Information technology and innovation in small and medium-sized enterprises

This article is based on a recent report from the Dutch Council for Small a nd Medium-Sized Enterprises (SMEs), in which the possible application of in formation technology in small enterprises is studied. We start with a study of the relationship between information technology and innovation in SMEs. Next, an innovation model is developed and applied to a typical branch of industry in this respect (i.e., the car disassembly sector). Two analytic m ethods are used: the techno-economic scenario analysis and the actor-orient ed social construction of technology (SCOT) method. Finally, a number of ge neral conclusions are drawn, of which the need for cooperation and networki ng is foremost. We close with some policy recommendations. (C) 1998 Elsevie r Science Inc.