Deploying the Internet for Leveraging Strategic Assets

SMEs frequently suffer from resource poverty. The authors suggest that the Internet can be used to leverage their strategic assets and propose a theoretical framework with the independent variables business resources, dynamic capabilities and IT assets. Survey data of 146 small firms suggest that the Internet is complementary with business resources and dynamic capabilities but not with IT assets. This research may enable small firm managers to create competitive advantage by identifying strategic assets that are complementary with the Internet. Furthermore, the authors highlight the threat of an over-investment in IT assets at SMEsi.

ERP System Selection Criteria

This chapter presents the importance of ERP system selection criteria for SMEs. Altogether, 28 ERP selection criteria were investigated. The criteria were grouped into the ERP benefits criteria, ERP system quality criteria, ERP vendor-related criteria and ERP package criteria. The main purpose of the study was to identify the current situation of ERP usage in SMEs in Slovenia and to measure how important the identified ERP selection criteria are in the process of acquisition of ERP systems. Beside the importance of ERP selection criteria for SMEs, the impact of companies’ factors (company size, representation of the IT department on the board level in the company, implemented information strategy in the company, ERP implementation stage and turnover growth) on ERP system selection criteria was also investigated. The findings are useful for companies considering ERP system implementation and for ERP system vendors to better understand different customers’ needs and expectations.

The Dual Lens Method

This chapter describes the development and testing of a method for information systems (IS) strategy formulation in small and medium enterprises (SMEs). A case study describing a practical experience with the method is presented. Essentially the method is comprised of two complementary analyses: an externally focused strategic analysis and an internally focused business process analysis. The method draws on the work of Levy and Powell (1999, 2000). The method is simple and clearly prescribed and does not require, as does the approach of Levy and Powell (1999, 2000, 2005), the selection of approaches from a range of applicable techniques. However, before assessing IS strategy formulation approaches for SMEs, including the work of Levy and Powell (1999, 2000, 2005) the authors will seek to justify the need for an IS Strategy Formulation Method for SMEs and then reflect on the importance of relevance and practicality, as two features of the approach which are important considerations in terms of establishing the method in practice.

The Perception of Barriers to E-commerce Adoption by SMEs

Electronic commerce (e-commerce) has been utilised as a vehicle to rapidly transform the world into an information society. Yet despite the proven potential of e-commerce in the small business sector, studies have shown that it is the larger businesses that have reaped the benefits, with small/medium enterprise (SME) adoption remaining relatively low by comparison. This slow growth of e-commerce adoption by SMEs has been attributed to various adoption barriers that are faced by small business owners/managers. While many recent studies have begun examining the relationship between the perceptions of adoption barriers in developed economies, the relationship between the perceptions of these barriers has not been fully examined in developing economies. This chapter firstly presents the authors’ understanding of what defines an SME and then highlights our current understanding of the similarities and differences in barriers to e-commerce adoption by SMEs in developed and developing economies. It then describes and discusses a study which examines differences in the groupings and priorities, of barriers to adoption of e-commerce as perceived by SME owner/managers in a developing economy (Indonesia) and two developed economies (Sweden and Australia). The chapter finally describes the implications of these findings for practitioners and researchers.

Supporting SMEs Towards E-Business Success

The low e-Business implementation in small and medium-sized enterprises (SMEs) is an important issue in most countries. This chapter examines the relationship between training, competence and performance of small and medium-sized enterprises (SMEs) and discusses the implications for practice and further research. The study combined data about e-business competences and performance in 339 SMEs with data about training supply from 116 providers of e-business related training in three European countries. The authors find a positive relationship between training, competence and performance and show that training explains variances in e-business competences and performance in terms of efficiency, complementarities, lock-in and novelty. The research contributes to theoretical development by lending support to the idea that methodological issues are an important reason behind the lack of empirical support frequently reported in the literature. The study has practical implications for public policy makers, training suppliers and SME managers.

