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The Electronic J ournal on Information Systems in Developing Countries

http://www.ejisdc.org
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EXAMINING THE IMPACT OF INFORMATION AND COMMUNICATION
TECHNOLOGIES (ICT) ON ENTERPRISE PRACTICES:
A PRELIMINARY PERSPECTIVE FROM QATAR


Nick-Naser Manochehri
College of Business - IS Dept.
Qatar University
P.O. Box 2713, Doha, Qatar
nickm@qu.edu.qa

Rajab A. Al-Esmail
College of Business - IS Dept.
Qatar University
P.O. Box 2713, Doha, Qatar
ralesmail@qu.edu.qa

Rafi Ashrafi
Information Systems Department,
College of Commerce and Economics,
Sultan Qaboos University,
Postal Address: PO Box 20, Al-Khod, PC 123 Oman
Email: rafi@squ.edu.om


ABSTRACT
Information and Communication Technologies (ICT) are widely used by organizations to
enhance enterprise competitiveness. This study provides an overview of the current state of
affairs of the ICT adoption in SMEs in private and public organizations in Qatar. It
investigates ICT infrastructure, productivity and business application software used, drivers
for ICT investment, perceptions about business benefits of ICT, outsourcing trends and
availability of help and advice on ICT adoption. The study also has investigated major
barriers in ICT adoption with the findings of the study are being consistent with other similar
studies. The study identified the need for more training facilities for adopting ICT in SMEs.
Additionally, the study identified that there is a need for the Government to provide guidance
on suitable ICT products and services at an affordable cost as well as provide incentives to
promote ICT investment and usage e.g. soft loans, availability of professional advice and
consulting at no/low cost to SMEs. This is the first study on the status of ICT adoption and
usage by SMEs in Qatar. The findings of this research will provide a foundation for future
research and will help policy makers in designing policies to further enhancing usage and
ICT adoption in SMEs in Qatar resulting improved productivity and competiveness.

KEYWORDS: Information and Communication Technology, ICT Qatar, Enterprise Practices,
Business, Management.

1. INTRODUCTION
Information and Communication Technologies (ICT) have an important impact on businesses
in developed and developing countries. ICT is creating new opportunities by enabling design
and delivery of digital goods, allowing firms to increase margin and revenue by accessing
foreign markets directly. Papaioannou (2004) explored the effects of ICT on productivity and
economic growth in both developing and developed countries and concluded that ICT has a
positive and meaningful effect on productivity and economic growth. Van Dijk (2006)
indicated that ICT is being seen as an agent of economic development in South-East Asian
countries especially in South Korea. Burke (2010) observed several important benefits from
owning websites, such as having new customers and additional sales by firms.
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In order to benefit from ICT adoption, to deliver better services and explore new
business opportunities, a certain infrastructure must be in place. According to Limi (2008)
infrastructure is one of the most important driving forces for economic development.
Measuring ICT at the firm level could help countries improve the production and quality of
their ICT for development. The analysis of data on measuring the impact of ICT on enterprise
practice aims to provide organization policymakers with better tools to design, monitor, and
evaluate their ICT strategies. Aside from infrastructure, other factors that help ICT success
are availability of skilled ICT personnel and budget to invest in ICT (Limi, 2008).
ICT is one of the key ingredients to enhance a company's competitiveness. ICT
platforms (such as PCs, mobiles, internet, etc.) have four main contributions to organizations.
Firstly, they give more visibility to business enterprises. Secondly, they provide more
information to small firms. Thirdly, they allow enterprises to overcome traditional trade
barriers. Finally, they facilitate financial transactions (Piatkowski, 2003). ICTs make services
more easily tradable and increase productivity in manufacturing enterprises. Furthermore, the
use of e-mail, e-commerce, and social media network have significantly cut down on the
physical transportation involved in sending mail, banking, advertising, and buying goods.
Clift (2003) notes that the private sector should not only be able to invest in an ICT
infrastructure but also use ICTs as a means of competitive advantage to conduct business in
the form of commercially-driven connectivity, software, technology, e-commerce, online
transactions and so on. Based on the above studies, there is little doubt about the benefits of
the ICT as a tool to access the global market. Still, underdeveloped countries have their own
challenges in adopting ICT and reaping the benefits that developed countries have gained
through ICT.
Little research is currently available that discusses ICT status of ICT adoption and
usage in organizations in the Middle East in general, and Gulf Cooperation Council (GCC)
countries, in particular. The purpose of this paper is to fill in this gap by investigating the
current state of ICT adoption in Qatari enterprises. Qatar is a member of the GCC and this
research adds insight on the state of ICT in the Middle East, particularly in a GCC context.
The term ICT in this research refers to a wide range of information and communication
technologies, including IT infrastructure, wired or wireless networks, business productivity
software, enterprise software, and data storage.
The aim of this research is to investigate the current state of ICT adoption in Qatari
enterprises. The outcome of the study would be of particular interest to private and public
enterprises who would like to enhance their use of ICT in Qatar. The findings will also have
implications for other GCC countries as they seek efficient and effective ways to improve
their ICT. Section 2 provides a literature review while an overview of the research
methodology is covered in Section 3. Research findings and results are presented in Section
4. Finally, Section 5 provides conclusions of the paper with limitations and suggestions for
future research.

