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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.

Since the publication of Venkatraman and Grant's (1986) article two decades ago, considerably more attention has been directed at establishing the validity of constructs in the strategy literature. However, recent developments in measurement theory indicate that strategy researchers need to pay additional attention to whether their constructs should be modeled as having formative or reflective indicators. Therefore, the purpose of this chapter is to highlight the differences between formative and reflective indicator measurement models, and discuss the potential role of formative measurement models in strategy research. First, we systematically review the literature on construct measurement model specification. Second, we assess the extent of measurement model misspecification in the recent strategy literature. Our assessment of 257 constructs in the contemporary strategy literature suggests that many important strategy constructs are more appropriately modeled as having formative indicators than as having reflective indicators. Based on this review, we identify some common errors leading to measurement model misspecification in the strategy domain. Finally, we discuss some implications of our analyses for scholars in the strategic management field.

Purpose – Despite the increasing use of formative measurement models in literature, little is known about potential consequences for substantive theory testing. Against this background, the aims of this chapter are (1) to highlight some problems that may arise when formative instead of reflective measures are used to test even simple theoretical models with covarianced-based methodologies, (2) to illustrate some approaches that might help overcome these problems, (3) to pinpoint potential interpretation difficulties of the results involving re-specified measurement models, and (4) to stimulate discussion on the implications for theory development when models are tested with formative measures.

Methodology/approach – Potential consequences of formative measurement models for theory testing are highlighted using an empirical study on consumer animosity as an illustrative example and applying covarianced-based structural equations modeling procedures for estimation purposes.

Findings – The empirical study shows (a) that some scaling options for the (composite) latent variable result in non-convergence problems, (b) that, assuming convergence, parameter estimates, standard errors, and significance levels vary depending on the scaling method used, and (c) that goodness-of-fit statistics cannot be used as diagnostic measures for the appropriateness of divergent results.

Originality/value of paper – The contribution of this chapter is two-fold: First, it shows that to enable estimation, it is often necessary to modify (i.e., expand) the original theoretical model in a conceptually reasonable manner and to do so before data collection. Second, it demonstrates that alternative scaling options for composite latent variables may result in inconsistent substantive conclusions. Consequently, the impact of formative measurement on theory testing is a critical topic and needs to receive further attention in future literature.

Entrepreneurial orientation (EO) has emerged as a core concept in the field of entrepreneurship. Yet, there continue to be questions about the nature of EO and how best to conceptualize and measure it. This chapter makes the case that EO has grown beyond its roots as a firm-level unidimensional strategy construct and that a new multidimensional version of EO is needed to capture the diverse manifestations and venues for entrepreneurial activity that are now evident around the world – global entrepreneurial orientation (GEO). Building on the five-dimension multidimensional view of EO set forth when Lumpkin and Dess (1996) extended the work of Miller (1983) and Covin and Slevin (1989, 1991), the chapter offers an updated definition of EO and a fresh interpretation of why EO matters theoretically. Despite earnest efforts to reconcile the different approaches to EO, in order to move the study of EO and the theoretical conversation about it forward, we maintain that as a group of scholars and a field, we need to acknowledge that two different versions of EO have emerged. Given that, we consider original approaches to measuring EO, evaluate formative measurement models, consider multiple levels of analysis, call for renewed attention to EO configurations, and discuss whether there is a theory of EO.

