The Impact of Using Information Technology on Achieving Competitive Advantage and Organizational Performance for SMEs: An Empirical Study on the Manufacturing Industry in Jordan

Abstract

This study aims to investigate the impact of information technology usage on achieving competitive advantage and organizational performance in small and medium enterprises (SMES) as a set of most important reasons that lead to the organizational success . Moreover, this study examines the direct and indirect effect of achieving competitive advantage on organizatioal performance in SMEs in the manufacturing sector in Jordan . 375 questionnaires were distributed to the study sample. Only 170 questionnaires were returned with the response rate of 48%. The collected data were analyzed using descriptive statistics, and structural equation model. The results reveal that there is an orientation by the manufacturing SMEs towards the information technology usage. The manufacturing SMES in Jordan have the potentials and resources that enable them to achieve a competitive advantage, grow market share, offer products at competitive prices, and differentiate their product. Also, the study reveals that there is a direct impact of information technology usage on organizational performance, and a direct impact of competitive advantage on organizational performance. Finally, there is an impact of information technology usage on organizational performance through competitive advantage of manufacturing SMES in Jordan. The study recommends that the manufacturing SMEs must adopt information technology tools and invest in information technology usage to the best level. Manufacturing SMEs have to tend towards creativity, innovation and continuous improvement under the intensity of the competition in the manufacturing sector, and local and global business environment.