Knowledge use in ICT investment decision making of SMEs

Purpose: In this paper we discuss how managers use knowledge when making ICT investment decisions. ICT investments are complex processes and have also strategic implications for organizations. The focus of the study is to reveal how the organizational process of knowledge creation affects the individual-level decision making and how knowledge conversions between tacit and explicit knowledge occur in this process. Methodology/Approach: The data consists of information collected by six semi-structured interviews from six small or medium-sized companies. The knowledge use in the ICT investment decision-making is analyzed qualitatively and found categories of the different decision-maker types is presented. Findings: In ICT investments, there are four contributing factors: problem, product, provider, and solution. The results show significant differences in how the tacit and explicit dimensions of knowledge act by forming a ‘cognitive model’ of decision maker’s use of knowledge. Research limitations/implications: Due to the qualitative approach, the findings do not show the frequencies of a certain type of a decision maker in the SMEs in general. Practical implications: To be more effective, the models of ICT investment decision making for SMEs should emphasise the tacit knowledge used in the process. Originality/value of paper: The paper presents rare empirical findings on how the decision makers in the SME context use knowledge in their ICT investment processes. Classification: Research paper Rantapuska & Ihanainen Knowledge Use in ICT Investment Decision Making of SMEs 2