IT and the Transmission of the SME Culture of Nonprofit Theatres

It is often assumed in the MIS literature and in practice that only large organizations are capable of transmitting culture and information technology (IT) to small and medium enterprises (SMEs). The authors use the framework provided by the metaphor of the third space as proposed by Bhabha (1994 and 1996) to gain insights that refute these popular misconceptions, by demonstrating that dominant powers and former colonies exchange cultural artifacts such as information and communication technologies (ICTs) and best management practices in mutually influential ways. The authors’ research furthers their understanding of the initial relationships (termed mimicry) between small and medium-sized nonprofit theatres and commercial productions (symbolized by Broadway productions) as well as their current and future exchanges facilitated by hybridity in the third space. The authors discover that both groups possess unique cultural competencies that open the door to using Web 2.0 technologies for staging and promoting productions, building relationships with theatre patrons; and numerous other management issues where their expertise can be usefully exchanged.

A Comparative Study of Small- and Medium-Sized Enterprises in Australia and Singapore

Since July 2003, Australia demonstrated the promotion of EC outside the country by forming an international EC partnership with Singapore. While both countries want to increase their international competitiveness by entering this as part of the bilateral free trade agreement, cultural barriers in EC implementation have to be considered and championed. The findings of the study seek to help companies that are embarking upon cross border activities by illustrating the differences in EC implementation in different countries. Results of preliminary interviews of small businesses in both countries show that respondents’ perceptions of EC are pre-dominantly positive. A regression analysis was carried out and 5 out of 19 influencing factors were found to make a significant contribution to the implementation of EC in Australia – observability, communication channel, customer pressure, supplier pressure, and perceived governmental support; while only 3 factors – firm size, perceived readiness, observability have significant impact in Singapore.

Leveraging University Research to Assist SMEs in Legacy Industrial Era Regions

Small and Medium Enterprises (SMEs) in legacy industrial era regions face unique challenges that vary from the challenges faced by SMEs in other regions. Especially, SMEs in legacy industrial regions face problems with respect to the access to knowledge networks. The authors discuss an approach that focuses on enabling the SMEs in legacy regions towards accessing these knowledge networks. The authors base their discussion upon the ongoing debate within the IS community regarding ‘rigor-relevance’ gap, and they take the specific case of SME’s in I-99 corridor to illustrate this. The chapter highlights the challenges faced by SMEs in legacy industrial era regions, and briefly describe the ongoing research project called LAIR (Leveraging Advanced IT Research), aimed at understanding the risks that SMEs in the I-99 Corridor are likely to face as they grow, with a specific focus on risks associated with upgrading, implementing and integrating their existing and new Information Systems.

The Role of Organizational Slack in Technology Innovation Adoption for SMEs

This study explores the relevant dimensions of organizational slack in small and medium enterprises (SMEs) and investigates their impact on adoption of different types of information technology (IT) innovations. Using recent data from a representative sample of 2,296 U.S. SMEs, the authors find that the slack-innovation relationships previously described in larger firms do not hold well for SMEs. Their results show potential slack (measured as access to external credit) to be a strong predictor of technology adoption in SMEs. By contrast, available slack appeared not to be a significant factor in SME innovation adoption. Moreover, the direction of the effects of potential slack was moderated by the capital-intensity of the innovation. In particular, e-commerce, which required lesser financial resources for SME adoption, was found to be pursued by those with lesser potential slack. The authors argue that, in some cases, innovation adoption may represent a form of “bricolage” by resource constrained SMEs.

Managing Impressions of SME Legitimacy

To succeed, SMEs must create legitimacy by mimicking the cues that signal credibility to convince potential stakeholders that something stands behind their promises. This research examines the role of information and communications technology (ICT) in legitimacy-building from the perspective of both SME founders and potential customers. Small and medium-sized enterprises (SMEs) face more serious challenges to their survival than do larger firms. To succeed, SMEs must establish and maintain credibility in the marketplace to attract the resources required for survival. Most borrow legitimacy by mimicking the cues that signal credibility to convince potential stakeholders that something stands behind their promises. This research examines the role of information and communications technology (ICT) in legitimacy creation from the perspective of both SME founders and customers. In-depth, semi-structured interviews were conducted in a variety of industries to determine whether the ICT-related legitimacy schema from the customers’ perspective differs substantially from that of firm founders. Results indicate that customers compare the ICT information provided in SME’s sales pitches to pre-existing ICT expectations about the nature of desirable sales transactions. We describe the relationship between violations of ICT expectations, legitimacy, and purchase decisions. Implications for theory and practice are discussed.