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The Role of Top Management Participation and IT Capability in Developing SMEs’ Competitive Process Capabilities

Author

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  • Rui Bi
  • Robert Davison
  • Kosmas Smyrnios

Abstract

This research explores how top management participation and three types of IT capability enable SMEs' competitive process alignment and flexibility capabilities. Our research hypotheses are tested using data from 310 Australian SMEs. Results show that top management participation and external IT linkage capability positively affect both process alignment and process flexibility. While IT infrastructure capability and IT business spanning capability positively affect process alignment, they are not significantly related to process flexibility. In addition, both process alignment and process flexibility capabilities have significant positive effects on SME performance. Contributions and implications of this study are discussed.

Suggested Citation

  • Rui Bi & Robert Davison & Kosmas Smyrnios, 2019. "The Role of Top Management Participation and IT Capability in Developing SMEs’ Competitive Process Capabilities," Journal of Small Business Management, Taylor & Francis Journals, vol. 57(3), pages 1008-1026, July.
    • Handle: RePEc:taf:ujbmxx:v:57:y:2019:i:3:p:1008-1026
    DOI: 10.1111/jsbm.12380
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    Cited by:

    1. Soluk, Jonas & Decker-Lange, Carolin & Hack, Andreas, 2023. "Small steps for the big hit: A dynamic capabilities perspective on business networks and non-disruptive digital technologies in SMEs," Technological Forecasting and Social Change, Elsevier, vol. 191(C).
    2. Zahoor, Nadia & Zopiatis, Anastasios & Adomako, Samuel & Lamprinakos, Grigorios, 2023. "The micro-foundations of digitally transforming SMEs: How digital literacy and technology interact with managerial attributes," Journal of Business Research, Elsevier, vol. 159(C).
    3. Morimura, Fumikazu & Sakagawa, Yuji, 2023. "The intermediating role of big data analytics capability between responsive and proactive market orientations and firm performance in the retail industry," Journal of Retailing and Consumer Services, Elsevier, vol. 71(C).
    4. Pedroso, Elsa & Gomes, Carlos F., 2024. "Disentangling the effects of top management on management accounting systems utilization," International Journal of Accounting Information Systems, Elsevier, vol. 53(C).

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