EDI success in small and medium‐sized enterprises: A field study

This research aims to identify empirically the success factors that have allowed small and medium‐sized enterprises (SMEs) to obtain advantages from electronic data interchange (EDI). These advantages can be operational, managerial, and strategic in nature. Results of a field study done in 39 firms indicate that it is the quality of the organizational context of EDI (organizational support, implementation process, and control procedures) that is crucial to the attainment of benefits from this technology. In turn, the quality of the organizational context is higher when the small firm implements EDI voluntarily rather than having it imposed by a major client or supplier. These results are compared with those of a prior study done in a large business context.     

The determinants of users’ intention to adopt telehealth: Health belief,perceived value and self-determination perspectives

Telehealth is an effective and promising mode of healthcare delivery. It is crucial for society to understand the determinants of user adoption of telehealth to realize its benefits. This research investigates and analyzes the factors that impact the adoption of telehealth services from the users' perspective. The study integrates three theoretical frameworks, namely, Health Belief Model, Perceived Value Theory, and the Self-Determination Theory, to provide a comprehensive understanding of the determinants of telehealth adoption. Using an online survey conducted in Singapore, the study collected 500 responses for data analysis. The findings indicate that perceived threat, cues to action, and perceived relatedness directly affect perceived value, while self-efficacy, perceived relatedness, and perceived autonomy have a significant direct impact on emotion. Additionally, users' perceived value of telehealth services has a direct and indirect positive influence on their intention to adopt telehealth services through emotions. The study offers practical implications for healthcare organizations, policymakers, and media management teams to encourage the adoption of telehealth services by integrating various psychological and health concerns of users that impact their adoption behavior.     

Different determinants at different times: B2B adoption of a radical innovation

This research aims to empirically determine which factors best explain business to business adoption of a radical, high-tech innovation early in the diffusion process. Early lifecycle data collection provides insights about the differences in determinants of adoption at different times in the product diffusion process. The results indicate that differences do exist between the determinants of early adoption, intent to adopt later, and unawareness of the innovation. The influencers of earliest adopters appear to be innovation-focused: the perceived benefits of the innovation as well as the strength of the producer network positively relate to early adoption; early adopters also tend to perceive the technology in the innovation as less different than previous technology than do those who intend to adopt later. The influence of a champion within the adopting firm, the ability of the firm to sense and respond to new technology, and the depth of technology knowledge within the adopting firm are significant influencers across multiple stages of diffusion, showing that firm-internal traits are particularly important influencers of adoption. Laggard firms are missing the critical firm traits that lead to information gathering and understanding of innovations. In addition to contributing to adoption research theory and methodology, this research has implications for innovation-marketing and innovation-adopting firms.     

Critical determinants for mobile commerce adoption in Vietnamese small and medium-sized enterprises

ABSTRACT

This paper investigates the critical determinants of mobile commerce (m-commerce) adoption in small and medium-sized enterprises (SMEs) in Vietnam. A comprehensive review of the related literature leads to the development of a conceptual framework to better understand m-commerce adoption in organisations. This framework is then tested and validated using structural equation modelling on the data collected from 513 Vietnamese SMEs. The study shows that perceived benefits, perceived compatibility, perceived security, organisational readiness, organisational innovativeness, customer pressures, government support, and managers’ IT knowledge are the critical determinants of m-commerce adoption. This study contributes to a better understanding of m-commerce adoption in developing countries, particularly in Vietnam. It can facilitate the development of m-commerce in SMEs by providing evidence-based strategies and policies.     

The Significance of Customer Base in the New Economy: Satisfaction and Perceptions of Success among Small Suppliers and Small Nonsuppliers1

Outsourcing of operations from large businesses to small business suppliers has become a prominent feature of the new global economy. This paper compares the perceived success and work satisfaction of small businesses that supply goods and services to other businesses compared with other small businesses. Small business suppliers and their customers may be engaged in a mutually beneficial relationship, or small suppliers may be disadvantaged as a result of the relationship. Using data from interviews with 715 small business operators, partial support was provided for the disadvantaged position. Suppliers had lower perceived business success compared with other small businesses when other variables were controlled. However, there was no difference in job satisfaction.     

