Abstract

Research was conducted to establish the factors that lead to the successful adoption of Information Technology (IT) by Small and Medium Enterprises (SMEs) in today’s turbulent times. The opinions of owners and managers of Australian SMEs on 10 factors representing modern IT adoption practices were obtained. The analysis of their responses identified three major IT acquisition phases and their significance. First, SMEs should assess IT benefits, the organisational culture and IT suitable for the firm. Second, they should determine if sufficient internal resources are available and appropriate procedures exist for the successful selection and implementation of IT. Third, SMEs need to evaluate the external environment, support and resources, particularly if inhouse resources and support are lacking. At the end of each phase, the decision should be made on whether or not to continue with IT acquisition. The recommended phased approach minimises the overall risk of technology acquisition.

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