/ Last accessed: 30.07.2021
Basic Concepts in Information Technology (2017). Network Depot. Information Technology Concepts. Available at: https://www.networkdepot.com/information-technology-concepts/ Last accessed: 25.11.2018
Chinyanyu Mpofu, K., Watkins‐Mathys, L. (2011). Understanding ICT adoption in the small firm sector in Southern Africa. Journal of Systems and Information Technology, 13 (2), 179–199. doi: https://doi.org/10.1108/13287261111136007
Pillay, P. (2016). Barriers to Information and Communication Technology (ICT) Adoption and Use Amongst SMEs: A Study of the South African Manufacturing Sector. Johannesburg: University of the Witwatersand.
Cant, M. C., Wiid, J. A. (2013). Establishing The Challenges Affecting South African SMEs. International Business & Economics Research Journal (IBER), 12 (6), 707–716. doi: https://doi.org/10.19030/iber.v12i6.7869
Jere, J. N., Ngidi, N. (2020). A Technology, Organisation and Environment Framework Analysis of Information and Communication Technology Adoption by Small and Medium Enterprises in Pietermaritzburg. SA Journal of Information Management, 22 (1). doi: https://doi.org/10.4102/sajim.v22i1.1166
Gareeb, P. P., Naicker, V. (2015). Determinants for South African SMEs to Adopt Broadband Internet Technologies. The Electronic Journal of Information Systems in Developing Countries, 68 (1), 1–24. doi: https://doi.org/10.1002/j.1681-4835.2015.tb00491.x
Enagi, M. A., Van Belle, J.-P. (2019). Information Searching and Satisficing Process for IT Decision Making Process of SMEs. The African Journal of Information Systems, 11 (2), 99–116. doi: https://doi.org/10.1145/3176653.3176689
Marnewick, C. (2014). Information and communications technology adoption amongst township micro and small business: The case of Soweto. SA Journal of Information Management, 16 (1). doi: https://doi.org/10.4102/sajim.v16i1.618
B Bvuma, S., Marnewick, C. (2020). Sustainable Livelihoods of Township Small, Medium and Micro Enterprises towards Growth and Development. Sustainability, 12 (8), 3149. doi: https://doi.org/10.3390/su12083149
👁 35 ⬇ 74
Copyright (c) 2023 Kingsley Ogwu, Visvanathan Naicker
This work is licensed under a Creative Commons Attribution 4.0 International License.
Our journal abides by the Creative Commons CC BY copyright rights and permissions for open access journals.
Authors, who are published in this journal, agree to the following conditions:
1. The authors reserve the right to authorship of the work and pass the first publication right of this work to the journal under the terms of a Creative Commons CC BY, which allows others to freely distribute the published research with the obligatory reference to the authors of the original work and the first publication of the work in this journal.
2. The authors have the right to conclude separate supplement agreements that relate to non-exclusive work distribution in the form in which it has been published by the journal (for example, to upload the work to the online storage of the journal or publish it as part of a monograph), provided that the reference to the first publication of the work in this journal is included.