2. LITERATURE REVIEW
Evidence in research literature suggests that ICTs can contribute significantly to the
efficiency, productivity and innovation of a firm. The use of ICT enables the production of
goods in a shorter amount of time with the assistance of computerized systems. Studies also
show that investments in ICT had a considerable effect on the productivity of the labor force
and on economic growth (Oliner and Sichel, 2004). Previous research also finds that, in
addition to computer presence, Internet use and web presence are also reflected in higher
labor productivity. ICT has influenced almost every aspect of an organization's activities
from customer prospect to post-sales services (Mohr and Shooshtari, 2003). However, earlier
studies have noted that Arab countries are still falling behind developed countries in terms of
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both use and spending on ICT (Nour, 2006, 2008). One study found that while many
governments in the Gulf region have embarked on projects to drive growth through IT
transformation, many governments still lacked all elements necessary to make these projects
a success (El-Shenawy, 2010).
ICT is one of the foremost sectors in Europe and affects economic growth across the
economy in many ways. For instance, the ICT sector share of total business value added is
8.5% and the ICT segment employment constitutes 3% of total business sector employment
in the EU (EC, 2010). Furthermore, ICT investments help to raise labor productivity and the
most important benefits of ICT arise from its effective use. ICT is a tool that will only work
in enterprises that are structured to use it and that require change. In the US the ICT
revolution has stimulated enterprise re-organisation and has altered the terms of competition.
US businesses have become more adept at getting value from their ICT activities. Thus ICT
spending in the US has jumped to 5.4 % in 2010 (Pettey and Tudor, 2011).
In the USA, Europe, and Australia, a high percentage of firms have access to the
Internet, thereby giving them an access advantage to the global markets. In Asia, J apan,
Korea, and China are leading in this regard, and recent ICT product and services have
accelerated and expanded their access to world markets (Bayly, 2004). The World Bank
(2006) emphasized that governments can create competitive markets that grow faster, cost
less, facilitate innovation, and respond better to user needs if they would open their
telecommunications markets through well-designed reforms resulting in increased private
investment and ICT development. For example, Roeller & Wavermant (2001) showed that
between 1970 and 1990, one-third of Germanys economic growth was attributed to an
increase in the penetration rate of fixed telephone lines. Hamilton (2000) argued that
investment in basic telecommunications in Africa had a positive impact on economic,
political and institutional development. A number of scholars have also validated the view
that ICTs such as the internet can even inspire speedy democratization in regions of the world
such as the Middle East (Shirazi, 2008).This has been seen recently through events such as
the "Arab Spring" witnessed in Egypt, Libya, Syria, Tunisia, Yemen and other Middle
Eastern countries.

