Strategic Flexibility and SMEs: The Role of Information Technology for Managing Internal and External Relations

The purpose of the current study was to assess the impact of information technology on strategic flexibility for small- and medium-sized enterprises (SMEs). Results of the study show that under conditions of low environmental dynamism, IT capabilities are associated with greater reactive strategic flexibility. Specifically, IT capabilities enabling the management of internal activities was significant. Under conditions of high environmental dynamism, IT capabilities are associated with greater proactive strategic flexibility. Specifically, IT capabilities enabling the management of competitor information was significant. Managerial as well as future research implications are discussed

Guidance for SMEs with the adoption of technology : a conceptual framework

When starting up a new small or medium sized company, it is crucial to understand what the requirements are in terms of Information and communication technologies (ICT). Bentellis and Boufaïsa (2008) note that over the last twenty years the markets have been changing fast, which has led to the evolution of the business environment. In many instances companies cannot keep up with the change occurring in the ICT arena. Entering the market as a small competitor, you need to ensure that you implement ICT that will support your business strategies. This paper presents the findings of a qualitative research study done to determine how SMEs cope with the adoption of technology. The paper explores the typical problems and challenges faced by SMEs, within South Africa, with regard to ICT and propose a conceptual framework to support managers in their decision making on ICT implementation. As such, this framework supports them in choosing the relevant technology, as well as supporting them with the effective application of the chosen technologies.http://sajesbm.com/am201

Modeling and Analysis of Complex Technology Adoption Decisions: An Investigation in the Domain of Mobile ICT

Mobile information and communication technologies (ICT) promise to significantly transform enterprises, their business processes and services, improve employee productivity, effectiveness, and efficiency, and create new competitive advantages and business agility. Despite the plethora of potential benefits, however, widespread enterprise adoption of mobile ICT has not been as extensive as initially anticipated. Drawing on the extant information systems, technology management, and organizational innovation literature, this dissertation investigates the salient drivers and inhibitors of emerging ICT adoption, in general, and mobile ICT in particular, and develops an integrative ICT adoption decision framework. From this synthesis we identify four broad elements that influence an enterprise s decision to adopt mobile ICT: (1) business value, (2) costs and economics, (3) strategic alignment, and (4) enterprise readiness. The latter decision element has received only little theoretical and practical attention. In order to fill this gap, this dissertation explored the concept of enterprise readiness in further detail and identified eight key dimensions and their associated assessment indicators. Using a two-stage expert study and experimental design approach, we empirically validated these dimensions and determined their relative importance. Results indicated that leadership readiness followed by technology, data and information, and resource readiness, contributed the most to enterprise readiness for mobile ICT. The results are implemented into a web-based readiness diagnostic tool (RDT) that enables decision makers to assess an enterprise s readiness for mobile ICT. The benefits of the RDT are multifold: first, it navigates the decision maker through the complex readiness assessment space; second, it identifies potential organizational deficiencies and provides a means to assess potential sources of risks associated with the adoption and implementation of mobile ICT; and third, it enables decision makers to benchmark their level of readiness against other organizations. The dissertation concludes by highlighting both theoretical and practical implications for emerging and mobile ICT adoption management and suggesting directions for future research.Ph.D.Committee Chair: Rouse, William; Committee Member: Cross, Steve; Committee Member: Cummins, Michael; Committee Member: DeMillo, Richard; Committee Member: Vengazhiyil, Rosha

A conceptual framework for guiding SMEs in the application of IT from a South African point of view

Companies cannot keep up with the change occurring in the ICT arena. As a result of companies being chased by an untamed animal namely IT evolution, they fear that they cannot run, as running feels like floating in air. This ICT evolution has become a fearful sight for Small Medium Enterprises (SMEs). This research project acknowledges this fear and provides a conceptual framework whereby SMEs can familiarise themselves when engaging in ICT investments from a South African point of view. The data collected in this qualitative study is based on ten different SMEs as well as one larger company, to try and obtain a benchmark which SMEs can strive towards. The outcome of this research project allows SMEs to be less fearful when deciding on ICT and seeing how ICT can benefit these organisations. CopyrightDissertation (MCom)--University of Pretoria, 2010.Informaticsunrestricte

