Transforming ICT Integration into Business Performance: The Strategic Role of Knowledge Management in MSMEs

Abstract

Despite increased investment in information and communication technologies (ICT), many micro, small, and medium-sized enterprises (MSMEs) struggle to translate digital adoption into improved business performance, particularly in post-pandemic contexts. This study addresses this gap by examining the mediating role of knowledge management (KM) in the relationship between ICT integration and business performance in MSMEs in Michoacán, Mexico. A quantitative, construct associate research framework was employed using survey data from 200 randomly selected MSMEs. Structural equation modeling was applied to test the hypothesized relationships. The results reveal that ICT integration does not have a direct significant effect on business performance. However, it significantly enhances KM processes, which in turn positively influence performance outcomes. Furthermore, KM fully mediates the relationship between ICT integration and business performance, indicating that the value of ICT is realized through effective knowledge processes rather than technology alone. These findings underscore the importance of aligning ICT investments with KM strategies to achieve superior performance. The study contributes to the integration of the resource-based view (RBV) and knowledge-based view (KBV), offering empirical evidence from an emerging economy context.