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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

Article
Publication date: 1 June 2003

A.H.G.M. Spithoven

From the early 1980s to the late 1990s overall productivity rates did not reflect the rising investment in information and computer technology (ICT). This paradox, the…

2511

Abstract

From the early 1980s to the late 1990s overall productivity rates did not reflect the rising investment in information and computer technology (ICT). This paradox, the productivity paradox, which was widely discussed among economists may well turn out to be mainly a mirage once the assumption is excluded that investment has a short‐run effect on productivity. The apparent productivity paradox seems to be rooted in an ICT infrastructure that is inadequate and in an increase in income disparities that thwart the realization of economies of scale.

Details

International Journal of Social Economics, vol. 30 no. 6
Type: Research Article
ISSN: 0306-8293

Keywords

Open Access
Article
Publication date: 17 April 2024

Daan Kabel, Jason Martin and Mattias Elg

The integration of industry 4.0 has become a priority for many organizations. However, not all organizations are suitable and capable of implementing industry 4.0 because it…

Abstract

Purpose

The integration of industry 4.0 has become a priority for many organizations. However, not all organizations are suitable and capable of implementing industry 4.0 because it requires a dynamic and flexible implementation strategy. The implementation of industry 4.0 often involves overcoming several tensions between internal and external stakeholders. This paper aims to explore the paradoxical tensions that arise for health-care organizations when integrating industry 4.0. Moreover, it discusses how a paradox lens can support the conceptualization and proposes techniques for handling tensions during the integration of industry 4.0.

Design/methodology/approach

This qualitative and in-depth study draws upon 32 semi-structured interviews. The empirical case concerns how two health-care organizations handle paradoxical tensions during the integration of industry 4.0.

Findings

The exploration resulted in six recurring technology tensions: technology invention (modularized design vs. flexible design), technology collaboration (automation vs. human augmentation), technology-driven patient experience (control vs. autonomy), technology uncertainty (short-term experimentation vs. long-term planning), technology invention and diffusion through collaborative efforts among stakeholders (selective vs. intensive collaboration) and technological innovation (market maintenance vs. disruption).

Originality/value

A paradox theory-informed conceptual model is proposed for how to handle tensions during the integration of industry 4.0. To the best of the authors’ knowledge, this is the first paper to introduce paradox theory for quality management, including lean and Six Sigma.

Details

International Journal of Lean Six Sigma, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 2040-4166

Keywords

Article
Publication date: 1 October 2005

Julian Warner

The aim of this paper is to reveal an information dynamic in which technology or dead labour is substituted for living mental labour.

902

Abstract

Purpose

The aim of this paper is to reveal an information dynamic in which technology or dead labour is substituted for living mental labour.

Design/methodology/approach

A comparative historical review of technologies for reproducing written utterances and their relation to living labour.

Findings

A dynamic for mental labour, similar to that for physical labour, is isolated.

Research limitations/implications

The productivity paradox, a central concern of the information systems literature, is dissolved.

Originality/value

The paper is relevant to both information science and information systems. Understanding an information dynamic can enable intervention in that dynamic.

Details

Aslib Proceedings, vol. 57 no. 5
Type: Research Article
ISSN: 0001-253X

Keywords

Article
Publication date: 1 February 1999

Subhasish Dasgupta, Joseph Sarkis and Srinivas Talluri

Impact of information technology on firm productivity has received significant attention in information systems literature. Although many studies were performed to investigate…

3082

Abstract

Impact of information technology on firm productivity has received significant attention in information systems literature. Although many studies were performed to investigate this effect, the results were not conclusive in supporting a systematic effect. This study investigates this phenomenon in both manufacturing and service industries by considering a sample of 85 manufacturing and 77 service firms. Our research methodology utilizes a combination of various data envelopment analysis models and non‐parametric statistical techniques in testing for the influence of information technology investment on firm productivity. We investigate this effect under conditions of both constant and non‐constant returns to scale assumptions. Our results provide some very interesting insights and recommendations.

Details

Logistics Information Management, vol. 12 no. 1/2
Type: Research Article
ISSN: 0957-6053

Keywords

Content available

Abstract

Details

The Bottom Line, vol. 12 no. 4
Type: Research Article
ISSN: 0888-045X

Keywords

Article
Publication date: 29 November 2018

Sangita Dutta Gupta, Ajitava Raychaudhuri and Sushil Kumar Haldar

Information Technology has transformed the banking sector with respect to various systems and processes. Banks have adopted various measures to quicken their business activity and…

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Abstract

Purpose

Information Technology has transformed the banking sector with respect to various systems and processes. Banks have adopted various measures to quicken their business activity and also save cost and time. That is why there has been large requirement of IT in the banking sector. The question arises whether this investment is enhancing the profitability of the bank or not. The purpose of this paper is to examine the presence of profitability paradox in Indian Banking Sector.

Design/methodology/approach

Data are collected from ten nationalized banks and three private sector banks from 2006 to 2013. The impact of IT expenditure on return on assets and profit efficiency is examined. Profit efficiency is determined using Stochastic Frontier Analysis. Data are collected from annual reports of the banks. Data on IT expenditure are collected through Right to Information Act 2005. Correlation and Panel Regression are used to investigate the relationship between IT expenditure and ROE or Profit Efficiency.

Findings

The findings of the paper confirm the presence of profitability paradox in the Indian Banking sector.

