Information: A Crucial Resources

art 125-01-20

The role of information or data in business is critical. Entrepreneurs or business managers need a lot of knowledge and information to make decisions and recognize business opportunities. They can acquire this knowledge and information in different ways.

Information is a crucial resource in gaining a sustainable, competitive advantage for modern business enterprises (Shokane, 2003). In a study by Okello-Obura et al. (2007), they noted that it was crucial to determine business information needs as part of a functional requirement in order to design an information system.

A successful business relies on the right combination of organizational resources working together in a dedicated effort to penetrate and achieve leadership in the marketplace, and information is such a resource.

According to several literatures, entrepreneurs possess particular personality traits, socioeconomic characteristics, and particular nature of business enterprise activities and enterprise development process (Bolton & Thompson, 2004; Bird, 1989; Bjerke, 2007; Shane, 2003; McClelland, 1961; Maimunah Ismail, 2001; Noor Rahamah Hj. Abu Bakar et al., 2007, Chan Kim Ling et al., 2006; Md Nor Othman et al., 2005).

The identification and use of information play a large role in the entrepreneur achievement of competitive advantage. Entrepreneur that  most efficient in gathering, processing, and distributing information as well as using it to make better business decisions  will enjoy an edge in achieving success.

Recognizing the importance of having an effective information management will not be an option in the future; it is a requirement. Information is the basis for understanding in a firm. In many industries, information is becoming the most important factor in differentiating successful firms from unsuccessful firms (David, 2005: 301).

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