Information Technology Adoption in Small Business: Confirmation of a Proposed Framework

This paper investigates which drivers affect information technology (IT) adoption and which factors relate to a successful IT implementation in small businesses, where the adoption rate is traditionally low and the failure rate is high. The findings from this study suggest that customers are the main driving force of IT adoption. When it comes to IT implementation, our results suggest that managers/owner–managers must engage with five factors: organization, internal IT resources, external IT consultants, supplier relations, and customer relations. These findings give further insight into IT adoption in small businesses and highlight the importance of customer relations in the adoption process.     

Information Technology and Customer Orientation: A Study of Direct,Mediated, and Interactive Linkages

This study investigates whether and how information technology (IT) is linked to a firm's ability to understand and fulfil customer needs, i.e. customer orientation. IT alone or in tandem with other strategic resources may enable businesses to process market intelligence and coordinate organisational responses to meet evolving buyer preferences. Based on a survey of senior marketing managers and PLS path model analyses, we learned that greater IT capabilities are associated with higher customer orientation but in mediated and interactive ways with marketing information quality and organisational trust. These and other findings largely supported the conceptual model. An implication is that while IT capabilities can help firms be more customer-focused, other critical resources must also be present.     

Fueling Innovation through Information Technology in SMEs*

This paper describes a study that investigates the mediating effects of information technology (IT) on the relationships among product and process innovations and firm performance (measured in multiple profitability and growth rate metrics). Using structural equation modeling on a sample of 397 small and medium‐sized enterprises (SMEs), we find evidence that (1) increases on the strategic emphasis placed on innovation, both product and process, positively impact the prominence managers place on IT; (2) the impact of innovation (both product and process) on performance (both profitability and growth) is primarily indirect, felt via the mechanism of the importance managers place on IT; and (3) an increased emphasis on IT abets managers' perception of their firms' performance, as compared with that observed among peer firms (other SMEs).     

The exploitation of market knowledge within relationship orientated small accountancy practices

Within the academic literature there is general acceptance that customer knowledge competence can have a critical influence over whether a firm can successfully achieve a market advantage over competition. There is, however, only limited empirical evidence to support this perspective. This study utilises a previously developed customer knowledge survey tool to compare knowledge management practices within small relationship orientated accountancy practices and small, transactionally orientated firms. The survey was undertaken across a sample of small UK accountancy practices. Results suggest that compared to their transactional counterparts, small relationship orientated firms perceive that customer knowledge is an important aspect of the marketing process. Small, relationship orientated practices also appear to recognise the importance of operating a structured knowledge management system within their organisations.     

Performance expectations of small firms considering radical product innovation

Performance expectations influence business decisions such as investment decisions and demand for supplies, particularly in small firms with limited strategic planning. Despite widespread use of performance expectations by firms and governments when making sales forecasts and economic outlooks, surprisingly little research exists about how small firms form performance expectations. This paper contributes to reduce this knowledge gap by analyzing performance expectations of small firm managers operating in markets with radical product innovations. This paper proposes a model and hypotheses, which explain performance expectations of small firm managers based on firms' current success, radical product innovation, and variables that indicate firms' ability to respond to customer needs for radical product innovation. Data from 200 decision-makers in a real decision-making context support the model. The results show that performance expectations in small firms are only to a limited extent a naïve extrapolation of current success: radical product innovation and small firm's ability to respond to customer needs for radical product innovation influence performance expectations.     

Open innovation and growth in IT sector

IT services are overrepresented among high-growth innovative enterprises. The nature of innovation in IT requires knowledge search and collaboration, which together constitute the inbound open innovation (IOI) strategy. This study analyses whether the IOI strategies in IT service firms lead to different performance effects in comparison to other service and manufacturing firms. A quantile regression on multi-country data from the Community Innovation Survey indicates that innovative IT service companies share the same benefits from increased cooperation as other innovators, while displaying a strong growth dynamic compared to others. Therefore, IT service firms’ growth differential may not be related to external cooperation and knowledge sourcing.     

