Information technology competency in SMEs: an examination in the context of firm performance

Authors:
Timothy L. Pett;James A. Wolff;John T. Perry
Affiliations:
Wichita State University, Devlin Hall, Wichita, KS 67260, USA.;Wichita State University, Devlin Hall, Wichita, KS 67260, USA.;Department of Management, Pennsylvania State University – Harrisburg, 777 West Harrisburg Pike, Middletown PA 17057, USA
Venue:
International Journal of Information Technology and Management
Year:
2010

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Abstract

The ability to use information technology for business process improvement, in the facilitation of information gathering for better decision-making, and otherwise enhancement of firm performance has long been the realm of large firms. However, with declining costs, enhanced computing power, and faster internet connectivity small and medium-sized enterprises (SMEs) may be able to create and develop an effective information technology competency. In this study, we examine the notion of information technology competency to determine its usefulness with respect to SMEs. Specifically, Tippins and Sohi's (2003) information technology competency construct is replicated and applied in a SME environment. This application allows us to test whether there is a relationship between a SME's information technology competency and firm performance. Data from a sample of SMEs indicate that information technology competency is applicable to the SME context and has a positive relationship with firm performance. The results offer support for the idea that the measures and effects of information technology competency are relevant to the study of small and medium enterprises.