Representing a Model to Measure Absorbency Of Information Technology in Small And Medium Sized Enterprises
محورهای موضوعی : IT Strategyمحمدتقی صادقی 1 , Farzad Movahedi Sobhani 2 , Ali Rajabzade Ghatari 3
1 -
2 - Tehran Science and Research Branch, Islamic Azad University, Tehran
3 - ManTarbiat Modares Universityagement and Economic
کلید واژه: Absorbency of Information Technology, , Capability for Innovative Technology, , Small and Medium-Sized Enterprises, , Inside-Out IT Capability, , IT Management Capability, , ,
چکیده مقاله :
With rapid development of information technology (IT) and further deepening of informationization construction, more and more enterprises have realized the strategic value of IT and made great investments in it. However, during the IT implementation process, decision-making, adaptation degree, and IT performance are often inferior to the anticipation. The assimilation of technology can be defined by the extent to which the use of Information technology spreads across organizational processes and becomes routinized in activities. Capabilities of information technology play crucial role in an ever-changing environment and are considered as one of the most important sources for enterprises while enterprises should acquire some effective capabilities so that they can effectively deploy and utilize information technology. The purpose of this investigation is to represent a model to measure absorbency of information technology in small and medium-sized enterprises. To do so, dimensions of the "absorbency of information technology" was determined through exploratory factor analysis in a survey research and confirmatory factor analysis was used to confirm model validity. Findings show that three dimensions are related to absorbency of information technology including the capability for innovative technology, Inside-Out IT capability and IT management capability, among which the capability for innovative technology has the highest correlation with the concept of absorbency of information technology.
With rapid development of information technology (IT) and further deepening of informationization construction, more and more enterprises have realized the strategic value of IT and made great investments in it. However, during the IT implementation process, decision-making, adaptation degree, and IT performance are often inferior to the anticipation. The assimilation of technology can be defined by the extent to which the use of Information technology spreads across organizational processes and becomes routinized in activities. Capabilities of information technology play crucial role in an ever-changing environment and are considered as one of the most important sources for enterprises while enterprises should acquire some effective capabilities so that they can effectively deploy and utilize information technology. The purpose of this investigation is to represent a model to measure absorbency of information technology in small and medium-sized enterprises. To do so, dimensions of the "absorbency of information technology" was determined through exploratory factor analysis in a survey research and confirmatory factor analysis was used to confirm model validity. Findings show that three dimensions are related to absorbency of information technology including the capability for innovative technology, Inside-Out IT capability and IT management capability, among which the capability for innovative technology has the highest correlation with the concept of absorbency of information technology.
[1] N. Ale Ebrahim, S. Ahmed, & Z. Taha, “SMEs; Virtual research and development (R&D) teams and new product development: A literature review [Review]”, International Journal of the Physical Sciences, 5(7), 916–930, 2010.#
