Are Slovene Small Firms Using Information Technology Strategically?

Abstract

The extent to which information technology (IT) is used strategically is measured in a sample of 147 small Slovene firms. Slovenia is interesting from a small business perspective because from 1990, when the transformation of its economy started, the number of small businesses has increased almost six times (from almost 6500 to nearly 35000 in 1999). The results indicate that IT industry leadership and also IT's role in a firm are strong predictors of the strategic usage of IT. IT is particularly well utilized in firms emphasizing innovation and, to a lesser degree, an efficiency strategy. Firms pursuing a low-cost strategy were the least likely to utilize IT strategically.