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Effect of Information System Artifacts on Organizational Resilience: A Study among Malaysian SMEs

Author

Listed:
  • Shubashini Rathina Velu

    (Faculty of Management, Multimedia University Persiaran Multimedia, 63100 Cyberjaya, Selangor, Malaysia)

  • Abdullah Al Mamun

    (Faculty of Entrepreneurship and Business, University Malaysia Kelantan, Karung Berkunci 36, Pengkalan Chepa, Kota Bharu 16100, Kelantan, Malaysia)

  • Thavamaran Kanesan

    (Academic Consultant, Research and Publications, Cyberjaya 63000, Malaysia)

  • Naeem Hayat

    (Faculty of Entrepreneurship and Business, University Malaysia Kelantan, Karung Berkunci 36, Pengkalan Chepa, Kota Bharu 16100, Kelantan, Malaysia)

  • Sharmini Gopinathan

    (Faculty of Management, Multimedia University Persiaran Multimedia, 63100 Cyberjaya, Selangor, Malaysia)

Abstract

Conducting business nowadays has become much more challenging, and the importance of collective behavioral capacity is paramount regarding the behavior of employees along with internal information systems that form the backbone of many organizations in terms of competitiveness and survivability. This study, therefore, examined the effect of commitment, communication, competency, community, connection, consideration, and coordination on information system artifacts and the effect of information system artifacts on organizational resilience among Malaysian SMEs. To verify these statements and positioning, a sample of employees from registered organizations of the Malaysian Digital Economic Corporation Sdn Bhd (MDEC), participated in this study to examine a number of aspects. Quantitative data were collected from a total of 252 respondents through a questionnaire survey and data were analyzed using PLS-SEM. We performed the endogeniety assessment for the all the seven input variables and confirmed lack of endogeniety issues. The findings of this study constitute essential results that the commitment, communication, competency, community, connection, consideration, and coordination positively influenced the ISA. Furthermore, the mediating effect of ISA on the relationships of organizational resilience with commitment, communication, competency, community, connection, consideration, and coordination, had been revealed. The study concluded that a positive set of behavioral capital, if it exists inside organizations, enables the organizations to prosper and survive. Similarly, policymakers need to address the issue surrounding resilience in SMEs by establishing the correct benchmarking mechanism by introducing it as a formal activity to be undertaken regularly within the SMEs. Given the vast majority of employment in Malaysia and globally is provided through SMEs, if they become more resilient to change and to unforeseen events, then the employment of the vast majority of the working class can be secured across different nations.

Suggested Citation

  • Shubashini Rathina Velu & Abdullah Al Mamun & Thavamaran Kanesan & Naeem Hayat & Sharmini Gopinathan, 2019. "Effect of Information System Artifacts on Organizational Resilience: A Study among Malaysian SMEs," Sustainability, MDPI, vol. 11(11), pages 1-23, June.
    • Handle: RePEc:gam:jsusta:v:11:y:2019:i:11:p:3177-:d:237681
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    References listed on IDEAS

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    2. Ahmed Saleh Al-Matari & Rozita Amiruddin & Khairul Azman Aziz & Mohammed A. Al-Sharafi, 2022. "The Impact of Dynamic Accounting Information System on Organizational Resilience: The Mediating Role of Business Processes Capabilities," Sustainability, MDPI, vol. 14(9), pages 1-22, April.
    3. Qing Li & Xiu-e Zhang & Wenxin Zhang, 2023. "Organizational Resilience and Configurational Conditions From the Perspective of Emergency: A fsQCA Approach," SAGE Open, , vol. 13(1), pages 21582440231, February.
    4. Junuo Zhou & Lin Yang, 2022. "Network-Based Research on Organizational Resilience in Wuhan Thunder God Mountain Hospital Project during the COVID-19 Pandemic," Sustainability, MDPI, vol. 14(16), pages 1-23, August.
    5. Dong Wang & Shengli Chen, 2022. "RETRACTED: Digital Transformation and Enterprise Resilience: Evidence from China," Sustainability, MDPI, vol. 14(21), pages 1-23, October.
    6. Ragmoun Wided, 2023. "IT Capabilities, Strategic Flexibility and Organizational Resilience in SMEs Post-COVID-19: A Mediating and Moderating Role of Big Data Analytics Capabilities," Global Journal of Flexible Systems Management, Springer;Global Institute of Flexible Systems Management, vol. 24(1), pages 123-142, March.
    7. Feng Liu & Kwangtae Park & Unjung Whang, 2019. "Organizational Capabilities, Export Growth and Job Creation: An Investigation of Korean SMEs," Sustainability, MDPI, vol. 11(14), pages 1-16, July.
    8. Jichang Zhang & Jing Long & Alexandra Martina Eugenie von Schaewen, 2021. "How Does Digital Transformation Improve Organizational Resilience?—Findings from PLS-SEM and fsQCA," Sustainability, MDPI, vol. 13(20), pages 1-22, October.

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