scholarly journals Information Technology Capabilities and SMEs Performance: An Understanding of a Multi-Mediation Model for the Manufacturing Sector

10.28945/4429 ◽  
2019 ◽  
Vol 14 ◽  
pp. 253-276 ◽  
Author(s):  
Rana Nabeel-Rehman ◽  
Mohammad Nazri
Keyword(s):  
Information Technology ◽  
Firm Performance ◽  
Absorptive Capacity ◽  
Corporate Entrepreneurship ◽  
Performance Outcomes ◽  
Dynamic Capability ◽  
It Alignment ◽  
It Capability ◽  
It Capabilities ◽  
It Integration

Aim/Purpose: Despite the fact that the plethora of studies demonstrate the positive impact of information technology (IT) capabilities on SMEs performance, the understanding of underlying mechanisms through which IT capabilities affect the firm performance is not yet clear. This study fills these gaps by explaining the roles of absorptive capacity and corporate entrepreneurship. The study also elaborates the effect of IT capability dimensions (IT integration and IT alignment) upon the SMEs performance outcomes through the mediating sequential process of absorptive capacity and corporate entrepreneurship. Methodology: This study empirically tests a theoretical model based on the Dynamic Capability View (DCV), by using the partial least square (PLS) technique with a sample of 489 manufacturing SMEs in Pakistan. A survey is employed for the data collection by following the cluster sampling approach. Contribution: This research contributes to the literature of IT by bifurcating the IT capability into two dimensions, IT integration and IT alignment, which allows us to distinguish between different sources of IT capabilities. Additionally, our findings shed the light on the dynamic capability view by theoretically and empirically demonstrating how absorptive capacity and corporate entrepreneurship sequentially affect the firms' performance outcomes. At last, this study contributes to the literature of SMEs by measuring the two levels of performance: innovation performance and firm performance. Findings: The results of the analysis show that the absorptive capacity and the corporate entrepreneurship significantly mediate the relationship between both dimensions of IT capability and performance outcomes.

Impact of Information Technologies, Corporate Entrepreneurship and Innovation on the Organizational Performance

2017 ◽  
pp. 1933-1952
Author(s):  
Cláudia Sofia B. Pinho ◽  
João J. Ferreira
Keyword(s):  
Organizational Performance ◽  
Conceptual Model ◽  
Information Technologies ◽  
Corporate Entrepreneurship ◽  
Vital Role ◽  
Theoretical Development ◽  
Future Research ◽  
It Alignment ◽  
It Capabilities ◽  
It Integration

Information Technology (IT) capabilities play a fundamental role on process innovation and organizational performance. Likewise, corporate entrepreneurship (CE) plays a vital role in the improvement of performance, as the employees' profile is determinant for the success of these organizations. Previous literature relating to IT and CE reveals how little attention has been paid to relationship between these constructs, and what exists is only partial. This research conceptualizes the relationship between IT capabilities, CE, and innovation on the organizational performance. It is intended as a contribution to the ongoing conceptual development of this area and provides initial guidance for future empirical evidence. Thus, the authors advance a synthesized conceptual model in order to evaluate the influence of IT capabilities (IT flexibility, IT integration and IT alignment) to the CE process, through innovation on the organizational performance. The authors create an initial construction of the scenery grounded in past literature, which is refined and reinforced into a conceptual model advancing in theoretical development in the field. Some future research and implications are discussed.

scholarly journals Firing on all cylinders: Configuring information technology around the constituents of corporate entrepreneurship to outperform in SME sector

PLoS ONE ◽  
2021 ◽  
Vol 16 (9) ◽  
pp. e0256539
Author(s):  
Nabeel Rehman ◽  
Asif Mahmood ◽  
Amir Ikram ◽  
Ayyaz Ahmad
Keyword(s):  
Information Technology ◽  
Structural Equation ◽  
Corporate Entrepreneurship ◽  
Performance Outcomes ◽  
Partial Least Square ◽  
Least Square ◽  
Equation Modeling ◽  
Mediating Role ◽  
It Capabilities

This study has examined how small and medium enterprises (SMEs) may enhance their performance under different settings of information technology (IT) capabilities and corporate entrepreneurship (CE). Established on the dynamic capability view, the researchers have analyzed the connections between IT capabilities and CE, in addition to the performance results of SMEs. The research has explored these novel relationships by utilizing partial least square-structural equation modeling (PLS-SEM) with a data sample of 447 SMEs of the manufacturing sector in Pakistan. The findings present that IT capabilities positively influence the market and financial performance of SMEs through the mediating role of CE dimensions. The study uniquely determines the mediating role of dimensional effects of corporate entrepreneurship between IT capabilities and performance outcomes of firms. Thus, the study would enable the management of SMEs to realize the potential of IT-related CE dimensions and their use to improve firms’ performance.

