IDEAS home Printed from https://ideas.repec.org/a/gam/jsusta/v12y2020i20p8517-d428581.html
   My bibliography  Save this article

Enterprise Architecture as Explanatory Information Systems Theory for Understanding Small- and Medium-Sized Enterprise Growth

Author

Listed:
  • Aurona Gerber

    (Department of Informatics, University of Pretoria, 0083 Pretoria, South Africa
    CAIR, Center for Artificial Intelligence Research, 0083 Pretoria, South Africa)

  • Pierre le Roux

    (Department of Informatics, University of Pretoria, 0083 Pretoria, South Africa
    Moyo, 0157 Centurion, South Africa)

  • Alta van der Merwe

    (Department of Informatics, University of Pretoria, 0083 Pretoria, South Africa)

Abstract

Understanding and explaining small- and medium-sized enterprise (SME) growth is important for sustainability from multiple perspectives. Research indicates that SMEs comprise more than 80% of most economies, and their cumulative impact on sustainability considerations is far from trivial. In addition, for sustainability concerns to be prioritized, an SME has to be successful over time. In most developing countries, SMEs play a major role in solving socio-economic challenges. SMEs are an active research topic within the information systems (IS) discipline, often within the enterprise architecture (EA) domain. EA fundamentally adopts a systems perspective to describe the essential elements of a socio-technical organization and their relationships to each other and to the environment in order to understand complexity and manage change. However, despite rapid adoption originally, EA research and practice often fails to deliver on expectations. In some circles, EA became synonymous with projects that are over-budget, over-time and costly without the expected return on investment. In this paper, we argue that EA remains indispensable for understanding and explaining enterprises and that we fundamentally need to revisit some of the applications of EA. We, therefore, executed a research study in two parts. In the first part, we applied IS theory perspectives and adopted the taxonomy and structural components of theory to argue that EA, as represented by the Zachman Framework for Enterprise Architecture (ZFEA), could be adopted as an explanatory IS theory. In the second part of the study, we subsequently analysed multiple case studies from this theoretical basis to investigate whether distinguishable focus patterns could be detected during SME growth. The final results provide evidence that EA, represented through an appropriate framework like the ZFEA, could serve as an explanatory theory for SMEs during start-up, growth and transformation. We identified focus patterns and from these results, it should be possible to understand and explain how SMEs grow. Positioning the ZFEA as explanatory IS theory provides insight into the role and purpose of the ZFEA (and by extension EA), and could assist researchers and practitioners with mediating the challenges experienced by SMEs, and, by extension, enhance sustainable development.

