IT as An Enabler to Enhance Fast Growth Small-to-Medium Enterprise Performance

Abstract

Information Technology (IT) is regarded as a facilitator for both small and large firms to speed up transactions between firms and their suppliers and customers, achieve real-time communication, lower transaction costs, and enhance speed and flexibility. However, understanding whether and how IT can help firms to create business value still remains unresolved. Drawing upon resource-based view theory, source-position-performance framework, we develop and test a theoretical model to explore the interrelationships between IT resources (IT human resources, IT infrastructure), IT capability (back-end integration), IT-enabled inter-firm processes (activity integration, coordination, partnership enhancement), and organizational performance in the fast growth small-to-medium enterprises (SMEs) context. We propose that the value of IT depends on how firms employ technologies to develop IT capability which facilitates inter-firm integration and enhances intermediate business processes along the value chains. Struct...