IDEAS home Printed from https://ideas.repec.org/a/gam/jbusin/v5y2025i1p2-d1562022.html
   My bibliography  Save this article

The Impact of IT Strategic Planning Process on SME Performance: A Systematic Review

Author

Listed:
  • Olebogeng B. Molete

    (Department of Electrical & Electronic Engineering Technology, University of Johannesburg, Johannesburg 2092, South Africa)

  • Selloane E. Mokhele

    (Department of Electrical & Electronic Engineering Technology, University of Johannesburg, Johannesburg 2092, South Africa)

  • Somquba D. Ntombela

    (Department of Electrical & Electronic Engineering Technology, University of Johannesburg, Johannesburg 2092, South Africa)

  • Bonginkosi A. Thango

    (Department of Electrical & Electronic Engineering Technology, University of Johannesburg, Johannesburg 2092, South Africa)

Abstract

Information technology (IT) strategic planning plays a pivotal role in enhancing the performance of small and medium-sized enterprises (SMEs), improving operational efficiency and decision-making, and fostering innovation. This systematic review aims to synthesize the impacts of IT strategic planning on SME performance, focusing on key performance indicators such as operational efficiency, cost reduction, and customer satisfaction. A total of 80 studies were rigorously analyzed. Quantitative methods were used in 45% of the studies, while 25% applied thematic analysis. The adoption of cloud-based solutions (11.25%) and hybrid IT setups (17.5%) were also evaluated as critical enablers of flexibility and cost-efficiency. SMEs aligning their IT strategies with business objectives demonstrated up to a 20% reduction in operational costs and a 15% increase in customer satisfaction. Resource constraints were identified as a significant challenge in 60% of the studies. Nevertheless, effective IT planning contributed to long-term sustainability and competitive advantage in 60% of the reviewed studies. This review provides actionable insights and strategic frameworks to guide SMEs in optimizing their IT investments, overcoming resource limitations, and ensuring sustainable growth.

