International Journal of Research and Innovation in Applied Science (IJRIAS) | Volume VII, Issue VI, June 2022 | ISSN 2454–6194
The impact of ICT adoption decision-making: Case of Zimbabwean SME owner-managers
Mveku Blessed1, Muzvidziwa Eric2, Mutero Tanaka3 & Matapo Susan4
1Faculty of Commerce, Department of Business Management, Midlands State University
2Faculty of Commerce, Department of Business Management, Midlands State University
3Faculty of Commerce, Department of Business Management, Midlands State University
4Faculty of Commerce, Department of Accounting, Great Zimbabwe University
Abstract : This study analyzed the impact of ICT adoption by SMEs owner-manager on decision-making. The paper also explored the relationship that exists between owner-managers’ academic qualifications and decision-making. A quantitative approach was adopted to enable the researchers’ to explore relationships between variables and test hypotheses. Questionnaires with 19 scales adopted from past studies were used to collect data from 400 participants that had been selected using random sampling. Descriptive and inferential statistical analysis were performed in STATA 11. Findings from the study shows that ICT adoption greatly improves decision-making. Hypothesis test has proved that a significantly positive relationship exists between ICT adoption and decision-making. There is a negative relationship between owner-managers’ education and decision-making. Practical implications shows that poor decision-making is the reason behind the failure of most SMEs. ICT adoption improves decision-making by providing owner-managers with a platform to gather all necessary information before making strategic decisions. Firms with owner-managers that harness ICT are likely to be successful as a technological culture strengthens competitive advantage.
Keywords: Decision-making, Information and communications technology, Small to medium enterprises.
I. INTRODUCTION
Most countries in Europe have directed their focus to SMEs so that they have become the epicenter of the industrial revolution (Sommer, 2015). Africa in general and Zimbabwe in particular has in the past years promoted the growth of SMEs. This has been done through the indigenous policy and the implementation of other policies such as the Zimbabwe Government Strategic Policy on SMEs. The later was introduced in 2004. Ajayi and Morton (2015) point out that in most countries, the growth of SMEs has led to national revenue generation and export foreign currency earnings. Arbelo, Pérez-Gómez, and Arbelo-Pérez, (2018) point out that the Spanish economy just like in other states, SMEs generates 66% of jobs and they currently dominate the business environment. Zimbabwean SMEs are employing nearly 80% of the working population, 42% GDP contribution, and are contributing 20% to the consolidated revenue fund (Machivenyika, 2018).