2.1 ICT Adoption in Developing Countries with Special Reference to the Middle
East and GCC countries
ICT can be used as a strategic lever for socioeconomic development and as a competitive tool
in an increasingly global and deregulated market (J elassi, 2009). Shih et al. (2008) have
found that for developing countries to realize potential benefits of IT, policymakers should
look for ways to promote IT investment as well as developing investment resources,
complementary assets, and openness to external influence. ICT privatization in developing
countries has been viewed by many scholars as the key method for modernization and
expansion of public telecommunications networks (ITU, 2010; Pisciotta, 1997; Wellenius,
1999; Bortolotti et al., 2002). Privatization of telecommunication infrastructure and ICT in
general, has also helped to boost foreign direct investment (FDI), a major source of ICT
financing. Heeks (2002) found that ICT project failures in developing countries is higher than
developed countries, possibly due to lack of technical and human infrastructure. Bodla and
Rashid (2005) identified that lack of infrastructure, low per capita income, unskilled human
capital, political and economic structure and conservative bureaucratic approach were the
main barriers in adoption of ICT in developing countries. Mofleh et al. (2008) have found
that major ICT initiatives in developing countries have failed in achieving major development
outputs. Particularly, SMEs in developing countries have been slow in adoption and diffusion
of ICT. Kapurubandara (2009) classified various factors of slow adoption of ICT in SMEs in
developing countries into Internal and External Barriers.
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In the late 1990s, Middle Eastern governments invested heavily in ICT, enabling
them to not only renew, but expand their ICT infrastructures by implementing new
technologies. From 1995 to 2002, ICT spending on equipment, software and telecom services
in the Middle East increased sharply. GCC enterprises still face key challenges as they strive
to increase ICT adoption and effectiveness. For instance, in Oman lack of information about
suitable ICT solutions and implementation were some of the major barriers in adopting ICT
(Ashrafi and Murtaza, 2008). Booz Allen (2010) has identified lack of key enabling
resources, inadequate infrastructure, transient funding and oversight as the main barriers in
ICT adoption in GCC countries.
Privatization of telecommunications in the Middle East and the role of
telecommunications provider in the expansion of ICTs, started in the early 1980s with the
establishment of Kuwaits Mobile Telecom Company (MTC). Between 2000 and 2008, the
percentage of firms with access to the Internet has increased substantially across all GCC
countries. The highest rate of uptake of Internet in the ranking of GCC countries was in UAE
followed by Saudi Arabia, Kuwait and Qatar. According to El-Shenawy (2010), Arab ICT
indicators are still not sufficient, not available and not publicized. Abdullah and Albadri
(2011) examined the extant literature on ICT in the Arab world in order to glean the level of
ICT investment and acceptance, and to attempt to understand the interplay of cultural
practices and values on the successful implementation of ICT initiatives. Hamade (2009) has
categorized major reasons for ICT adoption in Arab countries into two categories: one related
to the basic infrastructure and the other related to governments policies and regulations. ICT
has played a major role in the Middle East recently, with the Internet being central in driving
the political upheavals and revolutions witnessed in the region since the beginning of this
year. Social networks have been essential in this process, allowing people to connect and
mobilize (Yahia, 2011).

2.2 ICT Adoption in Qatar
The establishment of the Supreme Council of Information & Communication Technology
(ictQATAR) in 2004 was one of the first high-level policy initiatives to improve and promote
ICT for development in Qatar. This governmental agency leads Qatar's implementation of
ICT initiatives to help ensure a balanced investment in technology, research, and
development leading to the development of new products and processes that spur productivity
and efficient operations (ictQATAR, 2009).
The IT spending compounded Annual Growth Forecast (CAGR) for Qatar is at 10%,
with growth opportunities in sectors such as telecom for years 2010-2014 according to
Business Monitor International (BMI, 2010). Furthermore, BMI indicated that the Qatari
computer hardware market is projected to grow at a CAGR of 9% up to 2013. As a result of
ICT investment and ICT expenditure during the period 1999 to 2007, the number of Internet
users, mobile subscribers and fixed telephone lines has increased dramatically. Currently,
more than 53% of Qatari households have an internet connection while 33% have access to
broadband (ictQATAR, 2009). Due in large part to the high penetration rate of fixed-line,
wireless and mobile telecommunications technology, analysts think that ICT investment and
offerings are a necessity for future growth. In a recent Global Information Technology Report
(2011), ICT sectors in most Gulf states have shown a remarkable growth since last year.
Qatar has ranked 25
th
on networked readiness.
ICT development in Qatar came in two different forms: regulation of ICT
development and partial privatization. Recently, Qatar deregulated its telecommunication
industry after more than 20 years of monopolization by the partially privatized Qatar
Telecom (QTel). Factors that influenced widespread ICT adoption in Qatar include
availability and quality of ICT infrastructure and skilled users (ictQatar, 2009). Qatar has
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progressed sharply in ICT adoption in all sectors of the society (ITU, 2010) and ranks among
the top three countries in the Arab world in terms of combined performance in basic ICT
indicators (computer/internet/mobile users and broadband internet subscribers). Although
residential sectors (excluding the transient labor population) have increasingly adopted ICT
into their daily life, other major stakeholders like businesses have yet to make headway in
ICT adoption. Whilst government agencies have been aggressive in ICT adoption, micro
enterprises (less than 10 employees) have fallen behind in ICT adoption.
The purpose of this research was to investigate if Qatari firms have taken advantages
of available technologies and invested in ICT to help their organizations in its future
performance. This paper is an important step in further measuring the extent to which such
benefits are being captured in the GCC region.

