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Since small and medium businesses constitute the vast majority of businesses in our economy and the most number of jobs that go with it, it is necessary for those businesses to become more innovative and competitive through the use of information technology (IT). Given that a multitude of business drivers and factors can influence the adoption of IT by small and medium businesses, it is important to investigate the multidimensional nature of the factors and barriers to help these businesses realize what they are doing right and what is holding them back from becoming more innovative and competitive through use of IT. This study adds to the body of knowledge on adoption of IT by small and medium businesses by proposing a research model that focuses on the impact the firms’ quality orientation, efficiency consciousness, availability of resources, and selected CEO characteristics can have on its IT investments. The research model is being validated through a questionnaire-based survey, which is in progress now. Therefore, this study is a work-in-progress. Currently data has been collected and preliminary data analysis has been done and reported here. When completed, the study is expected to provide valuable insights to important and common barriers faced by small businesses in adopting IT thus helping them to realize how to move forward to become more competitive and innovative.

AN EXPLORATORY STUDY OF ADOPTION OF INFORMATION TECHNOLOGY BY SMALL AND MEDIUM BUSINESSES