How to be agile: the distinctive roles of IT capabilities for knowledge management and process integration

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
One-Ki Daniel Lee ◽  
Peng Xu ◽  
Jean-Pierre Kuilboer ◽  
Noushin Ashrafi
Keyword(s):  
Knowledge Management ◽  
Firm Performance ◽  
Process Integration ◽  
Negative Impact ◽  
Market Competition ◽  
The United States ◽  
Strategic Decision ◽  
Content Type ◽  
It Capability ◽  
It Capabilities

PurposeThe purpose of this study is to understand how IT capabilities for knowledge management and process integration can build a firm's agile process capabilities for sensing, strategic decision and responding. The study also investigates how the three agile capabilities affect firm performance in different competitive environments.Design/methodology/approachThis study conducted a large-scale field survey with firms in the United States. Survey invitations were sent to business executives of the target firms. A total of 254 complete samples were collected for our hypotheses test.FindingsThe results confirm the overall significant roles of IT capabilities in the three agile capabilities. The results further reveal that the IT capability for knowledge management has a higher influence on sensing capability, while the IT capability for process integration has a higher influence on responding capability. Moreover, strategic decision and responding capabilities are more important in the high market competition. However, in the low market competition, sensing capability becomes more important while responding capability demonstrates a negative impact on firm performance.Originality/valueThis study helps both academics and practitioners better understand a firm's IT-agility-performance mechanism. Particularly, our findings guide how to achieve agile capabilities and what to focus on under the different levels of market competition.

Impact of Information Technologies, Corporate Entrepreneurship and Innovation on the Organizational Performance

2017 ◽  
Vol 8 (1) ◽  
pp. 32-48 ◽  
Author(s):  
Cláudia Sofia B. Pinho ◽  
João J. Ferreira
Keyword(s):  
Organizational Performance ◽  
Conceptual Model ◽  
Information Technologies ◽  
Conceptual Development ◽  
Corporate Entrepreneurship ◽  
Vital Role ◽  
Theoretical Development ◽  
Future Research ◽  
It Capabilities ◽  
It Integration

Information Technology (IT) capabilities play a fundamental role on process innovation and organizational performance. Likewise, corporate entrepreneurship (CE) plays a vital role in the improvement of performance, as the employees' profile is determinant for the success of these organizations. Previous literature relating to IT and CE reveals how little attention has been paid to relationship between these constructs, and what exists is only partial. This research conceptualizes the relationship between IT capabilities, CE, and innovation on the organizational performance. It is intended as a contribution to the ongoing conceptual development of this area and provides initial guidance for future empirical evidence. Thus, the authors advance a synthesized conceptual model in order to evaluate the influence of IT capabilities (IT flexibility, IT integration and IT alignment) to the CE process, through innovation on the organizational performance. The authors create an initial construction of the scenery grounded in past literature, which is refined and reinforced into a conceptual model advancing in theoretical development in the field. Some future research and implications are discussed.

scholarly journals Human Resources or Information Technology: What is More Important for Companies in the Digital Era?

2016 ◽  
Vol 7 (1) ◽  
pp. 35-45 ◽  
Author(s):  
Lejla Turulja ◽  
Nijaz Bajgorić
Keyword(s):  
Information Technology ◽  
Structural Equation ◽  
Business Performance ◽  
Business Processes ◽  
Performance Outcomes ◽  
Equation Modeling ◽  
It Capability ◽  
Knowledge Based ◽  
Knowledge Based Economy ◽  
Changing Knowledge

AbstractBackground:Companies can improve their business performance, increase revenues and reduce costs by enhancing their information technology (IT) capability. On the other side, there is an increasing importance of human resource management (HRM) practices related to IT utilization, which are important for the business performance of a company in the rapidly changing knowledge-based economy.Objectives:The objective of this paper is to analyze the relations among IT capability, HRM capability and the firm’s performance outcomes.Methods/Approach:The paper uses survey data and Structural Equation Modeling to analyze the relationships among IT capability, HRM capability and firms’ performance.Results:This paper reveals that IT capability to some extent determines firms’ business performance but it plays more important role in enhancing HRM capability. In addition, HRM capability significantly impacts business performance.Conclusions:The findings indicate that managers should not focus on allocating resources only for IT investments. In order to achieve better business performances, these technologies need to be used to support all business processes including HRM activities.

scholarly journals Practitioner Perspectives Of Information Technology Industry Intrapreneurship: An Exploratory Study

