Using resource-based theory to interpret the successful adoption and use of information systems and technology in manufacturing small and medium-sized enterprises

The purpose of this paper is to consider how resource-based theory can be used to explain success with the adoption and use of information systems and information technology (IS/IT) in manufacturing small and medium-sized enterprises (SMEs). A number of authors have explored the applicability of resource-based theory to the IS/IT domain, mainly at a conceptual level. Overall they infer that the key differentiators for long-term successful IS/IT deployment reside within the internal context of an organisation, based on organisational competences. This paper is based on in-depth case study research in 12 Portuguese manufacturing SMEs, which identified two factors that, from the empirical evidence, appeared to be the determinants of the different levels of success in IS/IT adoption and use. These factors were also primarily associated with the internal context of the organisations. Therefore, the findings were analysed from the perspective of resource-based theory, to understand why and how the attributes of these factors caused the differential levels of IS/IT success in the firms studied.     

A framework to assess the factors affecting success or failure of the implementation of government-supported regional e-marketplaces for SMEs

Regional electronic marketplaces (REMs) have been used to promote e-commerce uptake by small and medium enterprises (SMEs). However, the community and regional economic development motives underpinning REM creation can cause complexities. While REM development and management can be informed by existing theoretical frameworks, there is no comprehensive framework that can be used to examine the factors affecting the success or failure of government-supported SME-REMs. The objective of this paper is to construct such a framework that can be used to examine these factors. The literature on e-marketplaces and IT/IS/e-commerce adoption by SMEs is examined to determine the appropriateness of existing theoretical frameworks, the key constructs of which are synthesised to form an integrated theoretical framework. The value of the framework is confirmed by content analysis of published case studies and empirical results from in-depth case studies of two SME-REMs. The most significant factors affecting success or failure of government-supported SME-REMs are as follows: SME-owner innovativeness; REM ownership structure and governance that engender trust and build critical mass by including SMEs in REM development and management; matching REM focus and structure with regional profile by leveraging community ties and existing business relationships; adopting a staged approach to REM development; and ensuring REM benefits are understood by SMEs.     

Forecasting social CRM adoption in SMEs: A combined SEM-neural network method

The growth of social media usage questions the old-style idea of customer relationship management (CRM). Social CRM strategy is a novel version of CRM empowered by social media technology that offers a new way of managing relationships with customers effectively. This study aims to forecast the predictors of social CRM strategy adoption by small and medium enterprises (SMEs). The proposed model used in this study derived its theoretical support from IT/IS, marketing, and CRM literature. In the proposed Technology-Organization-Environment-Process (TOEP) adoption model, several hypotheses are developed which examine the role of Technological factors, such as Cost of Adoption, Relative Advantages, Complexity, and Compatibility; Organizational factors, such as IT/IS knowledge of employee, and Top management support; Environmental factors such as Competitive Pressure, and Customer Pressure; and Process factors such as Information Capture, Information Use, and Information Sharing; all having a positive relationship with social CRM adoption. This research applied a following two staged SEM-neural network method combining both structural equation modelling (SEM) and neural network analyses. The proposed hypothetical model is examined by using SEM on the collected data of SMEs in Kuala Lumpur, the central city of Malaysia. The SEM approach with a neural network method can be used to investigate the complicated relations involved in the adoption of social CRM. The study finds that compatibility, information capture, IT/IS knowledge of employee, top management support, information sharing, competitive pressure, cost, relative advantage, and customer pressure are the most important factors influencing social CRM adoption. Remarkably, the results of neural network analysis show that compatibility and information capture of social CRM are the most significant factors which affect SMEs' adoption of this form of customer relationship management. The outcomes of this research benefit executives' decision-making by identifying and ranking factors that enable them to discover how they can advance the usage of social CRM in their firms. Furthermore, the findings of this study can help the managers/owners of SMEs assign their resources, according to the ranking of social CRM adoption factors, when they are making plans to adopt social CRM. This study differs from previous studies as it proposes an innovative new approach to determine what influences the adoption of social CRM. By proposing the TOEP adoption model, additional information process factors advance the traditional TOE adoption model.     

Critical factors of ISDN implementation: An exploratory study

Two hundred and forty-seven companies in the United States (US) were surveyed to determine whether various factors were associated with ISDN implementation success. Previously identified implementation factors from research in innovation adoption and diffusion, IT implementation, and IS planning were selected as likely to be important in the study. The results indicated that compatibility, relative advantage, complexity, champion, management support, openness, and formalization factors were indicative of ISDN implementation success.     