Technology strategy and performance: a study of information technology service providers from selected Asian countries

The provision of information technology (IT) services to support a wide range of information and communication technology (ICT) products has experienced rapid growth in recent years, particularly in less developed countries in Asia. This paper develops a conceptual model to test the impacts of the technology strategy of IT service providers on two measures of performance based on the experience of a sample of 98 IT firms from Korea, China, Thailand and the Philippines. It is found that technology strategy related to the adoption and diffusion of technology contributes positively to both performance measures. While the technology capabilities of firms, both internal and external, are important for financial performance, internal technological capabilities are more effective for the firm’s response to market changes. The technology competence of employees reflected by their education levels and the availability of in-house training are also found to be crucial for financial performance. The overall results suggest that technology strategy contributes significantly towards the performance of IT service providers but the impacts of different strategies on the financial and strategic performance of firms vary markedly.

Putting market-facing technology to work: Organizational drivers of CRM performance

A large proportion of firms that adopt customer relationship management (CRM) technology find it challenging to integrate CRM technology into their core marketing processes and utilize CRM strategically to appreciably improve their performance. The authors conceptualize a model to understand the drivers of superior CRM performance after CRM technology has been adopted by a firm and examine strategic utilization of CRM technology as driven by user acceptance and proficiency in the form of employee buy-in and expertise. Top management championship practices, employee information technology (IT) skills, and CRM knowledge are identified and examined as key building blocks toward strategic utilization. The empirical test of the conceptual model is based on a mail survey of North American firms that have adopted information technology-based CRM systems. The results, based on random effects model, show that strategic utilization of CRM technology leads to higher performance when there is an emphasis on using it to manage business-to-business rather than business-to-consumer relationships, user expertise (but not buy-in) impacts CRM performance through strategic utilization, and top management championship practices, CRM knowledge, and employee IT skills impact strategic utilization through buy-in and expertise.     

Geography,knowledge spillovers and small firms’ exports: an empirical examination for The Netherlands

This study examines the impact of external and internal scale economies on the decision to start exporting and the level of exports of innovating firms. Based on new trade theory, increasing returns to scale—both internal and external scale economies—are considered an important source of comparative and competitive advantage. The empirical analysis of (small) innovating firms in The Netherlands leads to two main findings. First, firms that are located in technical Marshallian clusters seem less inclined to become exporters. Availability of technical knowledge alone does not help to reduce entry costs that come with the decision to export and/or marketing and sales costs in order to achieve a higher export performance. Second, firms that experience difficulties in appropriating innovation rents due to labour poaching also seem to be less inclined to become exporters. The explanation for this second finding is the importance of outgoing knowledge spillovers, which is particularly relevant for small, product innovating firms. This reduces their probability to export. However, if firms export, the knowledge leaking argument is not valid for the export performance of the firm.     

Information Technology and the Performance of Japanese SMEs

This paper examines the impact of investment in information technology (IT) on the performance of Japanese firms. My findings imply that there is a positive and statistically significant relationship between IT and firm profitability and innovation, but only for small firms. These results underscore the importance of investment in IT for small companies. The acceptance of IT by this sector is fundamental to the success of structural adjustment in the Japanese economy.     

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.     

Organizational and Interorganizational Determinants of EDI Diffusion and Organizational Performance: A Causal Model

Electronic data interchange (EDI), a specific form of interorganizational systems, has the potential to significantly influence business operations and the exchange of business documents in a number of industries and to provide substantive tangible and intangible benefits to the participating firms. However, successful implementation and diffusion of these systems innovations requires the cooperation and commitment of all participating member firms. A number of interorganizational as well as internal, organization-specific factors can influence both the extent to which EDI is diffused and used and the level of subsequent benefits that accrue to the firms.

