Small Slovene Firms and Strategic Information Technology Usage

Abstract

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Contingent dynamics of IS strategic alignment in small and medium‐sized enterprises

“…Consistent with the findings reported in the literature (Foong, 1999; Levy and Powell, 1997), IS investment is limited to operations and transactions for the 19 SMEs in the control and co‐ordination quadrants. Also, consistent with the literature (Lesjak and Lynn, 2000), these SMEs adopt a low‐cost strategy, with the relationships between their IS and business strategies unchanged. Finally, given that the complexity of the paths to alignment increases substantially from the control to the positioning quadrant, the greatest alignment and highest performance is likely to be achieved by SMEs in the former rather than the latter quadrant.…”

“…Second, IS investment is frequently limited to supporting operations and transactions (Foong, 1999; Levy and Powell, 1997). Third, organizations with more sophisticated IS tend to perform less successfully than those with less complex systems (Naylor and Williams, 1994), the greatest alignment and highest performance are reported for systems to improve efficiency (King et al , 2000), and organizations that adopt a low‐cost approach are unlikely to use IS strategically (Lesjak and Lynn, 2000).…”

Impact of owner's knowledge of information technology (IT) on strategic alignment and IT adoption in US small firms

“…Business strategies adopted by small firms are found to affect IT use also. Lesjak and Lynn (2000) found owners who pursued a low-cost strategy and saw IS as peripheral to their businesses, due in part to their limited IS knowledge and experience, were less likely to use IS strategically but used IS mostly for efficiency savings. They found that only those SMEs that perceived IS as integral to their business strategy use, due to owner innovativeness and necessity such as in a competitive environment, placed greater emphasis on management information and obtained strategic benefits from IS.…”

Addressing The Challenge Of Strategic Alignment Faced By Small And Medium-Sized Entities During The Selection Of Accounting Software Packages

“…Further to these selected strategies, low cost (Lesjak, 2000;Levy et al, 2001;Umble, Haft, & Umble, 2003), innovation Olsen & Saetre, 2007), mobility (Park, 2015), pro-active management (Levy et al, 2001), de-skilled workforce (Azyabi et al, 2014) and customer-centric (Cragg et al, 2002) were also investigated due to its relevance to SMEs as identified by other research. De-skilled workforce are defined as employees who are involved in the performing of certain tasks for which they are not properly trained for (Azyabi et al, 2014).…”

“…Some SMEs still view investment in software as a cost rather than an investment (Levy et al, 2001). Entities with low cost as a business imperative tend not to use their ISs in a strategic way (Lesjak, 2000) due to the potential costs involved. Small businesses might prefer to buy the basic versions of generic accounting software packages for implementation rather than spending on the more advanced versions or the development/customisation of software.…”