Document(s) 3 of 17

Information and telecommunication technologies (ITs) have long been identified as key factors in international competitiveness and have even radically modified the basis of competition. The dramatic influence of ITs will continue to determine the competitive posture of virtually all businesses in most countries of the world. However, the rate of IT adoption differs from country to country and, in a given country, from firm to firm. The delay observed in IT adoption could in certain sectors place the very survival of some firms in jeopardy. The adoption of ITs is thus considered a crucial strategic issue.

Context

Because of their potential impacts on the productivity and competitiveness of firms, ITs are of special interest to policymakers. How can we promote and facilitate the introduction and implementation of ITs? How can we accelerate IT diffusion in the various sectors of economic activity? How can we assess the impacts of ITs? This document will provide some answers to these questions in the specific context of small and medium-size enterprises (SMEs). Special attention will be paid to a few key sectors — the food and beverage industry, textiles, the garment and leather industry, chemicals and chemical products, metal products, machinery and equipment, the lumber industry, the electrical and electronics industries, the plastics industry, and the services sector (for example, accounting and engineering services) — and to experiences in the Organization for Economic Co-operation and Development (OECD) countries.

This document is expected to provide policymakers with some useful information that will help them define guidelines for the development of SMEs.

Objectives

The overall objective of the study was to identify in the current literature (1985 to date) appropriate theoretical support and methodological models for measuring the impact of IT on the productivity and competitiveness of SMEs in Latin America, the Caribbean region, and Canada. More specifically, this document has the following objectives:

• To identify and analyze factors affecting the adoption of Its;
• To determine the characteristics of the decision-making process (that is, the way in which the decision to adopt ITs is made) that promote or hamper IT adoption; and
• To evaluate the impacts of IT adoption.

Organization of the document

In Chapter 1, ITs will be defined and classified according to different models, and the rate of diffusion of ITs in various countries will be examined. In Chapter 2, internal and external factors affecting the adoption of ITs will be analyzed. The characteristics of the decision-making process as a prime adoption factor will be discussed in Chapter 3. Chapter 4 will investigate the impact of ITs on productivity, key competitive dimensions, performance, and work and employment. The conclusion will provide a brief synthesis and some comments on methodological issues affecting the future design of interview guides or questionnaires.

To be as pragmatic as possible, each of the four chapters will present models whenever appropriate and conclude with some proposed operational measures, which could be used later in an empirical study.

The literature for this document was extremely rich and diverse because it came from various fields of research. To meet the objectives set out above, it was necessary to be both concise and exhaustive. The literature was extensive: close to 400 references are listed in the Bibliography, and these are organized to correspond to the chapters of the document and the four sections of Chapter 4.

Document(s) 3 of 17