3. RESEARCH METHODOLOGY
The data for this study was collected through a survey questionnaire sent to random
companies in which an IT division was listed in the company structure. The questionnaire
was based on a similar study undertaken in Oman by Ashrafi & Murtaza (2008). The reason
for adopting the same questionnaire was to facilitate comparisons between the status of ICT
adoption and practices in the two GCC countries. The questionnaire survey approach was
used for its various benefits: such as to detect relationships that are common across the
organizations (Gable, 1994), exhibit considerable precision in collecting and reporting data
(Remenyi and Williams, 1995), an inexpensive approach for collecting data (Remenyi and
Williams, 1995), and offering anonymity (Al-Assaf, 1997, Al-Shuabi, 1998). The
questionnaire was structured to obtain data on current usage and adoption of ICT in
organizations. It was designed to be answered by a Senior Manager or Head/In charge of the
IT (Information Technology) department of the company that participated. The survey
consisted of 25 questions which included the current ICT status and ICT use in the company,
and the impact of ICT investment on cost reduction, efficiency, performance and
effectiveness. A pilot study was first conducted with five companies. Based on their
feedback, changes were made to the layout of the questionnaire, with a view to improve
readability and to reduce the amount of time to answer the survey. A copy of the
questionnaire survey is included in Appendix A.
Survey Questionnaire was mailed, and in some cases personally delivered, to 157 IT
managers or Heads of IT departments of public and private organizations in the capital Doha
and surrounding areas. 102 usable questionnaires were returned from the companies who
have adopted ICT and responded to our survey achieving an overall response rate of over
65%. For the purpose of this research we adopted the following definition of SMEs:
businesses with up to 50 employees were classified as Small enterprises, between 50 and 100
employees as Medium enterprises, and more than 100 employees as Large enterprises.

4. RESULTS
4.1 Organization Types
Of the 102 respondents, 26% were classified as Small enterprises and 16% as Medium-size
enterprises, and 58% as Large enterprises. ICT infrastructure, Internet connection type, IT
staff, usage of enterprise software, and type of website were used as a measure for ICT usage.

4.2 ICT Infrastructure
Table 1 shows that desktop, laptop, or handheld computers were used by 93% of the surveyed
companies. The reason being is that our sample was based on only those companies who
adopted some form of ICT in their business (e.g. computers). This result was not very
surprising, as in the UK, 30% of micro businesses do not use computers at all (Pritchard
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2006). Business productivity software such as Microsoft Word, Excel and PowerPoint were
used by 82% of the surveyed firms. Also, network and data storage solutions were used by
the majority of organizations surveyed.

Table 1. IT Solutions Used within Organizations

Rank

ICT usage

Percentage
1 Computers 93%
2 Productivity Software 82%
3 Wired Networking 74%
4 Wireless Networking 66%
5 Data Storage Solution 65%
6 Network Security Solution 64%
7 Enterprise Software 53%
8 Other Solution 12%

4.3 Internet Connection Type
The type of internet connection in organizations largely indicated the required bandwidth.
Overall, 92% of the sample companies in our survey used Internet. 6% of the respondents
used high speed broadband (ISDN, ADSL, DSL), 65% used very high speed broadband (T1,
ATM, frame Relay, etc), 23% use satellite and 6% either had no internet connection or did
not respond. This was consistent with other studies. In a recent survey of SMEs in the UK,
78% of SMEs use Internet in their business (Harindranath et al. 2008) while the number of
users in Qatar was more than 92% based on our survey.

