Abstract:
Information and communication technology (ICT) adoption has been a widely researched topic in the literature, yet as information technologies evolve and penetrate business even further, an in-depth look at how digitalization process takes place has been an interesting question. In order to narrow the focus of the research, small and mid-sized enterprises (SMEs) in the service sector in Turkey were selected as population due to their critical role in the economy and great growth potential. In the study, a theoretical model was developed with various internal and external factors that try to explain ICT utilization capabilities of firms. A survey was prepared to test the theoretical model and was shared with service-sector SMEs. Based on the data collected from 103 respondents, evidence showed that ICT utilization capabilities had a statistically significant positive correlation with innovation orientation, skilled human capital, sector dynamism and external resources. As expected, there was also a statistically significant positive correlation between firm performance and ICT utilization capabilities. The analysis also showed that as the diversity of ICT utilization increases, firms are more likely to consider these technologies essential for a wider range of their practices. On average, firms that use ICT tools in a diverse and intense manner had higher ICT utilization capabilities and better firm performance.
