Virtualization as a Process of Transformation of Small and Medium Enterprises (SMEs) in the Global Virtual Organization

Author(s):  
Jerzy Kisielnicki

The chapter is devoted to the subject the transformation of SMEs due to the application of Information Technology (IT). These enterprises, despite their significant position in local economies, had limited possibilities while competing with large-scale enterprises (LSE) on the global market. Consequently, their role more and more often was reduced to the role of satellites. The use of IT has allowed SMEs to transform into virtual organizations and in this form succeed in the global market. The author has focused on the analysis of the following problems: virtualization as a direction of the development of SME, analysis of its strengths and weaknesses, and new opportunities and risks face medium-scale small construction enterprise that, by using information technology and creating a virtual organization, was able to defeat a large-scale enterprise (LSE) in an international tender for construction of a hotel complex.

2011 ◽  
pp. 1517-1530
Author(s):  
Jerzy Kisielnicki

The chapter is devoted to the subject the transformation of SMEs due to the application of Information Technology (IT). These enterprises, despite their significant position in local economies, had limited possibilities while competing with large-scale enterprises (LSE) on the global market. Consequently, their role more and more often was reduced to the role of satellites. The use of IT has allowed SMEs to transform into virtual organizations and in this form succeed in the global market. The author has focused on the analysis of the following problems: virtualization as a direction of the development of SME, analysis of its strengths and weaknesses, and new opportunities and risks face medium-scale small construction enterprise that, by using information technology and creating a virtual organization, was able to defeat a large-scale enterprise (LSE) in an international tender for construction of a hotel complex.


Author(s):  
Jerzy A. Kisielnicki

A new management trend of the global information technology (IT) application—virtualization—has appeared in the contemporary management. Virtualization is a process of enterprise transformation (using IT) that allows breaking through various limitations of organizational constraints. Virtualization changes dramatically the image of business, especially of small and medium enterprises (SMEs); by adopting the concept of virtualization, they can become fully competitive and may effectively operate in the global market. Barriers of the scale between SMEs and large organizations disappear. This new type of organizations is often called in literature modern organization or virtual organization. Organizations of this type have an effective decision-making process, and function based on economic criteria. Consequently, their opportunities to grow and to compete in the global market are greater than for traditional SMEs. Hence the thesis that virtualization allows individual organizations to enter strategic co-operative alliances with other similar businesses. Such of virtual organizations have a competitive position in the global market. In the literature, there are many terms used to define virtual organization: “network organizations” (Drucker, 1988, p. 9), “organizations after re-engineering” (Hammer & Champy, 1993, pp. 77-79), “crazy organization,” “crazy time for crazy organization” (Peters, 1994, pp. 5-7), and “intelligent enterprise” (Quinn, 1992, p. 3).


2021 ◽  
Vol 12 (2) ◽  
pp. 19
Author(s):  
Emi Suwarni ◽  
Maidiana Astuti Handayani

This study aims to find the strategy of developing MSMEs based on potential and opportunities in the period of covid-19. The research object is the MSME unit in Bandar Lampung City, especially MSME banana chips. This study used qualitative descriptive analysis with SWOT analysis. Based on the results it is known that the position of MSMEs is in quadrant I. The strategy of developing MSMEs is to increase the potential and take advantage of opportunities. One of the strategies is the utilization of information technology and social media in the development of MSMEs of the region's flagship banana chip products. The results of this research are expected to be useful as consideration for MSMEs to develop their businesses even during the COVID 19 pandemic. Likewise, for the government to actively socialize the use of digital media for MSMEs so that MSME development will increase. The limitation of this research is that it has not quantitatively calculated the role of social media and information technology in MSME development. This could be an opportunity for further research


Innovar ◽  
2018 ◽  
Vol 28 (68) ◽  
pp. 105-116
Author(s):  
Elsa Nieves-Rodriguez ◽  
Lorena A. Palacios-Chacon ◽  
Myra Mabel Pérez Rivera ◽  
Victor Quiñones-Cintrón

Offshore outsourcing by organizations has been gaining momentum, powered by advances in information technology and costs differentials. A review of the literature on the subject, though, shows that those scholars who have focused on offshore outsourcing have centered their attention on the activities of multinational enterprises (MNEs) in the manufacturing and services sectors, leaving behind small and medium enterprises (SMEs). Through a number of propositions, this paper suggests that SMEs could also benefit from offshore outsourcing given their particular characteristics and needs. The paper also discusses the similarities and differences in the motivations that SMEs might have in subcontracting their activities outside their boundaries in comparison to MNEs. Knowing this information is important for foreign suppliers in order to adapt and expand their offerings to the needs of these particular firms.


