Strategies for Growth in SMEs (eBook)

Cover 1
Contents 6
Dedication 7
Foreword 8
1 Introduction 10
Why research strategic information systems in SMEs 10
Researching SMEs 12
Background to the research 13
Case studies: primary research approach 14
Data collection 15
Problems of case research 16
Case background 16
Structure of the book 20
Chapters 21
Part 1 Concept of the SME 26
2 Background to SMEs 28
Introduction 28
Defining SMEs 28
Influences on SMEs 29
Market 30
Independence 30
Personal 31
Flexibility and innovation 31
Birth, death and growth 31
Entrepreneur 34
Strategy 35
Firm 36
Growing the business 37
Organizing and managing SMEs 40
Systems implications in managing SMEs 42
Conclusions 42
3 Information and IS in SMEs 44
Introduction 44
Nature, role and value of information 45
Importance of management IS 46
IS strategy and planning in SMEs 52
Owner’s role in introducing IS 53
Sourcing IT 54
IS adoption issues 55
Introduction of management IS in SMEs 56
Conclusions on IS investment in SMEs 57
4 Flexibility in IS 60
Introduction 60
Flexibility issues 60
SMEs and flexibility 63
Planning for flexibility through IS 64
IS and IT 65
Understanding flexibility in SMEs: the cases 66
IS in the SMEs 70
Organization of IS in the SMEs 71
IS development in the SMEs 72
Influence of customers on IS 72
Flexibility: the SME response 74
Discussion 75
Implications for managers 76
Implications for research 76
Conclusions 77
5 Evaluating IS in SMEs 78
Introduction 78
Evaluation of IS and IT 78
Approaches to evaluation 79
Evaluation practice 80
SMEs and evaluation: the issues 82
Business and IS/IT strategy 83
Limited access to capital 85
Emphasis on efficiency 86
Influence of major customers 87
Limited IS skills 87
Effects on evaluation practice: SMEs and large firms 88
Discussion 88
Capital resources 89
Opportunities from an organizational approach to evaluation 90
Investment issues in SMEs 92
Conclusions 94
Part 2 Issues of IS strategy planning 96
6 Understanding IS strategy in SMEs 98
Introduction 98
Nature of ISS 98
Strategic IS frameworks 100
Background to the cases 102
Framework analysis 102
Awareness frameworks 103
Conclusions on use of awareness frameworks 105
Opportunity frameworks 106
Use of opportunity frameworks 110
Positioning frameworks 111
Towards a framework of frameworks for ISS in SMEs 115
Conclusions 117
7 An organizational approach to IS strategy 118
Introduction 118
ISS in SMEs 118
Approaches to ISS 119
A multi-paradigm approach to ISS 120
A multi-paradigm model for ISS in SMEs 123
Business context 123
Business processes 126
Strategic content 129
Background to the case SMEs 131
Outcomes from the ISS 134
Operational focus to IS 134
Competitiveness 135
Owners 136
Organizational culture 140
Resources 142
Review of the ISS approach 143
Conclusions 144
8 Case example of ISS: Heath Springs 146
Introduction 146
Case background 146
Business context 146
Market 146
Customers 147
Suppliers 147
Substitutes and entry barriers 148
Other competitive issues 149
Cost leadership 149
Differentiation 149
Focus 150
Achieving business strategy 150
Business process 151
Information needs of managers 156
Existing IS and IT 157
Attitudes and organization of IS 159
Recommendations 160
Discussion 162
Conclusions 163
Part 3 Strategic resource: attitudes to information 166
9 Strategic context of IS investment 168
Introduction 168
Developing the focus-dominance model 168
Management IS in SMEs 169
SMEs and competitiveness 169
Focus-dominance model 170
Efficiency quadrant 171
Co-ordination quadrant 172
Collaboration quadrant 172
Repositioning quadrant 172
Exploring the focus-dominance model 172
Non-strategic IS 178
Implications for research 179
Implications for managers 182
Conclusions 184
10 Strategic IS dynamics 186
Introduction 186
Stages of growth 187
IS adoption and business growth 188
Investigating IS adoption and growth 188
Case analysis 190
Strategic positions 190
Current growth paths 190
No change 193
Efficiency to co-ordination 194
Co-ordination to repositioning 195
Efficiency to collaboration 196
Collaboration to repositioning 197
Efficiency to repositioning 197
Long-term growth paths 198
Structural differences on IS adoption 198
Industry sector influences 199
Industry clusters 199
Strategic intent 200
Informal network relations, sub-contracting and IS/IT suppliers 204
Discussion 205
Implications for research 206
Implications for managers 207
Conclusions 208
11 Exploring business transformation through IS 210
Introduction 210
Business transformation through IS 210
Analysing business transformation 213
Localized exploitation 214
Moving to internal integration 215
Moving to business process redesign 216
Moving to business network redesign 216
Moving to business scope redefinition 217
