ICT Utilisation within Experienced South African Small and Medium Enterprises

Abstract

AbstractThe aim of the study was to examine the levels and purposes of Information and Communication Technology (ICT) utilisation within a sample of ICT aware South African Small and Medium Enterprises (SMEs). It is globally acknowledged that SMEs are significant in their contributions to economic growth, job creation, innovation of new products, income generation, poverty alleviation, technological progress and competitive advantage. However, SMEs are characterised by limited ICT utilisation. More studies are required to understand the purposes and levels of ICT utilisation within the South African SMEs, as well as the effect of firm size and age on ICT utilisation. To address this issue, an online based survey was conducted, and evidence gathered showed the following. (1) ICT aware South African SMEs are high users of technology. (2) Levels of ICT utilisation by ICT aware South African SMEs is sector specific. (3) ICT aware South African SMEs used ICT for cost saving, to collaborate with new and existing business partners, to handle collaboration within the firm and communication with the firm's stakeholders, to establish relationships with other organisations, and to enable strategic planning. (4) A firm's size has significant impacts on the levels of ICT utilization. (5) A firm's age impacts on the level of ICT utilisation of ICT aware South African SMEs; the more mature firms had more advanced information technology capability. The paper offers insights into the levels and purposes of ICT utilisation with implications for practitioners and academics.