Promoting Competitive Advantage in Micro- Enterprises through Information Technology Interventions

The use of Information and Communication Technologies (ICTs) by Small and Medium Sized Enterprises (SMEs) have the potential to enable these businesses to grow through access to new markets and administrative efficiencies. However, the growth of the smallest of these SMEs which are micro-enterprises is hindered by their inability to adopt ICTs effectively to achieve competitive advantage. This chapter investigates how micro-enterprises can adopt ICTs to grow and achieve competitiveness. This investigation of a set of seven micro-enterprises took place through an interpretive field study in which action research was used to diagnose and treat the micro-enterprises with interventions through a process of “Information Technology (IT) Therapy”. This process involved providing individualized IT solutions to pressing problems and opportunities and the development of a longer-term IT project plan, customized for each of the businesses. The increase in competitiveness of these micro-enterprises was assessed using the Focus Dominance Model and their growth through a modified model of micro-enterprise growth based on the resource based view of the firm. This research also contributes with a unique set of skills and experiences that ITD innovators can bring in helping micro-enterprises achieve sustained growth and competitive advantage.