The use of Information and communication technologies (ICTs) is very widespread
among businesses of all sizes. Many Small and Medium Sized Enterprises (SMEs) are
increasingly adopting ICTs in both developed and developing countries. The perceived benefits
and firm and sector-specific strategies seem to drive the adoption and use of ICTs. The object of
this study is to investigate the drivers and challenges of ICT adoption by SMEs in the Accra
metropolis of Ghana.
The literature shows that the desire for lower costs, improved productivity, higher
product quality, higher customer satisfaction, and ability to focus on core areas are some of the
key drivers of ICT adoption. The literature further shows that research in the adoption of ICTs by
SMEs is growing. The advancement in ICTs has a major influence on globalization, and rapid
revolutions in information and knowledge base (Kaynak et al., 2005; Pavic et al., 2007). The
global proliferation of the use application of ICTs by organizations is not only for cost cutting
and improving efficiency, but additionally for providing better customer services.
SMEs are also driven to adopt appropriate ICTs for the purpose of improving their
internal processes, improving their product through faster communication with their customers,
and better promoting and distributing their goods and services through online presence. Besides,
governments around the world are adopting ICTs for the purpose of providing better services to
their citizens. Invariably, the adoption of ICT by organizations requires a business environment
encouraging open competition, trust and security, interoperability and standardization and the
availability of finance for ICTs (UNCTAD 2004).
Despite these aforementioned drivers, there are an abundance of challenges to ICT
adoption by SMEs worldwide stemming from both internal and external factors. Lack of internal
capabilities, high cost of ICT acquisition, and lack of information about suitable ICT solutions
and implementation are some of the factors. In many less developed countries, majority of SME
customers tend to be local and may not ask for or require technology to do business. Besides,
among other issues, SMEs markets also tend to need a high degree of human interaction. Other
challenges in the literature will be visited in the literature review.