A study on implementation of information technology (IT) and its relationship with firm performance

This study deals with the small and medium enterprises (SMEs) implementation of information technology (IT) and its relationship with firm performance. The objectives of this study are to identify the level of SMEs owners‟ IT adoption and to analyze the relationship between SMEs owners‟ IT adoption and firm performance. A 180 survey questionnaire was distributed to foods and beverages SMEs owners in Johor and a total of 166 responses were collected. The data were analyzed by using Statistical Package for the Social Sciences (SPSS). From the results obtained, it is concluded that the SMEs owners in Johor were highly adopting IT in their firm. The Pearson‟s correlation was tested on the independent variables; IT Infrastructure, Strategic Alignment, Organizational Structure and Individual Learning with dependent variable; Firm performance, discovered that there is a positive correlation coefficient between the IT adoption variables. This field of study were hoped to contribute a deeper understanding on the importance of IT adoption as it can affect the performance of their firm