4.4 IT Staff
Unlike the commonly held belief that SMEs often lack skilled IT staff, 70% of the firms in
Qatar had IT/IS departments with full-time IT staff and only 28% of the surveyed firms did
not have full-time IT staff. The remaining 2% did not respond to the question. This may be
because 58% of the survey respondents belong to large organizations and 16% to medium
organizations and thus could afford to have full-time staff as compared to small organizations
(26%).

4.5 Usage of Enterprise Software
In our survey, 83% of respondents used Finance and Accounting software, 63% used Human
Resource Management (HRM) software, and 48% inventory management. One-third used
Customer Relationship Management (CRM) and Enterprise Resource Planning (ERP) (Table
2). The result seemed to be similar to Ashrafi and Murtaza (2008) that indicated 84% of the
surveyed SME firms in Oman used finance and accounting enterprise software. It seems that
the level of usage of CRM, ERP, Supply Chain Management (SCM) and E-commerce is quite
low with most of the organizations using Finance/Accounting and HRM software.

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Table 2. Usage of Enterprise Software in the Organization

Rank

Software

Percentage
1 Finance/Accounting 83%
2 Human Resource Management 63%
3 Inventory Management 48%
4 Customer Relationship Management 38%
5 Enterprise Resource Planning 34%
6 Supply Chain Management 23%
7 E-commerce 19%
Others 16%

4.6 Types of Website Used
Unlike businesses in developed countries, the sample companies in Qatar have not managed
to utilize and use commercial websites for online sales. Results shows that less than 1% of
the firms had dynamic commercial websites which helped them reach new customers and
conduct e-business. As for informational websites, 53% of the surveyed enterprises ran
websites which simply introduced the business and published their contact information.
About 19% of the businesses had no website, the main reason being the lack of internal
technical staff and high maintenance costs over the long term. This indicates that companies
are not fully utilizing the Internet for buying and/or selling goods or services. One of the
reasons may be that Qatar is a small country; people can physically visit organizations easily
to buy products and/or services and do not need to order online. Another reason might be that
organizations are focusing on the local market and have not expanded their business to other
countries.

4.7 Investments in ICT
4.7.1 IT Budget & ICT Investment Drivers
22% of the sample companies assign less than 10% of their annual budget to ICT investment
while 39% of the firms invest between 10% and 20%. Furthermore, 25% invest between 20%
and 40%, and 14% of the surveyed firms assign greater than 40% of their budgets to ICT.
This shows that Qatari companies realize the importance of IT, and are spending a significant
amount of their budget on ICT. The main driving forces for ICT investment were to provide
better and faster customer service (65%), and to stay ahead of competition (69%). These
findings are consistent with Ashrafi and Murtaza (2008).

4.7.2 Number of Competitors
A healthy competition drives organizations to be more competitive. Only 4% of the
enterprises had more than 20 direct competitors. About 15% of Qatari companies had 10-19
competitors, 26% between 5-9 competitors and 15% between 1-4 competitors. This shows
that there is relatively low competition among companies in Qatar, whereas in Oman, 50% of
the enterprises had more than twenty direct competitors (Ashrafi and Murtaza, 2008).

4.7.2 Competitive Strategy
One way of competing is to differentiate ones business from the competition. The surveyed
companies have chosen the approach of providing the highest quality products and services
(40%) to their customers as the principal method for differentiating, as well as establishing,
long-term relationships with customers (25%) as illustrated in Figure 1. It seems that a
majority of organizations do not have a well defined strategy for ICT use and adoption.
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Perhaps they have implemented ICT because their competitors are using it in their respective
businesses.


Figure 1. Firms Approach to Differentiate Business from its Competitors

4.7.4 Barriers to ICT Investment
With regard to barriers to ICT investment, 46% firms felt that a lack of necessary internal
skills was a major barrier. Lack of availability of relevant information and advice on suitable
and effective technologies was also one of the major barriers. One-third of the respondents
felt that the costs of implementation are too high. Other barriers included businesses having
no time to implement ICT projects, lack of top management support, bad experiences in the
past, and government regulations and requirements (Table 3). These findings are consistent
with other studies (Harindranath et al. 2008; Ashrafi and Murtaza 2008). These results further
emphasize the need for more training facilities in ICT for Qatari businesses, measures to
provide ICT products and services at an affordable cost, and availability of free professional
advice and/or consulting services at a reasonable cost to the businesses.
As mentioned earlier, the Qatari government created ictQATAR in 2004 to assist
governmental, educational, and private institutions in becoming technologically connected.
However, a number of organizations felt that the monetary costs of ICT solutions and
implementation were too high.

