Somendra Pant and T. Ravichandran
E‐business information systems are computer applications that leverage intra‐ and inter‐firm process and systems integration. Considering the growth and strategic importance of…
Abstract
E‐business information systems are computer applications that leverage intra‐ and inter‐firm process and systems integration. Considering the growth and strategic importance of e‐business, while it is important for organizations to carefully plan for and architect e‐business systems, none of the existing information systems planning models is adequate for the task. An e‐business architecture planning model is developed by identifying 12 generic e‐business models and three axes on which drivers of the information architecture needs of e‐business firms fall. Sowa and Zachman’s information architecture is augmented to further facilitate e‐business information systems architecture planning.
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Ravichandran Joghee and Reesa Varghese
The purpose of this article is to study the link between mean shift and inflation coefficient when the underlying null hypothesis is rejected in the analysis of variance (ANOVA…
Abstract
Purpose
The purpose of this article is to study the link between mean shift and inflation coefficient when the underlying null hypothesis is rejected in the analysis of variance (ANOVA) application after the preliminary test on the model specification.
Design/methodology/approach
A new approach is proposed to study the link between mean shift and inflation coefficient when the underlying null hypothesis is rejected in the ANOVA application. First, we determine this relationship from the general perspective of Six Sigma methodology under the normality assumption. Then, the approach is extended to a balanced two-stage nested design with a random effects model in which a preliminary test is used to fix the main test statistic.
Findings
The features of mean-shifted and inflated (but centred) processes with the same specification limits from the perspective of Six Sigma are studied. The shift and inflation coefficients are derived for the two-stage balanced ANOVA model. We obtained good predictions for the process shift, given the inflation coefficient, which has been demonstrated using numerical results and applied to case studies. It is understood that the proposed method may be used as a tool to obtain an efficient variance estimator under mean shift.
Research limitations/implications
In this work, as a new research approach, we studied the link between mean shift and inflation coefficients when the underlying null hypothesis is rejected in the ANOVA. Derivations for these coefficients are presented. The results when the null hypothesis is accepted are also studied. This needs the help of preliminary tests to decide on the model assumptions, and hence the researchers are expected to be familiar with the application of preliminary tests.
Practical implications
After studying the proposed approach with extensive numerical results, we have provided two practical examples that demonstrate the significance of the approach for real-time practitioners. The practitioners are expected to take additional care before deciding on the model assumptions by applying preliminary tests.
Originality/value
The proposed approach is original in the sense that there have been no similar approaches existing in the literature that combine Six Sigma and preliminary tests in ANOVA applications.
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Qiuli Su, Aidin Namin and Seth Ketron
This paper aims to investigate textual characteristics of customer reviews that motivate companies to respond (sentiment negativity and sentiment deviation) and how aspects of…
Abstract
Purpose
This paper aims to investigate textual characteristics of customer reviews that motivate companies to respond (sentiment negativity and sentiment deviation) and how aspects of these company responses (response intensity, length and tailoring) affect subsequent customer review quality (comprehensiveness and readability) over time.
Design/methodology/approach
Leveraging a large data set from a leading app website (Shopify), the authors combine text mining, natural language processing (NLP) and big data analysis to examine the antecedents and outcomes of online company responses to reviews.
Findings
This study finds that companies are more likely to respond to reviews with more negative sentiment and higher sentiment deviation scores. Furthermore, while longer company responses improve review comprehensiveness over time, they do not have a significant influence on review readability; meanwhile, more tailored company responses improve readability but not comprehensiveness over time. In addition, the intensity (volume) of company responses does not affect subsequent review quality in either comprehensiveness or readability.
Originality/value
This paper expands on the understanding of online company responses within the digital marketplace – specifically, apps – and provides a new and broader perspective on the motivations and effects of online company responses to customer reviews. The study also extends beyond the short-term focus of prior works and adds to literature on long-term effects of online company responses to subsequent reviews. The findings provide valuable insights for companies (especially those with apps) to enhance their online communication strategies and customer engagement.
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With the ever-growing turbulent business setting, there is a great interest to study how a firm tailors information technology (IT) capability to shape agility and innovation…
Abstract
Purpose
With the ever-growing turbulent business setting, there is a great interest to study how a firm tailors information technology (IT) capability to shape agility and innovation capability to stay ahead of the competition. This study examines how IT governance and IT capability can be tailored to achieve firm performance through agility and innovative capability in a turbulent environment.
