Understanding the Impact of Adopting Information Management Systems (IMS) on Firm Performance in Saudi Arabian SMEs

Abstract

This study explores how adopting Information Management Systems (IMS) influences the performance of Small and Medium Enterprises (SMEs) in Saudi Arabia. Using a qualitative approach based on semi-structured interviews with SME managers across multiple sectors, the research identifies key benefits such as enhanced operational efficiency, improved decision-making, better customer satisfaction, cost reduction, and competitive advantage. It also highlights major challenges including financial constraints, technical barriers, organizational resistance, cultural factors, and industry-specific needs. The findings emphasize that successful IMS adoption requires strategic planning, employee training, phased implementation, and collaboration with experts. The study contributes to the limited literature on IMS adoption among Saudi SMEs and provides practical recommendations for overcoming barriers and enhancing firm performance.