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Success of Small and Medium Enterprises in Myanmar: Role of Technological, Organizational, and Environmental Factors

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  • Hillol Bala
  • Xuan Feng

Abstract

Small and medium enterprises (SMEs) are key to economic growth and prosperity in developing countries. In this study we build on the technology-organization-environment (TOE) framework, a widely used theoretical perspective in organizational research, to understand factors that contribute to the success of SMEs in Myanmar, a socio-politically important yet volatile developing country that recently opened its economy to the world. We identify a set of TOE factors that explain the success and reveal the challenges of SMEs in Myanmar. Based on surveys conducted over four years (2013 to 2016), we found that information and communication technologies (i.e., internet use and web presence for business purposes) were positively associated with SME success, suggesting that SMEs in Myanmar, which has been globally isolated for many decades, could indeed benefit from modern ICTs. We also found that larger SMEs experienced greater success in terms of sales and profitability than smaller SMEs, and manufacturing SMEs overall performed better than SMEs in other industries. This study adds to the literature on SME success, early stages of ICT usage, the TOE framework, and have practical implications for SMEs in Myanmar and other developing countries. The unique characteristics of Myanmar will likely shed light on our understanding of SME success in other ASEAN (Association of Southeast Asian Nations) countries.

Suggested Citation

  • Hillol Bala & Xuan Feng, 2019. "Success of Small and Medium Enterprises in Myanmar: Role of Technological, Organizational, and Environmental Factors," Journal of Global Information Technology Management, Taylor & Francis Journals, vol. 22(2), pages 100-119, April.
  • Handle: RePEc:taf:ugitxx:v:22:y:2019:i:2:p:100-119
    DOI: 10.1080/1097198X.2019.1603511
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    Cited by:

    1. Simplice A. Asongu & Nicholas M. Odhiambo, 2023. "Foreign Direct Investment, Information Technology, And Total Factor Productivity Dynamics In Sub‐Saharan Africa," World Affairs, John Wiley & Sons, vol. 186(2), pages 469-506, June.
    2. Nicole Mueni Muia & Julius Kahuthia Mwangi & John Muhoho, 2020. "Board Behavior and Corporate Performance: A Case of African Guarantee Fund for Small and Medium-Sized Enterprises," International Journal of Research and Innovation in Social Science, International Journal of Research and Innovation in Social Science (IJRISS), vol. 4(7), pages 232-239, July.
    3. Mehtap Özşahin & Büşra Alma Çallı & Erman Coşkun, 2022. "ICT Adoption Scale Development for SMEs," Sustainability, MDPI, vol. 14(22), pages 1-28, November.

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