This article explains that the use of information technology in small and medium firms promote an increase in productivity and performance. The research uses the case study of SMEs in Malaysia to explain different concerns on the effectiveness of the information technology. Different factors in an organization such as the limited capability and capacity, lack of information and knowledge and financial problems raise major concerns on the efficiency, competitiveness and durability of IT systems. This research article is important for the analysis of the different barriers to network administration in the small business.