ICTs for Improving National Competitiveness, Case Study of Iranian SMEs

Abstract

There is fierce competition among firms to gain a larger customer-base. Countries, like firms, are in competition to stand out in global competitiveness and world market. Effective competition and achieving advantage over competitors are closely associated with the concept of competitive advantage. Various sources of competitive advantage are found in the literature. However, Information and Communication Technologies (ICTs) are increasingly becoming the center of attention for creating competitive advantage both at firm and country level. A large group of firms in every country are Small and Medium Enterprises (SMEs). SMEs are widely known as enablers of business and economic growth; nevertheless, they constantly face challenges in competition. In this study, ICTs are introduced as a strategy for SMEs to improve their competitiveness. It is suggested that promoting competition among SMEs could lead to a higher performance in competitiveness at country level. This is investigated by focusing on Iran as a country case study. The present research concludes by the strong potentiality of ICTs to improve Iran’s national competitiveness through making the home market more competitive for its SMEs.