Suggested Citation

  • Aurona Gerber & Pierre le Roux & Alta van der Merwe, 2020. "Enterprise Architecture as Explanatory Information Systems Theory for Understanding Small- and Medium-Sized Enterprise Growth," Sustainability, MDPI, vol. 12(20), pages 1-31, October.
    • Handle: RePEc:gam:jsusta:v:12:y:2020:i:20:p:8517-:d:428581
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2071-1050/12/20/8517/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/2071-1050/12/20/8517/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Wanda J. Orlikowski & Jack J. Baroudi, 1991. "Studying Information Technology in Organizations: Research Approaches and Assumptions," Information Systems Research, INFORMS, vol. 2(1), pages 1-28, March.
    2. Frédéric Delmar & Johan Wiklund & Per Davidsson, 2006. "Entrepreneurship and the Growth of Firms," Post-Print hal-01892801, HAL.
    3. Frédéric Delmar & Johan Wiklund & Per Davidsson, 2006. "Entrepreneurship and the Growth of Firms," Post-Print hal-01892798, HAL.
    4. Chrisovalantis Malesios & Antonis Skouloudis & Prasanta Kumar Dey & Fouad Ben Abdelaziz & Apostolos Kantartzis & Konstantinos Evangelinos, 2018. "Impact of small‐ and medium‐sized enterprises sustainability practices and performance on economic growth from a managerial perspective: Modeling considerations and empirical analysis results," Business Strategy and the Environment, Wiley Blackwell, vol. 27(7), pages 960-972, November.
    5. Per Davidsson & Frédéric Delmar & Johan Wiklund, 2006. "Entrepreneurship and the Growth of Firms," Books, Edward Elgar Publishing, number 3971.
    6. Maxime Bernaert & Geert Poels & Monique Snoeck & Manu Backer, 2014. "Enterprise Architecture for Small and Medium-Sized Enterprises: A Starting Point for Bringing EA to SMEs, Based on Adoption Models," Progress in IS, in: Jan Devos & Hendrik Landeghem & Dirk Deschoolmeester (ed.), Information Systems for Small and Medium-sized Enterprises, edition 127, pages 67-96, Springer.
    7. Ulf Seigerroth, 2011. "Enterprise Modeling and Enterprise Architecture: The Constituents of Transformation and Alignment of Business and IT," International Journal of IT/Business Alignment and Governance (IJITBAG), IGI Global, vol. 2(1), pages 16-34, January.
    8. Hafsi Mouaad & Saïd Assar, 2016. "What enterprise architecture can bring for digital transformation? An exploratory study," Grenoble Ecole de Management (Post-Print) hal-01416312, HAL.
    9. Maximilian ROBU, 2013. "The Dynamic And Importance Of Smes In Economy," The USV Annals of Economics and Public Administration, Stefan cel Mare University of Suceava, Romania, Faculty of Economics and Public Administration, vol. 13(1(17)), pages 84-89, June.
    10. Ralph Foorthuis & Marlies Steenbergen & Sjaak Brinkkemper & Wiel A. G. Bruls, 2016. "A theory building study of enterprise architecture practices and benefits," Information Systems Frontiers, Springer, vol. 18(3), pages 541-564, June.
    11. Ludovica Ioana SAVLOVSCHI & Nicoleta Raluca ROBU, 2011. "The Role of SMEs in Modern Economy," Economia. Seria Management, Faculty of Management, Academy of Economic Studies, Bucharest, Romania, vol. 14(1), pages 277-281, June.
    12. Mouaad Hafsi & Saïd Assar, 2016. "What enterprise architecture can bring for digital transformation? An exploratory study," Post-Print hal-01416312, HAL.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Yiwei Gong & Marijn Janssen, 2023. "Why Organizations Fail in Implementing Enterprise Architecture Initiatives?," Information Systems Frontiers, Springer, vol. 25(4), pages 1401-1419, August.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Bilandžić Ana & Marina Jeger & Šarlija Nataša, 2016. "Dealing with Interpretability Issues in Predicting Firm Growth: Factor Analysis Approach," Business Systems Research, Sciendo, vol. 7(2), pages 23-34, September.
    2. Stefano Bianchini & Giulio Bottazzi & Federico Tamagni, 2017. "What does (not) characterize persistent corporate high-growth?," Small Business Economics, Springer, vol. 48(3), pages 633-656, March.
    3. Alex Coad & Christina Guenther, 2012. "Age, diversification and survival in the German machine tool industry, 1953-2002," Papers on Economics and Evolution 2011-23, Philipps University Marburg, Department of Geography.
    4. Elert, Niklas & Stam, Erik & Stenkula, Mikael, 2019. "Intrapreneurship and Trust," Working Paper Series 1280, Research Institute of Industrial Economics.
    5. David Gibbs & Kirstie O'Neill, 2014. "Rethinking Sociotechnical Transitions and Green Entrepreneurship: The Potential for Transformative Change in the Green Building Sector," Environment and Planning A, , vol. 46(5), pages 1088-1107, May.
    6. Maria Tunberg & Alistair R. Anderson, 2020. "Growing a small firm; experiences and managing difficult processes," International Entrepreneurship and Management Journal, Springer, vol. 16(4), pages 1445-1463, December.
    7. Michael Sheppard, 2020. "The relationship between discretionary slack and growth in small firms," International Entrepreneurship and Management Journal, Springer, vol. 16(1), pages 195-219, March.
    8. Stephan Weemaes & Johan Bruneel & Ann Gaeremynck & Jonas Debrulle, 2022. "Initial external knowledge sources and start-up growth," Small Business Economics, Springer, vol. 58(1), pages 523-540, January.
    9. Boris Urban & Zethu Dlamini, 2020. "Intersections between policy and institutions: a focus on enterprise growth in Swaziland," Journal of Entrepreneurship and Public Policy, Emerald Group Publishing Limited, vol. 9(3), pages 253-275, April.
    10. Firdaus Basbeth & Ainon Ramli & Muhammad Ashlyzan Bin Razik & Rosmaizura Mohd Zain & Noorshella Bin Che Nawi, 2019. "The Role of Multi Dimensional EO in the Competitive Strategy - Performance Link," Research in World Economy, Research in World Economy, Sciedu Press, vol. 10(2), pages 20-25, July.
    11. Marta Gancarczyk, 2015. "Proces wzrostu przedsiębiorstwa w świetle podejścia zasobowego i teorii kosztów transakcyjnych," Gospodarka Narodowa. The Polish Journal of Economics, Warsaw School of Economics, issue 5, pages 5-31.
    12. McKeever, Edward & Jack, Sarah & Anderson, Alistair, 2015. "Embedded entrepreneurship in the creative re-construction of place," Journal of Business Venturing, Elsevier, vol. 30(1), pages 50-65.
    13. Thomas Zellweger & Philipp Sieger, 2012. "Entrepreneurial orientation in long-lived family firms," Small Business Economics, Springer, vol. 38(1), pages 67-84, January.
    14. Mary Nelima LYANI SINDANI, 2018. "Effects of Accounts Receivable Financing Practices on Growth of SMEs in Kakamega County, Kenya," Expert Journal of Finance, Sprint Investify, vol. 6, pages 1-11.
    15. Gregory S. NAMUSONGE & Mary Nelima LYANI (SINDANI) & Maurice SAKWA, 2016. "Accounts Receivable Risk Management Practices and Growth of SMEs in Kakamega County, Kenya," Expert Journal of Finance, Sprint Investify, vol. 4(1), pages 31-43.
    16. Leona Achtenhagen & Lucia Naldi & Leif Melin, 2010. "“Business Growth†—Do Practitioners and Scholars Really Talk about the Same Thing?," Entrepreneurship Theory and Practice, , vol. 34(2), pages 289-316, March.
    17. SooGeun Ahn & Jeewhan Yoon & YoungJun Kim, 2018. "The innovation activities of small and medium-sized enterprises and their growth: quantile regression analysis and structural equation modeling," The Journal of Technology Transfer, Springer, vol. 43(2), pages 316-342, April.
    18. Renata Dana Nițu-Antonie & Emőke-Szidónia Feder & Valentin Partenie Munteanu, 2017. "Macroeconomic Effects of Entrepreneurship from an International Perspective," Sustainability, MDPI, vol. 9(7), pages 1-21, July.
    19. José Miguel Giner & María Jesús Santa-María & Antonio Fuster, 2017. "High-growth firms: does location matter?," International Entrepreneurship and Management Journal, Springer, vol. 13(1), pages 75-96, March.
    20. Aikaterina Oikonomou, 2018. "Assessing the Impact of Employee Participation on Team-work Performance: A Way to Reinforce Entrepreneurship," SPOUDAI Journal of Economics and Business, SPOUDAI Journal of Economics and Business, University of Piraeus, vol. 68(2-3), pages 48-61, April-Sep.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:gam:jsusta:v:12:y:2020:i:20:p:8517-:d:428581. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.