Discussion 218
Implications for research 222
Implications for managers 223
Conclusions 224
12 Strategic alignment 226
Introduction 226
Alignment issues 226
Opportunities for strategic alignment 227
Alignment paths in SMEs 231
Alignment issues in cost-focused SMEs 232
Efficiency alignment path 233
Co-ordination alignment path 234
Alignment issues in strategic focus SMEs 235
Collaboration alignment path 235
Repositioning alignment path 237
Differences in alignment 238
Implications for research 239
Implications for management 241
Conclusions 243
Part 4 Knowledge and development of IS 244
13 IS role in co-opetition and knowledge sharing 246
Introduction 246
Defining knowledge 246
Knowledge management in SMEs 248
Towards a theory of knowledge exchange 249
Managing knowledge in SMEs: role of IS 251
Cost-focus on managing knowledge 252
Value-added focus on managing knowledge 253
Managing knowledge transfer 255
Exploring knowledge transfers 256
Analysis 256
Knowledge sharing in efficiency-focused SMEs 257
Knowledge sharing in co-ordination-focused SMEs 262
Knowledge sharing in collaboration-focused SMEs 265
Knowledge sharing in repositioning-focused SMEs 268
Implications for research 270
Implications for management 271
Discussion and conclusions 272
14 Role of core competencies in developing ISS in knowledge-based SMEs 274
Introduction 274
SMEs, ISS 275
Limitations of structural analysis 276
IS and knowledge-based SMEs 277
Tools for competence-based analysis for ISS 278
Existing tools 279
New tools 279
Using IS/IT to support learning processes 280
SISP process in Housing Consultancy 281
Data gathering 282
Core competence analysis 284
SSM analysis in Housing Consultancy 286
Relating core competences to business themes 289
Matching information needs to business themes 289
SISP recommendations 291
Recommendations for IS/IT developments in Housing Consultancy 292
Communications 292
Control and planning 292
Operations Management 293
Marketing Support 293
Knowledge Base 293
Summary 293
ISS implementation 294
Operations Management 294
Knowledge Base 294
Marketing Support 294
The Internet 295
Discussion 295
Limitations of value chain analysis 296
Competence-based view of strategy 297
Tools for competence-based SISP 297
Role of SSM 298
Business themes as competence leveraging/building 299
Conclusions 299
15 Exploring business process re-engineering in SMEs 302
Introduction 302
Nature of BPR 303
BPR framework for SMEs 305
Culture 305
Structure 306
Resources 307
IS and IT 307
Research background 308
Case analysis 310
Culture 310
Innovation 310
Empowering employees 311
Top management commitment 311
Strategic perspective 312
Structure 313
Process 313
Teams 314
External relationships 314
Resources 315
Financial resources 315
People skills 316
Quality management 316
Technology 316
IS/IT infrastructure 316
IS expertise 317
IS investment 318
Success and failure factors for case firms 318
BPR as an ongoing effort towards a learning organization 318
Implications for management 320
Implications for research 321
Conclusions 323
Part 5 Future: Internet adoption and strategy 324
16 Exploring e-business in SMEs 326
Introduction 326
Defining e-business 326
E-business and SMEs 328
Influencing factors 329
Research approach 330
Growth, competitiveness and the Internet 331
Business growth and the Internet 336
Brochureware 336
Business opportunity 340
Business support 342
Business network 345
Discussion 346
17 Strategic intent and e-business 348
Introduction 348
SMEs and strategic intent 348
Drivers and inhibitors of e-business in SMEs 350
Research approach 353
Data collection and analysis 353
Dimensions of analysis 354
Strategic intent patterns 354
Current use of the Internet 355
Importance of the Internet in achieving business growth 355
Importance of e-business 356
Drivers for e-business 357
Inhibitors of e-business adoption 360
Discussion and conclusions 362
18 E-business influencers 364
Introduction 364
Potential influences on Internet adoption 365
Competitive environment 365
Influence of government policies on SME Internet adoption 367
Research approach 368
Data collection 370
Case analysis 370
Expert network 372
Industry support network 373
Customer-led network 374
ICT support network 375
Novice network 376
Discussion 377
Conclusions 380
19 Managing IS: the future 382
Introduction 382
SMEs – a vibrant community 382
IS and SMEs 383
IS strategy – the way forward? 383
Strategic perspective on IS in growing firms 384
Business transformation 386
Managing knowledge 387
Are SMEs excited by the Internet? 388
Lessons for SMEs and researchers 388
References 390
Index 414
A 414
B 414
C 414
D 415
E 415
F 415
G 416
H 416
I 416
J 417
K 417
L 417
M 417
N 418
O 418
P 418
Q 418
R 418
S 418
T 420
V 420
W 420