Frank Schlemmer

The Impact of Strategic Assets on Financial Performance and on Internet Performance

Abstract Whereas the resource‐based view (RBV) of the firm is the dominant theory in strategic management research, it has hardly been applied to e‐Business. This paper aims at identifying key performance drivers for small and medium‐sized companies that sell online (e‐SMEs), by empirically examining the impact of resources and capabilities on financial performance and on Internet performance. Regression results of 106 companies showed that resources and capabilities differ in their impact on financial and on Internet performance. Business resources are important predictors of both financial performance and Internet performance. However, dynamic capabilities only affect financial performance (and not Internet performance), and IT resources only drive Internet performance (and not financial performance). The findings have implications for both researchers and practitioners. For researchers the results imply that the choice of the dependent variable can change the main conclusions of a study and, therefore,...

The Internet as a Complementary Resource for SMEs: The Interaction Effect of Strategic Assets and the Internet

It has been suggested that the Internet can be used to leverage a firm’s strategic assets. However, empirical research on complementarity is still rare and frequently inconclusive, especially in the context of small and medium-sized enterprises. We propose a theoretical framework with the independent variables business resources, dynamic capabilities and IT assets. Survey data of 146 small firms suggest that the Internet is complementary with business resources and dynamic capabilities but not with IT assets. Therefore, the framework may enable small firm managers to create competitive advantage by identifying strategic assets that are complementary with the Internet. Furthermore, our research our research highlights the threat of an over-investment in IT assets.

Information Technology and Competitive Advantage in Small Firms

Does IT matter? This book argues that even as IT hardware, software, data and associated processes are becoming more of a commodity, it has never been more important to manage IT as a strategic asset. However, managing IT as a strategic asset is notoriously difficult, as is studying the impact of IT on firm performance. This book sets out to identify, explain and critically evaluate current research in this area. Beginning with a thorough introduction to Schumpeterian economic theory the authors re-cast the pre-eminent theory in strategic management research (the Resource Based View) in the light of a Schumpeterian analysis and identify Dynamic Capabilities as an extension of, but also a radical departure from, RBV. The role of IT as an endogenous technology is discussed and it is argued that how we define IT determines not only how we study it but also how we use it and benefit from it.

Resilience as a Source of Competitive Advantage for Small Information Technology Companies

Resilience, defined as the capacity for continuous reconstruction, is based on Hamel’s earlier work on core competencies. We deploy the resilience concept to explain the performance differentials of small information technology companies. Our interviews with owner-managers suggest that the resilience concept is insufficient to account for competitive advantage and suggest that a sole focus on core competencies can even create competitive disadvantage. In particular, those managers that focused too much on their own core competencies and ignored market developments and other stakeholders created competitive disadvantages. We therefore suggest that resilience can only be a source of competitive advantage if it is extended with the option of replacing core competencies. In addition, core competencies frequently have to be supplemented by competencies of partners or customers in order to achieve competitive advantage.