The effect of IT complementary resources on fast growth small-to-medium enterprise performance: A resource-based view

Rui Bi, Robert M Davidson, Kosmas X Smyrnios

Research output: Book chapter/Published conference paperConference paperpeer-review

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Abstract

Owing to limited resources available to small-to-medium enterprises (SMEs) to take advantage of technologies, IT is regarded as less important to SMEs compared with larger firms. Understanding whether and how IT helps SMEs to achieve business advantage still remains unclear. Drawing upon the resource-based view theory, the information systems (IS) and fast growth company literature, we develop and test a theoretical model that integrates IT complementary resources, business process performance and firm performance. We propose that fast growth SMEs are highly entrepreneurial and innovative, know how to strategically utilize IT to improve business processes and thus achieve rapid growth. Structural equation modeling is employed to test our theoretical conceptualization of 310 Australian fast-growth SMEs across different industrial sectors. The results show that IT complementary resources do lead to firm growth through enhancing activity integration and information sharing processes along the value chains. This research contributes to the ongoing debate of IT business value in the SME context and highlights the ways in which IT helps fast growth SMEs to achieve business success.
Original languageEnglish
Title of host publicationPACIS 2013 Proceedings
Subtitle of host publicationSmart, Open, and Social Information Systems
Place of PublicationUnited States
PublisherAssociation for Information Systems
Pages1-16
Number of pages16
Publication statusPublished - 2013
Event17th Pacific Asia Conference on Information Systems: PACIS 2013 - Jeju International Convention Center, Jeju Island, Korea, Republic of
Duration: 18 Jun 201322 Jun 2013
http://www.pacis2013.org/main/ (Conference website)
http://aisel.aisnet.org/pacis2013/ (Conference proceedings)

Conference

Conference17th Pacific Asia Conference on Information Systems
Abbreviated titleSmart, Open, and Social Information Systems
CountryKorea, Republic of
CityJeju Island
Period18/06/1322/06/13
OtherThe Pacific Asia Conference on Information Systems (PACIS) is the premier venue for networking with information systems (IS) scholars in the Pacific Asia region. It offers a great opportunity for researchers to exchange research findings on the latest development in the IS field, and to foster regional and international collaboration within the community.
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