The role of information alignment and entrepreneurial traits on SME internationalization: a conceptual framework

Purpose – The paper aims to explore the internationalisation decision-making of small- and medium-sized enterprise (SME) owner/managers. Specifically, structural alignment theory (SAT) and regulatory focus theory (RFT) are utilised to examine the concept of opportunity recognition in the context of internationalisation choices. Design/methodology/approach – This paper is conceptual in nature, and an integrative cognitive model of internationalisation choice decisions is developed based on SAT and RFT, underpinned by a critical review of the international entrepreneurship (IE) literature. Findings – Scenarios are identified in which the structure of available information may affect the decision-evaluation process in terms of cognitive resource requirements. Further, the SME owner/manager’s motivational goal orientation is suggested to moderate the role of the information structure in line with IE literature. A conceptual model and propositions are presented. Research limitations/implications – The conceptual model and the propositions arising from the discussion in this paper offer new directions of research to explore SME internationalisation. Originality/value – This paper offers a cognitive perspective of SME internationalisation. This paper offers insights for policymakers, SME owner/managers, practitioners and researchers alike. For internationalisation decisions, this paper highlights the potential impact of the structure of information that is made available to SME owner/managers by industry or policy bodies; further, the moderating influence of motivational goal orientation may inform policy on how information should be presented to SME owner/managers to aid their decision-making.</p

Evaluating IT alignment and performance in SMEs using multivariate regression analysis

New competitive challenges have forced Small-Medium Enterprises (SMEs) to re-examine their internal environment in order to improve competitive advantage. IT investments can improve firm performance in a way that it would be in “alignment” with business strategy. The purpose of this paper is to analyze the contemporary impact of IT and business strategy on business performance, incorporating all these constructs into a model that is tested using Multivariate Regression Analysis. Data were collected from IS executives in 160 Greek SMEs. The results of this survey show that Strategy conception and formulation have a significant impact on business performanc

Digital Transformation Capabilities in Manufacturing SMEs: Gaining Agility through IT Capability Configurations

Adopting a capability-based view of digital transformation as a 2nd-order ‘dynamic’ capability, this paper investigates how 1st-order dynamic and operational IT capabilities are strategically configured and aligned by manufacturing SMEs in order to gain organizational agility. Resulting from a fuzzy-set qualitative comparative analysis (fsQCA) of 67 Canadian SMEs, our results show that a high level of organizational agility is concretized when these firms align at least three dynamic IT capabilities and one operational IT capability. Through three high-performing configurations composed of the sensing, learning, coordinating and integrating dynamic IT capabilities along with the IT management capability and e-business capability, we demonstrate which capabilities are present to achieve a high level of organizational agility, and under what environmental condition they manifest themselves. Providing a richer description and deeper understanding of the interrelationships between the IT capabilities required by manufacturing SMEs’ digital transformation, our contributions are both practical and theoretical

ERP implementation methodologies and frameworks: a literature review

Enterprise Resource Planning (ERP) implementation is a complex and vibrant process, one that involves a combination of technological and organizational interactions. Often an ERP implementation project is the single largest IT project that an organization has ever launched and requires a mutual fit of system and organization. Also the concept of an ERP implementation supporting business processes across many different departments is not a generic, rigid and uniform concept and depends on variety of factors. As a result, the issues addressing the ERP implementation process have been one of the major concerns in industry. Therefore ERP implementation receives attention from practitioners and scholars and both, business as well as academic literature is abundant and not always very conclusive or coherent. However, research on ERP systems so far has been mainly focused on diffusion, use and impact issues. Less attention has been given to the methods used during the configuration and the implementation of ERP systems, even though they are commonly used in practice, they still remain largely unexplored and undocumented in Information Systems research. So, the academic relevance of this research is the contribution to the existing body of scientific knowledge. An annotated brief literature review is done in order to evaluate the current state of the existing academic literature. The purpose is to present a systematic overview of relevant ERP implementation methodologies and frameworks as a desire for achieving a better taxonomy of ERP implementation methodologies. This paper is useful to researchers who are interested in ERP implementation methodologies and frameworks. Results will serve as an input for a classification of the existing ERP implementation methodologies and frameworks. Also, this paper aims also at the professional ERP community involved in the process of ERP implementation by promoting a better understanding of ERP implementation methodologies and frameworks, its variety and history

The role of national culture in the strategic use of and investment in ICT: a comparative study of Japanese and Australian organisations

Japanese ICT investment trailed the developed world for many decades, contributing to low productivity growth. A potential root cause is the influence of Japanese culture over the strategic use of and investment in ICT (SUIICT). Empirical research on cultural aspects of SUIICT in Japan is lacking. This study will examine national culture and its association with SUIICT in organisations in Japan compared to Australia. A quantitative survey of ICT decision makers in Japanese and Australian organisations will be fielded based on questions synthesized from McFarlan, McKenney and Pyburn (The Strategic Grid), and Hofstede and Minkov (Cultural Dimensions Model). A contribution to theory will be the development and testing of an empirical model and practical instrument for determining the association between national culture and SUIICT. A practical contribution will be an increase in understanding of both markets allowing for more effective market segmentation and development of ICT offerings for both countries

