IT governance in SMEs: trust or control?

It is believed by many scholars that a small and medium-sized enterprise (SME) cannot be seen through the lens of a large firm. Theories which explain IT governance in large organizations and methodologies used by practitioners can therefore not be extrapolated to SMEs, which have a completely different economic, cultural and managerial environment. SMEs suffer from resource poverty, have less IS experience and need more external support. SMEs largely contribute to the failure of many IS projects. We define an out-sourced information system failure (OISF) as a failure of IT governance in an SME environment and propose a structure for stating propositions derived from both agency theory and theory of trust. The theoretical question addressed in this paper is: how and why do OISFs occur in SMEs? We have chosen a qualitative and positivistic IS case study research strategy based on multiple cases. Eight cases of IS projects were selected. We found that trust is more important than control issues like output-based contracts and structured controls for eliminating opportunistic behaviour in SMEs. We conclude that the world of SMEs is significantly different from that of large companies. This necessitates extra care to be taken on the part of researchers and practitioners when designing artefacts for SMEs

The Fair Value of Minority Stock in Closely Held Corporations

In this Article, Professor Shishido examines the various methods—those used by the courts as well as those suggested by law and economics scholars—for determining the fair value of minority stock in closely held corporations. In Professor Shishido\u27s view, the courts\u27 method of weighing—the so-called Delaware block method—fails to arrive at the true value of the minority\u27s shares and often undervalues their worth. Professor Shishido also argues that law and economics scholars fail to differentiate between closely held corporations and publicly held corporations, thus failing to include the effect of corporate law on the fair value of closely held corporate stock

Rethinking IT governance for SMEs

Purpose - The purpose of this paper is to critically rethink the concepts and the theoretical foundations of IT governance in small- and medium-sized enterprises (SMEs). Design/methodology/approach - The paper is based on multiple case studies. In total, eight cases of outsourced information system projects where failures occurred were selected. An outsourced information system failure (OISF) is suggested as a failure of governance of the IT in a SME environment. A structure for stating propositions derived from two competing theories is proposed (Agency Theory and Theory of Trust). Findings - The results reveal that trust is slightly more important than control issues such as output-based contracts and structured controls in the governance of IT in SMEs. Practical implications - The world of SMEs is significantly different from that of large companies, and therefore, the concept of IT governance in SMEs needs reconsideration. For researchers and practitioners, it would be more meaningful to focus on actual, working SMEs instead of on a version of their activities derived from those of large companies. Originality/value - The paper offers two contributions. First, it elaborates the limited research on IT in SMEs and second, it brings theoretical foundations for their IT governance. The value of IT governance in SMEs is explained

Employing Information Systems for Competitive Advantage

Federal Reserve Chairman Alan Greenspan was recently quoted as saying that information technology has begun to alter, fundamentally, the manner in which we do business and create economic value. In the information age, the organizations that survive will be those which succeed in using computer-based information systems (IS\u27s) to provide sustainable competitive advantage. Competitive advantage refers to the ability of an organization to provide products or services that are distinctive and more desirable that those provided by the competition. In a 1999 article, Service and Maddox proposed a measure of an organization\u27s ability to use its information system for this purpose. This project extends the work of Service and Maddox. It describes a mail survey of information system managers that enables the researchers to calculate the information quotient for their organizations. These measures are used to validate the theory proposed by Service and Maddox

Digital enterprise technology implementation A methodology to facilitate the innovation process in SMEs

A technology-led innovation methodology was developed for small-to-medium sized enterprises (SMEs) in the made-to-order (MTO) manufacturing environment. This methodology was used to demonstrate how businesses can be transformed to stimulate innovation, supported by fact-based systems, in a sustainable and flexible approach. Digital Enterprise Technologies (DET) such as Enterprise resource planning (ERP) and computer aided design (CAD) technologies are used in the vast majority of manufacturing environments and manage data and metadata, which are vital sources of business intelligence. When properly managed, these fact-based systems can lead to technology-led innovation by keeping businesses informed; information leads to in sight, which can potentially be transformed to innovation and exploited by businesses to increase efficiency, maintain competitiveness and increase their profit margins. However, managing these DET systems to successfully achieve sustainable innovation requires a number of resources of which, time has been identified as the most critical. Although, the innovative process is a high value added process that requires a lot of time and due attention, MTO SMEs struggle to meet due to the numerous demands on their resources, particularly time. However, due the potential benefits that can be accrued from pursuing innovation, it will be useful to MTO SMEs to prioritise this activity. Analyzing the ERP and CAD systems used in a typical MTO manufacturing enterprise, the issues faced were highlighted: evaluation and selection of suitable technology; implementation and integration with existing technology; customization and configuration; personnel development and increased proficiency; and the implementation of standardized working procedures. Other issues such as the scope of activities and available management support for technology innovation were also explored. The issue identified were addressed by developing a framework for technology assessment and selection; defining the strategic priorities and actions required to stimulate innovation; integration of overall business strategy with DETs to facilitate technology innovation; and a framework to support technology innovation management in SMEs. By addressing the main issues identified, it is anticipated that DETs implemented by MTO SMEs where required, will be strategically targeted at managing time consuming routine tasks thus freeing up valuable creative time that can be dedicated to innovations and the innovative proces