[2] M. Mohsin, M. Bashir, and A. Latif, “The effect of information technology support on innovation concepts: A study of textile sector in Pakistan”, International Journal of Academic Research and SocialSciences, 3(3), 105-112, 2013.#
[3] V. Ambrosini, C. Bowman, “What are dynamic capabilities and are they a useful construct in strategic management?”, Int. J. Manag. Rev. 11 (1), 29–49, 2009.#
[4] J.Q. Dong, W. Wu, “Business value of social media technologies: evidence from online user innovation communities”, J. Strateg. Inf. Syst. 24 (2), 113–127, 2015.#
[5] K. A. Pflughoeft, K. Ramamurthy, E. S. Soofi, M. Yasai-Ardekani, and F. Zahedi, “Multiple Conceptualizations of Small Business Web Use and Benefit,Decision Sciences3”,4(3), 467–512, 2003.#
[6] j. Jalali, E. Mahizadeh,”The Investigation of E-Business Trends by Using Social Network Analysis Technique during 1980 to 2015”, journal of IT Management,8(3), 499-518, 2015.#
[7] R. Southwood, ”The impact of ICT on SMEs- a motor for future economic growth in hard-pressed items”, Balancing Act News Update, available at: www.Balancingactafrica.com/news/current.html, 2006.#
[8] S. Boulesnane, L. Bouzidi, “The mediating role of information technology in the decision-making context”, Logistics Inform. Manage. 26 (4), 387–399, 2013.#
[9] P. Theodorou, G. Florou, “Manufacturing strategies and financial performance—the effect of advanced information technology: CAD/CAM systems”, Omega: Int. J. Manage. Sci. 36, 107–121, 2008.#
[10] A. Macpherson, O. Jones, M. Zhang, and A,Wilson, “Re-Conceptualising LearningSpaces: Developing Capabilities in A High-Tech Small Firm”, Journal of WorkplaceLearning 15(6), 259–270. 2003.#
[11] A. Morgan, D. Colebourne, and B. Thomas, “The Development of ICT Advisors for SME Businesses: An Innovative Approach, “ Technovation 26(8), 80–987, (2006).#
[12] R. P. Oakey, S. Y. Cooper, “The Relationship Between Product Technology and Innovation Performance in High Technology Small Firms”, Technovation 11(2),79–92, 1991.#
[13] C. Bull, “Strategic Issues in Customer Relationship Management (CRM) Implementation”, Business Process Management Journal 9(5), 592–602, 2003.#
[14] P. B. Cragg, A. Mills and T. Suraweera, “The Influence of IT Management Sophistication and IT Support on IT Success in Small and Medium-Sized Enterprises”, Journal of Small Business Management51, 617–636. doi: 10.1111/jsbm.12001, 2013.#
[15] E. Mu, L.J. Kirsch, and B.S. Butler, “The assimilation of enterprise information system: an interpretation systems perspective”, Inf. Manage. 52 (3), 359–370, doi:http://dx.doi.org/10.1016/j.im.2015.01.004, 2015.#
[16] N.G. Carr, “IT doesn’t matter”, Harv. Bus. Rev. 81 (5), 41–49, 2005.#
[17] C. Aparecida de Mattosa, F.J. Barbin Laurindob, “Information technology adoption and assimilation: Focus on the suppliers portal”, journal of Computers in Industry, 85,48–57, 2017.#
[18] N., Saraf, H. Liang, Y. Xue, Q. Hu, “How does organisational absorptive capacity matter in the assimilation of enterprise information systems?”, Inform. Syst. J. 23, 245–267, 2013.#
[19] T. H. Nguyen, M. Newby, and M. J. Macaulay, “Information Technology Adoption in Small Business: Confirmation of a Proposed Framework”, Journal of Small BusinessManagement 53, 207–227. doi: 10.1111/jsbm.12058, 2015.#
[20] M.J. Gallivan, “Organizational adoption and assimilation of complex technological innovations: development and application of a new framework”, ACM Sigmis Database, 32 (3), 51–85, 2001.#
[21] R.L. Purvis, V. Sambamurthy, R.W. Zmud, “The assimilation of knowledge platforms in organizations: an empirical investigation”, Organ. Sci. 12 (2),117–135, 2001.#
