Strategic Business Systems - Research Paper Example

Strategic Business Systems (critique on a research paper) Introduction The core point of the author of this analysis is to expound on small growth-oriented (SMEs) firms and how these organizations apply external sources of competencies. However, besides quantifying external network members, the author’s purpose is to incorporate qualitative information derived from a number of Malaysia firms. This will help SMEs to differentiate those parts of their external networks which are of critical importance for knowledge acquisition against those which are not. In applying this criterion, he provides support his argument through qualitative analysis of these organizations that apparently reveal that extensive ICT systems are substantially more limited (Stolle Michael et al, 2008). Earlier studies on Malaysia emphasized on the need and ways to strengthen small and medium size enterprises (SMEs). In this country, the government has applied Information and Communication Technology (ICT) in the business fraternity. Nevertheless, most studies have reviewed the weakness and limitation of ICT application in improving SMEs. The evaluator concurs that reliable competitive advantage in the sector can only be achieved through formulating of co-specialized ICT competence amidst the ICT facilities and the human factors in the firm. On the other hand, entrepreneurs in SMEs are expected to become the agents for that assimilation. Therefore, in order to achieve this dream, entrepreneurs must be equated with adequate ICT expertise (Stolle Michael et al, 2008). Review of previous Research Recent study has provided similarities as per the previous research in which researchers discovered struggles for SMEs in employee productivity which is lesser as compared to large organizations. Nevertheless, this evaluation has reviewed the efforts to boost productivity and competitiveness within the SMEs. One of the likely answers to that issue is the utilization of information and communication technology (ICT) which is ingrained in the organizations’ wide operation. The Malaysian government is playing a very crucial duty that encourages the implementation of ICT among SMEs within the country. The core purpose is geared towards enabling the competitiveness of the businesses in specifically to sustaining the economy in general. Therefore, various funds have been provided for development of ICT with greater consideration to the SMEs. This has been enhanced by the ICT impact on the competitiveness which is huge to increase the operation of SMEs globally. Nonetheless, the introduction of ICT stipulates that SMEs businesses should be more competitive as the convenience of the Internet that came with various options for the consumer’s benefit from any part of the world. Problems and Purpose The recent study on SMEs shows its confines on keeping on competition as the firms have to keep upgrading the value of products and also adopt the cheapest methods of production. It has been known that ICT infrastructure that is complex, difficult to understand and imitate can have straight effects on the sustainable competitive advantage of a firm. Nevertheless, the shortage of resources and capability in SMEs can have a minimal ability in the construction of information technology infrastructure (Stolle Michael et al, 2008). Also, the limitation in form of resources and capabilities can go in opposition to SMEs to employ more information technological literate professional who may involve in the formation of strategic decisions within the firm. The purpose for problem identification reviewed how valuable, rare, imperfectly substitutable and imitable resources could produce some sustainable competitive benefits for the firm with pre-requisite of imperfectly and heterogeneity mobile of resources within the competing firms. The competition idea is to measure the firm’s associated success and could be measured by economic value which the firm is able to generate. Those economic values refer to disparity between the perceived advantages of economic cost and purchases in the enterprise via the offering of goods and services (Stolle Michael et al, 2008). Hypothesis The evaluation established that the research hypotheses on the five firms were clearly stated following the trend of Information Technology making strategic effective. The evaluators focused on the amalgamation between business managers and information technology professionals in production of effective utilization and information technology ability. Most of the researchers projected the combination of ICT and human factor in the actualization of sustainable competitive benefits. The evaluation was clear between the variables which for better integration of organization with information technology, people have been made to hold enough proficiency in information technology although skill alone is not enough. An information technology operation shows the usage of ICT proficiency in technological operations. Therefore, information technology provides the availability of software, hardware and the personnel to cater for performance functions (Olsen Michael et al, 2005). The author explicitly uses tested hypotheses to find the problem of sparse capabilities and resources in SMEs. It shows that majority of traders can not offer jobs to proficient information technological managers unless in ICT fields. Therefore, the entrepreneur organization is expected to incorporate information technology within the firm in order to generate sustainable competitive benefits to SMEs. The entrepreneur is then expected to portend proficiency skills in information technology and use the information technology in the each day firm operations upon investing in information technology equipments. This proficiency can be found through acquiring skills and experience in information technology (Stolle Michael et al, 2008). Research design The independent and dependent variables have been precisely defined after the completion of definitions and descriptions of variables. In order to offer the empirical evident to hold the framework developed, the research developed an online questionnaire to collect main data from the entrepreneurs in SMEs (Cohen Eli, 2005). This online questionnaire could provide adequate information since only online on information based on proficiency in ICT. For Information technology, education and experience and competitive benefits of the firm, the questionnaire is self-developed, by referring to previous literature study. The information technology skills, is estimated by the information technology formal education, course attended and professional certification obtained though information technology experience, can be measured via its working experience, project experience and venture experience. The study was conducted clearly, as the data for the study was collected from SMEs through several ways. First, the census study was done on the entrepreneur ICT SME. Then the total number of emails that was sent and received reached the targeted respondent. It also established usable responses that are equivalent to effective response rate (Stolle Michael et al, 2008). For initial hypothesis, independent sample T-test was used to scrutinize the significance of entrepreneurs’ education, and experience in information technology, on their information technology proficiency. The reason being that information technology skills and experience are evaluated using nominal scale, as information technology abilities are measured, by ordinary-interval scale. Secondly, the multiple-regression is used to assess the effect of entrepreneurs’ information technology competence, on