Feasibility Assessment Model for Successful Adoption of Information Systems in Small and Medium Enterprises

Abstract

Small and Medium Enterprises (SME) have been recognized as an important strategic sector for promoting growth and social development in Sri Lanka. In the meantime IT has enabled the development of powerful and efficient Computer Based Information Systems (CBIS) which play a major role in business performance improvement. However, it can be seen that majority of SMEs have not adopted CBIS and also not all who have adopted have been successful. Therefore, this research is undertaken to develop a feasibility assessment model by which an SME that is considering adopting CBIS will be able to assess whether the adoption is feasible. Firstly, the influential factors at the phases of Pre-implementation, Implementation & Post-implementation and their level of significance were identified. The factors were evaluated and their importance and the level of influence caused were identified through a survey of SMEs which have already been implemented CBIS. Based on the results of the analysis a CBIS Feasibility Assessment Framework has been developed that would assist an SME to know its level of feasibility before adopting CBIS. Top management support and System Complexity proved to have impact in all three phases of CBIS adoption and mainly it was the Pre-implementation and/or Implementation capabilities that showed significant correlation with the system adoption success.