Wages,Health Insurance and Pension Plans: The Relationship Between Employee Compensation and Small Business Owner Income

Small business owners claim that their ability to provide higher wages and more frequent employee health insurance and pension benefits is severely constrained by the profitability of their firms. This paper examines the proposition that employee wage levels, provision of employee health insurance, and sponsorship of an employee pension plan are associated with small business owner income. A large trade-association survey supplies the data for the inquiry. Regression analysis (OLS and logistic) demonstrates that all three forms of employee compensation are tied to business owner income. Further, the business owner income variable "washes out" the generally accepted relationship between size of business and wages, though not the relationships between size of the business and the presence of health insurance nor between the size of business and the presence of pension benefits. The regressions also indicate that unit costs of health insurance and pension benefits are higher for those employing 10 or fewer and 20 or fewer respectively compared the other small businesses.     

Managing Family Businesses in Small Communities

Small businesses located in communities with populations of less than 10,000 were identified in a national sample of family businesses and examined for differences in their management strategies (n = 384). These businesses were first clustered by level and type of management strategy and then analyzed to ascertain differences and similarities in both personal and business firm characteristics among the family business manager groupings. Problems associated with small business management and sources of assistance were also identified. Findings suggest that managers of small family businesses located in small U.S. communities who practiced strategies focusing on extensive planning and controlling perceived their businesses to be successful; however, these managers noted that their greatest problem involved development of sound marketing strategies.     

Improving Marketing Communication & Innovation Strategies in the Small Business Context

This paper is derived from another which was awarded the bestpaper prize at the 9th International Entrepreneurship Conference. Its theme is that while inventions and innovations make significant contributions to the growth and competitiveness of national economies, there are problems in the U.K. surrounding independent inventors (often a small, one person business) and their marketing, where there has been failure to stimulate and exploit inventions compared to other industrialised countries. There are long term implications for economic competitiveness when new ideas are lost. Organisations pursue innovations as an important route in the search for competitive advantage, but this route is fraught with difficulties for independent inventors in getting organisations to accept their products and to market them. This paper reports from and builds on an earlier study from a small business perspective which focuses, firstly, on the importance of capitalising on this source of embryonic talent and secondly, the problems within the marketing communication process between potential adopter marketing organisations and independent inventors. A purposive, non-random sample was drawn, consisting of prominent independent inventors (exemplars of good practice) who marketed both nationally and internationally and the potential adopter manufacturing and marketing organisations (customers). Trade associations with a role in facilitating the adoption process were also contacted. The method of enquiry in the study was by personal and telephone interviews. The findings from these three different groups seem to suggest that stereotypical views of independent inventors held by potential business adopters coupled with the often weak marketing communications and interpersonal skills reportedly possessed by independent inventors present very real barriers to the adoption of new ideas by the business community. The paper concludes that small businesses may be better placed to "exploit" ideas from independent inventors by virtue of their simpler organisational structure. Recommendations for the improvement of strategies to facilitate adoption of inventions with commercial potential are made for both types of small businesses (inventors and small business adopters).     

US small retail businesses’ perception of competition: Looking through a lens of fear,confidence, or cooperation

The U.S. retail industry has undergone dramatic changes, leading to the closing of brick-and-mortar retail stores on a large scale. Understanding perceived market competition among small retail businesses may help explain why certain businesses survive or fail in the altered retail environment. This study investigates small retail businesses' perceptions of competition within/outside the community, underlying reasons for their perceptions, and variations in perceptions by different business characteristics. Contrary to common expectations, we found that more than half of businesses interviewed were optimistic in the face of competition. Our data reveal two salient underlying reasons for pessimism and five for optimism. These perceptions tended to differ by operational locality (urban clusters vs. urban areas), business revenues, and innovativeness. Based on the findings, we developed propositions and a framework of small businesses' perceived competition and sustainable competitive advantage. We discussed theoretical and practical implications for small retail businesses’ sustainable growth in the challenging retail environment.     

External pressure or internal culture? An innovation diffusion theory account of small retail businesses’ social media use

COVID-19 put unprecedented external pressure on small businesses to adopt or increase use of social media while not all small businesses are internally ready for this rapid change. This study investigated the roles of external pressures and organizational culture of openness and learning in driving small retail business owners'/managers' social media use decisions by impacting their perceived usefulness and barriers, based on the innovation-decision process model from the diffusion of innovations theory and the theory of reasoned action. An online survey with structured measurements was administered to 411 U.S. small retail business owners/managers. Results from structural equation modeling revealed that external pressures positively influenced small business owners'/managers’ perceived usefulness and barriers and social media use intention. In addition, the culture of openness and learning positively influenced the perceived usefulness while mitigating the perceived barriers, thereby directly and indirectly influencing the social media use intention. Theoretical and managerial implications are discussed.     

