Critical success factors affecting the development of clusters for small and medium scale information technology firms in Sri Lanka

Abstract

The main purpose of this study is to identify critical success factors affecting the development of clusters for small and medium scale (SME) information technology (1CT) firms in Sri Lanka and recommend appropriate policies to their sustainable development and growth. This study was carried out through a situational analysis and an in-depth questionnaire survey. The survey was carried-out to identify critical factors with high ranked officers in ICT and SME cluster apex bodies, managers and owners in SMEs in ICT cluster. The situational analysis shows that SMEs in ICT cluster are currently facing a high cost of production mainly due to the cost of labour and energy and furthermore, the productivity and value addition are at very low level. In overall this study identified thirty seven factors critical for the development of SME ICT cluster. The policies recommended and the methodology used may be useful to similar cases in other developing countries.