1,721,079 research outputs found

    Profiting from the Accumulation and the Assimilation of IT-based resources and capabilities: An Empirical Study in Small and Medium Enterprises

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    The capability of using Information Technologies (IT) based resources for improving business processes and enhancing the firm economic performance has long been investigated in large firms. Nevertheless, with the decreasing costs of IT solutions, also Small and Medium Enterprises (SMEs) may be able to accumulate and assimilate IT-based resources in order to increase their economic performance. This study applies two conceptual approaches (resource-based view and contingency-based view) to assess the strategic value of IT-based resources in SMEs. Fourteen hypotheses related to these approaches are developed and tested based on survey data collection from the CIOs of 373 SMEs to understand more clearly the entire process from the adoption of IT-based resources to the achievement of higher economic performance, through the development of IT-based capabilities. The influence of internal and environmental factors, and the features of the business environment where SMEs operate are investigated. Results indicate that the resource-based view and the contingency-based approaches provide complementary understanding of the strategic value of IT in SMEs, making five main contributions. First, SMEs that operate under particular environmental (low turbulence and high complexity) and internal conditions (where the IT managerial capabilities are developed) are more likely to adopt earlier IT solutions. Second, SMEs are more likely to develop IT-based capabilities that are internally oriented, rather than the externally oriented. Third, internally oriented IT-based capabilities are developed independently by the environmental conditions where the SME operates, while the externally oriented are developed not uniformly among industry types. Fourth, the features of the business environment in which SMEs operate influence the IT-based resources adopted and the IT-based capabilities developed. Finally, given industry-level differences in competitive environments, the value appropriation of capabilities that firms developed using IT depends on industry type, with SMEs operate in turbulent environments exhibiting lower profit returns, while in munificent environments exhibiting lower or higher profit returns according to the IT-based capability considere

    Big data technologies: investigating their adoption, benefits and risks for companies

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    Companies currently have to deal with profound changes in the way they manage their business, their customers and their business models, since they are overrun by a data-driven revolution in management. This revolution is due to the wide availability of big data and the fast evolution of big data technologies. Big data is recognized as one of the most important areas of future technology, and is fast gaining the attention of many industries, since it can provide high value to companies. This article investigates the adoption levels of big data technologies in companies, and the big data sources used by them. This article also points out the most frequently recognized strategic, transactional, transformational and informational benefits and risks related to the usage of big data technologies by companies. In order to achieve these aims, the paper looks at the differences that exist among companies of different sizes, by comparing medium-sized and large companies, and the differences among companies of different industrial sectors. It provides evidence that only in a few cases these differences are significant. This study could serve as a reference for managers who wish to initiate an evaluation cycle on the adoption and usage of big data technologies

    On the contingent value of IT-based capabilities for the competitive advantage of SMEs: Mechanisms and empirical evidence

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    This article assesses the value of the capabilities developed through the use of Information Technology (IT) in Small and Medium Enterprises (SMEs), by analysing whether these capabilities are a determinant of the intra-industry differential in their performance. Our work makes two principal contributions to the understanding of the value of IT. First, the article shows that externally oriented IT-based capabilities have a greater impact on the firm's intra-industry differential in revenue growth and profitability than those capabilities focused on efficiency improvement, namely internally oriented IT-based capabilities. Essentially, this result is consistent with two facts: i) the greater importance that market and supply chain relationships have for firms with a limited scale compared to efficiency improvement, and ii) the greater social and organizational complexity captured by IT use in firm's external relationships. Second, through a contingent perspective, our article shows that the returns of externally oriented IT-based capabilities are more likely to provide performance advantages to SMEs in contexts of low munificence and low dynamism. This evidence thus highlights that under these environmental conditions, IT is more likely to hinder than to facilitate SMEs' ability to respond to market changes and new opportunities

    Digital data, dynamic capability and financial performance: an empirical investigation in the era of Big Data

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    Firms automatically and continuously capture a high amount of digital data through social media, RFID tags, clickstreams, smart meters, manufacturing sensors, equipment logs, and vehicle tracking systems. However, empirical evidence on the effects of the generation of these digital data on firm performance remains scarce in the Information Systems and Management literature. Therefore, from a dynamic capability perspective, this paper examines whether companies’ ability to leverage digital data, which we call their Digital Data dynamic capability, leads to better financial performance, and whether there are moderating effects on this relationship. In order to achieve these goals, the following research questions are addressed: 1) To what extent do firms that develop Digital Data dynamic capabilities achieve better financial performance? 2) To what extent do organisational and industry-related environmental conditions moderate the relationship between a firm’s Digital Data dynamic capability and financial performance? We empirically test our hypotheses through partial least square modelling using a financial database and a survey of sales managers from 125 firms. We find that the development of Digital Data dynamic capability provides value in terms of firm financial performance and that the moderating effects are influential: under high levels of dynamism and munificence in younger firms, the relationship is stronger. Overall, this study evaluates the potential business value of firm digital data use and addresses a lack of empirical evidence on this issue in the Information Systems literature. We discuss two managerial implications. First, managers should pay more attention to digital data phenomena and to ways of leveraging value creation opportunities. Second, managers must evaluate their environmental and organisational characteristics when business opportunities from digital data are taken into account

    How small hotels can drive value their way in infomediation. The case of "Italian hotels vs. OTAs and TripAdvisor"

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    Infomediaries such as online travel agencies (OTAs) and review aggregator websites are profoundly changing the structure of the hospitality industry with consequences in the mechanisms of creation and capture of economic value for hotels. By drawing on arguments from resource-based views, transaction cost economics and industrial organisations, we look inside these mechanisms by assessing whether in regard to creation and capture of economic value hotels should pay more attention to diversify the number of OTAs that distribute their services or to improve their reputation through travellers’ reviews posted on TripAdvisor. Gathering data on 62,865 travellers’ reviews on TripAdvisor and on the presence of hotels on multiple OTAs, we built a panel dataset of 355 hotels spanning from 2004 to 2014 and also including hotels’ financial data. Fixed effects regression models show that hotels listed on multiple OTA bolster sales revenue and operating profitability. We demonstrated that for hotels, the online visibility on OTAs counts more on value capture than the online reputation gained on TripAdvisor. Through the presence on multiple OTAs, hotels are expected to have a higher bargaining power towards each individual distributor. We discuss the implications of these results on the way hotels, OTAs and TripAdvisor can generate and capture value in the vertical chain of the travel industry
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