The Influence of IT Management Sophistication and IT Support on IT Success in Small and Medium‐Sized Enterprises

This study examined three factors that influence information technology (IT) success in small and medium‐sized enterprises (SMEs): internal IT support, external IT support, and IT management. Using survey data gathered from 289 small and medium‐sized Chartered Accounting firms in New Zealand, the results suggest that IT management in SMEs is best understood as a multidimensional concept consisting of practices related to: IT planning, IT organizing, IT controlling, and IT leading. This view clarifies and improves our understanding of the nature and character of IT management in SMEs. The results show that some SMEs are significantly more sophisticated than others in terms of their IT management practices. Both IT planning and IT leading were found to influence IT success.     

Power-Dependence and Reseller Influence on SMEs' Continued Use of Online Direct Sales Channels: An Empirical Study

A dual-channel model with a physical sales channel and an online direct sales channel (ODSC) frequently causes channel conflicts. Small- and medium-sized enterprises (SMEs) using such a model may be forced to suspend ODSC to ease conflicts and maintain traditional resellers. From a channel conflict perspective, this study investigates a few critical factors underlying SMEs' intention to continue with an existing ODSC. We develop a research model by integrating power-dependence theory and the technology acceptance model. Then we construct and administer a survey to a sample of US SMEs currently using the dual-channel model. Partial least squares regression is employed to analyze the data and evaluate the impact of four key factors on SMEs' continuance of ODSCs: perceived business value of ODSCs, perceived ease of continuance with ODSCs, reseller dependence, and reseller forceful actions. Findings of the study contribute to the understanding of supplier-reseller relationships and continued use of information technologies among SMEs.     

Unpacking Coordination Benefits in Supply Networks: Findings from Manufacturing SMEs

This paper examines how coordination among firms in supply networks generates benefits in the short and long terms for firms. It focuses on information technology (IT) and process improvement coordination. Analysis was performed on quantitative and qualitative data from a sample of SMEs in plastics manufacturing in Pennsylvania. Results indicate that coordination on both IT and process improvement leads to short‐ and long‐term benefits. These relationships were mediated by the adoption of innovations (when coordinating on IT) and access to new capabilities (in process improvement coordination). These results extend the understanding of how participation in supply networks benefits individual firms.     

Organizational and competitive influences of exploration and exploitation activities in small firms

This study explores organizational and competitive factors affecting exploration/exploitation activities in SMEs by examining the role of entrepreneurial orientation (EO), market orientation (MO) and perceived competitive intensity. We test the relationships among these variables using data collected from 55 manufacturing SMEs operating in the southern part of U. S. The findings provide a strong support for a positive association between EO, MO and exploration/exploitation activities. Perceived competitive intensity was only a significant moderator for the relationship between MO and the degree of exploratory activities. Our findings, hence, suggest the significant role organizational predictors play in enhancing exploration/exploitation activities in SMEs. Implications for research and practice are discussed.     

ASP effects in the small-sized enterprise: the case of the Bizmeka service from Korea Telecom

An application service provider (ASP) is a business model providing information technology (IT)-enabled solutions to customers over the Internet. Utilizing an ASP model, small and medium-sized enterprises (SMEs) can acquire affordable IT solutions. Korea Telecom (KT), a leading IT company in Korea, provides an ASP service called Bizmeka to SMEs. In this study, we identify factors influencing the perceived benefits of Bizmeka usage. We also examine the relationship between the perceived benefits of Bizmeka usage and customer satisfaction. Based on the results of our survey, we found the following factors to be important in determining customer satisfaction with ASPs: cost and time impact, maintenance impact, and security risks.     

Becoming a Global SME: Determinants of SMEs' Decision to Use E‐Intermediaries in Export Marketing

Technological advances have made it feasible for small and medium‐sized enterprises (SMEs) to become active in global markets through information technology (IT)‐mediated electronic intermediaries (e‐intermediaries) instead of relying only on traditional export channels. E‐intermediaries may offer SMEs a level playing field for competing with their larger competitors. Based on transaction cost economics (TCE), this study develops a model that can address the question of which transaction costs and characteristics are closely related to e‐intermediary use by SMEs. In addition to providing a better understanding of e‐intermediaries, the study explores the relationships between e‐intermediary use, transaction costs, and transaction characteristics in the context of Korean SMEs. © 2013 Wiley Periodicals, Inc.     

Managing Network Resource and Organizational Capabilities to Create Competitive Advantage for SMEs in a Volatile Environment

By considering embedded opportunities and threats in today's dynamic business environment, this study proposes that small‐ and medium‐sized enterprises (SMEs) can exploit the ties of interfirm networks to access external resources and information, thus enhancing their organizational agility and absorptive capacity in a variable business environment and enabling superior organizational performance. This study enables SMEs to combine the external resources embedded in strategic networks with internal organizational capabilities including organizational agility and absorptive capacity to create an idiosyncratic competitive advantage in a chaotic business environment.     