competitive advantage of the firm. Both are measured by ordinary interval scale, and gives room for multiple regressions (Cohen Eli, 2005). Sample Collected information in IT skills and experience from different firms represented the population by theorizing the framework used. Besides, various implications can be directed, to policy makers, entrepreneurs and institutions of higher learning. Moreover, data source and selection was reliable as the main focus was to assist the SMEs to access sustainable competitive advantage, through information technology as well as uplift the SMEs (Cohen Eli, 2005). Eventually it will help establish the challenges of globalization, and recognize the opportunity in the global market. To policy makers, this evaluation would help them to restructure assistance objectives of assisting the SMEs, to adopt information technology. This broad approach study ensures that the information technology facilities, invested by SMEs can be maximized so as to achieve competitive advantage of the organization. This can be reached through offering courses, on information technology to entrepreneurs who are interested in the assistance provided by the policy makers (Stolle Michael et al, 2008). However, since introduction of ICT also represent the challenges to the SMEs, the assistance program, from the policy makers might be made comprehensive. This would work to ensure that the entrepreneurs in SMEs encounter no competitive disadvantages, due to the effect of ICT introduction. In conjunction to the challenges and chances presented by information communications technology on SMEs, there is need for higher institutions of learning to play crucial roles in strengthening the future SMEs in Malaysia (Bob De Wit et al, 2010). Like other such studies, participants have similarities since all the studies proposed that higher information technology equipments should be incorporated into the syllabus of non-information technology studies in institutions of higher learning, with much emphasis in the entrepreneurship, or business skills in general (Olsen Michael et al, 2005). This would tremendously benefit the students in future when they venture into entrepreneurship career. It would also improve their proficiency in ICT as well as better the chances for entrepreneurship, or business field graduates would venture into ICT related industry businesses. In return it will lead to definite benefits to the entrepreneurs since various efforts would have been covered by the government, to support the development of ICT. Therefore, adding the elements of ICT, in the curriculum of higher learning institutions, would be regarded as a good move to support the policy, of the government in encouraging the development of ICT in Malaysia especially in terms of ICT SMEs. For those who are engaged as entrepreneurs or would be entrepreneurs, this research could be prepared for them in order to strengthen their information technology knowledge ability and utilize ICT in daily operations. It could also help managers and firms with making strategic decisions for the organization and to equip it with ICT elements. Besides, the elements would establish strategic resources, for firms to access the sustainable, competitive advantage (Olsen Michael et al, 2005). Also, the entrepreneurs should also be more aware, to the assistance program projected by the government in assisting them to adopt the ICT, in their own firms. However, due to various restrictions, the SMEs might not be willing to use ICT for the strategic purpose. In such cases, the study advices that the SMEs should adopt minimum levels of ICT, based on the fact that ICT has already undergone competitive requirement in contemporary business world. Sustainable Competitive Advantage, through Information Technology, Competence: Resource-Based View, on Small and Medium Enterprises (Olsen Michael et al, 2005). Outcomes and Discussion The author shares the results to literature review and hypothesis since the outcomes were consistent with the actual results. The evaluation established that though SMEs were the backbone of most economic development, they on the other hand lack productivity as compared to their larger counterpart. According to them, a sustainable competitive advantage from information communication technology can only be able to achieve through integration, of ICT with human factors in organization. It observes that integration will avail, a set of strategic resource that will enhance achieving sustainable competitive advantage for the SME organization (Cohen Eli, 2005). According to the evaluation, the discussion was associated to the first hypothesis formulated by the author. Besides increased liberalization of the world economy and the effect of ICT on consumer behavior, it demands that SMEs should improve their competitiveness. The information communication technology seems to be a good solution to all these challenges. However, experts in resource perspective consider t differently arguing that ICT hardware and software would be able to provide organization with sustainable competitive advantage. In the approach of small and medium enterprises, inadequate resources and unlikely to higher and highly capable human resource, mean that the entrepreneur must bear the responsibility and be the agent to integrate ICT with the organization (Olsen Michael et al, 2005). General observations In conclusion, since this evaluation is limited to an analysis on a given number of small growth-oriented organizations, there is need to be cautious not to generalize to the overall population of these organizations. Nonetheless, it would be advisable to argue that in terms of its aims of contributing to issues, there is need to exhaustively consider both external and internal studies on these firms. In return it will greatly add value to IT knowledge acquisition and its proficiency and experience (Cohen Eli, 2005). The established report is precisely understood and the language applied is not biased. In addition, the author attaches the findings to literature review and hypothesis as the outcomes were consistent with the exhibited results. However, in theorizing the structure used, a number of implications could be fashioned although the report could be improved by offering the empirical evident to hold the framework developed where the questionnaire is developed to collect main data from the entrepreneurs in SMEs. The basic implication of the research conformed to the author’s first views as the submitted manuscript conformed to the editor’s specifications. From the established framework of sustainable competitive advantage through ICT in SMEs, the study has noted various recommendations to varied stakeholders (Cohen Eli, 2005). However, implementers of this framework should cautiously consider that ICT is a field that evolves at a very rapid rate. This evolution might make the existing ICT proficiency and equipments become obsolete. Therefore, SMEs entrepreneurs should always renew their ICT ability through continued training and experience so as to ensure renewal of their ICT competence that will help sustain the competitive benefits of the organization. References Cohen Eli (2005). Issues in Informing Science and Information Technology. Santa Rosa CA: Informing Science Press. Meyer Ron, Bob De Wit (2010). Strategy: Process, Content, Context, An International Perspective. Rotterdam: Tilburg University. Stolle Michael (2008). From Purchasing to Supply Management. A Study of the Benefits and Critical Factors of Evolution to best Practice. Frankfurt, Gabler Verlag.  Zhao Jinlin, Olsen Michael (2005). Handbook of Hospitality Strategic Management. Burlington: Elsvier.   Read More