Effect of Information System Artifacts on Organizational Resilience: A Study among Malaysian SMEs

Abstract

Conducting business nowadays has become much more challenging, and the importance of collective behavioral capacity is paramount regarding the behavior of employees along with internal information systems that form the backbone of many organizations in terms of competitiveness and survivability. This study, therefore, examined the effect of commitment, communication, competency, community, connection, consideration, and coordination on information system artifacts and the effect of information system artifacts on organizational resilience among Malaysian SMEs. To verify these statements and positioning, a sample of employees from registered organizations of the Malaysian Digital Economic Corporation Sdn Bhd (MDEC), participated in this study to examine a number of aspects. Quantitative data were collected from a total of 252 respondents through a questionnaire survey and data were analyzed using PLS-SEM. We performed the endogeniety assessment for the all the seven input variables and confirmed lack of endogeniety issues. The findings of this study constitute essential results that the commitment, communication, competency, community, connection, consideration, and coordination positively influenced the ISA. Furthermore, the mediating effect of ISA on the relationships of organizational resilience with commitment, communication, competency, community, connection, consideration, and coordination, had been revealed. The study concluded that a positive set of behavioral capital, if it exists inside organizations, enables the organizations to prosper and survive. Similarly, policymakers need to address the issue surrounding resilience in SMEs by establishing the correct benchmarking mechanism by introducing it as a formal activity to be undertaken regularly within the SMEs. Given the vast majority of employment in Malaysia and globally is provided through SMEs, if they become more resilient to change and to unforeseen events, then the employment of the vast majority of the working class can be secured across different nations.Sustainability 2019, 11, 3177 2 of 23 important. Resilience can be described as the capacity to utilize internal resources, such as people and processes within an organization in dealing with uncertainty and misfortune and accomplishment. Mallak and Yildiz [1] revealed that organizational resilience is the most important attribute of modern organizations to remain competitive and likewise, organizations with poor resilience may not survive into the next decade. Therefore, organizational resilience is the capacity that can be developed and maintained at the organizational level through utilizing resources at the disposal of the organization [2]. From a developmental viewpoint, it is a means to manage, develop, and maintain the much-needed capacities to ensure the organization is resilient [3]. This also facilitates the progression of the organization at the national level by helping to created job opportunities. In this study, the capacity viewpoint concerning organizational resilience is premise...

How Does Digital Transformation Improve Organizational Resilience?—Findings from PLS-SEM and fsQCA

“…By adjusting cross-level and cross-departmental interaction rules, digital technology connects business modules and management units that are divided within an organization. Velu [2] proposed that it is essential to maintain collective mobility (e.g., commitment, interaction, and communication) in the face of increasing external disturbances, and that information systems can help enhance organizational resilience through their integration and coordination capabilities. Leong [9], based on an in-depth case study of the 2011 Thailand flooding, discovered that social media technology can be useful for resource integration in community response to natural disasters, as well as for coordinating internal and external resources.…”

“…With the impact of global COVID-19, efficiency improvement, social coordination, and resource allocation brought about by digitization have been particularly significant to the recovery and rebound of organizations. One of the most prominent and consensual views is that digitalization is an effective Sustainability 2021, 13, 11487 2 of 22 way for organizations to achieve organizational resilience [2]. Organizational resilience refers to a firm's ability to effectively absorb, develop situation-specific responses to, and ultimately engage in transformative activities to capitalize on disruptive surprises that potentially threaten organization survival [3,4].…”

Organizational Capabilities, Export Growth and Job Creation: An Investigation of Korean SMEs

“…It not only performs well with a model with multivariate measurements, but it also primarily evaluates a model that uses single-item constructs, such as the one in our study, which has two dependent variables [60,61]. Moreover, the PLS-SEM has also been widely employed in social science research [52,62,63]. Therefore, it is an appropriate statistical method for our study.…”

Estrategias de resiliencia organizacional de las micro y pequeñas empresas turísticas de Pachuca de Soto, Hidalgo ante la COVID-19

“…Las organizaciones generan y usan la información del entorno para adaptarse a condiciones tanto internas como externas (Ahlström-Söderling, 2003;Arsovski et al, 2017;Ates y Bititci, 2011;Carvalho et al, 2016;Gray y Jones, 2016;Velu et al, 2019).…”

“…Es la capacidad para enfrentar las distintas situaciones y poder evaluar si se requieren renovaciones que permitan el avance hacia la meta u objetivo deseado (Carvalho et al, 2016;Duchek, 2020;Hamel y Välikangas, 2003;Mendy, 2020;Velu et al, 2019).…”