Developments in Information Technology (IT) have implications for both the business processes of firms and also their degree of competitiveness. The independent music industry in Sweden is no exception and has experienced both the potential for success and the threats that come with these developments.

The purpose of this thesis was to explore the effects IT has had on both internal and external connecting business processes for Swedish independent music industry firms. The thesis will examine to what extent this has affected competitiveness of these firms.

To address the research problem for the thesis, an exploratory study was conducted using a focal firm (Border Music AB) for a case study. Interviews were undertaken with a retrospective approach at the firm, with three departmental layers, in order to gain a wider perspective of the business processes and how IT has affected them. Interviews were also conducted electronically with connecting firms, to gather a wider understanding about the business activities that link with the focal firm, and to identify any effects IT has made.

The result of the thesis indicated that the basic structure of the focal firm’s core business processes are largely unchanged from when the firm was founded in 1982. The use of IT has supported these processes to work in a more efficient way and enhance the coordination with their partners. The time savings in terms of quicker and more effective completion of tasks, has made it possible for the focal firm to focus more on building and nurturing relationships with their partners. In terms of competitiveness, the results confirm that IT is an important business tool that has become a competitive necessity for these particular firms.