Barriers of ICT Innovation towards Sustainable Growth of SMEs: a Case Study of Ghana

Many businesses and organizations in recent times have adopted the use of ICT in performing their business activities. ICT is widely acknowledged to enhancing the performance of firm’s activities one way or the other. ICT Innovation helps companies in keeping track of demand and supply to meet customers’ satisfaction as well as quick access to changes in the world market. The introduction of ICT has also led to intense competition within the domestic and global market which has made innovation the significant factor of firm’s level of competitiveness and sustainability.

Despite the significant roles ICT plays in firm’s competitiveness and sustainability, SMEs in emerging economies, especially Ghana has little or nothing to write about as compared to the developed economies. Since SMEs are considered to be the engine of economic development for both developed and developing economies, there is the need to enhance ICT Innovation among SMEs to compete in recent highly competitive market trend. This research, therefore, takes into investigation factors that affect ICT Innovation among SMEs in Ghanaian and proposing of policy recommendations in addressing these issues.

To identify the barriers of ICT Innovation among SMEs in Ghana, the research carried a qualitative method by selecting four SMEs with 70 respondents for case studies. The findings indicated some inhibitors of ICT innovation among SMEs in Ghana such as, lack of fund, a high cost of ICT setups and maintenance, unfavorable government policies and so on. The study also made some policy recommendations to SMEs stakeholders and Shareholders such as how to acquire to funds, creating ICT awareness for owner/managers, embracing Interdepartmental collaboration, Public-Private Partnership, training of employees and so on. This study shows that effective implementation of these factors will go a long way in enhancing ICT Innovation towards sustainable development of Ghanaian SMEs.