Database Performance Management in Cloud

Managing large chain of Hotels and ERP database comprises of core areas such as HRMS & PIP.HRMS (Human Resource Management System), which further includes areas such as Soft Joining, Promotion, Transfer, Confirmation, Leave Attendance and Exit, etc. PIP (Payroll Information Portal), wherein employees can view their individual Salary details, submit investment declaration, Reimbursement claim & CTC structuring, etc. Management of Large Chain of Hotels and ERP Database in AWS Cloud involves continuous monitoring with regards to the areas such as Performance of resource usages and optimization techniques relating to the use of PL/SQL. High Availability (HA) of data is accomplished through the Backup and Recovery mechanism and security of the data by Encryption & Decryption mechanism

Leniency Application in Detecting Hard Core Cartels

Criminogenesis is inherent in business organisations. Business organisations are criminogenic for various reasons such as blind loyalty and compliance, the normalisation of deviance and ambitions for profits (Glebovskiy, 2019). Especially, linking pay to performance without taking ethics into con- sideration can invite criminal behaviour in business organisations (Jurkiewicz & Giacalone, 2016; London Economics, 2011; Pinto, Leana, & Pil, 2008). Criminogenic factors in business organisations can be categorised into crime-coercive and crime-facilitative factors with the first pressuring individuals into criminal activities and the latter attracting and enabling criminal behaviour (Glebovskiy, 2019). Hard core cartels are one manifestation of criminal behaviour in business organisations. They partake in price fixing, restricting output, market allocation or bid rigging, or a combination of these (OECD, 2020b). The basic elements of hard core cartels are widely agreed upon (ICN Working Group on Cartels, 2005). Hard core cartels cause financial, physical and environmental harm by negatively affecting competition, market legitimacy, entire countries, consumers and market participants (Chen, J., 2020; European Commission, 2019a; OECD, 2019a; Van Erp & Lord, 2020). The detection of hard core cartels and their enforcement are top priorities shared by competition authorities worldwide (Chen, Z. & Rey, 2013; Tavares de Araujo, 2010). Hard core cartels can be prosecuted as per se illegal or for their effects (ICN Working Group on Cartels, 2005). Hard core cartels can be detected either through proactive or reactive methods. Leniency application, a reactive detection method, is considered the most important detection method and is also the most widely used (Abrantes-Metz, 2013; Jaspers, 2020). Leniency policy is based on three main assumptions: cartelists are rational and their actions are determined by profit incentives, cartelists have accurate information on the expected benefits of the cartel and leniency is only affective if implemented alongside sufficient penalties (Jaspers, 2020) Leniency programs attempt to destabilise cartels by creating distrust between the involved parties by offering benefits for betraying fellow cartelists (Jaspers, 2020; Spagnolo, 2000). Leniency programs have however been subject to criticism. Rewarding people who should be punished can be seen as moral dilemma (Abrantes-Metz, 2013; Motta & Polo, 2003; Spagnolo, 2000). Also, cartelists may decide together to calculatedly report their behaviour in order to receive leniency (Chen & Rey, 2013; Miller, 2009). Furthermore, it is uncertain how sophisticated cartels are detected through leniency (Schinkel, 2014). Most notably, my thesis implies a need to possibly re-assess the reasons behind hard core cartels; leniency policy assumes cartelists as rational (Jaspers, 2020) yet they can be just as irrational (Paternoster, 2016). Finally, my thesis indicates a constant battle against criminal behaviour in business organisations such as hard core cartels for the foreseeable future (Connor, 2016; Glebovskiy, 2019)

Blockchain Technology Based Supply Chain Systems and Supply Chain Performance: A Resource-Based View

Blockchain technology (BCT) is set to transform firms’ present ways of managing supply chains. This thesis explores how the efforts by firms to integrate BCT into their supply chain systems and activities, can enable certain supply chain capabilities and subsequently, improve supply chain performance. Using an abductive research approach, qualitative content analyses of 126 cases of firms’ efforts in BCT-based supply chain systems (BCT-SCS) across multiple industries are conducted to identify the BCT-enabled supply chain capabilities and their performance outcomes. Findings reveal that the present BCT-SCS efforts are mainly oriented towards improving the operational-level capabilities namely, information sharing and coordination capabilities rather than strategic-level capabilities namely, integration and collaboration capabilities. The predominant performance outcomes resulting from these capabilities along with the BCT-SCS are quality compliance and improvement, process improvement, flexibility, reduced cost, and reduced process time. However, the performance outcomes vary with industry type, based on the risks that the industry faces. Based on the study’s findings, an integrated framework of research propositions is presented to facilitate future empirical research