Abstract:
Today, Information and Communication Technology (ICT) is a disruptive change
agent in the business sector. Organizations are increasingly relying on ICT to
improve their performance and to gain competitive advantage both in the private
and public sectors. Even though the ICT increases their influence in the modern
business environment more than ever before, ICT usage in organizations has
become just a marketing tool to display IT talent to the world. In the Sri Lankan
market, Small and Medium Enterprises (SMEs) also interacting with ICT to
improve their work efficiency. However, there are not manyevidences in Sri Lanka
to accept the actual impact of ICT on business performance compared to its
investment cost. Some literatures have proposed contradicting opinions regarding
the matter. Some Researchers conclude that ICT in fact increases the organizations
performance while others do not. Increasing investments and usage of ICT in Sri
Lankan organizations prove the importance of finding the answer to the problem,
does ICT usage impact to the Organization's performance? This research is focused
on identifying the level of ICT usage, business performance level and whether the
ICT usage influences the business performance of SMEs in Kurunegala District.
Data was collected from 100 SMEs sample under 24 manufacturing and service
industry categories through questionnaire. ICT usage is defined by ICT device
usage, Internet usage and Software usage which is identified as independent
variables. Business performance of SME is defined as cost, efficiency, delivery,
flexibility and growth which are the indicators of dependent variable. Results of
the regression analysis show ICT devices usage does not influence on business
performance in SMEs while internet usage and software usage positively influence
on business performance of the SMEs.
