Essays on digitalization among small and medium-sized firms : Complementary and contingent approaches

This dissertation explains how and under what circumstances the operational performance of small and medium-sized (SME) firms is most likely to benefit from digitalization. This topic will be examined by combining the resource-based view (RBV) and contingency theory, that is, using the contingency RBV, which remains relatively rarely used in current research. The perspective permits an examination of the impact of various resources and capabilities in the presence of situational factors. The dissertation consists of five papers dealing with digitalization in SMEs operating in various areas. The research relies on two surveys involving Finnish SMEs from manufacturing industries, the first of which provides cross-sectional data. Together the two datasets provide the longitudinal data informing the dissertation. The research shows that the contingency RBV provides a comprehensive framework that can assist in examining how and in what circumstances SMEs can benefit from digitalization, that benefit being measured from an operational improvement perspective. Previous research on SMEs is limited, so the first result of this thesis involves testing a theoretical framework for SMEs in the context of their digitalization. The research results show that the benefits of digitalization for operational performance arise through two different mechanisms, and digitalization alone does not affect the firm's success. The effect of digitalization on SMEs’ operational performance emerges from the complementarity between digitalization and firms’ organizational attributes, factors, or resources that enhance performance. The second mechanism relates to environmental and situational factors and shows that both the firm's internal and external environment determine the level of the impact of digitalization. Among Finnish SMEs, digitalization produces value in the form of improved operational performance when digitalization, resources, and capabilities bolster each other in internal and external environments conducive to digitalization.Tässä väitöskirjassa selvitetään miten ja missä tilanteessa pienet ja keskisuuret (pk) yritykset pystyvät todennäköisemmin hyötymään digitalisoitumisestaan operatiivisen suorituskyvyn näkökulmasta. Aihetta tarkastellaan yhdistämällä resurssi- ja tilannetekijäteoria eli tässä työssä hyödynnetään tilanteista resurssiteoriaa, joka on nykyisessä tutkimuskentässä vielä varsin rajallisesti käytetty. Näkökulman mukaan erilaisten resurssien ja kyvykkyyksien vaikutusta voidaan tarkastella tilannetekijöiden ollessa läsnä. Väitöskirja muodostuu viidestä artikkelista, joissa käsitellään yritysten digitalisoitumista. Väitöskirjassa käyte¬tään kahta eri kyselytutkimusta, joihin suomalaiset valmistavan teollisuuden pk-yritykset ovat osallistuneet. Ensimmäinen aineisto on poikkileikkausaineisto ja aineistot yhdessä muodostavat toisen, pitkittäisen, aineiston. Tutkimustulokset osoittavat, että tilanteinen resurssiteoria muodostaa kattavan viitekehyksen, jonka perusteella voidaan lähestyä sitä, miten ja missä tilanteissa pk-yritykset pystyvät hyötymään digitalisoitumisesta parantuneen operatiivisen suorituskyvyn näkökulmasta. Aikaisempi pk-yrityksiin keskittynyt tutkimus on ollut vähäistä, joten tämän väitöskirjan ensimmäisenä tuloksena voidaan pitää teoreettisen viitekehyksen testaamista nimenomaan pienillä ja keskisuurilla yrityksillä niiden digitalisoitumisen kontekstissa. Tutkimustulokset osoittavat, että digitalisoitumisen hyöty operationaaliseen suoriutumiseen syntyy kahden erilaisen mekanismin kautta eli digitalisoituminen ei yksin vaikuta yrityksen menestymiseen. Ensimmäinen mekanismi muodostuu niin kutsutusta täydentävästä suhteesta, joka tarkoittaa sitä, että yrityksen digitalisoituminen vaikuttaa yrityksen muihin resursseihin ja kyvykkyyksiin vahvistavasti, ja yhdessä digitaaliset tekijät yrityksen resurssien ja kyvykkyyksien kanssa parantavat yrityksen suoriutumista. Toinen mekanismi liittyy kontingenssivaikutukseen, jossa tilannetekijät vaikuttavat yritysten digitalisoitumisesta syntyvään hyötyyn. Tulokset osoittavat, että mikäli yrityksen sisäinen ympäristö on suotuisa yrityksen digitalisoitumiseen, sillä on positiivisia vaikutuksia digitalisoitumisesta saatavaan hyötyyn. Tulosten mukaan myös ulkoinen ympäristö vaikuttaa yrityksen digitalisoitumisesta saatavaan hyötyyn. Suomalaisten pk-yritysten digitalisoituminen tuottaa yrityksille arvoa parantuneena operatiivisena suorituskykynä silloin, kun yritysten digitalisoituminen ja resurssit sekä kyvykkyydet vahvistavat toisiaan digitalisoitumiselle suotuisassa sisäisessä ja ulkoisessa ympäristössä.fi=vertaisarvioitu|en=peerReviewed

Cloud-based B2B systems integration for small-and-medium-sized enterprises

In recent years, large enterprises have been benefiting from transitioning some of their application portfolios to computing clouds and integrating their applications. Small and medium sized enterprises (SMEs) are relatively behind in adopting such moves often due to perceived barriers such as complexity, skill requirement, and cost concerns. This paper argues that, besides adopting cloud based platforms for replacing their on-premises systems, SMEs can benefit significantly from exploiting cloud-based services for B2B integration. It also outlines approaches and recommendations for adopting integration Platform as a Service (iPaas) for B2B integration