Financial intermingling in small family businesses

This study examines financial intermingling in small family businesses. We define a family business as one in which at least two family members work and the business is owned and managed by one of the family members. This study compares the determinants of intermingling in family and non-family businesses. The empirical results show that family businesses are not significantly different from non-family businesses in terms of intermingling once other business and household characteristics are controlled for. For both family and non-family businesses, differences in financial intermingling are primarily characterized by differences in business characteristics and household net worth. We conclude that intermingling of household and business financial resources are probably more influenced by business characteristics and household net worth than by other household characteristics or whether a business is a family business.     

Logistics Coordination in Dyads: Some Theoretical Foundations for EDI-Induced Redesign

Organizations are redesigning business processes in order to cope with changing organizational environments. Some of these redesigns are enabled by improved information technology. In this article, the redesign of logistics processes in dyadical partnerships is central. By focusing on the operational coordination between partners in the dyad, elements of a theory of logistics coordination are presented. A definition of coordination is given, the cause of coordination is assessed, and the factors that influence coordination are given. Uncertainty is identified as the core concept that causes and is simultaneously affected by coordination. Two process characteristics, "Degree of Freedom" and "Action Variety," are introduced to examine the potential of electronic data interchange (EDI) to redesign logistics coordination. EDI is perceived as a means that supports and intensifies coordination.     

Women business owners in traditional and non-traditional industries

Small businesses continue to grow in importance to the national economy. According to the Small Business Administration, America's 22 million small businesses generate more than half of the nation's Gross Domestic Product and are the principal source of new jobs. The National Foundation for Women Business Owners reported that between 1987 and 1994, the number of women-owned businesses grew by 78% and women-owned firms accounted for 36% of all firms. Although the growth in the number of women-owned businesses is encouraging, the size of such businesses remains small in terms of both revenues and number of employees, especially in comparison to male-owned businesses. One explanation for this disparity is that female business ownership is concentrated primarily in the retail and service industries where businesses are relatively smaller in terms of employment and revenue as opposed to high technology, construction, and manufacturing.One of the most fruitful streams of research in women's occupational choice has been based on social learning theory. Specifically, self-efficacy has been found to relate to both type and number of occupations considered by college men and women, and with regard to traditional and non-traditional occupations. Entrepreneurship researchers have also used social learning theory to study entrepreneurial intentions. This study builds on that background of women's career development and entrepreneurial intentions to examine differences between traditional and non-traditional women business owners. We examine 170 women business owners in various traditional and non-traditional businesses in Utah and Illinois. Questionnaires were the primary method of collecting data, in addition to 11 in-depth interviews from a sample of the survey respondents. Using a careers perspective, based on social learning theory, we hypothesized that women in these two different categories of industries would differ on levels of self-efficacy toward entrepreneurship or venture efficacy, their career expectations and their perceived social support. A second analysis was also done that explored the relationship between the same independent variables and success or performance of the business. The results offer support for using this integrative model to understand differences between women in traditional and non-traditional industries. The first analysis revealed that significant differences exist between the two groups on several of the independent variables. Traditional business owners had higher venture efficacy for opportunity recognition, higher career expectations of life balance and security and they reported that the financial support received from others was more important to them than those in non-traditional businesses. On the other hand, the non-traditional owners had higher venture efficacy for planning and higher career expectations for money or wealth than the traditional group.The second analysis explored whether success, as measured by sales, was affected by differences in venture efficacies, career expectations, or perceived support received by women in traditional businesses as compared to those in non-traditional ones. This analysis revealed that traditional women business owners might have different factors that contribute to their success than non-traditional owners. Specifically, for the traditional owners, venture efficacies for opportunity recognition and economic management as well as the career expectation of autonomy and money (or wealth) were positively related to sales. For the same group efficacy toward planning and the need for security were negatively related to sales. For the non-traditional women, venture efficacy toward planning and the career expectation of autonomy were positively related to sales while the expectation of money or wealth was negatively related. Also for the same group, the perceived importance of the emotional and financial support was negatively related to sales.In the past, most of the entrepreneurial research has used predominantly male samples of entrepreneurs. Those that include women entrepreneurs generally are comparative, between men and women. This study's comparison of two groups of women entrepreneurs offers a unique contribution to the field.Future research is recommended to further understand how venture efficacy and career expectations affect the decision to start a new business in a particular industry. It would be particularly beneficial to study venture efficacy and career expectations of prospective women entrepreneurs prior to the start of the business. Similarly, greater attention should be given to understanding how venture efficacy develops in different individuals.     

