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Book part
Publication date: 28 September 2015

Md Shah Azam

Information and communications technology (ICT) offers enormous opportunities for individuals, businesses and society. The application of ICT is equally important to economic and…

Abstract

Information and communications technology (ICT) offers enormous opportunities for individuals, businesses and society. The application of ICT is equally important to economic and non-economic activities. Researchers have increasingly focused on the adoption and use of ICT by small and medium enterprises (SMEs) as the economic development of a country is largely dependent on them. Following the success of ICT utilisation in SMEs in developed countries, many developing countries are looking to utilise the potential of the technology to develop SMEs. Past studies have shown that the contribution of ICT to the performance of SMEs is not clear and certain. Thus, it is crucial to determine the effectiveness of ICT in generating firm performance since this has implications for SMEs’ expenditure on the technology. This research examines the diffusion of ICT among SMEs with respect to the typical stages from innovation adoption to post-adoption, by analysing the actual usage of ICT and value creation. The mediating effects of integration and utilisation on SME performance are also studied. Grounded in the innovation diffusion literature, institutional theory and resource-based theory, this study has developed a comprehensive integrated research model focused on the research objectives. Following a positivist research paradigm, this study employs a mixed-method research approach. A preliminary conceptual framework is developed through an extensive literature review and is refined by results from an in-depth field study. During the field study, a total of 11 SME owners or decision-makers were interviewed. The recorded interviews were transcribed and analysed using NVivo 10 to refine the model to develop the research hypotheses. The final research model is composed of 30 first-order and five higher-order constructs which involve both reflective and formative measures. Partial least squares-based structural equation modelling (PLS-SEM) is employed to test the theoretical model with a cross-sectional data set of 282 SMEs in Bangladesh. Survey data were collected using a structured questionnaire issued to SMEs selected by applying a stratified random sampling technique. The structural equation modelling utilises a two-step procedure of data analysis. Prior to estimating the structural model, the measurement model is examined for construct validity of the study variables (i.e. convergent and discriminant validity).

The estimates show cognitive evaluation as an important antecedent for expectation which is shaped primarily by the entrepreneurs’ beliefs (perception) and also influenced by the owners’ innovativeness and culture. Culture further influences expectation. The study finds that facilitating condition, environmental pressure and country readiness are important antecedents of expectation and ICT use. The results also reveal that integration and the degree of ICT utilisation significantly affect SMEs’ performance. Surprisingly, the findings do not reveal any significant impact of ICT usage on performance which apparently suggests the possibility of the ICT productivity paradox. However, the analysis finally proves the non-existence of the paradox by demonstrating the mediating role of ICT integration and degree of utilisation explain the influence of information technology (IT) usage on firm performance which is consistent with the resource-based theory. The results suggest that the use of ICT can enhance SMEs’ performance if the technology is integrated and properly utilised. SME owners or managers, interested stakeholders and policy makers may follow the study’s outcomes and focus on ICT integration and degree of utilisation with a view to attaining superior organisational performance.

This study urges concerned business enterprises and government to look at the environmental and cultural factors with a view to achieving ICT usage success in terms of enhanced firm performance. In particular, improving organisational practices and procedures by eliminating the traditional power distance inside organisations and implementing necessary rules and regulations are important actions for managing environmental and cultural uncertainties. The application of a Bengali user interface may help to ensure the productivity of ICT use by SMEs in Bangladesh. Establishing a favourable national technology infrastructure and legal environment may contribute positively to improving the overall situation. This study also suggests some changes and modifications in the country’s existing policies and strategies. The government and policy makers should undertake mass promotional programs to disseminate information about the various uses of computers and their contribution in developing better organisational performance. Organising specialised training programs for SME capacity building may succeed in attaining the motivation for SMEs to use ICT. Ensuring easy access to the technology by providing loans, grants and subsidies is important. Various stakeholders, partners and related organisations should come forward to support government policies and priorities in order to ensure the productive use of ICT among SMEs which finally will help to foster Bangladesh’s economic development.

Details

E-Services Adoption: Processes by Firms in Developing Nations
Type: Book
ISBN: 978-1-78560-325-9

Keywords

Book part
Publication date: 26 January 2022

Maria Rio Rita, Ari Budi Kristanto, Yeterina Widi Nugrahanti and Petrus Usmanij

Limited access to capital is a classic issue in and a burden to micro, small and medium enterprises (MSMEs) in Indonesia. The existence of the problem with information asymmetry…

Abstract

Limited access to capital is a classic issue in and a burden to micro, small and medium enterprises (MSMEs) in Indonesia. The existence of the problem with information asymmetry and agency conflicts that are predominant at the level of small businesses, increasingly hampers the opportunity to obtain funds from various external sources. Especially for businesses that are at the pioneering stage, entrepreneurs are required to think creatively, have the courage to take risks, and be independent in fulfilling resources to realize business opportunities. The availability of funds certainly has an impact on business performance, either directly or indirectly. Based on a literature review, business performance is categorized into financial and non-financial dimensions with various measurement proxies. However, some of the models and measurements proposed are not always suitable in assessing the performance of MSMEs, especially in the startup phase. Therefore, this chapter concurrently describes the funding patterns and the funding alternatives to measure the performance of new businesses based on the existing literature. Theoretically, this research adds a perspective in the field of entrepreneurial finance regarding funding patterns that can be implemented by startup businesses in Indonesia and provides a proposal for measuring the concept of performance that is more adaptive and comprehensive for businesses in the startup stage. The implication of this research for entrepreneurs leads to the need to adjust funding decisions according to the changing stages of the business lifecycle and to expand the funding window to support the sustainability of small businesses.

