Abstract:
The Small and Medium Scale Enterprises/Industries (SMEs) function as a lifeline in the informal sector in Sri
Lanka due to their significant contribution to the overall economy in terms of employment, exports,
innovation, tax income, equitable income distribution, social stability, domestic resources usage, and
regional development. However, in Sri Lanka, a majority of Enterprise Information System (EIS)
applications have not been focused by those ‘small players’ in the economy. The paper first identifies factors
that contribute to SMEs relatively lower level of attraction towards EISs, using TOE Framework, which was
tested mainly to assess the organization willingness on ICT in developing countries. Finally, the paper
explains the ways and means by which the EIS vendors, SME and IT policy makers can address the gap
between the current level and the potential for SME EIS adoption. Therefore the research findings help
SMEs to create business opportunities with EIS applications and combat pressures from competition.
Further specific SME ICT needs to be addressed strategically, in order to ensure their competitive position in
the economy, will be discussed
