An Empirical Study on Computerization and Internal/External Human Resources in Small and Medium Enterprises

Abstract

It is expected that external organizations such as consulting or outsourcing companies support computerization in small and medium enterprises (SMEs) in which shortage of financial and human resources is a general problems. On the other hand, some researchers reported that consultants didn’t bring good results while utilization of internal human resources was effective for computerization. How can SMEs with insufficient financial and human resources promote computerization utilizing internal/external human resources? In this study, the data gathered using questionnaire are analyzed to reveal the causal relationship between shortage of financial and human resources and effects of information systems (IS) through utilization of internal/external human resources.

The study revealed that the utilization of internal human resources for IS management and that of external resources for IS education were both effective, whereas utilization of external resources for IS management had the opposite effects. Furthermore, lack of human resources was found to affect utilization of internal resources.