Table 3. Barriers to ICT Investment

Rank

Barriers to ICT investment

Percentage
1 Lack of Necessary Internal Skills 46%
2 Lack of Time to Implement ICT Project 35%
3 Monetary Cost 30%
4 Lack of availability of Information 24%
5 Government Regulation 21%
6 Lack of top Management support 20%
7 Bad experience in the past 19%
8 Uncertain about retain 12%

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4.7.5 Realization of Business Performance Improvements
Table 4 shows that those companies who have adopted ICT have realized that ICT has
increased better relationships with their customers and suppliers, increased revenue, and
helped in cutting costs. These organizations are very positive in continuing to invest and
harvest those benefits in the future.

Table 4. Benefits due to ICT Adoption
Rank Benefits due to ICT Adoption Respondent %
1 ICT will increase better relationship 90
2 ICT has increased better relationship 82
3 ICT will reach new customer 81
4 ICT will increase revenue growth 80
5 ICT will expect cut in cost 78
6 ICT has increased revenue growth 66
7 ICT has cut cost 62
8 ICT helped beyond area 53

4.7.6 ICT Implementation and Outsourcing
Figure 2 shows that, overall, 89% of organizations outsource some portion of their ICT
functions. Figure 2 also shows that 27% of Qatari businesses outsourced more than 50% of
their activities, 32% outsourced 25% to 50% of their activities, 15% outsourced between 10%
and 25% of their activities, and 15% outsourced less than 10% of their ICT activities. It
seems to contradict with the earlier result in which 70% of organizations had an IT
department, possibly indicating that they may not have all the capabilities they need thus the
need to outsource. A study by Harindranath et al. (2008) found that 50% of the firms in their
survey used external consultants for ICT matters.


Figure 2. ICT Outsourced Percentage

4.7.7 Resources Used for ICT Implementation
While it is important to understand which ICTs were adopted and used within Qatari
companies, it is also important to understand which internal or external resources were used
to implement these technologies. Most of the enterprises surveyed used internal resources to
implement basic technologies such as the installation and setup of desktop or laptop
computers, data storage hardware, or business productivity software. As technologies become
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more sophisticated, such as the use of enterprise software applications, wireless networking
or the use of mobile phone applications, the firms tended to use external resources.
A number of firms used both internal and external resources to implement some of the
technologies. It was observed that companies often used external resources to initially
implement the technology, and then tended to use internal resources to maintain and upgrade
the implemented technologies.
This shows that most of the Qatari business enterprises have resources to implement
basic ICT; however, they lack skills and resources in more advanced/specialty functions such
as ERP, and data storage and network solutions and utilized external help in these areas of
ICT. This further emphasizes the need for ICT training amongst companies in Qatar.
Harindranath et al. (2008) and (Chibelushi 2008) also found that the lack of ICT expertise
was one of the main barriers in their study.