2011 ◽  
Vol 14 (1) ◽  
Author(s):  
Matthew G. Kenney ◽  
Nile M. Khanfar ◽  
Lee E. Kizer
Keyword(s):  
Information Technology ◽  
Firm Performance ◽  
Exploratory Study ◽  
Management Practices ◽  
Corporate Entrepreneurship ◽  
Job Applicants ◽  
Information Technology Industry ◽  
Technology Industry ◽  
Field View

Scholars have shown that maintaining an intrapreneurial culture contributes to superior firm performance (Parboteeah, 2000) and attracting better qualified job applicants (Olmsted, 2005). Yet, there remains a need for more research “regarding the successes or failures of large companies that systematically instill corporate entrepreneurship” (Thornberry, 2003 p. 332).  While an increasing number of scholars have examined the benefits and challenges of creating and maintaining an intrapreneurial culture, there remains a need to examine intrapreneurship from an intrapreneur’s perspective. This article is an exploratory study which qualitatively, through the use of informational interviews, explores how experienced intrapreneurs within the Information Technology (IT) field view intrapreneurial opportunities and how management practices explicitly and/or implicitly effect intrapreneurial perceptions.

Information technology, knowledge management and human resource management

2018 ◽  
Vol 48 (2) ◽  
pp. 255-276 ◽  
Author(s):  
Lejla Turulja ◽  
Nijaz Bajgoric
Keyword(s):  
Information Technology ◽  
Knowledge Management ◽  
Human Resource Management ◽  
Human Resource ◽  
Business Performance ◽  
Structural Models ◽  
Dynamic Capability ◽  
Content Type ◽  
It Capability ◽  
Digital Era

Purpose Drawing on dynamic capability view, this study aims to offer a conceptual framework to clarify the nature of the effects of firm’s information technology (IT) capability, knowledge management (KM) capability and human resource management (HRM) capability on organizational business performance. IT is the driver that changes all aspects of doing business in the digital era, while both knowledge and human resources (HR) are being increasingly regarded as key levers of competitive advantage in today’s global, dynamic and complex business environment. Design/methodology/approach The survey methodology was used to collect data. To clarify the relationships between IT capability, KM capability and organizational business performance, the qualitative literature review has been conducted. This review has revealed the three structural models presenting possible interactions between observed constructs. Confirmatory factor analysis has been used for the evaluation of proposed measurement models while structural equation modeling has been used for structural models’ assessments and hypotheses testing. Findings IT capability enhances HRM capability which enhances KM capability. As a result, KM capability together with IT capability enhances organizational business performance. In addition, there is an interaction effect of KM capability and HRM capability on business performance. Research limitations/implications First, the sample is based on the emerging economy firms. Second, the use of a self-rating performance measure may be a limitation of the study. Third, the data are not completely normally distributed. Fourth, specificities of different industries were not the subject of analysis in this paper. This should be considered in the interpretation and understanding of the results. Practical implications From managerial point of view, the paper indicates what managers can do to master their dynamic capabilities, especially those relevant to the business in the digital era. Firms are urged to develop and improve their capabilities to face dynamic environment and intense competition, as well as business globalization. However, to improve certain capability, firms should develop others as well because of their interconnectedness. Originality/value The main academic contribution of this study is reflected through the development of the integrative model which is aimed at identifying the interrelationships among IT, KM, HRM and business performance. The results indicate the importance of observing interconnections between the firms’ various capabilities to verify the premise of the dynamic capability view. This paper identified relationships between most prominent firm’s resources for the digital era: knowledge, HR and IT. The results show causes and effects of relationships between capabilities related to these resources.

A Resource-Based Perspective on Information Technology, Knowledge Management, and Firm Performance

2010 ◽  
pp. 296-310 ◽  
Author(s):  
Clyde W. Holsapple ◽  
Jiming Wu
Keyword(s):  
Information Technology ◽  
Knowledge Management ◽  
Firm Performance ◽  
Organizational Resources ◽  
Resource Based View ◽  
Technology Knowledge ◽  
It Capability ◽  
Order Variable ◽  
The Relationship ◽  
Firm Attributes

The resource-based view of the firm attributes superior firm performance to organizational resources that are valuable, rare, non-substitutable, and difficult to imitate. Aligned with this view, the authors contend that both information technology (IT) and knowledge management (KM) comprise critical organizational resources that contribute to superior firm performance. The authors also examine the relationship between IT and KM, and develop a new second-order variable – IT-KM competence – with IT capability and KM performance as its formative indicators. Thus, this chapter contributes not only by investigating the determinants of firm performance but also by broadening our understanding of the relationships among IT, KM, and firm performance.

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