Research limitations/implications

Extension of this study to other developing countries of the world will help to identify if any common pattern is there among the developing countries as far as productivity or profitability paradox is concerned.

Originality/value

There are some studies on the impact of IT on the banking sector in USA and Europe. This type of study however is rare in the context of India or for that matter other developing countries. Therefore, this paper will add new dimension to the existing literature and pave the way for future research in this area.

Details

International Journal of Emerging Markets, vol. 13 no. 5
Type: Research Article
ISSN: 1746-8809

Keywords

Article
Publication date: 1 December 1996

Marie‐Claude Boudreau and Daniel Robey

Business process re‐engineering (BPR) promises to transform organizations by fundamentally altering their core processes, thereby achieving radical improvements in performance. As…

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Abstract

Business process re‐engineering (BPR) promises to transform organizations by fundamentally altering their core processes, thereby achieving radical improvements in performance. As the number of actual re‐engineering projects increases, the rhetoric surrounding BPR has shifted to reflect greater cynicism and discomfort over its claims. In the absence of compelling and trustworthy evidence about the success of BPR projects, critics have exposed logical contradictions within BPR’s “manifesto” for revolutionary change and insinuated that BPR’s utopian rhetoric masks political motives. This paper contributes to this discussion in three ways. First we examine two difficulties affecting the evaluation of BPR programmes: defining what process re‐engineering really is, and determining whether BPR has been applied successfully. Second, we examine four fundamental contradictions inherent in BPR’s analysis of organizations: the fallacy of its “clean‐slate” assumption, the paradox of information technology’s role as an enabler of organizational change, the hypocrisy of employee empowerment, and the irony of employee commitment. Third we propose that such contradictions be addressed in both research and practice by employing theoretical perspectives that are prepared to accommodate contradictory phenomena, in contrast to the simplistic, deterministic logic guiding current investigations of BPR’s effectiveness. We suggest theories of organizational learning and organizational politics to understand and resolve the contradictions embedded within BPR.

Details

Information Technology & People, vol. 9 no. 4
Type: Research Article
ISSN: 0959-3845

Keywords

Article
Publication date: 1 July 2006

Malamatenia‐Alma A. Pantazi and Nikolaos B. Georgopoulos

Investments in information systems (ISs) seem to suffer from the productivity paradox. In this article three interpretations of this paradox are explored and a business process…

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Abstract

Purpose

Investments in information systems (ISs) seem to suffer from the productivity paradox. In this article three interpretations of this paradox are explored and a business process (BP) oriented methodology to overcome it is suggested. The final goal is to investigate the relationship between a BP‐competent IS and improved business performance.

Design/methodology/approach

Verification of the hypothesis made that BP‐competent ISs have a positive impact on business performance, is expected to be validated by a quantitative research based on a questionnaire survey.

Findings

This is a conceptual article that suggests a new BP‐driven methodology to assess IS business value and impact on business performance.

Research limitations/implications

Business process management (BPM) and the software tools that support it (i.e. business process management systems or BPMS) are quite new issues for the Greek business reality, and therefore there might be little evidence on application of such methodologies.

Practical implications

Focusing on the alignment of ISs to BPs helps a company solve misalignment that is due to many independent initiatives and deal with problems that cross‐departmental boundaries. It also prompts a company redirect focus from ISs to BPs and therefore resolve the problems rather than the symptoms. Knowing the positive impact of BP‐competent ISs on business performance makes it possible for an enterprise to realize the importance of pursuing a process‐oriented management style were focus is placed on value‐delivering

Originality/value

The value of the suggested methodology lies in the synthesis of distinct ideas and issues into a unique holistic assessment framework.

Details

Managing Service Quality: An International Journal, vol. 16 no. 4
Type: Research Article
ISSN: 0960-4529

Keywords

Article
Publication date: 20 May 2019

Khorshed Alam, Adewuyi Ayodele Adeyinka and Retha Wiesner

The purpose of this paper is to understand whether or not factors that impact the performance–innovation nexus differ from one percentage level of performance to another among…

Abstract

Purpose

The purpose of this paper is to understand whether or not factors that impact the performance–innovation nexus differ from one percentage level of performance to another among small- and medium-sized enterprises in regional Australia, with a specific focus on e-innovation by strategic and non-strategic firms in the agricultural sector and in other industries.

Design/methodology/approach

Researchers implicitly assumed that the performance–innovation relationship is uniform across high-level, mid-level and low-level performing small- and medium-sized enterprises. In this study, the authors analysed performance at different percentage levels.

Findings

The findings indicate that the levels of small- and medium-sized enterprises performance have a significant difference in terms of the factors influencing their performance. The industry may be a determinant of performance, which is similar in the case of the topmost performers in the non-agricultural sector. The major findings of this study are as follows: the performance–innovation relationship differs by the percentage level of small- and medium-sized enterprises performance; and Solow’s productivity paradox exists at the firm level.

Practical implications

The authors recommend that rural policies should target low-performing firms. Moreover, researchers should adopt methodologies that shed light on the differences in the performance–innovation nexus across performance levels rather than one-size-fits-all methodologies that are often adopted.

Originality/value

The major contributions of this study are that the performance–innovation relationship differs by the level of small- and medium-sized enterprises performance, and Solow’s productivity paradox exists at the firm level.

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