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Article
Publication date: 1 December 2005

Tien Foo Sing

Will the information and communications technology (ICT) prevail over the market and agglomeration forces in inducing a negative demand in office space? The evidence of long‐term…

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Abstract

Purpose

Will the information and communications technology (ICT) prevail over the market and agglomeration forces in inducing a negative demand in office space? The evidence of long‐term impact of ICT use is not conclusive at this stage. This study aims to empirically test whether space reduction effects of ICT are significant in the office market in Singapore. The study also seeks to examine variations in firms' responses, and how increasing use of ICT will impact on firms' operational and activities that include productivity, staffing structure and requirements, adoption of working practices, quality of customer service, and importance of a central meeting place.

Design/methodology/approach

The primary data were collected in a mailed questionnaire survey conducted in July and August 2002, which involved a sample of 2,049 firms randomly selected from 121 office buildings located in the CBD and other key office submarkets in the fringe of CBD in Singapore. The firms' perception of ICT impact on real estate space needs was asked in the survey, and the variations in their responses were empirically tested with respect to factors like business types, firms' attitude towards ICT use, and their ICT strategies. Two different statistical tests are used in the tests, which include a non‐parametric chi‐square analysis and a logistic regression model. The chi‐square analysis examines different treatment effects of sample firms on the response variables. The logistic regression model jointly tests relationships between the respondent firms' binary choice of ICT impact on office demand and firm business types and views towards ICT and NWPs.

Findings

Based on a mailed questionnaire survey conducted on office occupiers in CBD of Singapore, 79 percent of the respondent firms felt that there is no negative impact of an increase use of ICT on the office space; 63 percent of the respondent firms, however, agree that ICT‐enabled changes to working practices were more important in affecting real estate space changes of firms. In the logistic regressions, the results showed that four variables that represent firm characteristics and their attitude towards ICT use were significant in explaining the variations in the firms' perception of no significant impact of ICT use on office space demand. Market rent factor was found to have no influence on the perception of a negative ICT‐office space relationship by the sample firms.

Originality/value

Impact of ICT use on firms' office space needs have not been as pervasive as expected in office markets. There are frictions and resistance by firms and their employees against the adoption of ICT in the office place in many countries. The study based on a random sample of office occupiers in Singapore's CBD and fringe submarkets supports the observation. Only 21 percent of the respondents felt that they can reduce office space with more ICT use. However, more sample firms (63 percent) felt that ICT will enable flexible workflows, which in turn will change the way corporate real estate strategies are designed. Firm characteristics and their attitude towards ICT are factors in determining firms' perception towards ICT use in offices.

Details

Journal of Property Investment & Finance, vol. 23 no. 6
Type: Research Article
ISSN: 1463-578X

Keywords

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

Article
Publication date: 22 December 2020

Timothy Amoako, Zhang Huai Sheng, Courage Simon Kofi Dogbe and Wisdom Wise Kwabla Pomegbe

The paper investigates the mediation role of external integration in the relationship between internal integration and small and medium enterprises (SMEs) performance. Information…

Abstract

Purpose

The paper investigates the mediation role of external integration in the relationship between internal integration and small and medium enterprises (SMEs) performance. Information and communication technology (ICT) was used to moderate the relationship between internal and external, and external integration and SMEs performance.

Design/methodology/approach

Cross sectional method was used to distribute questionnaires to owners of SMEs in Abossey Okai business enclave to assess the various dimensions in the study. Structural equation modeling was employed to assess the relationship among the dimensions, based on 163 validated questionnaires. Analysis of Moment Structures (Amos) and Statistical Package for Social Sciences (SPSS) were used in analyzing the data.

Findings

The results indicate that, external integration mediated the relationship between internal integration and SMEs performance. In addition, ICT had positive moderating effect in the relationship between internal and external integration, and external integration and SMEs performance.

Practical implications

Practically, this research informs owners and managers of SMEs to appreciate the importance of developing internal structures of a firm and further linking their operations with external partners. Additionally, findings will aid managers’ and owners’ leverage on ICT capabilities to enhance performance in their operations.

