The role of information technology in corporate strategy of small and medium enterprises

The crisis of the new economy might have cast doubt on the usefulness of the Internet for business activities. However, it is unquestionable that the possibilities offered by Internet-based technologies in terms of information processing, transfer and collection enable the firm to improve market knowledge and the relationship with clients and suppliers. This work explores, theoretically and empirically, the possibilities offered by the Internet to facilitate the internationalization process of Small and Medium Enterprises (SMEs) as well as to improve the relationship with other firms within the same value chain. Using a wide representative sample of Spanish SMEs, the empirical analysis confirms the benefits of the Internet in both cases. © Springer Science + Business Media, Inc. 2006.