5. DISCUSSION AND IMPLICATIONS OF THE RESULTS
The analysis revealed that organizations in Qatar are taking a comprehensive approach to
their ICT investment, focusing on both strategic and operational aspects of their businesses.
The impact has resulted in changes that include the enrichment of the ICT culture among
employer and employee, and better accessibility to information.
This analysis also revealed that companies in Qatar are making significant investment
in ICT and there is a low competition amongst companies in the marketplace. The main
driving forces for ICT investment were to provide better and faster customer service, and to
stay ahead of the competition. The study found that about two-thirds of the respondents have
realized business benefits of ICT adoption such as better customer relationships, increase in
revenue and in reducing costs. About 80% of the respondents are very positive about
increasing their business performance in the future.
With regard to barriers to ICT investment, the majority of firms felt that a lack of
necessary internal skills and high costs of implementation were the major barriers. More than
half of the respondents felt that the costs of implementation were too high. Lack of
availability of relevant information and advice on suitable and effective technologies was also
one of the major barriers. Other barriers included companies having no time to implement
ICT projects, lack of top management support, negative past experiences, and adhering to
government regulations and requirements. These findings were consistent with other studies
(Harindranath et al. 2008, Ashrafi and Murtaza, 2008).
Overall, 89% of the surveyed organizations outsource some portion of their ICT
functions. More than one quarter of the participants outsourced over half of their ICT
activities. This can be related to the lack of in-house capabilities in ICT identified as a major
barrier. These results also confirm findings of (Harindranath et al. 2008), (Ashrafi and
Murtaza, 2008) and (Chibelushi 2008) and re-emphasizes the need for ICT training in
business enterprises.
The findings of our research show that the surveyed companies lacked necessary ICT
knowledge and skills as well as the mechanism to find and receive advice and support.
Our study found that Qatari firms have adopted basic technologies (computers, productivity
software, internet, accounting and HR packages) but are limited in the more sophisticated
technologies such as wireless, data storage, network security solutions, ERP, CRM, SCM and
E-Commerce. In order for Qatari organizations to move to the next level of ICT adoption,
and to be more competitive it is suggested that the Qatari government:
increase awareness among SMEs of the benefits of ICT adoption in order for them to
become more competitive;
develop policies, procedures, standards, and guidelines for the various sectors of the
ICT industry;
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provide incentives for ICT adoption in the form of soft loans, or special arrangements
with vendors to provide ICT products and services at affordable prices;
allocate more resources to upgrade the telecommunication infrastructure within the
country.

Additionally, organizations in Qatar could become more competitive by investing
more in the training of their employees in ICT. Finally, trade organizations (Ministry of
Business and Trade and the Chamber of Commerce) could establish special departments to
focus on providing up-to-date information on appropriate ICT solutions to SMEs and to
provide consulting services at no cost or at a very low cost on ICT adoption.

6. CONCLUSIONS
The study provides an overview of the current status of ICT adoption in private and public
organizations in Qatar. The analysis revealed that Qatari companies are focusing on both
strategic and operational aspects of their business. The impact has resulted in changes that
include the enrichment of the ICT culture among employer and employee, and better access
to information. This study revealed that organizations in Qatar have made a significant
investment in ICT to date. There is relatively little competition amongst companies in the
marketplace. The majority of the respondents have realized business benefits from ICT
adoption such as better customer relationships, increase in revenue and cost reduction. The
main drivers for ICT investment were to provide better and faster customer service, stay
ahead of the competition, and follow management directives. Lack of internal skills and the
high costs of ICT were the major barriers in adopting ICT. An important contribution of this
paper is that it provides preliminary exploratory data on the various aspects of ICT in Qatari
organizations. The findings of this research will provide a foundation for future research and
will help policy makers in understanding the current situation regarding usage and the impact
of ICT on companies in Qatar.

6.1 Limitations of the Research and Directions for Future Research
This study was a preliminary exploratory study to learn about the status of usage and
adoption of ICT in enterprises in Qatar. There are a number of issues such as legal,
regulatory, interventions from the government in the adoption of ICT that require further
investigation. These results are based on a sample of 102 companies. Data was collected from
Qatari companies who use some form of ICT in their business thus the vast majority of
businesses in Qatar who do not use computers (mainly micro business) were excluded from
the research sample. The results show a general trend and practices of the use and impact of
ICT on business enterprises in Qatar. A larger sample is needed to further validate these
results and trends.

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Appendix: Effects of Information and Communication
Technologies (ICT) on Companies in Qatar

Date: _________________ Company: _______________________________________________

Name: ______________________ Position: _____________ E-Mail: ____________ Phone: _______


Please kindly answer the following questionnaire thoroughly. This is strictly for academic
purposes (Qatar University) and your information will not be used except for research
purposes:

1- What is the size your organizations workforce?

[] <10 [] Between 10 and 50 [] Between 50 and 100 [] >100

2- What is the proportion (percentage) of your budget that is invested in Information and
Communicational Technology?

