FACTORS INFLUENCING INFORMATION TECHNOLOGY INVESTMENTS IN SOUTH AFRICAN SMALL AND MEDIUM SIZE ENTERPRISES: A CONCEPTUAL STUDY

Abstract

Small and medium-sized businesses (SMEs) are essential to South Africa's development and economic progress. Information technology (IT) expenditures have become crucial for SMEs to stay competitive in the quickly changing digital market. The purpose of this study is to examine the variables affecting IT investments in South African SMEs. The paper provides a thorough examination of the literature, the technique used, the findings, and a discussion of the implications through a conceptual study. The study's findings were derived from an analysis of 15 of the best and most relevant journal articles out of a total of 200 that were obtained and evaluated through Google Scholar that are related to factors impacting IT investments in South African SMEs. The objective was to aggregate the views of many scholars on the issues affecting IT investments in South African SMEs from their writings. The study's findings indicates that financial constraints, perceived return on investment (ROI), industry-specific factors, technological complexity and skills, perceived risk, outside influences, organisational culture, and leadership are among the factors that affect IT investments in South African SMEs. With regards to the study's findings, it is recommended that SMEs should work to understand and address the factors influencing information technology investments in South Africa so they can make informed IT investment decisions, and policymakers should foster an environment that encourages the uptake of technology and the expansion of this industry.