[22] R. Kouki, D. Poulin, R. Pellerin, “The impact of contextual factors on ERP assimilation: exploratory findings from a developed and a developing country”, J. Global Inf. Technol. Manage. 13 (1), 28–55, 2010.#
[23] L. Raymond, S. Uwizeyemungu, F. Bergeron, S. Gauvin, ”E-Learning adoption and assimilation in SMEs: a research framework. computing and communication technologies, research, innovation, and vision for the future (RIVF), ” IEEE RIVF International Conference, IEEE, 1–4, 2012.#
[24] W.Xu, P. Ou, and W.Fan, ”Antecedents of ERP assimilation and its impact on ERP value: a TOE-based model and empirical test, ” Inf. Syst. Front., doi:http://dx.doi.org/10.1007/s10796-015-9583-0, 2015.#
[25] L.Tornatzky, M. Fleischer, ”The Process of Technology Innovation, ”Lexington Books, Lexington, MA, 1990.#
[26] T. Oliveira, M.F. Martins, ”Literature review of information technology adoption models at firm level, ” Electron. J. Inf. Syst. Eval. 14 (1), 110–121, 2011.#
[27] J.W.Ross, C.M. Beath, D.L. Goodhue, ”Develop Long-Term Competitiveness through Information Technology Assets. Sloan Management Review, ” 38, 31-42, 1996.#
[28] p. Mulligan, ”Specification of a capability-based IT classification framework, ” Information & Management, 39(8), 647-658, 2002.#
[29] N. R. Sanders, R. Premus, ”Modeling the relationship between firm IT capability, collaboration, and performance. Journal of Business Logistics, ” 26(1), 1-23, 2005.#
[30] M. J. Zhang,”Information systems, strategic flexibility and firm performance: An empirical investigation, ” Journal of Engineering & Technology Management, 22, 163-184, 2005.#
[31] S.D. Hunt,”A General Theory of Competition:Resources, ” Competences, Productivity, Economic Growth.Thousand Oaks, CA: sage Publication, 2000.#
[32] S. Madhavaram, S.D. Hunt, ”The service-dominant logic and a hierarchy of operant resources: developing masterful operant resources and implications for marketing strategy, ” Journal of the Academy of Marketing Science, 36(1), 67-82, 2008.#
[33] A. S. Bharadwaj,”A resource-based perspective on information technology capability and firm performance: an empirical investigation, ” MIS quarterly, 24 (1), 169-196, 2000.#
[34] M. Wade, J. Hulland,”Review: The Resource-Based View and Information Systems Research: Review, Extension, and Suggestions for Future Research, ” MIS Quarterly, (28:1), 107-142, 2004.#
[35] G. D. Bhatt, V. Grover, V.GROVER, ”Types of information technology capabilities and their role in competitive advantage: An empirical study, ” Journal of Management Information Systems, 22 (2), 253-277, 2005. #
[36] C. Abecassis‐Moedas, S. B. Mahmoud‐Join,”Absorptive Capacity and Source‐Recipient Complementarity in Designing New Products: An Empirically Derived Framework,” Journal of Product Innovation Management, 25(5), 473-490, 2008.#
[37] P. J. Richard, T. M. Devinney, G. S. Yip, G.Johnson, ”Measuring organizational performance: Towards methodological best practice, ” Journal of management, 2009.#
[38] J.P.-A. Hsieh, R.W. Zmud ”Understanding post-Adoptive usage behaviors: a two-Dimensional view”, International Conference on Information Systems, Milwaukee,Wisconsin,USA, 2006.#
[39] M. Mayeh, T. Ramayah, S. Popa, ”The role of absorptive capacity in the usage of a complex information system: the case of the enterprise information system, ”J. Univ. Comput. Sci. 20 (6), 826–841, 2014.#
[40] J. Ross, W. George ”Preparing for utility computing: The role of IT architecture and relationship management, ” IBM Systems Journal, 43(1): 5-19, 2004.#
[41] G.L. Lee, D.C. Robertson, ”Information technology impacts on potential power and influence”, Boston University Working Paper Series, September, 1989.#