Research from sociopolitical process framework in marketing, organizational theory, innovation theory, use of information technology for competitive advantage, and information systems (IS) implementation was used to identify 3 interorganizational variables (customer support, customer expertise, competitive pressure) and 4 organizational variables (internal support, EDI's benefits potential, EDI compatibility, resource intensity). In this study, we develop a multidimensional measure for EDI diffusion to capture both external integration and internal integration. We then examine the influence of these 7 variables on the extent to which EDI adopter firms pursue diffusion and whether more diffusion leads to superior organizational-level outcomes.

Two senior executives (the chief executive officer and a senior manager responsible for the IS function or EDI) from 83 firms in the motor carrier industry participated in a field survey. The results from a structural equation model (SEM), developed using LISREL, provide quite a strong support for the hypothesized relations. All 4 organizational variables and 2 of the 3 interorganizational variables (customer support and competitive pressure) influence EDI diffusion. The results also indicate that external integration dimension of diffusion enables adopter firms to achieve improved operational and market-oriented performance, whereas internal integration contributes only to operational performance.     

Logistics service capabilities and firm performance of international distribution center operators

This study empirically evaluated the crucial logistics service capabilities and firm performance of international distribution center operators in Taiwan. Three critical logistics service capabilities were identified based on factor analysis: (a) innovation capability, (b) customer response capability, and (c) flexible operation capability. Cluster analysis was subsequently used and based on their mean scores in the three logistics capability dimensions, respondents' firms were assigned to one of three groups, namely: customer response and flexible operation capabilities-oriented firms, customer response and innovation capabilities-oriented firms, and customer response capability-oriented firms. Findings indicated that customer response and innovation capabilities-oriented firms had the best firm performance, followed by customer response and flexible operation capabilities-oriented firms and customer response capability-oriented firms.     

Impact of operational innovations on customer loyalty in the healthcare sector

This study investigates the effects of operational innovations, such as application of advanced information technology (IT) systems and supported knowledge and skills (SKSs), on care quality and customer loyalty in the healthcare industry. A research model is proposed based on previous studies and examined the relationships among the constructs using the structural equation modeling approach. Research data were collected through a survey of patients and employees of participating hospitals in Korea, with a patient and an employee as one set. The results of the study indicate that operational innovations result in improved customer closeness, which is associated with IT systems usage and SKSs for delivery of quality care, which have a positive impact on patient satisfaction and customer loyalty. Thus, hospital managers should encourage employees to generate new ideas for work efficiency, care quality, customer loyalty, and organizational performance.     

Crisis challenges of small firms in Macao during the COVID-19 pandemic

This research develops a framework that combines crisis stages, stakeholder engagement, and crisis challenges. The framework is applied to small firms in Macao during the 2019 novel coronavirus disease (COVID-19) pandemic crisis. We conduct a qualitative study based on semi-structured interviews with the leaders of six small firms in Macao. The findings suggest that the COVID-19 pandemic has turned into a “normal” context, which blurs the traditional crisis termination stage. We also find that participating firms engage more with internal stakeholders than external ones. The strategies adopted by small firms include flexible human resource (HR) practices, cost reduction, enhancing customer relations, and using government support schemes. These strategies are effective in the short term; firms need to pay attention to diversity and learning for the long term.     

Process and intensity of internationalization of IT firms – Evidence from India

This paper provides insights and evidence related to the process and intensity of internationalization of firms in the Information Technology (IT) sector, which is the driving force of high economic growth in the Indian sub-continent during the last two decades. Research objectives were set as (i) to examine the existence of born global firms in the IT sector, (ii) to identify the process of internationalization adopted by firms in the IT industry, (iii) to measure the intensity of internationalization of IT firms. The paper is based on data collected from annual financial reports of firms listed in the CNX IT Index of National Stock Exchange of India. Two clusters were extracted using hierarchical clustering method followed by k-means clustering to analyze the characteristics of the variables. We find that the firms in both clusters are true global firms with 66 and 85% of their income from foreign markets with a very high level of international intensity. Though the findings provide some evidence for the gradual internationalization of Indian IT firms; the empirical results indicate that firm age has no impact on internationalization. The results from our study also show that firms, especially in certain industries such as IT, do have access to information that reduces the risk aversion.     