2019 ◽  
Vol 3 (1) ◽  
Author(s):  
Bangun Kuncoro Haryo Aryanto ◽  
Fitriyah Fitriyah

This paper discusses that one way to overcome poverty is by effective economic development. Economic development with a charitable nuance is only a short-term solution and it is feared that it cannot sustainably overcome poverty. Therefore, an inclusive empowerment process is needed, one of which is an economic empowerment program by WVI in the form of economic assistance to present the independence of the community with small and medium enterprises. Through a qualitative study in this paper researchers tries to provide an overview of the role of assistant in empowerment activities. In empowerment, assistant acts as a change agent. There are three things that make WVI as an assistant play an important role in empowerment. Assistant have a role as enablers where they enable change by placing the community as the subject of change. The assistant also plays a role in improving business competence. Lastly, to create sustainable conditions, the assistant needs to initiate the formation of a social system in the community as a vehicle for independent problem solving.


2022 ◽  
pp. 123-147
Author(s):  
Marko S Hermawan ◽  
Ubaidillah Nugraha

Small and medium enterprises (SMEs) have been the backbone of Indonesia's economy for over 100 years. There is nearly 64-million-unit business, with 98% of the market share belonging to the micro-business and 52% categorized as informal. Despite the uncertainty created by the prolonged crisis, a path of recovery is happening in the SME sector. Continuous effort to support SMEs has been planned include mapping out a cluster program. This chapter illustrates challenges and types of resilience and cluster issues facing SMEs that need to be resolved to prepare SMEs for recovery, and one of them is information technology. For many businesses, including SMEs, participation in the digital economy is the key to greater resiliency. The development of SMEs in Indonesia is an interesting topic with an actual illustration of the recent trends of Asian countries' economies and businesses in the current COVID-19 pandemic.


2013 ◽  
Vol 310 ◽  
pp. 703-709
Author(s):  
Shi Bo Qin

By analyzing the basic organization and characteristics of regional small and medium enterprises cooperation, and based on two typical cooperative structure of center satellite structure and enterprise cluster common in current SMEs and their mixture structure, we proposed principles and methods of establishing vertically integrated, horizontal integrated and mixed virtual organizations, also discussed the applying areas and implementing strategies for different types of regional virtual organizations.


2019 ◽  
Vol 17 (4) ◽  
pp. 131-140 ◽  
Author(s):  
Patrick Ajibade ◽  
Ezra M. Ondari-Okemwa ◽  
Mamadi M. Matlhako

This paper argues that business enterprises in this competitive global market cannot compete and remain sustainable without effective knowledge sharing to improve business intelligence processes. The central argument hinges on the deployment and use of information technology (IT) as strategic tools to promote business decision making through quick business data analysis and dissemination of business ideas across business units and locations. The study reiterated the critical role IT plays in facilitating a culture of organizational learning and knowledge sharing practices. The study utilized surveys and questionnaires that were distributed to 230 small and medium enterprises (SMEs), and both descriptive and inferential statistics were used to present the results. Findings showed that firms are still using one-on-one meeting to share knowledge, while knowledge sharing activities are controlled through a rigid and inflexible process at the top management level, thereby hindering knowledge flow that is crucial for real-time decision making. The advances in IT have not been used advantageously to improve knowledge sharing and to advance business management. The paper concludes that without strong positive correlation between IT infrastructure integration, and communication strategies and knowledge sharing, the SMEs may not be able to compete in a highly competitive knowledge economy. Consequently, they may lose leverage to another competitor with more robust and mature IT infrastructure alignment for sharing business analytics and intelligence efficiently. A technologically driven, open, and informal approach to knowledge sharing for productive and innovative engagement is recommended. Furthermore, the use of IT that can promote agile and real-time knowledge sharing is recommended.


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