The Influence of IT Management Sophistication and IT Support on IT Success in Small and Medium-Sized Enterprises

Abstract

This study examined three factors that influence information technology (IT) success in small and medium‐sized enterprises (SMEs): internal IT support, external IT support, and IT management. Using survey data gathered from 289 small and medium‐sized Chartered Accounting firms in New Zealand, the results suggest that IT management in SMEs is best understood as a multidimensional concept consisting of practices related to: IT planning, IT organizing, IT controlling, and IT leading. This view clarifies and improves our understanding of the nature and character of IT management in SMEs. The results show that some SMEs are significantly more sophisticated than others in terms of their IT management practices. Both IT planning and IT leading were found to influence IT success.

IT and Fast Growth Small-to-Medium Enterprise Performance: An Empirical Study in Australia

“…Our research heeds the call from researchers that further studies are needed to investigate the imperative role of IT in SME performance (Cragg et al 2011;Cragg et al 2013). We contribute further to the ongoing debate on IT business value by understanding IT value creation in the fast growth SME context and provide a solid theoretical framework to explain the interrelationships between variables.…”

“…Others (Cragg et al 2002;Hicks et al 2006) suggest that the impact of IT on SME performance is weak. To some extent, these mixed findings are not surprising as many SMEs have resource constraints with limited financial resources and IT expertise and may be reluctant or unable to seek professional input (Cragg et al 2013). …”

“…Fink and Neumann (2007) noted that firms with a high level of IT expertise is able to establish efficient communication between IT and business staff, to develop reliable and relevant business applications, and to align IT and business processes effectively. IT expertise is important for IS success in SMEs (Caldeira & Ward 2003;Cragg et al 2013). Recent studies (Cragg et al 2011;Cragg et al 2013) suggest that more and more SMEs are able to develop a high level of IT expertise through gaining IT project experience over the years and by employing internal IT expertise.…”

“…For example, some studies (Bharadwaj & Soni 2007;Butler & Murphy 2008;Cragg et al 2011;Cragg et al 2013;Johnston et al 2007;Oh et al 2009;Wynn 2008;Zhang et al 2008) provide empirical support for a positive relationship between IT and SME performance through achieving business process competencies, enabling innovation, and increasing revenue and decreasing costs. Others (Cragg et al 2002;Hicks et al 2006) suggest that the impact of IT on SME performance is weak.…”

“…In this study, we examine the role of two types of IT resources (i.e., IT expertise, IT infrastructure) in developing a specific IT capability: IT integration. IT expertise is the skills and knowledge of a firm's IT personnel (Cragg et al 2013;Wade & Hulland 2004). IT infrastructure refers to physical IT assets including computers, communication facilities, shareable technical platforms, and databases (Roberts & Grover 2012).…”