This thesis deals with the importance of information management for the competitiveness of SMEs and how companies can use information management to gain a competitive advantage in the market. The aim of the thesis is to identify the factors that influence the management of SMEs to purchase or provide IT services, whether there are sectoral differences in the use of IT and what risks SMEs face in using IT. The thesis starts with a discussion of all the key definitions and a review of IT activities. It then defines and examines how SMEs can exploit IT in a competitive sense. This thesis has been carried out as a literature review, drawing on relevant research in the field and significant previous findings from other studies.