[42] T.H. Davenport, E. S. James, ”The new industrial engineering: information technology and business process redesign”, Sloan Management Review,31(4): 11-28, 1990.#
[43] R. S. Nada, R. Premus, ”Modeling The Relationship Between Firm It Capability, Collaboration, And Performance”, Journal of Business Logistics,26(1),1–23, 2005.#
[44] M. A. Ashworth, T. Mukhopadhyay,”The effect of information technology on organizational learning and knowledge transfer: a natural experiment. In Pittsburgh”, PA: Carnegie Mellon University. Paper presented to Tipper School of Business Monthly Faculty Seminar (11 February 2005).#
[45] M. D. Stoel, W. A. Muhanna,”IT capabilities and firm performance: A contingency analysis of the role of industry and IT capability type”, Information & Management, 46(3), 181-189, 2009.#
[46] M. J. R. Ortega,”Competitive strategies and firm performance: Technological capabilities' moderating roles”, Journal of Business Research, 63(12), 1273-1281, 2010.#
[47] L. Vijayasarathy, D. Turk, ”Drivers of Agile Software Development Use:Dialectic Interplay Between Benefits & Hindrances”, Information & Software Technology; 54: 137–148, 2012.#
[48] G. Garrison, R. L. Wakefield, S. Kim, ”The effects of IT capabilities and delivery model on cloud computing success and firm performance for cloud supported processes and operations”, International Journal of Information Management, 35(4), 377-393, 2015.#
[49] D. Hwang, M. G. M. Yang, P. Hong, ”Mediating effect of IT-enabled capabilities on competitive performance outcomes: An empirical investigation of ERP implementation”, Journal of Engineering and Technology Management, 2015.#
[50] H. Romijn, M. Albaladejo, ”Determinants Of Innovation Capability in Small Electronics and Software Firms in Southeast England,Research Policy”, 31(7), pp.1053–1067, 2002.#
[51] G. Marcelle, ”How Do Telecom Firms Build Capabilities? Lessons from Africa”, Telecommunication Policy, 29(7), 549-572, 2005.#
[52] N. Roberts, P. S. Galluch, M. Dinger, V. Grover, “Absorptive Capacity and Information Systems Research: Review, Synthesis, and Directions for Future Research,” MIS Quarterly 36(2), 625–648, 2012.#
[53] Malhotra, S. Gosain, O. A. El Sawy,”Absorptive Capacity Configurations in Supply Chains: Gearing for Partner-Enabled Market Knowledge Creation”, MIS Quarterly (29:1), 145-187, 2005.#
[54] A. Van de Ven, ”On the Nature, Formation, and Maintenance of Relations among Organizations”, Academy of Management Review, 1(4), 24-36, 1976.#
[55] L.P. Willcocks, D. Feeny, ”IT outsourcing and core IS capabilities: challenges and lessons at Dupont”, Information Systems Management 23 (1), 49–56, 2006.#
[56] T. Ravichandran, L. Chalermask ”Effect of information systems resources and capabilities on firm performance: A resource-based perspective”, Journal of management information systems, 21(4), 237-276, 2005.#
[57] J. Barney, ”Firm resources and sustained competitive advantage”, Journal of management, 17(1), 99-120, 1991.#
[58] K. Ramamurthy, Y. Lu, ”Understanding The Link Between IT Capability & Organizational Agility: An Empirical examination”, MIS Quarterly, 35(4), 2011.#
[59] P. Dubini, H. Aldrich, ”Personal and Extended Networks are Central to the Entrepreneurial Process”, Journal of Business Venturing, Vol. 6, 305-13, 1991.#
[60] Hurley, R., T. Hult, ”Innovation, market orientation, and organizational learning: an integration and empirical examination”, Journal of Marketing, 42– 54, 1998.#
[61] J. Bruderl, P. Preisendorfer, R.Ziegler, ”Survival Changes of Newly Founded Business Organizations”, American Sociological Review, 57(2), 227-42, 1992.#
[62] R. M. Walker, J. Chen, D. Aravind, ”Management innovation and firm performance: An integration of research findings”, European Management Journal, 33(5), 407-422, 2015.#
