Abstract

A study of small and medium sized enterprises (SMEs) in Wales was undertaken to evaluate the effectiveness and competence of users of information technology (IT) and information systems (IS). A questionnaire survey, followed by selected follow-up interviews, was conducted: to determine levels of information technology (IT) and information systems (IS) use by small and medium enterprises (SMEs) in Wales; to identify key factors influencing SMEs’ ability to exploit opportunities that technology offers; to investigate whether IT/IS is managed in an active and strategic fashion; to assess the use and management of data within these enterprises; and to consider whether SMEs have opportunities to create strategic advantage from IT/IS. The results indicated that the utilization of IT is increasing but the majority of SMEs are under-exploiting the potential benefits due to a lack of management direction. Nevertheless, although few SMEs are being seen to achieve competitive advantage, those enterprises that are doing so tend to be focusing on acquiring knowledge, using their flexibility and ability to react speedily and generating innovative solutions. Th study identified areas where further research was needed to support the findings, particularly in terms of the regularly review of the level and exploitation of IT/ IS within the SME sector within Wales and the rest of the UK via quantitative surveys providing a base for a longitudinal comparison of data; the investigation of the factors that deter IT/IS development within SMEs; and the review of IS/IT within individual SME industries and sectors, utilizing case study methodology and allowing for the qualitative analysis of key factors underpinning usage. (Part 1 of this article was published in the previous issue of Business Information Review).

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