Management Information Systems and Performance of Small and Medium Enterprises.

Abstract

The study set out to investigate the relationship between management information systems and performance of the small and medium scale enterprises. The study had three objectives: To find out the role played by market research in the performance of SMEs, to establish the relationship between risk management in the performance of SMEs and to examine the role of management competence in the performance of SMEs.

A case study design with both qualitative and quantitative approaches was used in the study that involved a sample of 55 respondents drawn from a study population of 75 respondents among the SMEs in Nateete. SPPS was used to analyze the quantitative data to develop tables and a figure. The researcher used a time frame of the study which was cross section.

The findings from the study revealed that most SMEs do not use management information systems though most of them both the employers and employees believed that the use of management information systems enhances performance in businesses. However, the study also further revealed that management information systems affect performance of SMEs. The study showed a highly positive relationship between management information systems and performance of the small and medium scale enterprise which is evidenced by the Pearson correlation of (0.945*), significance level =0.05.

Conclusively, the researcher found out that management information systems has a positive influence on the performance of small and medium scale enterprises. Therefore, as a recommendation to the SMEs is that they should employ the information system in order to improve and maximize effectiveness in the operations of the enterprises.

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