[63] C. Liao, H. Y. Wang, S. H. Chuang, M. L. Shih, C. C. Liu,”Enhancing knowledge management for R&D innovation and firm performance: An integrative view”, African journal ofbusiness management,4(14), 26-30, 2010.#
[64] P. Shan, M.Song, X. Ju, ”Entrepreneurial orientation and performance: Is innovation speed a missing link? ”, Journal of Business Research, 69(2), 683-690, 2016.#
[65] A. D. Smith,”Competitive approaches to new product development: A comparison of successful organizations in an unstable economic environment”, Team Performance Management: An International Journal, 17(3/4), 124-145, 2011.#
[66] N. Marigo, T. J. Foxon, P.J.G. Pearson,”Chinese Low-Carbon Innovation: Developing Technological Capabilities in the Solar Photovoltaic Manufacturing Industry”, Journal of Knowledge-based Innovation in China, 2(3) , 253 – 268, 2010.#
[67] D. Ernst, T. Ganiatsos, L. Mytelka, ”Technological Capabilities and Export Success: Lessons from East Asia”, Routledge, London, 1988.#
[68] M. D. Mumford, S. J. Zaccaro, M. S. Connelly, M.A. Marks,”Leader ship Skills: Conclusions and Future Directions”, Leadership Quarterly, 11(1), pp.155–170, 2000.#
[69] F. Bougrain, B. Haudeville, ”Innovation, Collaboration and SMEs Internal Research Capacities”, Research Policy, 31(5), pp.735- 747, 2002.#
[70] J. Galende, J.M. Fuente, ”Internal Factors Determining a Firm’s Innovative Behavior, Research Policy”, 32(5), 715-736, 2003.#
[71] C.M. Yam, J.C. Guan, K.F. Pun, P.Y. Tam, ”An Audit of Technological Innovation Capabilities in Chinese Firms: Some Empirical Findings in Beijing, China”, Research Policy, 33(8), 1123-1250, 2004.#
[72] M.L. Tseng, Sh.H.Lin, T.N. Tuong Vy,”Mediate effect of technology innovation capabilities investment capability and firm performance in Vietnam”, Procedia Social and Behavioral Sciences, Elsevier, 40, 817- 829, 2012.#
[73] J. Guan, , N. Ma, ”Innovative Capability and Export Performance of Chinese Firms”, Technovation 23(9), 737–747, 2003.#
[74] R. E. Schumacker, R. G. Lomax,”A beginner's guide to structural equation modeling, Second edition”. Mahwah, NJ: Lawrence Erlbaum Associates, 2004.#
[75] V. Govindarajan, P. Kopalle, E. Danneels, ”The effects of mainstream and emergingcustomer orientations on radical and disruptive innovations”, J. Prod. Innov.Manag. 28(1), 121–132, 2011.#
[76] A. O'Cass, L.V. Ngo,”Winning through innovation andmarketing: lessons from Australia and Vietnam”, Ind. Mark. Manag. 40 (8), 1319–1329, 2011.#
[77] D.A. Levinthal, J.G. March, ”The myopia of learning”, Strateg. Manag. J. 14, 95–112, 1993.#
[78] E. Danneels, ”The process of technological competence leveraging”, Strateg. Manag. J.28 (5), 511–533, 2007.#
[79] N.E. Coviello, R.M. Joseph,”Creating major innovations with customers: insights from small and young technology firms”, J. Mark. 76 (6), 87–104, 2012.#
[80] S.L. Brown, K.M. Eisenhardt,”Product development: past research, present findings,and future directions”, Acad. Manag. Rev. 20 (2), 343–378, 1995.#
[81] V. A. Marbert, A. Soni, M. A. Venkataramanan,” The Impact of Size on Enterprise Resource Planning (ERP) Implementation in the US Manufacturing Sector”, Omega 31, 235–246, 2003.#
[82] C. Ashurst, P. Cragg, P. Herring, ”The Role of IT Competences in Gaining Value from E-Business: An SME Case Study”, International Small Business Journal, 30(6),640–658, 2011.#
[83] C. Dibrell, P. S. Davis, J. Craig, ”Fueling Innovation through Information Technology in SMEs”, Journal of Small Business Management 46(2), 203–218, 2008.#
[84] G. Simmons, G. Armstrong, M. Durkin, ”A Conceptualization of the Determinants of Small Business Website Adoption: Setting the Research Agenda”, International Small Business Journal 26(3), 351–389, 2008.#
