Skip to main content
Log in

Using resource-based theory to interpret the successful adoption and use of information systems and technology in manufacturing small and medium-sized enterprises

  • Article
  • Published:
European Journal of Information Systems

Abstract

The purpose of this paper is to consider how resource-based theory can be used to explain success with the adoption and use of information systems and information technology (IS/IT) in manufacturing small and medium-sized enterprises (SMEs). A number of authors have explored the applicability of resource-based theory to the IS/IT domain, mainly at a conceptual level. Overall they infer that the key differentiators for long-term successful IS/IT deployment reside within the internal context of an organisation, based on organisational competences. This paper is based on in-depth case study research in 12 Portuguese manufacturing SMEs, which identified two factors that, from the empirical evidence, appeared to be the determinants of the different levels of success in IS/IT adoption and use. These factors were also primarily associated with the internal context of the organisations. Therefore, the findings were analysed from the perspective of resource-based theory, to understand why and how the attributes of these factors caused the differential levels of IS/IT success in the firms studied.

This is a preview of subscription content, log in via an institution to check access.

Access this article

Price excludes VAT (USA)
Tax calculation will be finalised during checkout.

Instant access to the full article PDF.

Figure 1
Figure 2
Figure 3
Figure 4
Figure 5

Similar content being viewed by others

References

  • Amit R and Schoemaker P (1993) Strategic assets and organisational rent. Strategic Management Journal 14, 33–46.

    Article  Google Scholar 

  • Ballantine J, Levy M and Powell P (1998) Evaluating Information Systems in Small and Medium-sized Enterprises: Issues and Evidence. European Journal of Information Systems 7, 241–251.

    Article  Google Scholar 

  • Barney J (1986) Strategic factor markets: expectations, luck and business strategy. Management Science 32, 1231–1241.

    Article  Google Scholar 

  • Barney J (1991) Firm resources and sustainable competitive advantage. Journal of Management 17(1), 99–120.

    Article  Google Scholar 

  • Baroudi J, Olson M and Ives B (1986) An empirical study of the impact of user involvement on system usage and information satisfaction. Communications of the ACM 29(3), 232–238.

    Article  Google Scholar 

  • Bharadwaj A (2000) A resource-based perspective on information technology capability and firm performance: an empirical investigation. MIS Quarterly 24(1), 169–196.

    Article  Google Scholar 

  • Blili S and Raymond L (1993) IT: threats and opportunities for small and medium-sized enterprises. International Journal of Information Management 13(6), 439–448.

    Article  Google Scholar 

  • Brabander S and Thiers G (1984) Successful information systems development in relation to situational factors which affect effective communication between MIS-users and EDP-specialists. Management Science 30(2), 137–155.

    Article  Google Scholar 

  • Bridge S, O'Neill K and Cromie S (1998) Understanding Enterprise, Entrepreneurship, and Small Business. MacMillan, London.

    Book  Google Scholar 

  • Caldeira M and Ward J (2002) Understanding the successful adoption and use of IS/IT in SMEs – an explanation from Portuguese manufacturing industries. Information Systems Journal 12(2), 121–152.

    Article  Google Scholar 

  • Campbell A, Luchs K (1997) Understanding competencies. In Core Competency-based Strategy, Campbell A and Luchs K, (Eds). Thomson, London.

  • Carson D, Cromie S, McGowan P and Hill J (1995) Marketing and Entrepreneurship in SMEs – An Innovative Approach. Prentice-Hall, Hemel Hempstead.

    Google Scholar 

  • Ciborra, C ., Andreu, R . (1998) Organisational learning and core capabilities development: the role of IT. In Information Technology and Organisational Transformation – Innovation for the 21st Century Organization. Galliers, R and Baets, W. (Eds). John Wiley & Sons, Chichester.

    Google Scholar 

  • Chen J, Williams B (1993) The impact of microcomputers on small businesses: England 10 years later. Journal of Small Business Management 31(3), 97–102.

    Google Scholar 

  • Conner K (1991) A historical comparison of resource-based theory and five schools of thought within industrial organization economics: do we have a new theory of the firm? Journal of Management 17(1), 121–154.

    Article  Google Scholar 

  • Conner K and Prahalad C (1996) A resource-based theory of the firm: knowledge versus opportunism. Organization Science 7(5), 477–501.

    Article  Google Scholar 

  • Cragg P (2002) Benchmarking information technology practices in small firms. European Journal of Information Systems 11(4), 267–282.

    Article  Google Scholar 

  • Cragg P and King M (1993) Small-firm computing: motivators and inhibitors. MIS Quarterly 17(1), 47–60.

    Article  Google Scholar 

  • Cron W and Sobol M (1983) The relationship between computerisation and performance: a strategy for maximising the economic benefits of computerisation. Information and Management 6, 171–181.

    Article  Google Scholar 

  • Dandridge T . (1979). Children are not Little Grown-ups: Small Business needs its own organizational theory. Journal of Small Business Management 17(2), 53–57.

