Information Technology (IT) and Small and Medium-sized Enterprises (SMEs) Management

Abstract

Globalization and e-globalization are terminologies of high significance when focusing on smaller firm mechanisms of survival and growth. Studying the way firms are using bridging tactics, including strategic alliances, to increase their chance of survival and growth is an important issue. This is certainly true for the smaller enterprises. There are different tools in literature that are used to analyse the strategic partnership within the international context. One of the new approaches to understand the interaction between the firm's activity and its environment is the concept of the ‘Firm Impact Sphere’. In this article we have reviewed important existing knowledge about Information Technology's (IT) impact on the management and other functional aspects of Small and Medium-sized Enterprises (SMEs). We have re-introduced the concept of the ‘Firm Impact Sphere’ and have related that to the structure of strategic alliances, as an example of an effective bridging tactic used by firms to expand into global markets. The ‘Firm Impact Sphere’ concept was initially proposed by Abouzeedan and Busler (2002). According to this concept, there are three types of Firm Impact Spheres: Localized, Semi-globalized and Globalized. Firm performance has different distinct characteristics in each of these types. Using this differentiation, we have analysed the way the concept of ‘Firm Impact Sphere’ would be used in understanding bridging tactics between functionality, with a concentration on international strategic alliances structuring and building.

Importance of managing intangible assets in enhancing dynamic capabilities of firms: cases from Sweden and Germany

“…This is significant, especially with regard to the increasingly dynamic economic/business environment. Furthermore, by focusing on the interdependency between different control mechanisms operating at the same time in the same company, our understanding of MCSs will be more comprehensive (cf., Abernethy & Brownell, 1997;Abouzeedan and Busler, 2006).…”

“…Abouzeedan and Busler (2006) identify different characteristics related to the concept of 'Firm Impact Sphere' (FIP). These characteristics may be used to recognize if a global company is globalized from an information technology perspective.…”

Impact Of It Factors In Nepali Small Family Business Turnover

“…According to Ogbonna and Harris (2005), in an international context, IT has been long recognized by modern organizations as an important operational and strategic business tool for: improving productivity, quality, and effectiveness, creating or maintaining competitive advantage, and redesigning business processes to better support company strategy. Referring Abouzeedan and Busler (2006), to the potential benefits that business can obtain when it utilizes IT are extensive and include efficiency gains (e.g. the automation of clerical procedures), increased management effectiveness (e.g., in decision-making) and improved business performance (e.g., by entering into strategic alliances with other firms).…”

The use and benefits of information communication technology by Polish small and medium sized enterprises

“…The growing number of Internet users has allowed SMEs to increase the number of potential customers located in many countries. Prior studies identify many benefits achieved by SMEs, such as: closer working relationships among value chain partners, lower costs of coordination, communication and information processing, increased productivity, enhanced efficiency and effectiveness, greater access to market information and knowledge, acquiring information system capabilities to support business transformation, as well as better customer responsiveness locally, regionally, or globally (Abouzeedan & Busler, 2002;Alam, Khatibi, Ismail, & Ahmad, 2005;Balocco, Mogre, & Toletti, 2009;Kotelnikov, 2007;Vidgen, Francis, Powell, & Woerndl, 2004). The low adoption and success rate of ICT may be attributed to tendency of SME to be risk adverse, that aspect distinguishes them from larger organizations (Nguyen, 2009).…”