Abstract
Thanks to the software commoditization and the rise of the cloud computing, today Information Technology (IT) may have far-reaching effects upon different industries. Small and Medium Enterprises (SMEs) may however encounter several obstacles in using IT to enrich their base of capabilities. This paper examines the diffusion patterns of IT-based capabilities in SMEs and - drawing on the resource-based-view and contingency theory - it analyzes how the industry environment influences the impact of capabilities on performance. Data are gathered through a survey conducted among 238 firms in Italy in 2009. Results show that outcomes of IT investments related to internal efficiency improvements are more diffused than uses of IT enhancing the capabilities related to the firm’s external orientation, that in more dynamic industries firms enjoy lower returns on profitability from their IT-based capabilities, and that in more munificent industries firms enjoy superior returns from enriching their capabilities base through IT.
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Neirotti, P., Raguseo, E. (2012). Profiting from IT Investments in Small and Medium Enterprises: How Does the Industry Environment Influence the Returns of IT-Based Capabilities?. In: Dua, S., Gangopadhyay, A., Thulasiraman, P., Straccia, U., Shepherd, M., Stein, B. (eds) Information Systems, Technology and Management. ICISTM 2012. Communications in Computer and Information Science, vol 285. Springer, Berlin, Heidelberg. https://doi.org/10.1007/978-3-642-29166-1_8
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DOI: https://doi.org/10.1007/978-3-642-29166-1_8
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