Jobs mismatch and productivity impact of information technology

This paper studies the link between jobs mismatch and the impact of information technologies (ITs) on the efficiency of small service firms. From the perspective of job matching theory, the paper explores how small service firms that use ITs obtain an optimal matching between new skill requirements and workforce skills. The hypotheses suggest that optimal equilibrium will be obtained by matching IT intensity to ITs training and the proportion of workers with high educational levels. The study tests the hypotheses on a large sample of small services firms in Spain. The results confirm that matching the educational levels of the workforce with the IT intensity of the firm increases the efficiency of small service firms, while mismatch will decrease it. The contribution of IT training to firms' efficiency depends on training intensity but not on IT intensity.     

Achieving Growth and Responsiveness: Process Management and Market Orientation in Small Firms*

Achieving a consistent market orientation is a challenge for entrepreneurial manufacturers. This research seeks improved understanding of how internal process management assists and hinders small growing manufacturers in achieving the responsiveness component of a market orientation. Under process management, firms implement internal systems, procedures, and performance measures to improve performance and responsiveness to changing markets. Benefits include improved market sensing, two‐way communication, and coordinated responses to market demands. Despite the potential benefits, researchers question whether the internal structure and control of process management will improve responsiveness in entrepreneurial firms. Process management may conflict with the organizational cultures, agility, and responsiveness of entrepreneurial companies. Research results identify how process management assists and hinders the responsiveness component of market orientation in small manufacturers. Management implications and strategies for coping with growth challenges are presented.     

Accounting Career Cycles

Abstract

This paper examines the career cycle of accountants in public firms in order to develop methods to extend intra-organizational careers and thus improve customer service. A model of the public accountant's career cycle is developed to facilitate this purpose and expose the effects internal CPA firm policies have on small business clients. Accounting firms are encouraged to revise existing career development patterns. Small businesses should consider implications of potential consultant career cycle policies on perceptions of engagement quality and costs.     

Evolving "New Marketing" Philosophies By Merging Existing Concepts: Application Of Process Within Small High-Technology Firms

The important role of small high-technology firms in both job creation and new innovations capable of sustaining a country's competitive advantage has understandably caused many Governments to be interested in factors influencing the market performance of these types of firm. A potential hazard with alternative emerging theories about appropriate marketing philosophies is that polarisation of opinions may cause theorists to reject alternative perspectives despite the fact that observations of "real world" marketing practice may suggest that a hybrid managerial approach is the most appropriate response to prevailing market circumstances. If one accepts this perspective, it permits merger of the transactional, relationship and entrepreneurial schools of marketing thought; thereby generating alternative approaches to marketing practice based upon (i) conservative-transactional, (ii) conservative-relationship, (iii) entrepreneurial-transactional and (iv) entrepreneurial-relationship orientations.

Research questions which arise about a hybrid concept are whether orientation might influence overall performance and the level of internal organisational competencies required of the firm in the key areas of innovation, HRM, employee productivity and decision-making. The results of a mail survey measuring revenue growth suggest that an entrepreneurial-relationship orientation will enhance overall performance of small high-technology firms. The survey also suggests that as entrepreneurial high-technology firms move closer to customers they exhibit higher competencies in areas such as HRM, employee productivity, management of quality and utilisation of information in decision-making.

It is concluded that the research has some interesting implications concerning the appropriate marketing styles available to small, high-technology firms. As entrepreneurial and relationship marketing can enhance performance, then possibly an owner/manager seeking to increase sales may be able to select a style which seem appropriate both to the degree to which customers seek closer relationships with suppliers and the vision of the firm concerning the importance of innovation as a strategy for delivering customer satisfaction. Further research is needed in order to gain additional understanding of (a) the influence of organisational competencies on overall performance and (b) whether marketing style might influence how small high-technology firms acquire the knowledge they require to improve internal operational processes.