[] <10% [] Between 10% and 20% [] Between 20% and 40% [] >40%

3- Please tick below on the solutions used within your organization:

[] Desktop computers, laptops or handheld devices (PDA or Smart Phones)
[] Wired networking hardware/software (such as servers, routers and firewalls)
[] Wireless networking hardware/software (such as access points and wireless routers)
[] Business productivity software (such as Word, Excel, PowerPoint or Outlook)
[] Enterprise Software Applications (eCommerce, Customer Relations Management,
Inventory Management or ERP)
[] Data Storage Solutions (such as file servers, storage area network or web-based storage)
[] Network Security Solutions
[] Other, please mention ______________________________________________________

4- Please tick below on types of enterprise software used within your organization:

[] Finance/Accounting
[] Inventory Management
[] Customer Relations Management
[] Human Resource Management
[] Supply Chain Management
[] eCommerce
[] Resource Planning
[] Other, please mention ______________________________________________________

5- If your company has a website, what is its type?

[] Informational [] Commercial (online sales) [] Both [] No website

Website Address: __________________________


6- What type of internet connection does your company have?
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[] Dial Up (less thank 56 Kbps) [] High-Speed Broadband (ISDN, ADSL or DSL)
[] Very High Speed (T1, T2etc) [] Satellite Connection [] No Internet

7- Please tick below on what drives your organizations ICT investment:

[] Demands of customers, business partners or other stakeholders
[] Better and faster customer support and services
[] To stay ahead of competition
[] Following the strategy set by top management
[] Advice from consultants (to become more efficient and effective)
[] Demand of your suppliers (electronic supply chain management)
[] Government requirements
[] Other, please mention ______________________________________________________

8- How many direct competitors you have (excluding the government)?

[] 1-4 [] 5-9 [] 10-19 [] 20+ [] None [] Dont know

9- What is your organizations long term plan?

[] Growth of sales revenue [] Increase market share [] Cutting costs [] All of the above
[] Other, please mention ______________________________________________________

10- Rank in order of importance your firms approach to differentiate your business from your
competitors:

[] By providing the lowest cost products or services
[] By providing the highest quality products or services
[] By establishing the best relationship with customers
[] By providing the most innovative products or services
[] Other, please mention ______________________________________________________

11- Has your ICT investment helped reach customers beyond your area so far (e-commerce website)?

[] Yes [] No

12- Do you expect your ICT investments to help you reach new customers beyond your area?

[] Yes [] No

13- Has your ICT investment resulted in cutting costs so far?

[] Yes [] No

14- Do you expect your ICT investment will result in cutting costs?

[] Yes [] No

15- Has your ICT investment resulted in increase in revenue/growth so far?

[] Yes [] No

16- Do you expect your ICT investment to increase revenue/growth of your company?

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[] Yes [] No

17- Has your ICT investment helped build better relationships with customers so far?

[] Yes [] No

18- Do you expect your ICT investment to help build better relationships with customers?

[] Yes [] No

19- Please tick below on what you consider as a barrier to ICT investment/adaptation:

[] Monetary costs of implementation
[] Time to implement ICT project
[] Lack of necessary internal skills
[] Uncertain about retain on investment in ICT solutions
[] Lack of available information about effective and relevant technologies
[] Bad experience in the past
[] Lack of top-management support/direction/planning
[] Government regulations and requirements
[] Other, please mention ______________________________________________________

20- Does your organization have a full-time IT staff?

[] Yes [] No

If yes, how many employees: __________________
21- What proportion (percentage) of your ICT related activities are outsourced?

[] <10% [] Between 10% and 25% [] Between 25% and 50% [] >50% [] None

22- Please write I (internal), E (external) or B (both) to indicate the resources used to
implement the following ICT technologies:

[] Data storage solutions
[] Wireless networking solutions
[] Business productivity software
[] Desktop PCs, laptops or handheld PCs
[] Network security services
[] Networking hardware/software solutions
[] Call center technologies
[] Enterprise software applications
[] Advanced telecommunications services
[] Wireless or cellular phones using advanced applications

23- After your investment in ICT Solutions in year _______, and its complete implementation in year
_______, your revenue increased by about _____ percent (%).

24- After your investment in ICT Solutions and its complete implementation, your expenses
decreased by about _____ percent (%).

25- After your investment in ICT Solutions and its complete implementation, your employees
increased by about _____ percent (%).