On the survival prospects of men's and women's new business ventures

In this study, we examine the relationship between owner and business characteristics and business survival. Our findings are based upon analyses of the Census Bureau's 1982 and 1987 Characteristics of Business Owners (CBO) survey data on a sample of white male and female sole proprietors. Two aspects of this study distinguish it from any related studies to date. First, we separately examine issues affecting the survival prospects of female-owned businesses, whereas previous studies have focussed solely on businesses owned by men. Second, we use data on cohorts of businesses started or acquired in two different time periods, namely 1980–1982 and 1985–1987. Overall, the mean survival rates of male-owned businesses in these two cohorts are 4- to 6% higher, respectively, that those of businesses owned by women.We hypothesize that wage employment provides opportunities for men and women to acquire the financial and human capital necessary for success in business ownership. In fact, most male and female business owners had some prior spell of employment in the wage sector. But there are gender differences in the status of wage workers that, we further hypothesize, could differentially impact the survival prospects of men's and women's new business ventures. First, women's lower average wage earnings may imply more binding financial constraints on the initial scale of women's businesses relative to men's. Second, we find that female owners in both cohorts are less likely than their male counterparts to have had any prior managerial experience or to have 10 or more years of general, prior paid employment experience, which may imply that female entrepreneurs are more constrained in the amount and quality of human capital that they acquire during wage employment. Female entrepreneurs' access to debt and equity capital has not been overlooked by policy makers. What has been largely overlooked are possible gender differences in the amount and quality of human capital of new entrepreneurs. Women's fewer years of general work experience and lesser exposure to managerial occupations may indicate a role for remedial education or mentoring of would-be female entrepreneurs.Women in both cohorts tended to use less financial capital to start or acquire their businesses than men did, and for the 1982 cohort, business survival is found to be positively related to the amount of start-up capital, other factors held constant. The survival prospects of both male- and female-owned businesses are greater for owners with 10 or more years of prior work experience and/or 4 or more years of college. So at least in terms of education and quantity of work experience, female entrepreneurs are at something of a disadvantage relative to their male counterparts. We find that prior managerial experience has no systematic positive or negative effects on the survival prospects of either men's or women's new business ventures, however.Finally, our research indicates that issues concerning business formation and survival must be considered within the context of prevailing macroeconomic conditions. For example, we find that the survival rates of both male- and female-owned businesses started in the 1985–1987 time period were considerably higher than those of businesses started in 1980–1982. Moreover, we uncover systematic differences in owner and business characteristics between our 1982 and 1987 cohorts, as well as differences in how these characteristics influence business survival. Specifically, both male and female owners in our 1982 cohort were better educated, were more likely to have had prior, paid managerial experience, and had more years of prior, paid employment experience, in general. Researchers interested in assessing the survival prospects of businesses over a given time period must consider changes in both product and labor markets over that period. Strength of demand in product markets will have an obvious, direct effect on business viability. The tightening and loosening of labor markets imply changes in potential wage earnings (an opportunity cost of being self-employed) and in this way can affect business dissolution.     

Code and Conduct: Predictors of Irsih Managers' Ethical Reasoning

We analyse Irish managers' perceptions about the degree of wrongness of ten types of unethical conduct. In-person interviews with 348 managing directors of Irish-owned businesses who report their perceptions of the degree of wrongness of ten business ethics problems (the dependent variables) yield the data for our study. Predictors of managers' ratings include the existence of a business code of ethics, perceived frequency of occurrence of the given acts, company size and sector, union membership, Irish business ownership and independence (the independent variables). Results indicate that approximately 75% of those sampled are independent Irish owned businesses but few (only 22% of this sample) have a formal business code. Regression analyses reveal that small firms with a code of ethics predict higher wrongness ratings for managers in regard to the practices of unfair pricing and delayed payments (unethical behavior involving firms) but managers also consider such acts the least wrong overall. Wrongness ratings on the eight remaining unethical acts are explained by the manufacturing sector. However, manufacturing firms in Ireland also have a high percentage of unionised workers indicating that unions influence managerial thinking about social and employee ethics (e.g., discrimination, insider trading). The traditional adversarial Industrial Relations model is useful in noting that unions are important in setting ethical standards for indigenous Irish-owned businesses. Given this reality, management in small, manufacturing firms should work with unions to create a more formal ethics code in order to guard against corruption and to remain competitive in the international marketplace. Those without strong unions might articulate their own organisational values.     

