Benchmarking information technology practices in small firms

Much attention has focused recently on benchmarking, a practice by which firms learn from other firms to help improve their own business processes. Numerous benchmarking tools exist for small firms and they typically cover a range of activities, including strategic leadership, quality, and performance. However, most pay no or little attention to IT. Thus, this study aimed to identify IT practices in small firms that could be included in benchmarking tools. The study commenced with a review of existing literature to identify major areas of IT management relevant to small firms. This literature guided multiple-case study research of four engineering firms to identify IT practices. A second phase of the study evaluated evidence from 30 small engineering firms with between 20 and 100 employees. Six practices differentiated IT leaders from IT laggards. Three practices reflected senior management involvement and the other three reflected technological capability.