The importance of Internet as a strategic Management Tool: A study of Dutch SMEs

Abstract

This paper proposes a methodology for the identification and evaluation of Internet-based strategies and examines the role of the Internet as element of the strategic planning of Small and Medium Businesses (SMBs) from a variety of Dutch industrial sectors. The study has an explorative character and is based on empirical data; it reveals the degree of acceptance and integration of the Web into the strategic plans by assessing management attitudes in three categories of factors delineating the online strategy. The findings suggest that while managers appreciate the importance of the Internet as essential component of their business setting, Web-based commerce does not seem to have become an integral part of corporate strategy by this category of businesses; limited strategic commitment and cautious attitudes in adopting technology as an important strategic option are for all intents and purposes preventing SMBs from fully utilizing the potential of the virtual marketplace.