Management Principles for the Appraisal and Diffusion of Information Systems: Case of SMEs in Ghana

Management Principles for the Appraisal and Diffusion of Information Systems: Case of SMEs in Ghana

Cephas Paa Kwasi Coffie, Hongjiang Zhao, Frederick Kwame Yeboah, Abraham Simon Otim Emuron
DOI: 10.4018/IJISSCM.290015
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Abstract

In this paper, we bring to light the issue of appraising and diffusing information systems by small and medium scale enterprises (SMEs) in Ghana. The empirical data was gathered through an online questionnaire-based survey from 312 SMEs in Ghana. All these enterprises are registered members of the association of Ghanaian industries (AGI) and are confirmed users of information system. The framework of the study is developed based on the approaches found in technology management literature: management principles for disruptive technology, information system strategy, technological decision making and the technology acceptance models. The aim of the paper is to unearth management principles which allow SMEs in Ghana to appraise and diffuse information system successfully. We defined these principles through the comparison of known principles with the practiced principles of management of the small enterprises in Ghana and distilling the best management practices in information system appraisal and diffusion.
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Introduction

The popularity of information technology (IT) diffusion amongst Ghanaian small and medium scale enterprises (SMEs) has improved as a result of competition, globalization, and advancements in information technology (IT) (Coffie, Hongjiang, Mensah, Kiconco, & Simon, 2021; Pathan, Jianqiu, Akram, Khan, Latif, & Tunio, 2017). Following the initiative of Ghana as the first country in the Sub-Saharan region to introduce a cellular network in 1992, the world first biometric payment and settlement card (E-zwich) in 2008, and among the earliest countries to be connected to the internet with the introduction of ADSL broadband services, enterprises in the country irrespective of size, nature, and location have taken advantage of these developments to survive in their respective highly competitive markets. Statistically, more than 90% of all enterprises in Ghana operating across the different industries as of 2012 were classified either as small or medium scale in size (Amoah & Amoah, 2018). Synonymous with the critical role of SMEs in economic development globally (Acheampong & Hinson, 2019; Selase, Selase, Ayishetu, Comfort, Stanley & Ebenezer, 2019). Since these businesses play a crucial role in the economic development of the country, successive governments continually initiate technology policy reforms that aid these enterprises in competing locally and beyond. Nevertheless, questions yet persist concerning the ability of these SMEs to successfully diffuse information systems economically. The integration of information systems into the daily operations of SMEs promises operational excellence (Selase et al., 2019). However, the diffusion of IT by Ghanaian SMEs remains relatively low compared to SMEs in developed countries (Coffie et al., 2021; Yermack, 2018). This is occasionally attributed to the lack of technology education (Kubuga, Ayoung & Bekoe, 2021; Boateng, Tetteh & Boateng, 2015), the perceived cost of diffusing IT (Oduro, 2020; Ocloo, Xuhua, Akaba, Addai, Worwui-Brown & Spio-Kwofie, 2018), and other infrastructural challenges owing to the rural location nature of SMEs in developing countries (Twi-Brempong, Gu, Oppong-Baah, Owusu, Gyamfi, Pinas & Owusu, 2019; Issahaku, 2012). Further, insufficient financial resources, lack of management expertise (Oduro, 2020; Quartey, Turkson, Abor, & Iddrisu, 2017), and uninformed capital investments decisions also contribute to the inability of these businesses to diffuse information systems (Kalane, ‎2015; Emezie, 2017). Therefore, given the fact that the diffusion of information systems is strategic in nature and begs the commitment of huge financial resources (Coffie et al., 2021; Oduro, 2020), proper appraisal and diffusion processes are required to reap the full benefits of any proposed system. Nevertheless, managerial inefficiencies, the lack of technology education, underwhelming human resources practices, and cost-cutting schemes inhibit the proper appraisal and diffusion of information systems in these SMEs (Al Busaidi, Bhuiyan & Zulkifli, 2019; Isensee, Teuteberg, Griese & Topi, 2020). This results in the diffusion of the wrong information system, bad user experiences, and difficulties in integrating existing business models. Therefore, to close this gap, the study proposes management principles and practices for the proper appraisal and diffusion of information systems in SMEs.

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