Information Technology Adoption, Organization Performance and Organizational Agility: A Study of Small and Medium Enterprises

Abstract

This research delves into the dynamic relationship between adopting information technology (IT), organizational performance, and agility within small and medium enterprises (SMEs). With an acknowledgement of Its critical role in today's business sphere, the study seeks to demystify the effects of IT adoption on both the operational and strategic levels of SMEs. Utilizing a mixed-methods approach, the research integrates quantitative data from a survey targeting SMEs and qualitative insights gathered through comprehensive interviews. It primarily focuses on the direct impacts of IT adoption on organizational performance, considering key factors such as efficiency, productivity, and financial success. Additionally, the study investigates how organizational agility functions as an intermediary variable, hypothesizing that agility may be a key conduit through which IT adoption influences overall performance. The research further examines how the enterprise's size and the market's volatility might modulate these relationships. The results indicate a positive link between IT adoption and improved organizational performance, significantly mediated by agility. This study enriches the existing body of knowledge by offering detailed perspectives on SMEs' strategic use of IT to boost performance and agility, especially in environments marked by rapid market changes. It also provides valuable strategic insights for SME managers, guiding them in developing IT strategies harmoniously aligned with their objectives for agility and enhanced performance.