ICT-bestuur voor kleine en middelgrote ondernemingen

Small and medium-sized Enterprises (SMEs) play a significant role as engines of economic and social development all over the world. Many scholars argue that a small and medium-sized enterprise cannot be seen through the lens of a large firm. Therefore, the limited theories explaining IT (Information Technology) governance in large organizations cannot be linearly extrapolated to SMEs, since we are dealing with a completely different economic, cultural and managerial environment. IT governance is a term that has been evolving rapidly over the last few years, especially in practitioners’ communities. The IT Governance Institute is taking a leading role in the debate. Many aspects of IT governance have been described and detailed but little work has been done to pull it all together. From an academic perspective, research on IT governance is emerging as an important area of enquiry. Notwithstanding the efforts to develop guidelines for governing IT in SMEs, such as the Cobit QuickStart method, the results of applying these frameworks in SMEs are rather disappointing. Scholars and practitioners are too grounded in their way of thinking, and maintain a simple vision of a SME as a scale model of a large firm. SMEs seldom have a dedicated IT staff or a well-defined and formal IS (Information Systems) function. Due to their small scale, and hence a lack of in house IT skills, SMEs depend more on IT vendors than large companies. There is also a lack of genuine SME-centred theories that can lead to general inferences about how SMEs should govern their IT. The focus of our research is the relation of IT and SMEs in an outsourced environment. In order to achieve a better understanding of the phenomenon of IT governance in SMEs, a multidisciplinary and multifaceted approach is assumed. The multidisciplinary stems from the variety of scientific disciplines like computer science, economics, sociology and psychology used as sources to deliver theories to our framework. The multifaceted approach embodies a behavioural perspective as well as a more situational perspective which is directly linked to the IT artefact (e.g. ERP and CRM) and the organizational context, here thus SMEs. Considering the current state of the research we have formulated two general research objectives: 1) to extend our knowledge of IS failures in an outsourced SME environment and 2) to clarify the link between the insights of failed IS projects and the principles of IT governance. We see an outsourced information system failure (OISF) as a failure of governing IT in a SME environment and we propose a new structure for IT governance in SMEs. The aforementioned general research objectives have been broken down into the following research questions: 1) why do IS projects fail in SMEs?, 2) how do IS projects fail in SMEs?, 3) how do SMEs manage their IS projects? and 4) why is there not enough IT governance in SMEs? We have chosen for case study research strategy based on multiple cases. The research was started with the development of the case study database and an extensive literature study. In chapter one we first provide overviews of the specific relationships between SMEs and IT, outsourced IS failures and IT governance. Chapter two details our research methodology and design. In appendix A we give a description of the case studies. In chapter three we present an overview of the extant literature on IT and SMEs, IT governance and IS failure. The full list of references to the relevant papers of the literature on IT and SMEs is presented in appendix B. We discuss the idiographic character of our unit of analysis and the relation with IT based on a survey conducted in Belgian organizations in chapter four. In chapter five we analyse the theories that can be used to explain an OISF in a SME environment. There we elaborate on the theoretical foundations of trust and control. Chapter 5 includes the results of the tests of the theoretical propositions by multiple case studies and a discussion of our empirical observations. This chapter will also be published in the A1 journal, ‘Industrial Management & Data System’. In chapter six a framework, based on multiple case studies, is presented to explain the failure of outsourced information systems (OISFs) in small and medium-sized enterprises (SMEs). We developped eleven hypotheses in our framework and we present the results of an enquiry on one hypothesis of the ‘lemon’ problem within a group of 484 Belgium ISVs that target the SME market. Finally, our general conclusions are stated in chapter seven, including the implications of our findings for future research and practice. A full list of our academic publications concerning this doctoral research is presented in appendix C