Towards a Service-Oriented Enterprise: The Design of a Cloud Business Integration Platform in a Medium-Sized Manufacturing Enterprise

This case study research followed the two-year transition of a medium-sized manufacturing firm towards a service-oriented enterprise. A service-oriented enterprise is an emerging architecture of the firm that leverages the paradigm of services computing to integrate the capabilities of the firm with the complementary competencies of business partners to offer customers with value-added products and services. Design science research in information systems was employed to pursue the primary design of a cloud business integration platform to enable the secondary design of multi-enterprise business processes to enable the dynamic and effective integration of business partner capabilities with those of the enterprise. The results from the study received industry acclaim for the designed solutions innovativeness and business results in the case study environment. The research makes contributions to the IT practitioner and scholarly knowledge base by providing insight into key constructs associated with service-oriented design and deployment of a cloud enterprise architecture and cloud intermediation model to achieve business results. The study demonstrated how an outside-in service-oriented architecture adoption pattern and cloud computing model enabled a medium-sized manufacturing enterprise to focus on a comprehensive approach to business partner integration and collaboration. The cloud integration platform has enabled a range of secondary designs that leveraged business services to orchestrate inter-enterprise business processes for choreography into service systems and networks for the purposes of value creation. The study results demonstrated enhanced levels of business process agility enabled by the cloud platform leading to secondary designs of transactional, differentiated, innovative, and improvisational business processes. The study provides a foundation for future scholarly research on the role of cloud integration platforms in enterprise computing and the increased importance of service-oriented secondary designs to exploit cloud platforms for sustained business performance

What are the Factors Affecting the Adoption of Business-to-Business Electronic Commerce by Ready-Made Garments export SMEs in Bangladesh?

Main Focus: This study aimed to investigate the factors that affect B2B e-commerce adoption by the RMG export SMEs in the developing country context of Bangladesh. All over the world, e-commerce has considerably transformed ways of conducting business. A great deal of evidence shows, however, that SMEs in developing countries are lagging behind their counterparts in developed countries. This research will guide manufacturing SMEs in developing countries, such as Bangladeshi RMG export SMEs, in the adoption of B2B e-commerce. Data Collection Techniques: This research undertaken, using an interpretive paradigm for collecting data from the selected RMG export SMEs, large RMG export organisations and experts associated with the RMG export business. The principal data collection tools and techniques used were open-ended semi-structured questions through face-to-face interviews, as well as document analysis. Conceptual Framework: A conceptual framework developed to gather different factors associated with e-commerce adoption as defined in the research question: "What are the factors affecting the adoption of Business-to-Business (B2B) Electronic Commerce (E-commerce) by Ready-Made Garments (RMG) export SMEs in Bangladesh?". Data collected from the interviews were analysed to gather deeper insights into the findings based on the elements of the TOE framework and CATWOE analysis. The elements of data include: 1) The nature and characteristics of the business; 2) The use of ICT and web applications by the company; 3) Senior management’s perceptions of B2B e-commerce adoption; 4) The factors that affect and influence B2B e-commerce adoption; 5) Identification of government initiatives for the adoption of B2B e-commerce, and 6) Suggestions to ease the adoption of B2B e-commerce by the RMG export SMEs in Bangladesh. Principal Findings: Several factors have been identified that have a negative impact on the adoption of B2B e-commerce by the RMG export SMEs in Bangladesh. These mentioned below- A lack of senior management knowledge about the global scope and benefits of B2B e-commerce for organisations; a lack of financial ability in the organisations and more comprehensive investment for adopting technology; a lack of financial support from financial institutions; a lack of quality B2B e-commerce software; a lack of combination of IT skilled human resources with RMG business knowledge; a lack of support from business partners and their readiness to take part in B2B e-commerce; a lack of support from government and BGMEA to improve ICT infrastructure in the RMG sector; the complexity of legal issues related to online transactions; political instability and uncertainty; language and communication problems when using the internet. Also, there are some of the other factors identified in this research that will influence the adoption decision of B2B e-commerce by the RMG export SMEs in Bangladesh. These are as follows, access to new markets; the sourcing of raw materials; improving communication with clients and better marketing opportunities; the availability of a third-party website for B2B e-commerce; support from the government and BGMEA. Contribution to Knowledge: This study makes a theoretical contribution to this research area by combining the TOE framework with a CATWOE analysis of the factors identified for a broader perspective of B2B e-commerce adoption. That has, until now, been absent from the current literature of B2B e-commerce adoption in the context of SMEs. Also, this study provides a conceptual framework to guide government of Bangladesh, BGMEA, RMG export SMEs, software developer and other associated stakeholders in creating a system so that RMG export SMEs can efficiently adopt B2B e-commerce without massive changes to their businesses. This conceptual framework can potentially be used in the context of manufacturing industries of different developing countries

Multikonferenz Wirtschaftsinformatik (MKWI) 2016: Technische Universität Ilmenau, 09. - 11. März 2016; Band III

Übersicht der Teilkonferenzen Band III • Service Systems Engineering • Sicherheit, Compliance und Verfügbarkeit von Geschäftsprozessen • Smart Services: Kundeninduzierte Kombination komplexer Dienstleistungen • Strategisches IT-Management • Student Track • Telekommunikations- und Internetwirtschaft • Unternehmenssoftware – quo vadis? • Von der Digitalen Fabrik zu Industrie 4.0 – Methoden und Werkzeuge für die Planung und Steuerung von intelligenten Produktions- und Logistiksystemen • Wissensmanagemen