Originality/value

Engaging external integration to mediate the relationship between internal integration and SMEs performance and extending the relationship to include moderating role of ICT in both relationship that is internal and external integration on one side, and external and firm performance, the current study contributes to supply chain integration (SCI) and ICT available literature.

Details

International Journal of Productivity and Performance Management, vol. 71 no. 2
Type: Research Article
ISSN: 1741-0401

Keywords

Article
Publication date: 12 February 2018

Paolo Neirotti, Elisabetta Raguseo and Emilio Paolucci

The adoption of Information and Communication Technology (ICT) in small and medium enterprises (SMEs) has some peculiarities that may depend on the combined effect of size and the…

1923

Abstract

Purpose

The adoption of Information and Communication Technology (ICT) in small and medium enterprises (SMEs) has some peculiarities that may depend on the combined effect of size and the competitive environment. The purpose of this paper is to use a contingency approach to explore how SMEs develop organizational capabilities through ICT investments in response to environmental conditions.

Design/methodology/approach

A survey on 284 SMEs in Italy was conducted and data were analyzed with regression models for testing seven hypotheses on the environmental influence on the development of ICT-based capabilities and the role played by firm size.

Findings

The results show that the environment influences the development of such capabilities in a different way, depending on size. Within munificent environments, ICT-based capabilities are more diffused among larger SMEs, whereas under environmental complexity, this pattern is inverted, with larger SMEs exhibiting a more limited deployment of ICT in support of both their internally and externally oriented processes. Under environmental dynamism medium-sized firms tend to develop more internally oriented ICT capabilities, but fail in reporting superior capabilities for managing external relationships.

Originality/value

This paper contributes to understand the relationship between the environment and ICT investments in SMEs. Since the combined effect of size and the competitive environment may influence considerably the ICT investments in SMEs, this study investigates the organizational responses with respect to how SMEs use ICT to address their external environment. This focus provides a contribution to understand the challenges that SMEs are facing in the current technological and market environment, where changes in the ICT paradigm raise the level of complexity and dynamism and bring changes in competition levels that leave few resources for growth to SMEs.

Details

Journal of Enterprise Information Management, vol. 31 no. 1
Type: Research Article
ISSN: 1741-0398

Keywords

Article
Publication date: 15 March 2013

Changgyu Yang, Sang‐Gun Lee and Jaebeom Lee

Given the increasingly saturated information and communication technology (ICT) market and the intensification of competition among ICT firms, there is a need for a better…

2546

Abstract

Purpose

Given the increasingly saturated information and communication technology (ICT) market and the intensification of competition among ICT firms, there is a need for a better understanding of entry barriers in the ICT market. The purpose of this paper is to examine the overall characteristics of these entry barriers and identify firms' strategies for achieving market dominance.

Design/methodology/approach

The authors examined the overall characteristics of these entry barriers and identified firms' strategies for achieving market dominance by tracking the actual patterns of firms' ICT market entry based on the Bass diffusion model.

Findings

The results indicate that the saturation of the ICT market reduced entry barriers, which strengthened the imitation effect. In addition, entry barriers were lower for ICT firms than for non‐ICT ones. Furthermore, entry barriers were higher for the manufacturing sector than for the service sector, indicating that the innovation effect was stronger for the manufacturing sector than for the service sector, whereas the opposite was true for the imitation effect.

Originality/value

These results suggest that those firms that are planning to enter or are already in the ICT market should develop better strategies for gaining a competitive advantage.

Details

Industrial Management & Data Systems, vol. 113 no. 3
Type: Research Article
ISSN: 0263-5577

Keywords

Article
Publication date: 27 February 2024

Aman Kumar Joshi, Rajesh Matai and Nagesh N. Murthy

This study aims to investigate the impact of information and communication technology (ICT) investment on the micro, small and medium enterprises (MSME) profitability in the…

Abstract

Purpose

This study aims to investigate the impact of information and communication technology (ICT) investment on the micro, small and medium enterprises (MSME) profitability in the Indian context.

