THE USE OF ICT IN STRATEGIC MANAGEMENT OF SMALL AND MEDIUM ENTERPRISER:

Abstract

This study investigated the use of ICT in the strategic management of SMEs in the Bukoba Municipal Council. With the specific objective of examining how ICT influences strategic management in SMEs in Bukoba Municipal Council, determining ICT resource allocation strategies and their effects on strategic management in SMEs in Bukoba Municipal Council and analyzing the moderating effect of the business environment on the relationship between ICT and strategic management in SMEs of Bukoba Municipal Council. The study was analyzed qualitatively informed by Theory of Reasoned Action (TRA); where the data were analyzed in terms of words and descriptions and tables. Data was collected via interview and an open-ended questionnaire was deployed to quantify the data. Major concepts were identified by perusing the collected data and identifying information relevant to the research questions and objectives. Then developing a coding system was based on samples of collected data and reporting the intensity of descriptions in the discussion. The findings revealed that the use of ICT in SMEs is still a challenge in strategic management because the service providers and the service consumers have no adequate knowledge of the importance of /CT in SME strategic management. The suggestions thereupon are as follows; To start with, SMEs need to build capacity for their human resources to enable them to optimally utilize ICTs available to facilitate business activities. Secondly, the government has to create an ICT-friendly environment by modifying the current restrictive regulatory frameworks. Apart from that, both businesses and the government should work towards improving infrastructure to support the usage of ICTs in business activities. Likewise, the effective adoption of social media to enhance business processes is to be considered by the SMEs of all sizes due to its cost-effectiveness and popularity.