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Artisan Entrepreneurship
Type: Book
ISBN: 978-1-80262-078-8

Keywords

Book part
Publication date: 28 March 2006

Andre Beaujanot Q, Larry Lockshin and Pascale Quester

The concept of market orientation has attracted attention from both academics and managers and it has been widely used in the marketing discipline to explain marketing phenomena…

Abstract

The concept of market orientation has attracted attention from both academics and managers and it has been widely used in the marketing discipline to explain marketing phenomena in business and consumer markets (Deshpande, Farley, & Webster, 1993; Jaworski & Kohli, 1993; Kohli & Jaworski, 1990; Steinman, Deshpande, & Farley, 2000). The most common output or effect attributed by the literature to the market orientation concept has been the firm's achievement of good or superior financial performance by delivering superior value to customers (Deshpande et al., 1993; Hunt & Lambe, 2000; Kohli & Jaworski, 1990; Narver & Slater, 1990). The market orientation concept has also generated a stream of research in both domestic and international markets (Breman & Dalgic, 2001; Cadogan & Diamantopoulos, 1995; Cadogan, Diamantopoulos, & de Mortanges, 1999; Dalgic, 1994; Siguaw, Simpson, & Baker, 1998).

Details

Relationship Between Exporters and Their Foreign Sales and Marketing Intermediaries
Type: Book
ISBN: 978-1-84950-397-6

Book part
Publication date: 19 May 2009

Mina Westman, Dalia Etzion and Shoshi Chen

In this chapter, we discuss the impact of business trips on travelers and their families from the perspective of respite, thus embedding business trips in stress theories. We…

Abstract

In this chapter, we discuss the impact of business trips on travelers and their families from the perspective of respite, thus embedding business trips in stress theories. We begin by reviewing the literature on respite and recovery. Focusing on the role of travelers’ resources, we relate the phenomenon of business trips to conservation of resources (COR) and job demands-resource (JD-R) theories. We then discuss the negative and positive characteristics and outcomes of business trips. We offer evidence from interviews with business travelers regarding the special characteristics and consequences of business trips. We summarize by addressing the question of whether business trips are a special kind of respite.

Details

Current Perspectives on Job-Stress Recovery
Type: Book
ISBN: 978-1-84855-544-0

Book part
Publication date: 12 December 2015

Yossef Arie and Gustavo S. Mesch

This study investigated the association between structural conditions and social incentives and their effect on the ethnic composition of mobile social networks. Regarding…

Abstract

Purpose

This study investigated the association between structural conditions and social incentives and their effect on the ethnic composition of mobile social networks. Regarding structural conditions, we examined the role of the ethnic group’s size, socioeconomic status, and heterogeneity of the city in which the business was located. Regarding social incentives, we investigated the social diversification hypothesis, which expects that residentially and socially segregated minority groups will take advantage of mobile communications to diversify their mobile communication ties with outgroup members.

Methodology/approach

Two data sets were used. The first was the aggregation of the mobile communication patterns of business customers as measured by one of Israel’s mobile phone operators in April 2010. The database included 9,099 call data records. The second was a data set of the social characteristics of 103 Israeli cities from the Israeli Bureau of Statistics. Both data sets were merged according to the place of residence of each customer.

Findings

Israeli Arab businesses in homogeneous Jewish and mixed cities operate in an environment with more structural opportunities to create outgroup ethnic ties than Arab businesses in homogeneous Arab cities. Jewish businesses in ethnically mixed cities have more outgroup mobile ties than comparable businesses in homogenous Jewish cities.

Implications

We expand previous models and suggest a structural diversification approach in which ethnic mobile social networks vary across homogeneous and ethnically mixed cities. These variations result in different social incentives as the diversification approach assumed, as well as different structural conditions, as the structural approach indicates.