Solving Export Marketing Problems of Small and Medium-Sized Firms from Developing Countries

Abstract

This study shows how networks can be used to solve the export marketing problems manufacturing firms in developing countries are facing. Major export barriers perceived by manufacturing firms in Eritrea are identified and, subsequently, differences in perceptions between footwear and textile manufacturers, and small and medium sized firms are examined. The findings suggest that some problems can be solved through individual action by the firms (market or hierarchy). However, small and medium-sized firms on their own can't solve the most important problems, like the lack of market information, the preparation of proper designs and the fulfillment of minimum quantity requirements. The major conclusion is that export market entry by SMEs in developing countries will not be successful if no horizontal and vertical business networks are established.     

Learning Networks as an Aid to Developing Strategic Capability among Small and Medium-Sized Enterprises: A Case Study from the Irish Polymer Industry

Strategic decision making within small to medium-sized enterprises (SMEs) is a necessary element for business growth. SMEs must adapt and become more efficient and dynamic within current business paths and in finding new paths. Traditional philosophies are not focused on delivering new capabilities or developing new business paths. Learning networks are cooperative associations of partner firms that share knowledge, physical resources, and expertise to improve current performance and to advance new business paths. Ireland has emerged as a significant net contributor of plastics to the global medical device, telecommunications, and ophthalmic sectors. The role of the first polymer network as a catalyst for both new business development and increased technological enhancement is advanced in this study of Mould-Tech, an Irish polymer manufacturing firm. Adaptation of dynamic learning networks as expounded in this study present participant firms with new opportunities both to learn and earn—that is, to enhance and acquire new capabilities and to grow their businesses.     

Evolution of an international joint venture: The case of a French‐Brazilian joint venture

Considering the situation of low performance of joint ventures, a certain number of studies have concluded that there is a close relationship between the initial conditions of creation of joint ventures and their success or failure. Nevertheless, other explanatory factors can be identified through dynamic analysis of the joint venture. For this purpose, on the basis of the case of the Franco‐Brazilian Algar‐Bull joint venture in the information technology sector, from its creation in 1983 to its dissolution in 1998, the aim of our research is to study the influence of external evolution processes ( partners' adaptive strategies and changes in environmental constraints) on the success or failure of a joint venture. © 2006 Wiley Periodicals, Inc.     

Internationally leading SMEs vs. internationalized SMEs: Evidence of success factors from South Korea

Previous studies on the internationalization of small and medium-sized enterprises (SMEs) have typically compared the performance of internationalized SMEs (I-SMEs) with that of non-internationalized SMEs. However, not all I-SMEs can successfully lead the international market either unless they should consistently strive to attain and maintain competitive advantages. Thus, this study aims at identifying success factors which influence efforts of I-SMEs to lead international markets as internationally leading SMEs (IL-SMEs). To examine the success factors of the IL-SMEs, in this paper, IL-SMEs are specifically defined as I-SMEs which occupy dominant positions in the international market, i.e., ranking among the top three worldwide. The results based on a sample of 88 South Korean SMEs including 18 IL-SMEs and 70 I-SMEs indicate that 18 factors (out of 47 factors) show significant differences between IL-SEMs and I-SMEs in terms of customer relations/service, technological innovation, and corporate strategies. Also, by factor analysis and logistic regression analysis, three factors influencing the success of IL-SMEs are identified in the perspectives of technological innovation (R&D) and international marketing (customer satisfaction and demand quality/scope). Surprisingly, internationalization strategies and external markets have no relationship with performance of IL-SMEs. These results provide important implications to policy-makers interested in the sustainably international competitiveness of SMEs.     

Network ties and export propensity of Vietnamese small and medium enterprises

This paper investigates the impacts of different network ties on export propensity of Vietnamese small and medium enterprises (SMEs) in the manufacturing sector. Using data from a survey of over 2,600 manufacturing SMEs in 2015, we found that social networks contribute positively to the export propensity of SMEs, while the size of business networks negatively associates with the likelihood of export. However, bank networks and political networks are not significant for the propensity to export of Vietnamese SMEs. We discuss the results in detail and offer recommendations for SME owners, managers and policy makers.     

The influence of age on SMEs’ growth determinants: empirical evidence

This paper seeks to investigate whether age is a fundamental characteristic of the relationships between determinants and growth. The empirical evidence obtained allows us to conclude that: (1) age and size are restrictive factors of the growth of young SMEs, but they are not important for the growth of old SMEs; (2) cash flow and debt are of greater relative importance for growth in young SMEs than for growth in old SMEs; (3) R&D intensity and labour productivity are of greater relative importance for growth in old SMEs than for growth in young SMEs; (4) interest on debt is of greater relative importance for diminished growth in young SMEs than for diminished growth in old SMEs; and (5) R&D intensity in situations of financial deficit is of greater relative importance for diminished growth in young SMEs than for diminished growth in old SMEs, but only in context of high-tech SMEs.     