Design/methodology/approach

This study used a framework based on the ICT investment and firm size, measuring the impact on profit before depreciation, interest, tax and amortisation of MSME by taking a random sampling of 300 Indian MSME manufacturing firm’s secondary data from the Prowess database. This framework was analysed using the design of experiment (DoE) technique.

Findings

The study showed that ICT investment has a significant positive relationship with profitability. This study examines the different ICT investment levels to predict investment strategies and fine-tune profit targets. The critical finding is that ICT investment maximises profit at one million rupees. This discovery aids MSME leaders’ sustainable business decision-making.

Research limitations/implications

This study has an explicit limit to the Indian context, where the firm requirements of countries are different, and these findings need to be validated with many operating variables and applied to more firms with more data. Even so, as a theoretical implication, this study took a novel approach to ICT adoption (through ICT investment) in the Indian MSME sector with guiding levels of ICT investment for each type of firm (i.e. micro, small and medium). This study opens new avenues for investigating researchers and stakeholders by exploring other factors responsible for ICT adoption.

Practical implications

This study uniquely provides practitioners with the functional level of ICT investment for MSMEs in the Indian context. These finding guides top management to make strategic ICT adoption decisions with information symmetry. At the same time, these findings suggest financial institutions astern their credit programme to provide credit for ICT investment in MSMEs.

Social implications

This study highlights the value of ICT as a practical resource for business owners that significantly makes MSMEs more informed and profitable, thus creating more jobs and incrementing the country’s gross domestic product (GDP).

Originality/value

This study offers unique empirical findings on how decision makers in MSMEs maximise profits through optimal ICT investment levels depending upon the firm size in an emerging economy like India. There is evidence in the study to conclude that ICT is a need of MSME and has implications for firm performance.

Details

The Bottom Line, vol. 37 no. 1
Type: Research Article
ISSN: 0888-045X

Keywords

Book part
Publication date: 23 May 2022

Soubaneh Omar Bouh and Hülya Ünlü

The main purpose of this study is to see the effects of Information Communication Technology (ICT) on a firm's innovation performance in sub-Saharan Africa (SSA). The objective of…

Abstract

The main purpose of this study is to see the effects of Information Communication Technology (ICT) on a firm's innovation performance in sub-Saharan Africa (SSA). The objective of this study is twofold: First, it aims to analyze the impact of ICT applications on firms' innovative behavior and whether firms using ICT applications more intensively are also more innovative. Second, and more essentially, it assesses empirically the impact of ICT applications on firms' innovative performance in sub-Saharan African countries by using instrumental variable probit model. Therefore, we used data from the 2013 enterprise survey (Business Environment and Enterprise Performance Survey (BEEPS)). According to our results, the most important ICT tools are emails and using the internet for online sales. Firms who have IT Teams are not creating any difference; however, if a firm purchase or develop in-house any software then they are more likely to produce innovation than the other firms.

Details

Strategic Entrepreneurial Ecosystems and Business Model Innovation
Type: Book
ISBN: 978-1-80382-138-2

Keywords

Article
Publication date: 24 June 2020

Alhassan Abdul-Wakeel Karakara and Evans Osabuohien

This study aims to investigate how ICT adoption enhances the innovativeness of informal firms in West Africa, using the cases of Ghana and Nigeria.

Abstract

Purpose

This study aims to investigate how ICT adoption enhances the innovativeness of informal firms in West Africa, using the cases of Ghana and Nigeria.

Design/methodology/approach

The study used the World Bank Enterprise Survey data 2014 for Ghana and Nigeria with binary logistic regression analysis to achieve this. Four different innovations are modelled. They include: first, whether a firm has innovated based on producing a new product or significantly improved product; second, whether a firm has innovated in its methods of production or services; third, whether a firm has innovated in terms of its organisational structure; and fourth, whether a firm has introduced a new and improved marketing method.