The objective of this study is to investigate how country risk, different political actions from the government and bureaucratic behavior influence the activities in industry supply chains (SCs) in emerging markets. The main objective of this study is to investigate the influence of these external stakeholders’ elements to the demand-side and supply-side drivers and barriers for improving competitiveness of Ready-Made Garment (RMG) industry in the way of analyzing supply chain. Considering the phenomenon of recent change in the RMG business environment and the competitiveness issues this study uses the principles of stakeholder and resource dependence theory and aims to find out some factors which influence to make an efficient supply chain for improving competitiveness. The RMG industry of Bangladesh is the case application of this study. Following a positivist paradigm, this study adopts a two phase sequential mixed-method research design consisting of qualitative and quantitative approaches. A tentative research model is developed first based on extensive literature review. Qualitative field study is then carried out to fine tune the initial research model. Findings from the qualitative method are also used to develop measures and instruments for the next phase of quantitative method. A survey is carried out with sample of top and middle level executives of different garment companies of Dhaka city in Bangladesh and the collected quantitative data are analyzed by partial least square-based structural equation modeling. The findings support eight hypotheses. From the analysis the external stakeholders’ elements like bureaucratic behavior and country risk have significant influence to the barriers. From the internal stakeholders’ point of view the manufacturers’ and buyers’ drivers have significant influence on the competitiveness. Therefore, stakeholders need to take proper action to reduce the barriers and increase the drivers, as the drivers have positive influence to improve competitiveness.

This study has both theoretical and practical contributions. This study represents an important contribution to the theory by integrating two theoretical perceptions to identify factors of the RMG industry’s SC that affect the competitiveness of the RMG industry. This research study contributes to the understanding of both external and internal stakeholders of national and international perspectives in the RMG (textile and clothing) business. It combines the insights of stakeholder and resource dependence theories along with the concept of the SC in improving effectiveness. In a practical sense, this study certainly contributes to the Bangladeshi RMG industry. In accordance with the desire of the RMG manufacturers, the research has shown that some influential constructs of the RMG industry’s SC affect the competitiveness of the RMG industry. The outcome of the study is useful for various stakeholders of the Bangladeshi RMG industry sector ranging from the government to various private organizations. The applications of this study are extendable through further adaptation in other industries and various geographic contexts.

In recent years, the use of structural equation modeling (SEM) has become widespread in tourism and hospitality research. Because there are two different approaches to SEM (i.e., covariance-based SEM and variance-based, partial least squares SEM), this brings challenges for researchers about which SEM to use and what to report in each SEM approach. Therefore, the purpose of this chapter is to discuss the differences between CB-SEM and PLS-SEM and to provide comprehensive guidelines for researchers on how to apply each SEM. Within this context, the authors first briefly summarize the fundamentals and advantages of using SEM. Then, the authors explain in detail the major issues that should be considered when selecting between CB-SEM and PLS-SEM. Finally, to ensure rigorous research practices, the authors provide step-by-step guidelines for the application of both CB-SEM and PLS-SEM.

Numerous scales have been developed and utilized in the tourism and hospitality field, yet, their psychometric properties have not been systematically reviewed and evaluated. This gap compromises researchers' ability to develop better measures and improve measurement decisions. In this current study, 56 scales were identified and evaluated in terms of their psychometric properties. It was found that most scales were imperfect in measuring tourism and hospitality domains, and most scales did not provide explicit information about the scale development procedures that were adopted. The scale development procedure and psychometric properties of the reviewed scales are summarized, evaluated, and recommendations are made for future tourism and hospitality scale development.

Any career is marked by luck, both good and bad, as well as by hard work interspersed by times of uncertainty, fits and starts, and learning from one's mistakes and successes. But beyond these outcomes and actions, I owe an enormous debt to people who have shaped me and made life the challenging and rewarding journey it is. My family of origin and extended family were incredibly supportive in personal and functional ways. So many mentors and teachers influenced what I know and who I am. Many students, colleagues, secretaries, computer and library staff, and group chairs and deans provided the help, inspiration, and friendship guiding my career behind the scenes. My wife, son, and daughter sustained me through times of tears and joy, as did my community of faith. All these relationships were foundational to any contributions I may have made to attitudes, social action, and theory of mind; methodology, statistics, and philosophical foundations of research; sales force, organization, and health behaviors; emotions, ethics, and moral behavior; and marketing and managerial practice. For me, my career contributions are secondary to the relationships within which I was fortunate to engage.