Impact of ICT-based innovations on organizational performance

Abstract

Purpose Research has shown that information and communication technologies (ICT) are crucial for economic growth. The purpose of this paper is to develop a framework that would depict and examine the nature of the relationship between ICT use and organizational performance in the Lebanese market, taking into consideration the impact that innovation and corporate entrepreneurship may have on this relationship. Design/methodology/approach To investigate the proposed model a survey targeting employees, and managers who adopted ICT applications in SMEs located in Lebanon was conducted. Findings The results indicate that ICT and innovation are strategic resources. However, their contribution to sustainable competitive advantage vitally depends on the implicitness and entrepreneurial behaviors of those involved. It is through this capability that ICT and ICT-based innovations could make a difference in organization’s performance – both present and future. Research limitations/implications First, the respondents were selected using the convenience sampling technique. Second, the data were collected through self-report questionnaires. Finally, the use of perceptual data related to performance may have a bias effect on the study results. Practical/implications At the practical level, the study results have repercussions for managers, technology suppliers, and innovation adopters and managers, as this may contribute to better understanding of the factors that could influence the adoption, management, and use of ICT resources for enhancing the competitiveness level of the firm. Originality/value The results of this study have implications for ICT adoption in Lebanese SMEs. More importantly, they suggest a framework which depicts the relationship between ICT and the organization’s innovation level on one hand, and a company’s performance on the other, taking entrepreneurship as a mediator in this relationship.

The Impact of Information and Communication Technology Capability on the Competitive Advantage of Small Businesses

“…The results of this research confirm the findings of previous studies that ICT capability is positively related to entrepreneurial orientation. Thus, there is a tendency for entrepreneurial orientation to increase in parallel with an organization's good progress in ICT capability (Lucchetti & Sterlacchini, 2004;Harrigan et al, 2012;Higón, 2012;Adeniran & Johnston, 2014;Parida & Örtqvist, 2015;Parida et al, 2016;Yunis et al, 2017).…”

“…The difference between this and other studies lies in its use of a sample. This study uses small businesses as its sample, while previous research (Powell & Micallef, 1997;Maguire et al, 2007;Olatokun & Kebonye, 2010;Cakmak & Tas, 2012;Chibelushi & Trigg, 2012;Harrigan et al, 2012;Higón, 2012;Adeniran & Johnston, 2014;Kadadevaramath et al, 2015;Adeniran & Johnston, 2016;Yunis et al, 2017) has tended to focus on large companies. As a result, there are differences in the role of those resources that can create competitive advantage.…”

E-Entrepreneurship and Economic Development: the Case of EU Countries

“…Further research (such as Wu, Mahajan, and Balasubramanian, 2003;Rapp, Schillewaert and Hao, 2008;Migdadi et al, 2016;Yunis, El-Kassar and Tarhini, 2017) provides evidence of the impact of ICT adoption and e-business on business performance. Wu et al (2003) find that e-business adoption positively and significantly influences the performance of a company, which is measured by efficiency, sales performance, customer satisfaction, and relationship development.…”

“…Increased use of ICTs is a key driver of economic growth, productivity, employment and reducing poverty (Qiang and Pitt, 2003;OECD, 2004;Jalava and Pohjola, 2007;Vu, 2011;Farhadi, Ismail and Fooladi, 2012;Lovrić, 2012) and together with education, training and R&D, one of the most important elements in building a platform for entrepreneurship (Intel Foundation, 2011). ICTs support entrepreneurship in different ways (Alderete, 2014;Yunis, El-Kassar and Tarhini, 2017), such as: increasing interconnectedness and communication; enhances the ability of entrepreneurs to develop new products, services, processes, and business models; facilitates faster access to different regional and international markets; and allows efficient management of customer relationships as well as the supply chain.…”

ICT for Global Competitiveness and Economic Growth in Emerging Economies: Economic, Cultural, and Social Innovations for Human Capital in Transition Economies

“…Productive competitiveness results from many aspects, which are indicated by the Global Competitiveness Index GCI (range 0-10). This index takes into account scores from 12 pillars such as quality of institutions, infrastructure, macroeconomic environment, health, primary education enrollment rate, goods market efficiency, labor market efficiency, financial market development, technological readiness, market size, business sophistication, and innovation (World Forum 2017;Yunis, El-Kassar, & Tarhini, 2017).…”