Determinants of Implementation of Strategic Information Systems in Small and Medium Firms

Abstract

Firms want their information systems (IS) to not just work but to be effective and efficient. Thus firms need to manage their IS. Thus, it is crucial for SMEs to adopt information system to enhance their business operations capability and efficiency. Nevertheless, SMEs limited resources to implement information systems have been one of the critical barriers that hindered the adoption of information systems. Moreover, unlike large firms, small and medium-sized (SME) firms are faced with many challenges in implementations of IS. Previous IS studies have given more attention to large firms without much effort to small firms. Therefore, this study is to investigate the determinants of strategic information system on firm performance of Kenyan SMEs. The study was conducted in SME in Nairobi County. Structured questionnaires were used to collect primary data. Data was analyzed using descriptive statistics such as frequencies, percentage, means and inferential statistics such as Pearson correlation and multiple regression models. The findings are of relevance for SME successful implementation of IS particularly when we consider that Small and Medium Enterprises (SMEs) in Kenya has been targeted as a mechanism in generating domestic-led investment to stimulate economic development. Keywords: SME, information systems, IT capability, Managerial competence