Information technology is necessary to build high-performing SMEs and also may be necessary as the globalized market demands are increasingly difficult to adapt to and sustain profitability. Financial performance in global markets is dependent on continuous learning. Corporate learning plays a critical role and is a strategic prerequisite for increasing sales and market share in today’s knowledge-based economy. Effective corporate learning can enable SMEs to actively respond to environmental changes and customer needs and organizational members’ growth needs. Thus, information technology is a key factor that should be embraced at the senior level of SMEs to enable financial performance in globalized markets through building a learning climate and empowering organizational members. In the absence of effective IT management, SMEs cannot implement successful plans in order to adapt to today’s global business environment.
Information technology is a key factor to improve financial performance for SMEs. Forbes’ Reports on American industries clearly indicate that effective IT implementation significantly contributes to SMEs’ financial performance. These researches acknowledge that information technology is an important enabler to effectively manage business processes. Information technology can reduce paper-based transactions for SMEs that can potentially decrease costs and subsequently improve profitability for SMEs. Furthermore, it can be seen that information technology enables SMEs to effectively identify opportunities in an external business environment that leads to identifying the best opportunities for investment that potentially improves financial performance in terms of return on investment. Information technology can also help SMEs to effectively create more innovative solutions for their organizational problems. More innovative solutions and better ideas can improve the quality of products and services, which in turn increases sales and market share for SMEs.
Business success for SMEs in today’s global business environment can be, therefore, achieved when information technology is effectively applied and widely used to achieve a higher degree of financial performance. When information technology can create a learning workplace and inspire a vision for the future expansion into global markets, SMEs will secure a foothold in the ever-expansive global marketplace.
Two important dimensions that all managers worldwide can learn from this article is that information technology can help SMEs to accomplish the goals that they would not ordinarily consider part of their competencies. The question posited for top management executives and leaders in any and all SMEs is to accept the challenge of information technology implementation in order to address the current gaps in business effectiveness and improve their competitiveness in global markets. Thus, I recommend that executives should consider information technology as a key driver for improving financial performance and sales in today’s hypercompetitive environment.