The Role of National Culture in the Strategic Use of and Investment in ICT: A Comparative Study of Japanese and Australian Organisations

The recent desire to apply virtual reality for e-commerce implies the need for a better understanding of this emerging medium as an approach for digitisation and marketing of product and brand. Though two-dimensional presentation media (e.g. text, images and videos) are frequently investigated in information systems research, few studies address how virtual reality can be utilised in presenting and selling products, as it only recently became affordable and accessible to consumers. Virtual reality is much more capable of enabling “presence”, the perceptual illusion of nonmediation or the feeling of being in the virtual environment instead of in the real world. This explorative study will investigate what characteristics of immersive virtual reality and its associated virtual space to digitally stimulate “presence”, and whether and how “presence” can affect online consumers’ impression of the e-retailer, interest generation and actual purchasing behaviour of products

The Relationship of Information Systems, Supply Chain Management With Organisational Performance

Purpose In today’s world, Supply Chain Management (SCM) is a key strategic factor for increasing organisational effectiveness and for better realisation of organisational goals such as competitiveness, better customer care and increased profitability (Ganesh Kumar and Nambirajan, 2013). As such, research interest has focused on supply chain practices with SMEs and large organisations in terms of supply chain information systems (SCIS) and organisational performance. Research Approach This study aims at the exploration of the statistical relationship between (SCIS) Effectiveness and Organisational Performance. The findings from a survey involving 168 IT managers show a strong correlation between SCIS and non-financial Organisational Performance across a cohort of Small Medium Enterprises (SMEs) and large organisations. Findings and Originality These findings are further confirmed by a recent publication from Ganesh Kumar and Nambirajan, (2013). This study identified the items used by researchers for the measurement of both constructs. Exploratory Factor Analysis was employed as there was no theoretical basis to specify a priori the number and patterns of common factors (Hurley et al., 1997) especially for the extraction of factors measuring the non-financial performance of a firm. Research Impact The analyses also revealed that companies with a high implementation degree show a better supply chain performance. Furthermore, the results show that this paper contributes to the SCM field by providing scales for financial and non-financial performance constructs, and by exploring how those are improved by the adoption of specific Supply Chain Information Systems. Practical Impact The purpose of this study aims at the exploration of the statistical relationship between Supply Chain Information Systems’ (SCIS) Effectiveness and Organisational Performance, when this is measured by financial and non-financial variables and the impacts on SMEs performance

A Normative Model for Assessing SME IT Effectiveness

Information technology (IT) is a key enabler of modern small businesses, yet fostering reliably effective IT systems remains a significant challenge. This paper presents a light weight IT effectiveness model for small businesses to assess their IT and formulate strategies for improvement. Employing an action research approach we investigate a mixed method analysis of 120 survey responses from small family businesses and user participation in 10 semi-structured interviews. We then conduct critical reflection to identify refinements which are validated using 72 survey responses from university students. The results present compelling evidence that employees’ normative patterns (norms) are a significant driver of IT effectiveness in a second order PLS predictive model able to explain 26% of observed variance. A norms-based approach to IT effectiveness helps fill a significant research and managerial gap for organizations unable or unwilling to adopt IT best practice frameworks used by large organizations. Our findings imply that comparing norms to IT best practices may offer a less technical approach to assessing IT operations, which may be well suited to small businesses. Although further investigation cycles are needed to systematically test this model, we encourage small business managers to: 1) anticipate IT risks and mitigate them; 2) identify measures of IT performance, and monitor them, and 3) review/synchronize business and IT goals

A normative model for assessing SME IT

Information technology (IT) is a key enabler of modern small businesses, yet fostering reliably effective IT systems remains a significant challenge. This paper presents a light weight IT effectiveness model for small businesses to assess their IT and formulate strategies for improvement. Employing an action research approach we investigate a mixed method analysis of 120 survey responses from small family businesses and user participation in 10 semi-structured interviews. We then conduct critical reflection to identify refinements which are validated using 72 survey responses from university students. The results present compelling evidence that employees’ normative patterns (norms) are a significant driver of IT effectiveness in a second order PLS predictive model able to explain 26% of observed variance. A norms-based approach to IT effectiveness helps fill a significant research and managerial gap for organizations unable or unwilling to adopt IT best practice frameworks used by large organizations. Our findings imply that comparing norms to IT best practices may offer a less technical approach to assessing IT operations, which may be well suited to small businesses. Although further investigation cycles are needed to systematically test this model, we encourage small business managers to: 1) anticipate IT risks and mitigate them; 2) identify measures of IT performance, and monitor them, and 3) review/synchronize business and IT goals