Enterprises in the Internet Age : A case study on ICT usage in the development of small and medium enterprises in Kabul

Abstract: Humans live in an era where technology is spilling over exponentially across the globe and considers a vital feature for fostering an inclusive digital economy. This study explores and examines the potential of Information and Communication Technology services (ICTs) usage in the development of entrepreneur small and medium scale enterprises (SMEs) in Kabul, Afghanistan. This is a relevant area of study given the need to understand better the role of ICTs in SMEs in developing countries and promote and achieve an inclusive digital economy. The discussion and research on ICT usage in developing countries have contributed to understanding entrepreneurship's nature in the digital era.  However, the discussion is rolling over the perception of ICT usage on an entrepreneur's small and medium scale enterprises' productivity. Some scholars focus on the impact of ICTs on the digitalization of businesses' economic development, while other scholars have questioned their potential for economic development. In the case of Afghanistan, despite the recent development in ICTs, there is a scarcity of information on the relationship between ICT and SMEs entrepreneur’s productivity. Given the rapid adoption of ICTs in Afghanistan during the last 20 years, and absence of information on ICTs in SMEs, it represents a very interesting case that has yet to be studied.  This study's methodology followed a qualitative abductive case study and used semi-structured interviews as primary data and existing literature as a secondary source. This study developed the theoretical framework based on Activity Theory to analyze the collected data and present findings. The findings show that ICT contributes to time efficiency, facilitate cheaper communication, reduce the cost of business, facilitate access to information, and increase competitions. The data analysis found that although ICTs have contributed positively to entrepreneurs' productivity, they are strongly influenced by society's norms and institutions, limiting their potential impact.