Multidimensional Perspective of Firms’ IT Capability Between Digital Business Strategy and Firms’ Efficiency: A Case of Chinese SMEs

Wang, Zhuquan; Mahmood, Memon Rafait; Ullah, Hafeez; Hanif, Imran; Abbas, Qaiser; Mohsin, Muhammad

doi:10.1177/2158244020970564

Cited by 35 publications

(31 citation statements)

References 48 publications

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Section: Theoretical Background and Hypotheses Developmentmentioning

confidence: 99%

“…IT capability act as a suitable mediator between organizational resources and FP (Bhatt and Grover, 2005). IT capability is the driving mechanism of business strategies resulting in higher firm efficiency (Wang et al, 2020). Due to its ability to sense, seize and reconfigure other resources, IT adoption capability is central for firm dynamic capability (Pan et al, 2015).…”

Section: Strategic Orientations and Firm Performancementioning

confidence: 99%

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Strategic orientations and firm performance: the role of information technology adoption capability

Nugroho

Prijadi

Kusumastuti

2022

JSMA

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PurposeThis study aims to investigate the multiple entrepreneurial, technology and marketing orientations effects on education service firm performance (FP) and the mediating role of information technology (IT) adoption capability.Design/methodology/approachEmpirical research based on 535 education service small and medium enterprises (SMEs) in Indonesia and Singapore. Various validity and reliability tests were carried on before the actual analysis was conducted using structural equation modeling.FindingsThe results conclude that IT adoption capability is crucial for entrepreneurial and technology orientation (TO) to produce higher FP. This finding supports that IT capability is effective at helping firms implement their strategic orientations (SOs). In addition, market orientation (MO) influence on FP is more direct than other orientations under investigation.Practical implicationsThis study suggests that SOs, particularly entrepreneurial and technology, enable managers to improve FP via the development of IT adoption capability. The result shows that firms with multiple SOs would be able to respond to market challenges, utilize new technology and become more innovative, which eventually yields higher performance.Originality/valueThis study extends the understanding of multiple SOs influence on FP using the mechanism of IT adoption capability.

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Section: Theoretical Background and Hypotheses Developmentmentioning

confidence: 99%

Section: Strategic Orientations and Firm Performancementioning

confidence: 99%

Strategic orientations and firm performance: the role of information technology adoption capability

Nugroho

Prijadi

Kusumastuti

2022

JSMA

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“…Importers of energy prices reform consider implicit or explicitly a homogeneous and robust response to changes in domestic energy prices [ 15 ]. Therefore, increasing energy prices eliminates effective solutions to social and economic issues associated with secondary aspects of energy [ 16 ]. However, removing domestic subsidies doesn’t have a big impact on energy use and therefore the environment, especially if households with high energy consumption have less flexibility in demand for domestic energy price, avoid income, and financial stresses.…”

Section: Introductionmentioning

confidence: 99%

The helix of CO2, household income, and oil pricing under the assumption of Keynesian consumption function: A policy-mix scenario of oil-importing South Asia for SDGs-2030

Chen

Farooq

et al. 2022

PLoS ONE

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The purpose of this study is to explore energy prices and their impact on household consumption under the condition of Keynesian consumption theory in South Asian countries over the 1995–2020 periods. By employing the panel ordinary least square model estimation technique, the study attempted to find the relationship between household income and consumption under the theory of Keynesian consumption function. Furthermore, we investigated the relationship between household consumption and environmental sustainability, policy mix variables, and energy pricing. First of all, this study confirms the existence of Keynesian consumption theory in these economies of South Asia. Furthermore, energy pricing, environmental sustainability, and inflation rate are the factors that inducing toward high household consumption in South Asia. Considering the policy mix factors, inflation rate contribution positively while tax rate inducing this consumer for low household consumption. Based on the empirical analysis, this study suggested some parameters to these Asian economies particularly and other similar economies generally.

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“…This section examined the strategic alignment of the information technology used in the company. The selected indicators measure the company objectives for the digital transformation of key business processes (Ko et al, 2022;Wang et al, 2020).…”

Section: Measurementsmentioning

confidence: 99%

“…These elements of digital strategy help explain the improvement in organizational performance. The study by Wang et al (2020) includes the same variables and shows that an improvement in the IT (2020) shows that the capacity of digital transformation, considered as the ability of a company to execute a digital strategy, helps to directly explain the heterogeneity of an organization's performance.…”

Section: Evaluation Of the Structural Modelmentioning

confidence: 99%

Improving KIBS performance using digital transformation: study based on the theory of resources and capabilities

Marino-Romero

Palos-Sánchez

Velicia-Martín

2022

JSTP

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PurposeThe aim of this research is to analyze the success of digital transformation (DT) in the management and performance of organizations. To do so, the role of IT and its ability to integrate in organizations that provide professional services with high added value for their clients are investigated. These services require highly developed skills as they solve complex problems for the clients and this means that success depends on gathering knowledge from different sources (customers, public administrations and competitors). This study analyses the decisive and complementary role of IT in this process.Design/methodology/approachThe analysis combines quantitative and qualitative methods. After questioning managers of Spanish KIBS companies about certain components of DT, the gathered data are subsequently processed with PLS-SEM to establish causal relationships.FindingsThe results show that digital capability is the determinant of DT. It has a positive effect on the digital resources integrated in KIBS companies and on their organizational performances.Research limitations/implicationsFuture research should continue to analyze other components of TD that drive the organizational performance of KIBS firms, such as technological culture or government policies that encourage digital transactions. The present study analyzes data from companies that are part of a single economic sector in Spain which may limit the conclusions drawn. It would be particularly useful to confirm the applicability of the results in companies operating in different markets to explore the direct relationship between digital capability and organizational performance.Practical implicationsThis research has implications for managers of KIBS companies, as it shows the high potential of the ability of IT to implement and manage a TD process. Managers can benefit from IT management practices using the appropriate tools (ERP, CRM and management software) to gain more knowledge of customer behavior with the possibility of easily codifying and analyzing the data, which significantly influences innovation activities. The objective is to develop a strong internal capability to absorb knowledge from day-to-day interactions with customers by using IT effectively. This process leads to an improvement in the organizational performance of KIBS companies, as they become more effective in decision making with improved internal communication, generate greater employee satisfaction and reach new customers. Following strategies aimed at the implementation and use of the technological resources studied creates more agile firms and helps to close the production gap between SMEs and large companies.Social implicationsThe results obtained can help create sustainable businesses through cloud-based technology tools. It can provide insights for policy makers to implement economic policies that help SMEs to become more competitive and sustainable.Originality/valueThe development of digital technologies and the ability to manage them is one of the decisive factors that conceptualizes DT and improves organizational performance. This research contributes to the understanding of the need for managers of KIBS companies to follow strategies oriented towards the digitization of their organizations and for the collaborators to have a high level of IT training, especially in the use of cloud technology.

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Multidimensional Perspective of Firms’ IT Capability Between Digital Business Strategy and Firms’ Efficiency: A Case of Chinese SMEs

Cited by 35 publications

References 48 publications

Strategic orientations and firm performance: the role of information technology adoption capability

Strategic orientations and firm performance: the role of information technology adoption capability

The helix of CO2, household income, and oil pricing under the assumption of Keynesian consumption function: A policy-mix scenario of oil-importing South Asia for SDGs-2030

Improving KIBS performance using digital transformation: study based on the theory of resources and capabilities

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