Margi Levy

SMEs: aligning IS and the strategic context

Based on multiple-case research, this paper develops a model of strategic information systems (IS) investment in small and medium-sized enterprises (SMEs). IS investment is modelled as a function of an SMEs strategic context as defined by its strategic focus, i.e. cost reduction versus value added and its market positioning, i.e. few versus many customers. The paper first investigates the ways in which IS may add value to organizations. It then outlines the use of IS in SMEs. This is followed by an analysis of competitiveness in small businesses. The paper develops an analytical model, which is termed the focus-dominance model, analyses case studies of 27 firms and reports that IS investment is strongly influenced by an SMEs strategic context. Four cases are presented in order to illustrate the four different IS profiles identified. Finally, the implications for theory and practice are discussed.

SMEs, co-opetition and knowledge sharing: the role of information systems

Co-opetition, simultaneous cooperation and competition, is a recent phenomenon. Co-opetition entails sharing knowledge that may be a key source of competitive advantage. Yet, the knowledge gained by cooperation may also be used for competition. However, there is little investigation of how this problem may be modelled and, hence, managed. A game–theoretic framework for analysing interorganisational knowledge sharing under co-opetition and guidelines for the management of explicit knowledge predicated on coordination and control theory has been proposed, but remains untested. This research empirically investigates these issues in the context of small and medium-sized enterprises (SMEs). SMEs provide an interesting setting as they are knowledge generators, but are poor at knowledge exploitation. The paper uses data from U.K. SMEs to investigate co-opetition, management of knowledge sharing and the role of IS.

Information systems strategy for small and medium sized enterprises: an organisational perspective

Information systems strategy (ISS) use is under-developed for, and under-researched in, small and medium sized enterprises (SMEs). This paper reviews existing approaches to ISS for SMEs, finding them now out-dated and technology-focussed. The paper develops an approach that reflects on the role of information as a strategic resource. It argues that ISS recommendations in small firms need to take account of organisational change issues as much as information system implementation. The revised approach to ISS for SMEs is demonstrated through its application to over 40 cases in the UK West Midlands. The influences from the processes on outcomes are discussed and the effectiveness of tools and techniques recommended is assessed.

SME Flexibility and the Role of Information Systems

Small and medium-size enterprises (SMEs) are a major component of all economies and are generally considered to be flexible, adaptive organisations. Although lagging behind their larger counterparts, SMEs are beginning to invest in information systems. Using data derived from a set of manufacturing SMEs located in the U.K., this paper investigates whether SMEs really do exhibit flexibility and if their use of information technology enhances or inhibits such flexibility.

Information systems strategies in knowledge-based SMEs: the role of core competencies

Research into the sources of competitive advantage identifies two competing views. The first concerns industry structure, and the role of information systems (IS) in enabling competitive advantage is to lower cost, build barriers to entry and tie in customers and suppliers. The second view is resource-based. This argues that competitive advantage arises from the ability to accumulate resources and capabilities that are rare, valuable, non-substitutable and difficult to imitate. This paper discusses the role of IS as firm resources and the role of such resources in small firms (SMEs). It uses as a vehicle, the identification and development of an information systems strategy (ISS) in a knowledge-based SME. The use of core competencies or capabilities, a key aspect of resources, as a basis for an ISS is contrasted with the use of a structural approach exemplified here by the value chain. Using participant observation research in a not-for-profit organisation that provides consultancy in social housing, this paper investigates these approaches. The paper concludes by identifying a number of areas for further research including the operationalisation of the core competence perspective in developing an ISS.

The Dynamics of SME Information Systems

The process by which small firms (SMEs) invest in and gain benefit from information systems (IS) is little understood. This paper analyses two alternative models of IS-based strategic change – the Focus-Dominance model (Levy et al., 2001) and stages of growth models as applied to SMEs. An analysis of the outcomes of IS strategy development undertaken for 43 SMEs maps their IS use over time. The analysis supports the Focus-Dominance model, some parts of the stages of growth model and extends the critique of the latter. Further variances are explained by the entrepreneur/owners values and experience. One structural variable, namely, the industry sector may also explain the variances. The implications for theory and practice are discussed.

Assessing information systems strategy development frameworks in SMEs

Abstract Information systems strategies (ISS) are generally believed to be of considerable benefit when planning information systems. The development of ISS is often performed in an ad hoc manner, though it may be undertaken with the support of frameworks. Some of these frameworks include the codification of existing practice, while others are the result of theory development. Some are tried and trusted, while other languish unused. This paper evaluates the usefulness of ISS frameworks in the context of small and medium-sized enterprises. The applicability of the frameworks to these organisations is assessed. The paper demonstrates that the assumptions upon which ISS development models are based may have limited applicability outside their original domain. Finally, a modified framework is proposed.

Exploring Internet Adoption Drivers in SMEs

Abstract Government policy worldwide is to assist small and medium‐sized enterprises (SMEs) to become e‐enabled, yet it is unclear what impact this has. There is evidence that customers drive e‐adoption due to the need to integrate information in the supply chain. There is also evidence that SME owners drive adoption, primarily as a response to perceived benefits. However, there is little exploration of the role of government initiatives in influencing e‐adoption strategies in SMEs. This paper uses network agency theory to investigate Internet adoption in SMEs. The research identifies five influence networks: expert – primarily in IT firms; industry‐led – SMEs working in collaboration with sector organizations; and customer‐led – driven by customer requirements. The drivers of these three networks are primarily strategic. The other two networks, ICT support and novice, are driven by the SME owner. The key difference is the maturity of internal IT. This research demonstrates that government policies and st...

An ethical perspective on information systems evaluation

The evaluation of information systems (IS) is a major concern of business, and a variety of approaches have been developed to tackle the issue. These approaches vary in their use and usefulness, yet few consider or incorporate ethical aspects of the process and the outcomes. A framework for assessing the ethics of information systems evaluation approaches is developed and investigated. It is argued that ethical issues are an important and unavoidable feature of IS evaluation, despite their lack of consideration. A framework is developed that demonstrates that ethical considerations are implicit in the concept of evaluation in terms of its purposes, its processes and its involvement of people. Concludes by considering how evaluation approaches might be extended to include a more substantial ethical content.

Assessing the value of information systems planning at Heath Springs

While information systems planning has long been advocated for large businesses, there has only been a tacit feeling that smaller companies can gain from such activities. Further, there are very few worked examples of how smaller companies might carry out information systems planning and what benefits might be obtained. This paper attempts to address both these deficiencies by describing the development of an information systems plan for a UK spring manufacturer and then analysing the potential benefits that may accrue to the organisation. The paper serves to illustrate a process for information systems planning comprising an analysis of the context of the business, an examination of its processes, and an investigation of its content.