Design/methodology/approach
Drawing on the dynamic capability theory, this study based on the primary survey data of 253 responses from senior IT and business executives in China proves the hypothesized relationship in the proposed model.
Findings
This study shows that the IT governance mechanism positively impacts on IT-enabled dynamic capabilities. Further, IT-enabled dynamic capabilities positively impact on agility and innovative capability that in turn support to achieve firm performance. The environmental uncertainty is only significant in the IT-enabled dynamic capabilities–business process agility relationship.
Research limitations/implications
This study suggests corporate leaders and executives to better exploit their resources and tailor IT capabilities in the turbulent environment. Further, this study offers theoretical and practical implications.
Originality/value
This study proposes ways for executives to examine the multifaceted nature of environmental uncertainty to achieve agility, innovation and firm performance rather than simply investing in IT.
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Wenqing Wu, Pianpian Zhang and Sang-Bing Tsai
Previous studies have shown that the application of information technology (IT) can help break through the innovation boundaries of firms and has undoubtedly become a key enabler…
Abstract
Purpose
Previous studies have shown that the application of information technology (IT) can help break through the innovation boundaries of firms and has undoubtedly become a key enabler of collaborative innovation. These studies, however, are mainly based on theoretical analysis and case studies, and little is empirically known about the relationship between IT investments and collaborative innovation. Therefore, the purpose of this study is to empirically explore how firms' IT investments affect the firms' collaborative innovation performance. The authors also examine the moderating roles of the top management team's (TMT's) educational background and absorptive capacity in this relationship.
Design/methodology/approach
The authors collected data on 2,097 listed Chinese manufacturing companies and used the ordinary least squares (OLS) method to perform regression analysis. In addition, the authors conducted robustness tests using the propensity score matching (PSM) method and the instrumental variable method.
Findings
The results show that the relationship between IT investments and collaborative innovation is inverted, U-shaped and curvilinear. In addition, the TMT's educational background and absorptive capacity positively moderate the inverted U-shaped relationship between IT investments and collaborative innovation.
Originality/value
The study's findings on the relationship between IT investments and collaborative innovation differ from previous mainstream findings that recognized a positive linear relationship. The authors' findings deepen the understanding of the dual role of IT investments. Moreover, this research helps expand the contingency perspective in IT investments and collaborative innovation research.
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Nor’Aini Yusof, Kong Seng Lai and Ernawati Mustafa Kamal
An organisation’s performance tends to be associated with its innovativeness. However, innovation remains challenging in the construction industry, partially due to the complex…
Abstract
Purpose
An organisation’s performance tends to be associated with its innovativeness. However, innovation remains challenging in the construction industry, partially due to the complex nature of this industry. Nevertheless, innovation orientations (i.e. creation and adoption) shed new light on innovation in the construction industry. These orientations are similar but not entirely identical. Although most studies do not discuss these orientations in any detail, this study aims to classify the characteristics of the innovation orientations and determines the state of innovation among construction companies in Malaysia.
Design/methodology/approach
A survey questionnaire was mailed to 1,230 construction companies in Malaysia. Descriptive analysis was used to examine the respondents’ profiles, and factor analysis was used to classify the innovation orientation characteristics. A paired samples t-test was used to determine the state of innovation among the construction companies.
Findings
Innovation creation reflects a pioneer’s efforts and involves being a market explorer that tolerates risk and is research and development (R&D)-oriented, whereas innovation adoption involves being a creative imitator, a market follower and a safe player. Construction companies in Malaysia are innovation adoption–oriented.
Research limitations/implications
This study uses quantitative methods only; therefore, the findings are statistically oriented. The small sample size makes generalisation challenging, so this study reflects only the built environment of the developing country of Malaysia.
Originality/value
This study classifies the characteristics of innovation creation and innovation adoption with respect to the innovation orientation of construction companies in Malaysia.