Information system success among manufacturing SMEs: case of developing countries

This research develops an integrated model of Information System (IS) success based on the DeLone and McLean (2003. The DeLone and McLean model of information systems success: A ten-year update. Journal of Management Information Systems, 19(4), 9–30) IS success model and the technology–organization–environment framework of the firm to provide small- and medium-sized enterprises (SMEs) with the relative importance and knowledge of IS success. A questionnaire-based survey was conducted to collect data from 316 Iranian and Malaysian manufacturing SMEs. Our findings show that the determinants of IS success among SMEs are not limited to the technological factors identified in the DeLone and McLean (2003) IS success model. We in effect found that IS success among SMEs is also determined by some key organizational and environmental determinants. We observed that the involvement of both top management and employees in different stages of IS implementation is important and IS success among SMEs requires internal and external support. The study contributes to the theory by extending and empirically testing the DeLone and McLean IS success model in a different setting than in previous studies. The study can serve as a basis for future research in this field through advancing the theoretical development in the area of IS success.     

Organizational information systems competences in small and medium-sized enterprises

We used resource-based theory and evidence from empirical studies to evolve a framework of IS competences in small and medium-sized enterprises (SMEs). The framework significantly improved our understanding of internal IS expertise in SMEs. We used relevant IS competence and SME literature, as well as empirical data from SME case studies. Our set of twenty two IS competences were organized around six macro competences. Each competence refers to a specific ability at the organizational rather than the individual level and they cover a broad range of activities, such as those associated with recognising business opportunities, IS planning, accessing IS knowledge, defining requirements, software and hardware sourcing, applications development, and managing relationships with IS suppliers. The framework was tested against prior literature, including studies of IS adoption, IS success, and entrepreneurial competence. Each competence was fully explained and discussed using evidence from the case studies. The framework creates a comprehensive set of IS competences that can be used in both SME practice and research.     

A meta-analysis of relationships between organizational characteristics and IT innovation adoption in organizations

Adoption of IT in organizations is influenced by a wide range of factors in technology, organization, environment, and individuals. Researchers have identified several factors that either facilitate or hinder innovation adoption. Studies have produced inconsistent and contradictory outcomes. We performed a meta-analysis of ten organizational factors to determine their relative impact and strength. We aggregated their findings to determine the magnitude and direction of the relationship between organizational factors and IT innovation adoption. We found organizational readiness to be the most significant attribute and also found a moderately significant relationship between IT adoption and IS department size. Our study found weak significance of IS infrastructure, top management support, IT expertise, resources, and organizational size on IT adoption of technology while formalization, centralization, and product champion were found to be insignificant attributes. We also examined stage of innovation, type of innovation, type of organization, and size of organization as moderator conditions affecting the relationship between the organizational variables and IT adoption.     

Fostering e-commerce among Australian SMEs

It is difficult to accurately assess the overall global market for SME-related e-commerce. However, we do know that Australia has more than 1 million SMEs; they are vitally important to Australia's economic prosperity. Thus, in September 2001 the government announced a $6.5 million initiative to accelerate SMEs' adoption of e-commerce to facilitate online access to government purchasing within two years. Helping these SMEs efficiently build their e-commerce systems has become a high priority of Australia's government and IT/IS researchers. To find solutions to Australian SMEs' e-commerce concerns, we conducted research using Citysearch, an online business directory, in early 2002. We selected 10 cities/areas to research: Adelaide, Brisbane, Cairns, Canberra, Gold Coast, Melbourne, Perth, Sydney, Tasmania, and Townsville, and studied industry sectors that include many SMEs.     

An analysis of IT/IS outsourcing provider selection for small- and medium-sized enterprises in Taiwan

Outsourcing is important in highly diversified business environments, but while there have been many studies on outsourcing, none have explicitly tackled the problem of how SMEs should assess and select their outsourcer. Numerous benefits might be gained if SMEs could utilize evaluation models to help select their IT/IS outsourcer effectively. Prejudices arising from selection through impartial analysis could be avoided and a more accurate and an objective decision could be made. We investigated the selection process of an enterprise needing an IT/IS outsourcing provider in Taiwan. Our recommended process quantitatively sorts the criteria using the AHP. An evaluation model was developed based on the needs of the SME who should use it to obtain a better outsourcing provider resulting from improved information vital to maintain outsourcing efficiency. Use of our model should reduce costs and potential risks in adopting new IT/IS applications and promote an objective standard with which to evaluate IT/IS outsourcing providers.     

