Adoption of information system in Ho Chi Minh City small-and-medium sized enterprises

Abstract

Small-and-medium-sized enterprises (SMEs) serve a significant economic function in several countries, particularly Vietnam. Thus, necessity of adopting information and communication technology (ICT), particularly information systems (IS), is now essential in every companies, both in corporates and in SMEs. Previously conducted studies of ISs focused on developed countries and corporate level businesses, with only a few in developing/emerging countries and especially Vietnam. This thesis’ purpose is to observe experiences of three Vietnamese SMEs, particularly Ho Chi Minh City (HCMC) region, when they adopted ISs on their businesses. The author analyzed reasons, processes, and factors affecting their IS adoption, using qualitative research method. The method consisted of semi-structured interviews employed as a foremost data-collection methods so as to examine partakers’ involvements. Those experiences were juxtaposed with literature reviews, and the analysis led to significant discoveries. It substantiated handful of motives and factors established in the previous studies regarding Vietnamese SMEs IS adoption. The reasons are to response to customer requirements, to take a new opportunity for competitive advantage, to improve productivity, and to progress decision-making process of the executives. Pressure from competitors, though not discernible, is considered one of the main reasons, therefore is suggested to be inspected furthermore about the impact. The previous studies depicted the process commencing with decision-making phase, following up with selection phase, and concluded by implementation phase. This study reconfirms it by observing the three companies. Factors influencing the IS adoption process consists of interior factors (including organizational culture, financial resource, executives, staffs) and exterior factors (including stakeholders like customers, competitors, and IS supplier or experts). The recommendation suggests that staff involvement is fundamental in the adoption process, together with the selection of product to suit business requirements, and the knowledge of executive level to successfully adopt IS on businesses. Keywords: adoption, information system, information system adoption, Ho Chi Minh City, small-and-medium-sized enterprises, SME, Vietnam