A Multilevel Model for Measuring Fit Between A Firm's Competitive Strategies and Information Systems Capabilities

McLaren,; Zhong, Yuan; Chan, Vinson Wai‐Shun

doi:10.2307/41409966

Cited by 91 publications

(64 citation statements)

References 35 publications

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“…Not only do firms have to align IT capabilities with company strategies in order to achieve a better internal adjustment, but a firm's environment also needs to be included in order to prevent firms from wasting their scarce resources [53] and to develop an ability to adapt to the changing environment that refers to IT capabilities.…”

Section: Hypotheses 1 (H1)mentioning

confidence: 99%

“…Unfortunately, perceptions provide latent factors with measurement errors rather than direct and objective measures of capabilities. Another option could be to gather information using a qualitative approach: investigate in depth all the processes of the firm, compare more than one firm by analysing several cases, and draw a conclusion regarding how firms compete and behave (see, for example [53]). However, a proxy and not a real measure or description applicable to any firm could be used.…”

Section: The Latent Nominal Variable Capturing Firms' Heterogeneity:mentioning

confidence: 99%

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Capturing Firms’ Heterogeneity through Marketing and IT Capabilities in SMEs

Ramón-Jerónimo

Herrero

2017

Sustainability

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To achieve sustainability, firms capable of surviving economic recessions is of key relevance; the capabilities that firms need to face dynamic environments remain an open question. In this work, a new procedure is proposed to capture firms' heterogeneity with regard to the capabilities they possess in operating efficiently in dynamic environments. This approach enables the identification of the classes of firms that develop efficiency with a specific integration of resources. While the literature has most often measured firm capabilities using subjective measures, this study suggests the use of Data Envelopment Analysis to capture the ability to transform resources into outcomes and of Latent Class Regression to capture differences across firms that explain firms' heterogeneity in the way they perform. By combining these two techniques, this work presents a way to identify those firms that need to invest in and develop certain capabilities. This work analyses a large dataset of manufacturing Small Medium Enterprises (SMEs) extracted from the Business and Strategy survey provided by Fundación de la Sociedad Estatal de Participaciones Industriales( SEPI) in Spain. The dataset used enfolds 10,960 observations from 2048 firms during the period 1994-2011. The complete dataset has been employed to calculate manufacturing firms' efficiency. In a second step, data were cleaned to eliminate outliers, and to identify SMEs and observations with records of IT capabilities. As a result, 329 manufacturing SMEs were analysed to capture their heterogeneity. The results contribute to the current literature by explaining how manufacturing SMEs show a different need in their development of capabilities to be efficient and adapt to environmental changes. While approximately 20% of firms analysed really take advantage of recessions through their investment in R&D, the remaining 80% need to adjust their size or invest in IT capabilities to become competitive. The assumption shown in previous studies regarding the performance of SMEs to better confront recessions is discussed in this paper.

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Section: Hypotheses 1 (H1)mentioning

confidence: 99%

Section: The Latent Nominal Variable Capturing Firms' Heterogeneity:mentioning

confidence: 99%

Capturing Firms’ Heterogeneity through Marketing and IT Capabilities in SMEs

Ramón-Jerónimo

Herrero

2017

Sustainability

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“…Kappelman et al (2013) mentioned that many high-performance businesses would apply low-cost, innovative, or differential strategic orientation with Management Innovation, like different salary and welfare; on the contrary, low-performance companies presented weaker salary and Management Innovation. Aiming at the research on management practice and organizational performance in Taiwan, McLaren et al (2011) indicated that an organization would apply different strategies with human resource management practice. From above discussions, organizational Management Innovation correlates to organizational strategies, and management innovation would change with strategic orientation.…”

Section: Management Innovationmentioning

confidence: 99%

A Study Based on the Effect of Strategic Orientation on Management Innovation and Human Resource Management of a Business

2015

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Investigation on human resource role is progressing, and the infl uence of fi ts between human resources and business strategies have been confi rmed in various studies. Such infl uence has also been proven as a good way to acquire organizational competitive advantages and achieve the optimal operating performance. Under such a context, a new variable, Management Innovation, is included in this study to observe the effects of such a practical and changeable variable on strategic orientation and human resource management role.Top ten businesses in Fujian Province are selected for the questionnaire survey. Total 500 copies of questionnaire are distributed and 376 valid copies are retrieved, with the retrieval rate 75%. The research results show the positive effects of 1. strategic orientation on management innovation, 2. strategic orientation on human resource management role, and 3. management innovation on human resource management role. It expects to verify richer and multiple effects in this study for the reference of successive research and the practice.

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“…If something fits, it has the right size, shape, character and/or other feature(s). In academic research, the level of fit is typically searched through pairs of interests, such as task-technology fit [20], personorganization fit [34,26], person-group fit [56], organization-environment fit [18], user-computer fit [52] and/or through a firm's competitive strategies-IS capabilities fit [38]. In ITBV research, "alignment" and "fit" concepts have been conceptually so close that a few of studies have treated them as synonyms [36,25,27].…”

Section: Fit and Alignmentmentioning

confidence: 99%