Suggested Citation

  • Olebogeng B. Molete & Selloane E. Mokhele & Somquba D. Ntombela & Bonginkosi A. Thango, 2025. "The Impact of IT Strategic Planning Process on SME Performance: A Systematic Review," Businesses, MDPI, vol. 5(1), pages 1-42, January.
    • Handle: RePEc:gam:jbusin:v:5:y:2025:i:1:p:2-:d:1562022
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2673-7116/5/1/2/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/2673-7116/5/1/2/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Prashant Palvia & Jaideep Ghosh & Tim Jacks & Alexander Serenko & Aykut Hamit Turan, 2020. "The World IT Project: A Long Journey in the Making," World Scientific Book Chapters, in: Prashant Palvia & Jaideep Ghosh & Tim Jacks & Alexander Serenko & Aykut Hamit Turan (ed.), The World IT Project Global Issues in Information Technology, chapter 1, pages 1-16, World Scientific Publishing Co. Pte. Ltd..
    2. Diogo Pombo & Mário Franco, 2023. "A qualitative investigation of infusing products with service via strategic alliances among SMEs: a case of servitization," Service Business, Springer;Pan-Pacific Business Association, vol. 17(2), pages 529-555, June.
    3. Claudia Huebner & Steffen Flessa, 2022. "Strategic Management in Healthcare: A Call for Long-Term and Systems-Thinking in an Uncertain System," IJERPH, MDPI, vol. 19(14), pages 1-17, July.
    4. Khurana, Indu & Dutta, Dev K. & Singh Ghura, Amarpreet, 2022. "SMEs and digital transformation during a crisis: The emergence of resilience as a second-order dynamic capability in an entrepreneurial ecosystem," Journal of Business Research, Elsevier, vol. 150(C), pages 623-641.
    5. Morteza Ghobakhloo & Sai Hong Tang, 2015. "Information system success among manufacturing SMEs: case of developing countries," Information Technology for Development, Taylor & Francis Journals, vol. 21(4), pages 573-600, October.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Farida Veerankutty & Thurasamy Ramayah & Noor Azman Ali, 2018. "Information Technology Governance on Audit Technology Performance among Malaysian Public Sector Auditors," Social Sciences, MDPI, vol. 7(8), pages 1-19, July.
    2. Alexander Brem & Petra A. Nylund & Saeed Roshani, 2024. "Unpacking the complexities of crisis innovation: a comprehensive review of ecosystem-level responses to exogenous shocks," Review of Managerial Science, Springer, vol. 18(8), pages 2441-2464, August.
    3. Shao, Yanmin & Xu, Kunliang & Shan, Yuan George, 2024. "Leveraging corporate digitalization for green technology innovation: The mediating role of resource endowments," Technovation, Elsevier, vol. 133(C).
    4. Jinbo Zhou & Weiren Cen, 2024. "Digital Entrepreneurial Ecosystem Embeddedness, Knowledge Dynamic Capabilities, and User Entrepreneurial Opportunity Development in China: The Moderating Role of Entrepreneurial Learning," Sustainability, MDPI, vol. 16(11), pages 1-24, May.
    5. Jeffrey Muldoon & Younggeun Lee & Eric W. Liguori & Saumyaranjan Sahoo & Satish Kumar, 2024. "Mapping the entrepreneurship ecosystem scholarship: current state and future directions," International Entrepreneurship and Management Journal, Springer, vol. 20(4), pages 3035-3080, December.
    6. Bürgel, Tobias R. & Hiebl, Martin R.W. & Pielsticker, David I., 2023. "Digitalization and entrepreneurial firms' resilience to pandemic crises: Evidence from COVID-19 and the German Mittelstand," Technological Forecasting and Social Change, Elsevier, vol. 186(PA).
    7. Abdalwali Lutfi & Saleh Nafeth Alkelani & Hamza Alqudah & Ahmad Farhan Alshira’h & Malek Hamed Alshirah & Mohammed Amin Almaiah & Adi Alsyouf & Mahmaod Alrawad & Abdelhameed Montash & Osama Abdelmakso, 2022. "The Role of E-Accounting Adoption on Business Performance: The Moderating Role of COVID-19," JRFM, MDPI, vol. 15(12), pages 1-19, December.
    8. Shore, Adam & Tiwari, Manisha & Tandon, Priyanka & Foropon, Cyril, 2024. "Building entrepreneurial resilience during crisis using generative AI: An empirical study on SMEs," Technovation, Elsevier, vol. 135(C).
    9. Kamaha Njiwa, Marinette & Atif, Muhammad & Arshad, Muhammad & Mirza, Nawazish, 2023. "The impact of female dominance on business resilience: A technology adoption perspective," Journal of Business Research, Elsevier, vol. 161(C).
    10. Gaffar Hafiz Sagala & Dóra Őri, 2024. "Toward SMEs digital transformation success: a systematic literature review," Information Systems and e-Business Management, Springer, vol. 22(4), pages 667-719, December.
    11. Danli Du & Xiaojie Jian, 2024. "Enhancing the resilience of regional digital innovation ecosystems: a pathway analysis from the lens of resource orchestration theory," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 73(4), pages 1811-1838, December.
    12. Józef Ciuła & Elżbieta Sobiecka & Tomasz Zacłona & Paulina Rydwańska & Aneta Oleksy-Gębczyk & Tomasz P. Olejnik & Sławomir Jurkowski, 2024. "Management of the Municipal Waste Stream: Waste into Energy in the Context of a Circular Economy—Economic and Technological Aspects for a Selected Region in Poland," Sustainability, MDPI, vol. 16(15), pages 1-25, July.
    13. Ganotakis, Panagiotis & Angelidou, Sofia & Saridakis, Charalampos & Piperopoulos, Panagiotis & Dindial, Miguel, 2023. "Innovation, digital technologies, and sales growth during exogenous shocks," Technological Forecasting and Social Change, Elsevier, vol. 193(C).
    14. Jiang, Zhenyu & Wang, Zongjun, 2024. "Impel or impede? Revealing the effect of the integration into innovation ecosystems on the development of SMEs," Technological Forecasting and Social Change, Elsevier, vol. 199(C).
    15. Piperopoulos, Panagiotis & Jimenez-Moro, Eduardo & Yeung, Matthew & Christopoulou, Danai & Ming, Alan Au Kai, 2023. "The impact of exogenous shocks on the innovation performance of firms in the Caribbean small island economies: Quasi-replication of Paunov (2012)," Technological Forecasting and Social Change, Elsevier, vol. 196(C).
    16. Jaisy Aghniarahim Putritamara & Budi Hartono & Hery Toiba & Hamidah Nayati Utami & Moh Shadiqur Rahman & Dewi Masyithoh, 2023. "Do Dynamic Capabilities and Digital Transformation Improve Business Resilience during the COVID-19 Pandemic? Insights from Beekeeping MSMEs in Indonesia," Sustainability, MDPI, vol. 15(3), pages 1-21, January.
    17. Jeehan A. R. Awad & Rodrigo Martín-Rojas, 2024. "Digital transformation influence on organisational resilience through organisational learning and innovation," Journal of Innovation and Entrepreneurship, Springer, vol. 13(1), pages 1-24, December.
    18. Wanzu Ibrahim & Peter Turyakira & Proscovia M. Katumba, 2021. "E-Commerce Adoption and Growth of SMEs in Uganda," International Journal of Business and Management, Canadian Center of Science and Education, vol. 14(1), pages 1-46, July.
    19. Alhassan Abdul-Wakeel Karakara & Evans S. Osabuohien, 2022. "Threshold effects of ICT access and usage in Burkinabe and Ghanaian households," Information Technology for Development, Taylor & Francis Journals, vol. 28(3), pages 511-531, July.
    20. Abdalwali Lutfi & Manaf Al-Okaily & Adi Alsyouf & Mahmaod Alrawad, 2022. "Evaluating the D&M IS Success Model in the Context of Accounting Information System and Sustainable Decision Making," Sustainability, MDPI, vol. 14(13), pages 1-17, July.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:gam:jbusin:v:5:y:2025:i:1:p:2-:d:1562022. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.