Small business in a small country: Attitudes to “Green” IT

New Zealand is a small country and most of its businesses are small with 96 % of all enterprises employing fewer than 20 people. New Zealand takes pride in its “clean green” image, however small and medium sized businesses (SMEs) have limited resources, low awareness of the environmental impacts of the technologies they use, and perceive relatively few imperatives for changing their practices. In this paper we use institutional theory to frame a study of the factors which influence SMEs to adopt Green IS/IT practices. We found a diversity of viewpoints that suggest that adopting a one size fits all approach around encouraging organizations to adopt Green IS/IT is unlikely to be successful. However, it is doubtful that leadership in this area will arise in the small business sector, and coercive pressure from Government or other regulatory bodies is likely to be required. Market-place imperatives from customers and large players in supply chains can also be significant. Institutional theory was further used to understand the relative importance of these different pressures. These findings have relevance in other contexts as SMEs are the dominant form of business in many countries around the world and SMEs are estimated to have a combined contribution of around 70 % in terms of global pollution.     

Internet Retailing Adoption by Small-to-Medium Sized Enterprises (SMEs): A Multiple-Case Study

Despite the proliferation of Internet retailing and the relative novelty and complexity of this phenomenon, very little theory-guided qualitative research has been conducted to improve our understanding of the adoption of Internet retailing project by SMEs. This study presents a theoretical framework for analyzing the adoption of Internet retailing for SMEs. Organizational readiness (IT sophistication, financial resources, and customer readiness), perceived benefits of Internet retailing, and environmental factors are proposed to be the key drivers of adoption of Internet retailing. This research was designed using a qualitative approach through in-depth case studies selected from firms in Hong Kong where there is a proliferation of SMEs. The contextual meaning and practical manifestation of the key adoption factors were captured through the case studies. Our findings provide preliminary support for the proposed research framework, and contribute towards a better conceptual and practical understanding of the main factors driving SMEs to adopt Internet retailing. Contrary to popular belief, customer readiness for Internet shopping was not found to be a significant factor influencing SMEs' decision to adopt Internet retailing.     

Determinants of relationship quality for IS/IT outsourcing success in public sector

Relationship has become an influential aspect for the success of IS/IT outsourcing projects. Although some studies have explored the issues of IS/IT outsourcing relationship in the past, these studies are limited to the private sectors. Whereas, studies implicate that the issues related to private and public sectors should be addressed differently. Therefore the main purpose of this study is to examine the IS/IT outsourcing relationship in the public sector by determining relationship quality factors. Based on the social exchange and the relational exchange theories a relationship model is proposed and hypotheses are tested. Ninety three IS/IT outsourcing projects in the public sector of Korea are examined and the results indicate that the outsourcing success is greatly determined by relationship quality. This study will serve as useful guidelines in understanding how to develop a successful IS/IT outsourcing relationships for IT practitioners in the public sector and the vendors undertaking those outsourced projects.     

Examining the effects of information system characteristics and perceived usefulness on post adoption usage of information systems

Understanding post adoption behavior has emerged as an important issue in IS research. Organizations have invested in a plethora of Information Systems (IS) and the benefits that can be gained from these systems depend on their usage. Prior research has examined factors that impact users’ intention to continue using the IS. However, comprehending post adoption IS usage behavior has not received much attention. Building on TAM and IS success model, this study proposes that information quality and system integration influence perceived IS usefulness which will then drive post adoption usage of the IS. Post adoption IS usage is conceptualized as a broad concept that includes extended usage and exploratory usage. Data (N = 1032) was collected to test the model, in the context of a web-based student information system that students use to manage their academic work. The results show that at the post adoption stage, perceived IS usefulness is a good predictor of extended usage and exploratory usage. However, surprisingly IS usefulness was found to explain a much larger variance in exploratory usage. Information quality and system integration were found to influence IS usefulness. However, information quality also has a direct affect on extended usage, while system integration directly influenced exploratory usage. Assessment of the moderating role of gender and internet experience on model relationships reveals interesting insights. Implications are drawn for future research and practice.     

Effects of strategic alignment on IS success: the mediation role of IS investment in Korea

The purpose of this research is to develop a comprehensive information system (IS) evaluation model for IS success linked to organizational performance. The primary focus of this research is to investigate the role of IT investment in business values by means of a group survey of about 300 business executives in Korea. We used the contingency theory to discover the mediation effect of IS investment on strategic alignment and IS success. In contrast to previous research, this study expanded the test scope to IS architecture and organizational structure at the operational level. The results from 273 business executives in Korea indicated that strategy integration with IT is positively related to IT investment, and IT investment is a critical antecedent of IS success. Thus, the implications of the findings are that right-directional IT investment has played an important role in the success of IT companies in Korea.     