    Google Scholar 

  • Delone W . (1988). Determinants of success for computer usage in small business. MIS Quarterly 12(1), 51–61.

    Article  Google Scholar 

  • Delone W and McLean E (1992) Information systems success: the quest for the dependent variable. Information Systems Research 3(1), 60–95.

    Article  Google Scholar 

  • Doukidis G, Smithson S and Lybereas T (1994) Trends in information technology in small businesses. Journal of End User Computing 6(4), 15–25.

    Google Scholar 

  • Earl M . (1990) Approaches to strategic information systems planning experience in twenty-one United Kingdom companies. Proceedings of the 11st International Conference on Information Systems, Copenhagen, 16–19 December, pp. 271–277.

    Google Scholar 

  • Earl M (1993) Experiences in strategic information systems planning. MIS Quarterly 17(1), 1–24.

    Article  Google Scholar 

  • Earl M and Feeny D (1994) Is your CIO adding value?. Sloan Management Review 35(3), 11–20.

    Google Scholar 

  • Evans G and Nesary M (1991) Computerizing small business. Montana Business Quarterly 29(3), 2–7.

    Google Scholar 

  • Feeny D and Willcocks L (1998a) Core IS capabilities for exploiting information technology. Sloan Management Review 39(3), 9–12.

    Google Scholar 

  • Feeny D and Willcocks L (1998b) Re-design the IS function around core capabilities. Long Range Planning 31(3), 354–367.

    Article  Google Scholar 

  • Flowers S (1996) Software failure: management failure. John Wiley & Sons, Chichester.

    Google Scholar 

  • Gatian A (1994) Is user satisfaction a valid measure of systems effectiveness?. Information & Management 26, 119–131.

    Article  Google Scholar 

  • Ghoshal S and Moran P (1996) Bad for practice : A critique of the Transaction Cost Theory. Academy of Management Review 21(1), 13–47.

    Google Scholar 

  • Grant R (1991) The resource-based theory of competitive advantage: implication for strategic formulation. California Management Review 33(3), 114–135.

    Article  Google Scholar 

  • Grover V, Teng J and Cheon M . (1998) Towards a theoretically-based contingency model of information systems outsourcing. In Strategic Sourcing of Information Systems, (Willcocks L and Lacity M, (eds) Wiley, Chichester. pp. 79–101.

    Google Scholar 

  • Hamel G and Prahalad C . (1996) Competing for the Future. (Paperback ed). Harvard Business School Press, Boston, MA.

    Google Scholar 

  • Hofstede G (1980) Culture's Consequences: International Differences in Work-Related Values. Sage Publications, Beverly Hills.

    Google Scholar 

  • Hofstede G (1991) Culture and Organisations McGraw-Hill, London.

    Google Scholar 

  • Igbaria M, Zinatelli N, Cragg P and Cavaye A . (1997) Personal computing acceptance factors in small firms: a structural equation model. MIS Quarterly 21(3), 279–302.

    Article  Google Scholar 

  • Ives B and Olson M . (1984) User involvement in MIS success. A review of research. Management Science 30(5), 586–603.

    Article  Google Scholar 

  • Ives B, Olson M and Baroudi J (1983) The measurement of user information satisfaction. Communications of the ACM 26(10), 785–793.

    Article  Google Scholar 

  • Keen PGN (1993) Information Technology and the management difference. IBM Systems Journal 32(1), 17–39.

    Article  Google Scholar 

  • Lambert R and Bytheway A (1998) Organisational competencies for harnessing IS/IT: Phase two report. Unpublished Research Report, Information Systems Research Centre, Cranfield University.

    Google Scholar 

  • Lefebvre L and Lefebvre E (1988) Computerization of small firms: a study of the perceptions and expectations of managers. Journal of Small Business and Entrepreneurship 5(5), 48–58.

    Article  Google Scholar 

  • Markus M (1983) Power, politics and MIS implementation. Communications of the ACM 26(6), 430–444.

    Article  Google Scholar 

  • Martin G and Staines H (1994) Managerial competencies in small firms. Journal of Management Development 13(7), 23–35.

    Article  Google Scholar 

  • Mata F, Fuerst W and Barney J (1995) Information technology and sustained competitive advantage: A resource-based analysis. MIS Quarterly 19(4), 487–505.

    Article  Google Scholar 

  • McGolpin P and Ward J . (1997). Factors influencing the success of strategic information systems. In Information Systems: An Emerging Discipline? (Mingers J and Stowell F, eds), pp. 287–327. McGraw-Hill, London.

    Google Scholar 

  • McGrath R, Macmillan I and Venkataraman S (1995) Defining and developing competence: A strategic process paradigm. Strategic Management Journal 16(4), 251–275.

    Article  Google Scholar 

  • Melone N (1990) A theoretical assessment of the user-satisfaction construct in information systems research. Management Science 36(1), 76–91.