SME Flexibility and the Role of Information Systems

Small and medium-size enterprises (SMEs) are a major component of all economies and are generally considered to be flexible, adaptive organisations. Although lagging behind their larger counterparts, SMEs are beginning to invest in information systems. Using data derived from a set of manufacturing SMEs located in the U.K., this paper investigates whether SMEs really do exhibit flexibility and if their use of information technology enhances or inhibits such flexibility.     

Size, strategic, and market orientation affects on innovation

Based on a random sample of 500 South Yorkshire non-hi-tech manufacturing small, medium-sized enterprises (SMEs) the quantitative findings support the hypothesis that size, strategic, and market orientation associate with innovation. The results show that prospectors are medium-sized companies and small companies, defenders. Prospectors are more innovative and market-oriented than defenders. The findings reveal that to succeed in an intense competitive environment, non-hi-tech manufacturing SMEs have to be proactive toward market opportunities, receptive to innovation and take the lead in new product innovation. However, their weaknesses include a lack of flexibility, a partial open culture and an organizational structure that impedes sustained innovation. This study addresses a gap in the literature, by linking innovation to the strategic orientation of the firm instead of examining firms' specific characteristics or the effects of external environment and structural factors. The research focuses on non-hi-tech manufacturing SMEs.     

An Analysis of External Finance Availability on SMEs’ Decision Making: A Case Study of the Emerging Market of Poland

This article explores an understanding of the entrepreneurial behavior of small and medium enterprises (SMEs) in Poland, one of the emerging markets of the European Union, during the recent period of economic slowdown. It considers the role of accessibility to external financial resources in shaping decisions undertaken by such enterprises. The hypothesis is that, in a period of economic slowdown, SMEs that have difficulty in accessing external sources of financing adopt different strategies than those that have free access to those resources. The findings indicate that access to the external sources of financing is a statistically significant factor determining decisions of SMEs in relation to employment reduction, price reductions on goods/services, suspension of previously planned investments, and an increase in the level of salaries. Consequently, the study is important as it considers factors that impact the success and survival of SMEs in the emerging market; it is also unique, as it investigates these aspects in the recent period of the global economic downturn. © 2014 Wiley Periodicals, Inc.     

The Internet and Internationalization of Smaller Manufacturing Enterprises

Abstract

One of the most frequently discussed topics in the current international business literature is the impact of the Internet on the internationalization of smaller manufacturing enterprises (SMEs). The study was carried out through a mail survey of the top executives of 125 Wisconsin firms. It examined 10 research hypotheses on internal and external factors which had been identified by previous research to influence the internationalization of SMEs through the Internet. Research findings conclude that the scope of internationalization of SMEs through the Internet is affected by internal factors, such as managements' perceptions of the effectiveness of their web sites as a marketing tool, lack of experience, and SMEs' potential usage of the Internet.     

Barriers to internationalization: A study of small and medium enterprises in India

Small and medium enterprises (SMEs) play a significant role in the growth of the economy. Many SMEs have set up activities beyond their home markets, and their role is more important in contributing to future growth. They are confronted with international competition and forced to compete in international markets. In this study, authors have categorized obstacles to firm internalization as internal and external barriers. The three dimensions of external barriers include governmental and economic political/legal barriers, procedural, and currency barriers, and task and socio-cultural barriers. The internal barriers considered for the purpose of the study were informational barrier, managerial barriers, financial barriers, and marketing barriers. Authors have used adapted scale from previous researches in these domains. Database accumulated the SMEs that were involved in manufacturing activities in the state of Rajasthan, India. The measurement model is a confirmatory factor analysis. The measures used within this study were within the acceptable levels supporting the reliability of the constructs. The analysis of the data revealed that there was moderate correlation between the external and internal factors. Within the external factors, procedural and currency barriers showed the highest obstacle for SMEs in their pursuit for internationalization followed by task and socio-cultural factors. Results specified that the entrepreneurs were not able to handle and manage foreign exchange fluctuations due to their lack of knowledge in this field.     

Exploring SME cybersecurity practices in developing countries

The continued use of information technology systems by small and medium enterprises (SMEs) in developing countries has the potential to bring significant benefits but, at the same time, expose them to online cybersecurity threats. Addressing these threats is, therefore, of paramount importance for developing countries, not only because SMEs are seen as the vehicle for employment and job creation, but because research on SMEs and cybersecurity in this context is limited. This study is a contribution toward addressing this gap.

The purpose of this study is, therefore, to explore SME cybersecurity practices and the challenges they face in developing countries. The goal is to sensitize practitioners and government institutions about the challenges and practices faced by SMEs, so that the various parties can work collaboratively in providing context-specific solutions to address these challenges and improve current cybersecurity practices. The study follows a qualitative enquiry approach to solicit information from three South African SMEs that had implemented cybersecurity practices. The findings show that an SME’s perception of cybersecurity is constrained by internal factors of budget, management support, and attitudes. Further findings show that SMEs’ cybersecurity practices are affected by the landscape of cybersecurity, as well as institutional pressures.