Internet adoption by the elderly: employing IS technology acceptance theories for understanding the age-related digital divide

Information technology (IT) allows members of the growing elderly population to remain independent longer. However, while technology becomes more and more pervasive, an age-related underutilisation of IT remains observable. For instance, elderly people (65 years of age and older) are significantly less likely to use the Internet than the average population (see, for instance, European Commission, 2011). This age-related digital divide prevents many elderly people from using IT to enhance their quality of life through tools, such as Internet-based service delivery. Despite the significance of this phenomenon, the information systems (IS) literature lacks a comprehensive consideration and explanation of technology acceptance in general and more specifically, Internet adoption by the elderly. This paper thus studies the intentions of the elderly with regard to Internet use and identifies important influencing factors. Four alternative models based on technology acceptance theory are tested in the context of comprehensive survey data. As a result, a model that explains as much as 84% of the variance in technology adoption among the elderly is developed. We discuss the contribution of our analyses to the research on Internet adoption (and IT adoption in general) by the elderly, on the digital divide, and on technology acceptance and identify potentially effective paths for future research and theoretical development.     

A new framework for managing IT-enabled business change

Abstract. Although information systems and technology (IS/IT) investments have always caused varying degrees of business change, the main purpose of many of today's IS/IT implementations is to change the business and/or organization in some significant way. However, most organizations' approaches to managing IS/IT developments have changed little in the last 15–20 years and are heavily dependent on methodologies of IS/IT development and associated project management principles. The philosophy being adopted by many organizations today is that there are few IS/IT projects (some infrastructure investments only) that do not cause business changes and therefore they are really 'business projects involving IS/IT'. This exploratory research set out to devise a new framework for 'IT and change' management, which is more appropriate to today's realities than traditional approaches. The initial framework was derived from 'first principles', then adapted and further developed by applying and testing it in a range of real projects in organizations. This paper summarizes the results of that work.     

Cloud computing in industrial SMEs: identification of the barriers to its adoption and effects of its application

Cloud computing is a new technological paradigm that may revolutionize how organizations use IT by facilitating delivery of all technology as a service. In the literature, the Cloud is treated mainly through a technological approach focused on the concept definition, service models, infrastructures for its development and security problems. However, there is an important lack of works which analyze this paradigm adoption in SMEs and its results, with a gap between the technological development and its adoption by organizations. This paper uses a qualitative technique methodology -group meetings with managers- and a quantitative one—survey- and identifies which factors act as barriers to Cloud adoption and which positive effects its application generates in 94 industrial SMEs. The conclusion is that the main barriers are of a cultural type and that the positive effects go well beyond reducing costs.     

The impact of IT on decision structure and firm performance: evidence from the textile and apparel industry

Clarifying the relationships between information technology (IT), organizational performance, and decision structure remains an important area of inquiry in IS research. Through an empirical analysis and complementary case examples, our study examines these associations among firms operating in the US-based apparel and textile industry from 1992 to 1997. Based on data gathered from 50 public firms located across the USA, the study finds that IT used to enhance internal communication supports a decentralized decision structure, which in turn is associated with higher financial performance. Hence, IT exhibits an indirect performance effect. However, use of IT to enhance communication is also found to have a direct performance effect in large organizations. This paper proposes that use of communication enhancing IT can support organizational learning processes by facilitating flexible exchange of skills and knowledge across functional areas. Case examples are used to illustrate how these learning effects can materialize.     

Thematic orientation of the ISJ within a semantic space of IS research

This study examines research published in the first 24 years of Information Systems Journal's (ISJ) publication history using a thematic space of all information systems (IS) research as the backdrop. To that end, abstracts from all contributing articles published in eight prominent IS journals in the period 1991–2014 were analysed to extract a latent semantic space of five broad research areas. A two‐dimensional projection of the results was used to create a two‐by‐two map, where one dimension represents the European vs. North American style of IS research and another dimension represents a micro vs. macro level of IS research. The ISJ is positioned in the ‘micro and European school’ quadrant. Over the course of the journal's first 24 years, research in the ISJ started with a relative focus on the IT artefact and IS development and gradually moved towards a more balanced position that includes a considerable amount of research on IT for teamwork and collaboration, as well as on IT and individuals.     

Information Systems Use: Construct conceptualization and scale development

Information Systems Use (ISU) is an essential part of the human behaviors in utilizing computers in organizations. The construct has been widely used to measure IS adoption or IS success. However, few studies attempt to understand ISU in a job and organizational setting where employees use various types of IS for different tasks. To better understand ISU, it is necessary to contextualize the construct in users’ overall work related activities. We classified the overall IS/IT use in an organization into three different types of IS; Information Reporting Systems (IRSs), Decision Support Systems (DSSs), and Group Support System (GSSs). Based on this classification, we developed four items for each type of ISU behaviors. The resulting ISU instrument was tested using a dataset of 231 responses collected in a survey. Both exploratory factor analysis and PLS are employed to successfully establish reliability, convergent/discriminate validity, and predictive validity. The contribution of this research is to provide better and more robust measurements for the ISU construct, which should help to lay a firmer foundation for further research on IS success.