Perceived performance effects of ICT in manufacturing SMEs

Purpose – The purpose of this paper is to investigate whether information and communication technologies (ICT) resources, including investment and use of specific types of ICT as well as innovative work practices, have a positive impact on several dimensions of firm performance, taking into account both direct and indirect effects and both short and long‐term effects.Design/methodology/approach – An empirical study using data from a sample of 267 Spanish manufacturing SMEs was conducted. Path analysis was used to study direct and indirect ICT impacts and OLS regression was the estimation method employed.Findings – The findings show a positive relationship between ICT adoption and all the measures of perceived performance analyzed, although the impact is not always immediate since the lag effects and length differ according to the type of ICT. Managers' perceptions of ICT impact are related to the adoption of new work practices but the effects also depend positively on the number of years since new work pr...

[1]  Erik Brynjolfsson,et al.  Intangible Assets: Computers and Organizational Capital , 2002 .

[2]  H. Wilson,et al.  Adoption of E-Commerce by SMEs in the UK , 2001 .

[3]  Maury Gittleman,et al.  Is There a Wage Payoff to Innovative Work Practices? , 1999 .

[4]  Yoshiki Matsui,et al.  Relationship between quality management information and operational performance , 2011 .

[5]  Francesco D. Sandulli,et al.  Is the Internet productive? A firm-level analysis , 2006 .

[6]  Daniel Boothby,et al.  Technology adoption, training and productivity performance , 2010 .

[7]  Roger G. Schroeder,et al.  Perceptual measures of performance: Fact or fiction? , 2004 .

[8]  Cynthia Frownfelter-Lohrke,et al.  The Internet as an Information Conduit , 2006 .

[9]  Nirup M. Menon,et al.  The Effect of Information Technology Investments in Healthcare: A Longitudinal Study of its Lag, Duration, and Economic Value , 2011, IEEE Transactions on Engineering Management.

[10]  E. Brynjolfsson,et al.  Beyond Computation: Information Technology, Organizational Transformation and Business Performance , 2000 .

[11]  Gregory M. Magnan,et al.  Information sharing and supply chain performance: the role of connectivity and willingness , 2007 .

[12]  Saggi Nevo,et al.  An empirical study of IT as a factor of production: The case of Net-enabled IT assets , 2010, Inf. Syst. Frontiers.

[13]  Kenneth L. Kraemer,et al.  Executives’ Perceptions of the Business Value of Information Technology: A Process-Oriented Approach , 2000, J. Manag. Inf. Syst..

[14]  Rajiv Kohli,et al.  Performance Impacts of Information Technology: Is Actual Usage the Missing Link? , 2003, Manag. Sci..

[15]  Erik Brynjolfsson,et al.  The productivity paradox of information technology , 1993, CACM.

[16]  R. Schroeder,et al.  The impact of human resource management practices on operational performance: recognizing country and industry differences , 2003 .

[17]  Sumit Sircar,et al.  A study of the impact of information technology on firm performance: a flexible production function approach , 2009, Inf. Syst. J..

[18]  P. Osterman How Common is Workplace Transformation and Who Adopts it? , 1994 .

[19]  Anders Haug,et al.  IT Readiness in Small and Medium-Sized Enterprises , 2011, Ind. Manag. Data Syst..

[20]  G. Cao A Four-Dimensional View of IT Business Value , 2010 .

[21]  Vincent S. Lai,et al.  The adoption and use of collaboration information technologies: international comparisons , 2005, J. Inf. Technol..

[22]  Soung Hie Kim,et al.  A Lag Effect of IT Investment on Firm Performance , 2006, Inf. Resour. Manag. J..

[23]  Anandhi S. Bharadwaj,et al.  A Resource-Based Perspective on Information Technology Capability and Firm Performance: An Empirical Investigation , 2000, MIS Q..

[24]  John Godard,et al.  Beyond the High-Performance Paradigm? An Analysis of Variation in Canadian Managerial Perceptions of Reform Programme Effectiveness , 2001 .

[25]  Kenneth L. Kraemer,et al.  Fact or Fiction? A Sensemaking Perspective on the Reality Behind Executives' Perceptions of IT Business Value , 2007, J. Manag. Inf. Syst..

[26]  Sara Campo,et al.  Information Technology Use and Firm's Perceived Performance in Supply Chain Management , 2010 .

[27]  R. N. Anantharaman,et al.  Impact of people management practices on organizational performance: analysis of a causal model , 2003 .

[28]  Sandra E. Black,et al.  How to Compete: The Impact of Workplace Practices and Information Technology on Productivity , 1997, Review of Economics and Statistics.

[29]  Charles H. Kriebel,et al.  Information Technologies and Business Value: An Analytic and Empirical Investigation , 1995, Inf. Syst. Res..

[30]  Kenneth L. Kraemer,et al.  Information technology and economic performance , 2003, ACM Comput. Surv..

[31]  Andrew Schwarz,et al.  A Dynamic Capabilities Approach to Understanding the Impact of IT-Enabled Businesses Processes and IT-Business Alignment on the Strategic and Operational Performance of the Firm , 2010, Commun. Assoc. Inf. Syst..

[32]  Riccardo Lucchetti,et al.  The Adoption of ICT among SMEs: Evidence from an Italian Survey , 2004 .

[33]  Kenneth L. Kraemer,et al.  Review: Information Technology and Organizational Performance: An Integrative Model of IT Business Value , 2004, MIS Q..

[34]  Paul R. Milgrom,et al.  The Economics of Modern Manufacturing: Technology, Strategy, and Organization , 1990 .

[35]  Vernon J. Richardson,et al.  Returns on Investments in Information Technology: A Research Synthesis , 2002, J. Inf. Syst..

[36]  R. Valle,et al.  Human resources management in Spain: is it possible to speak of a typical model? , 2004 .

[37]  Leire San-Jose,et al.  The influence of information communications technology (ICT) on cash management and financial department performance: An explanatory model , 2009 .

[38]  Ting-Peng Liang,et al.  A resource-based perspective on information technology and firm performance: a meta analysis , 2010, Ind. Manag. Data Syst..

[39]  Vasja Vehovar,et al.  Characteristics and impacts of ICT investments: perceptions among managers , 2007, Ind. Manag. Data Syst..

[40]  Brian P. Cozzarin,et al.  IT, productivity and organizational practices: large sample, establishment-level evidence , 2010, Inf. Technol. Manag..