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Critical - Literature review Example

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Information Technology Adoption by Small and Medium Enterprises (SMEs) Information Technology (IT) is crucial to the success of any business and has to be induced in one or the other form to achieve and sustain business objectives. Small and Medium Enterprise (SMEs) are no exception to this phenomenon…
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Critical Literature Review
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Download file to see previous pages 6.5 million and a medium enterprise can have up to 250 employees with a turnover of ?25.9 million. (BIS, 2011). SMEs are not only playing a significant role in the economy of United Kingdom but they are also major contributor in reducing the unemployment in the country. “Small and medium sized enterprises (SMEs) are an important part of UK economy. Out of nation 4.3 million business enterprises 99% are SMEs, accounting for well over half of the employment (58.9%) and turnover (51.9%).” (Dyerson & Hari, 2008, p. 139). Today, adoption of IT or Information and Communication Technology (ICT) by SMEs is not an option but a compulsion and business requirement. Businesses cannot afford to live and exit in isolation rather they have to integrate themselves with all new technologies that happened to exist and prevail in the society. The impact of information technology on the society has instigated new domains and horizons of information technology in the SMEs businesses and awareness has begin to increased among European states some two decades back with the invent of internet and information explosion. “Earlier EU policies in support of Small and Medium Enterprises (SMEs) tended to focus on their role in creating employment. Over the past decade, there has been a pronounced shift to encourage greater SME participation in the information society and increased policy interest in the role that SME may play in innovation.” (Stanford-Smith, Enrica & Mireille, 2002, p.987). Apart from the size of an SME, the significance of an information technology framework is unquestionable for its existence, operation and growth. The role of IT in any business is multi faceted and it may range from internal operations and data repositories to eMarketing and eCommerce. The globalization of businesses has necessitated the induction of tools and trade of information technology into the SMEs all over the world. The strategic importance of SMEs in the economic growth of a country has grown multi times and governments try to enhance and boost economic escalation through the growth of SMEs to achieve sustainable economic strength. The adoption of information technology by SMEs is the tactical side of this strategic objective. Therefore, the governments not only encourage the use of technology but also enforce the use of these technologies to ensure better management and to guard public interest through IT enabled services by SMEs. These efforts were not limited to individual states but were also collaborated internationally by organizations like OECD. An early example of these steps includes the establishment of “Technology Development Centers (TEKES) in order to assist SMEs in planning development programs which include new technology and international cooperation.” (OECD, 1998, p. 82). United Kingdom being a member of OECD has been playing a pivotal role in the growth of SMEs and thereafter in the strengthening process of the SMEs which includes but not limited to the adoption and encouragement of information technologies in these businesses. “Here again the operations are concentrated on the OECD countries and the main sectors include: technical and engineering studies, agro foods, chemicals, parachemicals and pharmaceuticals, information technology and electronics.” (OECD, 1998, p. 83). Threats and challenges always come bundled with the adoption of any technology and the information techn ...Download file to see next pagesRead More
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