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Information and communications technology (ICT) offers enormous opportunities for individuals, businesses and society. The application of ICT is equally important to economic and…
Abstract
Information and communications technology (ICT) offers enormous opportunities for individuals, businesses and society. The application of ICT is equally important to economic and non-economic activities. Researchers have increasingly focused on the adoption and use of ICT by small and medium enterprises (SMEs) as the economic development of a country is largely dependent on them. Following the success of ICT utilisation in SMEs in developed countries, many developing countries are looking to utilise the potential of the technology to develop SMEs. Past studies have shown that the contribution of ICT to the performance of SMEs is not clear and certain. Thus, it is crucial to determine the effectiveness of ICT in generating firm performance since this has implications for SMEs’ expenditure on the technology. This research examines the diffusion of ICT among SMEs with respect to the typical stages from innovation adoption to post-adoption, by analysing the actual usage of ICT and value creation. The mediating effects of integration and utilisation on SME performance are also studied. Grounded in the innovation diffusion literature, institutional theory and resource-based theory, this study has developed a comprehensive integrated research model focused on the research objectives. Following a positivist research paradigm, this study employs a mixed-method research approach. A preliminary conceptual framework is developed through an extensive literature review and is refined by results from an in-depth field study. During the field study, a total of 11 SME owners or decision-makers were interviewed. The recorded interviews were transcribed and analysed using NVivo 10 to refine the model to develop the research hypotheses. The final research model is composed of 30 first-order and five higher-order constructs which involve both reflective and formative measures. Partial least squares-based structural equation modelling (PLS-SEM) is employed to test the theoretical model with a cross-sectional data set of 282 SMEs in Bangladesh. Survey data were collected using a structured questionnaire issued to SMEs selected by applying a stratified random sampling technique. The structural equation modelling utilises a two-step procedure of data analysis. Prior to estimating the structural model, the measurement model is examined for construct validity of the study variables (i.e. convergent and discriminant validity).
The estimates show cognitive evaluation as an important antecedent for expectation which is shaped primarily by the entrepreneurs’ beliefs (perception) and also influenced by the owners’ innovativeness and culture. Culture further influences expectation. The study finds that facilitating condition, environmental pressure and country readiness are important antecedents of expectation and ICT use. The results also reveal that integration and the degree of ICT utilisation significantly affect SMEs’ performance. Surprisingly, the findings do not reveal any significant impact of ICT usage on performance which apparently suggests the possibility of the ICT productivity paradox. However, the analysis finally proves the non-existence of the paradox by demonstrating the mediating role of ICT integration and degree of utilisation explain the influence of information technology (IT) usage on firm performance which is consistent with the resource-based theory. The results suggest that the use of ICT can enhance SMEs’ performance if the technology is integrated and properly utilised. SME owners or managers, interested stakeholders and policy makers may follow the study’s outcomes and focus on ICT integration and degree of utilisation with a view to attaining superior organisational performance.
This study urges concerned business enterprises and government to look at the environmental and cultural factors with a view to achieving ICT usage success in terms of enhanced firm performance. In particular, improving organisational practices and procedures by eliminating the traditional power distance inside organisations and implementing necessary rules and regulations are important actions for managing environmental and cultural uncertainties. The application of a Bengali user interface may help to ensure the productivity of ICT use by SMEs in Bangladesh. Establishing a favourable national technology infrastructure and legal environment may contribute positively to improving the overall situation. This study also suggests some changes and modifications in the country’s existing policies and strategies. The government and policy makers should undertake mass promotional programs to disseminate information about the various uses of computers and their contribution in developing better organisational performance. Organising specialised training programs for SME capacity building may succeed in attaining the motivation for SMEs to use ICT. Ensuring easy access to the technology by providing loans, grants and subsidies is important. Various stakeholders, partners and related organisations should come forward to support government policies and priorities in order to ensure the productive use of ICT among SMEs which finally will help to foster Bangladesh’s economic development.
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The strategic management literature emphasizes the concept of business intelligence (BI) as an essential competitive tool. Yet the sustainability of the firms’ competitive…
Abstract
The strategic management literature emphasizes the concept of business intelligence (BI) as an essential competitive tool. Yet the sustainability of the firms’ competitive advantage provided by BI capability is not well researched. To fill this gap, this study attempts to develop a model for successful BI deployment and empirically examines the association between BI deployment and sustainable competitive advantage. Taking the telecommunications industry in Malaysia as a case example, the research particularly focuses on the influencing perceptions held by telecommunications decision makers and executives on factors that impact successful BI deployment. The research further investigates the relationship between successful BI deployment and sustainable competitive advantage of the telecommunications organizations. Another important aim of this study is to determine the effect of moderating factors such as organization culture, business strategy, and use of BI tools on BI deployment and the sustainability of firm’s competitive advantage.