E-Commerce Usage and Perception of E-Commerce Issues among Small Firms: Results and Implications from an Empirical Study*

This paper details the results of an empirical study conducted to study the scope and effectiveness of e-commerce deployment in the Commonwealth of Pennsylvania as perceived by small business owners in the state. The methodology and results of this study may be applicable to several other states. In addition to a comprehensive survey of small businesses, a dozen businesses successful in deploying e-commerce were interviewed at great length. The results showed that main parts of an e-commerce infrastructure included (1) flow of information; (2) organizational image; (3) reaction to customer needs; (4) increased sales; and (5) access to new markets. The major reason for businesses to not engage in e-commerce is their perception that it is not strategically important for their business. Results pertaining to regional parameters, sales tax considerations, human resources infrastructure, and Internet security issues as well as policy recommendations are discussed in the paper.     

Does ICT adoption improve access to credit for small enterprises?

Using data at the bank–firm level collected through the 9th UniCredit Survey conducted in 2012 on a large sample of small businesses, we investigate the extent to which a large international bank offers better credit conditions to enterprises that use ICT more extensively. The results, which are robust to selection and endogeneity issues, show that banks tend to grant increasing volumes of credit to such enterprises. We interpret this evidence as the ceteris paribus effect of ICT adoption by small businesses on the quality of information transmitted to banks. Another possible interpretation is that banks consider ICT adoption as a signal of firms’ willingness to innovate. We also discuss implications concerning the key role that technology plays in changing the ‘arm’s length’ versus ‘relationship’ lending paradigms.     

A Meta-Analysis of Research on Information Technology Implementation in Small Business

The small business sector is one of the fastest growing sectors of the economy. The firms in this sector are becoming increasingly dependent on information systems (IS) for their operations. Traditional research in IS has primarily focused on large corporations. The problems, opportunities, and management issues encountered by small business in the IS area are unique, and research is too limited to provide useful guidelines. This study compares the research literature on IS implementation and research on IS in small business, examines the commonality and differences, and identifies research gaps. An overall research framework is developed to review the research in the two areas and determine areas of opportunity. As a follow-up of this analysis, a research model is developed to explore the factors influencing the adoption of computer-mediated communication technologies in small business. The model incorporates some of the innovation factors that are identified as potential gaps in the earlier analysis. The research model evaluates the impact of 6 factors-perceived usefulness, cost, compatibility, top management support, competitive advantage, and size-on the adoption of computer-mediated communications technologies. A telephone interview was used to collect data from 207 firms. The results of data analysis reveal that competitive advantage, top management support, and size are important determinants of adoption of computer-mediated communication technologies.     

Promises Made, Promises Broken: An Exploration of Employee Attraction and Retention Practices in Small Business

Entrepreneurial organizations have undergone substantial workforce changes and transformations during the last two decades in order to compete successfully on a global scale. The ability to attract and retain reliable and competent employees has become a key component in developing an effective and sustainable competitive advantage. The purpose of this study is to investigate the role of the psychological contract and the types of promises made and communicated by small business organizations to attract and retain their employees. From a sample of 151 employees within small businesses, the results demonstrate that perceived unfulfilled promises can have a considerable impact on workplace attitudes, commitment, and intentions to leave the organization. Implications and recommendations for small businesses as well as directions for future research are discussed.     

The Small Business Sector in Recent Recoveries

Small businesses account for half of private GDP, half of the private workforce, and most new jobs. This paper documents that small businesses have fared unusually poorly in the current recovery, dragging down output and employment growth, even while large businesses and agriculture have prospered. The reasons for the poor performance of small business are documented and analyzed with data from surveys of the National Federation of Independent Business. The findings contradict much conventional wisdom relating to six broad aspects of small business activity: employment and hiring plans, expectations and investment, past sales and earnings, inventories, prices, and credit conditions. The implication of the findings is that a robust economic recovery for the entire U.S. economy will depend on public policy that is tailored to permit and encourage small business expansion.