    Article  Google Scholar 

  • Montazemi A (1988) Factors affecting information satisfaction in the context of the small business environment. MIS Quarterly 12(2), 239–256.

    Article  Google Scholar 

  • Olaisen J (1990) Information versus information technology as a strategic resource: areas of application of information and information technology in Norwegian banks and insurance companies. International Journal of Information Management 10, 192–214.

    Article  Google Scholar 

  • Peppard J and Ward J (1999) Mind the gap: Diagnosing the relationship between the IT organisation and the rest of the business. Journal of Strategic Information Systems 8(2), 29–60.

    Article  Google Scholar 

  • Pettigrew A, Whipp R and Rosenfeld R . (1989). Competitiveness and the management of strategic change processes in The Competitiveness of the European Industry, (Francis A and Tharakan P. Eds), Routledge, London, pp. 111–136.

    Google Scholar 

  • Prahalad C and Hamel G . (1990) The core competence of the corporation. Harvard Business Review 79–91.

  • Premkumar G and Roberts M . (1999). Adoption of new information technologies in rural small businesses. Omega 27, 467–484.

    Article  Google Scholar 

  • Raymond L (1985) Organizational characteristics and MIS success in the context of small business. MIS Quarterly 9(1), 37–52.

    Article  Google Scholar 

  • Raymond L (1990) Organisational context and information systems success: A contingency approach. Journal of Management Information Systems 6(4), 5–20.

    Article  Google Scholar 

  • Rindfleisch A and Heide J (1997) Transaction cost analysis: past, present and future applications. Journal of Marketing 61(4), 30–54.

    Article  Google Scholar 

  • Rumelt R . (1987). Theory, strategy and entrepreneurship. in The Competitive Challenge, (Teece D, Ed.), Ballinger, Cambridge. pp. 137–158.

    Google Scholar 

  • Sauer C (1993) Why Information Systems Fail: A Case Study Approach. Alfred Waller, Henley-on-Thames.

    Google Scholar 

  • Schneider S and De Meyer A (1991) Interpreting and responding to strategic issues: The impact of national culture. Strategic Management Journal 12(4), 307–320.

    Article  Google Scholar 

  • Selznick P (1957) Leadership and Administration, Harper & Row, New-York.

    Google Scholar 

  • Shuman J, Shaw J and Sussman G (1985) Strategic planning in smaller rapid growth companies. Long Range Planning 18(6), 48–53.

    Article  Google Scholar 

  • Srinivasan A . (1985). Alternative measures of system effectiveness: associations and implications. MIS Quarterly, 243–253.

  • Thong J (2001) Resource constrains and information systems implementation in Singaporean small businesses. Omega 29(2), 143–156.

    Article  Google Scholar 

  • Thong J and Yap C (1995) CEO characteristics, organizational characteristics and information technology adoption in small businesses. OMEGA, International Journal of Management Science 23(4), 429–442.

    Article  Google Scholar 

  • Thong J, Yap C and Raman K (1996) Top management support, external expertise and information systems implementations in small businesses. Information Systems Research 7(2), 248–267.

    Article  Google Scholar 

  • Tobin D (1997) The Knowledge-Enabled Organisation, Amacom, New York.

    Google Scholar 

  • Turner J . (1982). Firm size, performance and computer use. Proceedings of the 3rd International Conference on Information Systems, Ann Arber, USA, December, pp. 109–120.

    Google Scholar 

  • Von Krogh G, Roos J . (1996). Arguments on knowledge and competence In Managing Knowledge: Perspectives on Co-operation and Competition, (Von Krogh G and Roos J, Eds). Sage, London.

    Chapter  Google Scholar 

  • Welsh J and White J (1981) A small business is not a little big business. Harvard Business Review 59(4), 18–32.

    Google Scholar 

  • Williamson O (1975) Markets and Hierarchies: Analysis and Antitrust Implications. Free Press, New York.

    Google Scholar 

  • Winter S (1988) On Coase, competence and the corporation. Journal of Law, Economics and Organization 4, 163–180.

    Google Scholar 

  • Yap C and Walsham G (1986) A survey of information technology in the UK service sector. Information and Management 10, 267–274.

    Article  Google Scholar 

  • Yap C, Soh C and Raman K (1992) Information systems success factors in small business. OMEGA – International Journal of Management Science 20(5–6), 597–609.

    Article  Google Scholar 

Download references

Author information

Authors and Affiliations

Authors

Corresponding author

Correspondence to John M Ward.

Rights and permissions

Reprints and permissions

About this article

Cite this article

Caldeira, M., Ward, J. Using resource-based theory to interpret the successful adoption and use of information systems and technology in manufacturing small and medium-sized enterprises. Eur J Inf Syst 12, 127–141 (2003). https://doi.org/10.1057/palgrave.ejis.3000454

Download citation

  • Received:

  • Revised:

  • Accepted:

  • Published:

  • Issue Date:

  • DOI: https://doi.org/10.1057/palgrave.ejis.3000454

Keywords

Navigation