Findings

The results show that the use of email, cellphone and website has a positive impact on the four types of innovations modelled. However, these effects varied markedly between Ghana and Nigeria. Firms’ spending on research and development (R&D), firm giving its employees the chance to develop their ideas and when firm competes with others; all positively impact the four types of innovations. Thus, the study recommends that policies should be geared towards making firms have more access to ICTs to enable them to be more innovative to serve clients and the economy.

Originality/value

This study differs by concentrating on how the adoption of ICTs could help firms to introduce innovations into their companies in two West African countries, namely, Ghana and Nigeria. Thus, it complements literature on informal firms’ innovation efforts in West Africa.

Details

Journal of Enterprising Communities: People and Places in the Global Economy, vol. 14 no. 3
Type: Research Article
ISSN: 1750-6204

Keywords

Article
Publication date: 1 December 2001

Lynn M. Martin and Harry Matlay

The current push for small firms to be “wired up to the digital marketplace” is evidenced by the number of initiatives targeting small and medium‐sized enterprises (SMEs) to…

4722

Abstract

The current push for small firms to be “wired up to the digital marketplace” is evidenced by the number of initiatives targeting small and medium‐sized enterprises (SMEs) to promote this activity. Like other governments worldwide, UK Online’s SME targets (together with the supporting DTI adoption ladder) exemplify the “conventional wisdom” view of a homogeneous small business sector, within which firms take an ordered, sequential progression on the route to Internet technology adoption. This approach is questioned by grounding the official rhetoric in the reality of organisational and operational complexity of this important sector of the UK economy. These initiatives are compared and contrasted with similar models of small firm development, most of which neglected to address the diverse nature of small firm needs. The authors recommend a more discriminant approach, focused upon factors such as firm size, age, managerial structure and information and communications technology adoption stages.

Details

Internet Research, vol. 11 no. 5
Type: Research Article
ISSN: 1066-2243

Keywords

Article
Publication date: 25 September 2009

E. Loukis, K. Pazalos and St. Georgiou

The purpose of this paper is to empirically investigate and compare the moderating effects of the two basic business process change paradigms – business process reengineering…

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Abstract

Purpose

The purpose of this paper is to empirically investigate and compare the moderating effects of the two basic business process change paradigms – business process reengineering (BPR) and total quality management (TQM) – on the business value generated for firms by their information and communication technologies (ICT) investment.

Design/methodology/approach

Using data collected through a survey of 271 Greek firms, moderated regression models founded on the Cobb‐Douglas production function are estimated, which have as the dependent variable the firm value added (objective measure of business performance), and as independent variables the yearly labour expenses, the value of the non‐computer capital, the value of the computer capital and BPR (TQM) measures.

Findings

From the above models it is concluded that both BPR and TQM have considerable positive moderating effects of a similar magnitude on the relationship between ICT investment and firm value added. Also, different BPR and TQM activities have different moderating effects on ICT business value; process simplification, process improvement and the creation of a horizontal interdepartmental process are the BPR activities with the largest moderating effects, while measurement of employee satisfaction and simplification of work methods for quality improvement are the TQM activities with the largest moderating effects.

Research limitations/applications

The basic limitation of this study is that it is based on data from Greek firms. Another limitation is that only one business performance measure, although quite important and theoretically fundamental (i.e. firm value added), is used.

Practical implications

Both BPR and TQM are important ICT “complementary factors”, which, if combined with ICT, can increase the business value it generates. Therefore ICT should not be used simply as a tool for automating existing business processes, but for creating and supporting new business processes and practices, such BPR and TQM.

Originality/value

This study investigates and compares the moderating effects of the two main business process paradigms – BPR and TQM – based on reliable measurement of both through validated multi‐item scales, and also on theoretically sound models, founded on the Cobb‐Douglas production function.

Details

Journal of Enterprise Information Management, vol. 22 no. 5
Type: Research Article
ISSN: 1741-0398

Keywords

1 – 10 of over 14000