An information technology governance framework for micro, small and medium enterprises under the youth livelihood program

Abstract

The use of Information Technology (IT) is undeniably necessary in business enterprises in today’s knowledge society as it has been proven to create efficiency, improve information handling and increase the visibility of the business. In simple terms, using IT is significantly linked to the business enterprise’s achieving its business objectives and goals. The use of IT today therefore requires focus on Information Technology Governance (ITG) so as to achieve efficient and effective use of IT tools in the business enterprises. The context of ITG is different for every business enterprise based on the size of the business. Large scale businesses use comprehensive frameworks however Micro, Small and Medium Enterprises (MSMEs) need to customize comprehensive ITG frameworks to one that is suitable. A number of comprehensive ITG frameworks exist however, in the perspective of MSMEs, they are generic in nature, have complicated procedures and are expensive to implement. This study was initiated to develop a suitable ITG framework for the MSMEs under the YLP as a solution to the problem of poor usage of IT tools in the enterprises. The study ascertained challenges faced by MSMEs in their attempt to implement ITG, derived requirements and designed the ITG framework. This study adopted the Design Science research methodology. The output of the study - the ITG framework for MSMEs under the Youth Livelihood Program (YLP) was developed based on the requirements derived from an exploratory study, conducted to collect primary data from 35 business enterprises under the YLP in Kampala Central Division (KCD). The IT governance framework was also developed with guidance from the existing IT governance frameworks including; COBIT 5: Adding value through Governance of Enterprise Information Technology, ITIL and ISO 38500. The IT governance framework was validated following the usability and fitness parameters in line with the design science methodology. Results from the study indicated that 100% of the MSMEs under the YLP in Kampala Central Division (KCD) use IT tools however 0% of them use an ITGF. The results from the experts also indicated that the framework was suitable and usable by the MSMEs. The ITG framework for MSMEs is a guideline that can not only enhance governance of IT tools to business goals in MSMEs but can also improve efficiency and create sustainability, thus facilitate the repayment of government loans provided through the YLP. However, this requires the support of all stakeholders.