This research uses combination of resource-based theory and diffusion of innovation (DOI) theory to examine BI success and its relationship with firm’s sustainability. The research adopts the positivist paradigm and a two-phase sequential mixed method consisting of qualitative and quantitative approaches are employed. A tentative research model is developed first based on extensive literature review. The chapter presents a qualitative field study to fine tune the initial research model. Findings from the qualitative method are also used to develop measures and instruments for the next phase of quantitative method. The study includes a survey study with sample of business analysts and decision makers in telecommunications firms and is analyzed by partial least square-based structural equation modeling.
The findings reveal that some internal resources of the organizations such as BI governance and the perceptions of BI’s characteristics influence the successful deployment of BI. Organizations that practice good BI governance with strong moral and financial support from upper management have an opportunity to realize the dream of having successful BI initiatives in place. The scope of BI governance includes providing sufficient support and commitment in BI funding and implementation, laying out proper BI infrastructure and staffing and establishing a corporate-wide policy and procedures regarding BI. The perceptions about the characteristics of BI such as its relative advantage, complexity, compatibility, and observability are also significant in ensuring BI success. The most important results of this study indicated that with BI successfully deployed, executives would use the knowledge provided for their necessary actions in sustaining the organizations’ competitive advantage in terms of economics, social, and environmental issues.
This study contributes significantly to the existing literature that will assist future BI researchers especially in achieving sustainable competitive advantage. In particular, the model will help practitioners to consider the resources that they are likely to consider when deploying BI. Finally, the applications of this study can be extended through further adaptation in other industries and various geographic contexts.
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Kong Seng Lai, Nor’Aini Yusof and Ernawati Mustafa Kamal
Innovation is defined as the creation and adoption of changes that are new to an organisation or industry. The high probability of failure and the lack of innovation in the…
Abstract
Purpose
Innovation is defined as the creation and adoption of changes that are new to an organisation or industry. The high probability of failure and the lack of innovation in the construction industry have highlighted the importance of innovation (both creation and adoption) as a business orientation. Although they are related to the construction industry, architectural firms receive little attention from an innovation perspective despite being perceived as important drivers of innovation. Thus, this paper aims to examine the distinctive characteristics of various innovation orientations and determine the state of innovation among architectural firms.
Design/methodology/approach
A postal survey was sent to 1,004 registered architectural firms in Malaysia. The data were processed using descriptive analysis. A factor analysis was conducted to categorise innovation creation and adoption, and a paired samples t-test was performed to examine the innovation orientations of architectural firms.
Findings
Innovation creation and innovation adoption are two distinct orientations with different characteristics. Architectural firms in Malaysia are oriented towards innovation creation, which intersects with innovation adoption.
Research limitations/implications
This study used a questionnaire survey that generated only statistical results. Future research should conduct interviews or focus group discussions to obtain comprehensive findings.
Practical implications
The innovation concept is expanded in terms of its orientations.
Originality/value
This study illustrates significant differences between innovation creation and innovation adoption in the architectural firms of a developing country, i.e. Malaysia.
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Hefu Liu, Qian Huang, Shaobo Wei and Liqiang Huang
The purpose of this paper is to derive a model to examine how Information Technology (IT) capability affects internet-enabled supply and demand process integration, which will…
Abstract
Purpose
The purpose of this paper is to derive a model to examine how Information Technology (IT) capability affects internet-enabled supply and demand process integration, which will eventually improve firm performance. In addition, the moderating effects of industry type in the research framework are explored.
Design/methodology/approach
Data were obtained from a survey administered to 261 firms in the manufacturing and services industry in China. The structural equation modeling approach is used to test the hypotheses. The study further applied the t-test to compare the path coefficiencies between manufacturing and service.
Findings
Results from the survey indicate that internet-enabled supply and demand process integration is affected by IT capability, and can directly impact firm performance. The results further indicate that manufacturing and services firms may benefit from IT capability in different ways.
Originality/value
The current paper contributes knowledge on the value-realizing mechanism of internet-enabled supply chain integration (SCI) from a resource-based view. It presents a multidimensional explanation of the relationships among IT capability, internet-enabled SCI, and firm performance.