Details

Communication and Information Technologies Annual
Type: Book
ISBN: 978-1-78560-381-5

Keywords

Abstract

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The Entrepreneurial Dilemma in the Life Cycle of the Small Firm
Type: Book
ISBN: 978-1-78973-315-0

Book part
Publication date: 8 July 2010

Vipin Gupta and Nancy Levenburg

Family businesses must be examined within the cultural contexts in which they are bred, nourished, and grown. According to Chrisman, Chua, and Steier (2003), family businesses are…

Abstract

Family businesses must be examined within the cultural contexts in which they are bred, nourished, and grown. According to Chrisman, Chua, and Steier (2003), family businesses are launched for reasons other than the desire for dollars and cents (or rupees and yen). In fact, the authors note, “Family businesses… bring together so starkly the economic and non-economic realities of organizational life…” (2003, p. 442). Calls for family business research that extend beyond traditional geographical boundaries to include global comparisons have been issued by Hoy (2003) and others. Fortunately, recent developments in cultural assessment and measurement methodology have provided tools to enable a better understanding of families and family businesses vis-à-vis the use of regional clusters and comparative lenses (Gupta & Hanges, 2004). Gupta and Hanges (2004) note three clusters of the Catholic ethic: Southern (or Latin) Europe, Latin America, and Eastern Europe. As shown in Table 1, more than three-fourths of the population in these clusters follows the Catholic faith. In this study, we examine the spirit of family business in these three clusters.

Details

Entrepreneurship and Family Business
Type: Book
ISBN: 978-0-85724-097-2

Book part
Publication date: 4 October 2018

Lucrezia Songini, Chiara Morelli and Paola Vola

Notwithstanding the relevance of managerial control systems (MCS) in any organization, as well the distinctive role they can play in family business, due to its specific features…

Abstract

Notwithstanding the relevance of managerial control systems (MCS) in any organization, as well the distinctive role they can play in family business, due to its specific features, the literature rarely dealt with the role and characteristics of MCS in family business. Taking into account previous contributions from different disciplines (organization, management accounting, and family business), the current work aims to better understand the state of the art about research in the field of MCS in family business in order to identify main research gaps and propose future research directions.

Forty-five articles have been analyzed, which were issued in 29 sources. Research findings show that the literature on MCS in family business is limited and not very conclusive. Some authors focused on the type of controls, other authors outlined the role of MCS in managerialization and the relation with professionalization. A few studies focused on some specific mechanisms, especially strategic planning and compensation. Some contributes dealt with MCS’ determinants and impacts. Differences between family and non-family firms were proposed. However, a clear and organized picture of the features of MCS in family firms, their determinants, and impacts has not yet been developed. Particularly, the impact of the distinctive features of family business on MCS represents an underdeveloped research field along with how MCS can be differently developed and used in different kinds of family firms. In the light of findings of the literature review, we propose a reference research framework on MCS in family business.

Details

Performance Measurement and Management Control: The Relevance of Performance Measurement and Management Control Research
Type: Book
ISBN: 978-1-78756-469-5

Keywords

Book part
Publication date: 5 November 2021

Yoshitaka Okada, Sumire Stanislawski and Samuel Amponsah

Given the complexity of inclusive business (IB) to combine social contribution and business sustainability, companies make strategic choices. One multinational corporation (MNC…

Abstract

Given the complexity of inclusive business (IB) to combine social contribution and business sustainability, companies make strategic choices. One multinational corporation (MNC) avoided interconnections with villagers and used only market-based relations with stimulants and incentives in the market. Another one delegated management completely to local partners, succeeding in stimulating the poor’s self-initiated economic activities. MNCs seem to have difficulties in handling institutional interconnections. In such cases, market-based relations or delegating management to the local partners were found to be highly effective for covering missing capabilities. One foreign NGO, despite its well-developed institutional interconnections with the locals, is struggling to develop markets for its social enterprises. In contrast, one local trust successfully cooperated with many local partners, appealing to local institutions (values and beliefs). Also, poor farmers felt the social contributions of two local companies by being incorporated into the companies’ supply chains backed by their corporate social responsibility (CSR) orientations and activities. Hence, both foreign and domestic organizations seem to succeed in IB by embedding their projects to their original institutions and developing diverse mechanisms to compensate for missing capabilities. One exception is a local company which successfully coordinated MNCs’ CSR activities, local communities, and governments. However, its success is owing to governmental regulation for CSR contribution. In general, though restricted by institutional backgrounds and business orientations, each case tried to create a fit between business models and its contingencies, achieve scale (at the level of communities, nations, or the global market) and business sustainability, and generate socioeconomic effects.

Book part
Publication date: 24 June 2015

Saptarshi Purkayastha, Tatiana S. Manolova and Linda F. Edelman

We combine insights from the strategic management and international business literatures in order to explore the moderating role of business group characteristics on the link…

Abstract

We combine insights from the strategic management and international business literatures in order to explore the moderating role of business group characteristics on the link between innovation and internationalization in the context of the pharmaceutical sector in India. We test our three hypotheses on a sample of 219 Indian pharmaceutical firms affiliated with business groups, over a five-year period (2005–2010) in a panel of 1,096 firm-year observations. Results indicate that, contrary to our contention, research expenditure is negatively associated with export intensity, implying that firms in the Indian pharmaceutical sector may face a trade-off between investing in innovation and international expansion. As expected, business group characteristics significantly impact the strength of the relationship between innovation and internationalization. Theoretical and practitioner implications are discussed.

Details

Emerging Economies and Multinational Enterprises
Type: Book
ISBN: 978-1-78441-740-6

Keywords

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