Abstract:
Small and Medium Enterprises (SMEs) have a great role to play in economic growth, creation of jobs and innovation but most SMEs find it difficult to perform sustainably because of their limited resources, technological capacity and resistance to change. With the rise of digitalization, the use of Management Information Systems (MIS) has become a necessary measure in enhancing decision-making, operational efficiency and competitiveness. The thesis explores how MIS adoption relates to organizational culture in SMEs, how MIS affects important dimensions of culture-involvement, consistency, adaptability and mission as well as how organizational culture, leadership and change management can support or inhibit MIS adoption. This relationship is significant since technological investments tend to collapse in cases where cultural alignment is overlooked especially in resource-limited SME settings. The research examines the literature on MIS development, digital transformation of organizations and organizational culture typologies, specifically Denison Organizational Culture Model and the Technology Acceptance Model (TAM). Previous literature indicates that MIS provides substantial gains in performance, however, its effective implementation depends greatly on the organizational culture, leadership style and employee willingness to change. Another gap in the literature is that there is no empirical research on the relationship of the relationship in SMEs operating in developing economies. It utilized a quantitative research methodology that was a cross-sectional survey. A total of 150 managers and decision-makers of SMEs in manufacturing, IT and service industries were sampled. The dimension of MIS adoption and organizational culture were measured through standardized questionnaires. Analysis of the data was carried out with the help of SPSS and AMOS with the help of descriptive statistics, correlation analysis, multiple regression, and Structural Equation Modeling (SEM). The results reveal that there is a strong positive correlation between MIS adoption and all the four dimensions of organizational culture. Adoption of MIS leads to employee participation, internal consistency, adaptability to environmental changes and mission clarity. The mediating factor found to be effective in aligning MIS to organizational culture is leadership and effective change management. The study concludes that by embracing MIS and supportive leadership, training, and culture based change strategies SMEs will be able to perform and be more sustainable. It advises that management and policymakers of SMEs should strive to incorporate technological projects with the cultural development to achieve an effective digital transformation
