Featured Research

from universities, journals, and other organizations

What drives IT performance?

Date:
October 26, 2011
Source:
Concordia University
Summary:
Researchers have studied the strategic role of IT in small-and medium-sized business manufacturers to understand its relationship to IT performance.

Going online was once a considerable achievement for a business. Now it's a given and what makes for success is how well a business exploits its online capabilities, according to a recent study.

The research examined the role played by information technology (IT) in business plans of small- and medium-sized manufacturing enterprises (SMEs). It examined the direct effect on the management and usage of IT, and most importantly, on its performance.

"The value of computer-based advanced applications for manufacturing SMEs depends on how these applications are aligned with the companies' business strategy," says second author Anne-Marie Croteau, an associate professor in the Department of Decision Sciences and Management Information Systems (DSMIS) at Concordia's John Molson School of Business.

The study, The Strategic Role of IT: An Empirical Study of its Impact on IT Performance in Manufacturing SMEs, was published as part of the Sixth International Conference on Internet and Web Applications and Services. It focused on IT performance in 44 manufacturing SMEs in the Midi-Pyrénées region of France, where firms had between 10 and 299 employees.

Louis Raymond, a professor of information systems at the Université du Québec à Trois-Rivières and Canada Research Chair in Business Performance, oversaw the study's data collection. Croteau and François Bergeron, a professor at the Télé-Université de l'Université de Québec à Montréal (TELUQ), contributed to the research model and discussion of findings.

Internet and the web are key to a business's ability to survive -- much less compete -- in a fragile economy. SMEs exploit their technological applications online to control what they buy and what they produce throughout the manufacturing process. IT allows them to assess the impact of their product on the market and to adapt their manufacturing process when necessary.

"We found that the role given to technological applications in a manufacturing SME's strategic plan positively affects how they perform for the business," continues Croteau. "First, it affects IT performance directly, and second, it affects how IT performs in an indirect way, via its influence on how well the technology is managed but how users exploit the information made available to them through the applications."

Management in manufacturing SMEs -- small businesses, in particular -- often leave IT at the disposal of finance or accounting. This subordination of the creative possibilities of IT curtails technological benefits that might otherwise accrue.

"When a manufacturing SME values technological applications as a necessity for core business processes, management adopts practices that integrate IT at multiple levels of marketing, production, customer relations and e-business," reports lead author Raymond. "With the result that IT reaps noteworthy benefits in all those areas."

One way to recognize whether a manufacturing SME is on the ball and understands the potential of its technologies is the proportion of IT applications being used at the various decision-making levels. Another way is the position of assigned IT on the power ladder.

An autonomous IT with a designated manager occupying a high level in the hierarchy of an organization is an indication of a sophisticated management.

Partners in research

This work was supported by the Social Science and Humanities Research Council of Canada and Canada Research Chairs.

Further information.


Story Source:

The above story is based on materials provided by Concordia University. Note: Materials may be edited for content and length.


Cite This Page:

Concordia University. "What drives IT performance?." ScienceDaily. ScienceDaily, 26 October 2011. <www.sciencedaily.com/releases/2011/10/111026113832.htm>.
Concordia University. (2011, October 26). What drives IT performance?. ScienceDaily. Retrieved October 20, 2014 from www.sciencedaily.com/releases/2011/10/111026113832.htm
Concordia University. "What drives IT performance?." ScienceDaily. www.sciencedaily.com/releases/2011/10/111026113832.htm (accessed October 20, 2014).

Share This



More Computers & Math News

Monday, October 20, 2014

Featured Research

from universities, journals, and other organizations


Featured Videos

from AP, Reuters, AFP, and other news services

Facebook Says The DEA's Fake Accounts Go Too Far

Facebook Says The DEA's Fake Accounts Go Too Far

Newsy (Oct. 19, 2014) — Facebook says the DEA violated its Terms of Service and that such impersonations damage the integrity of the site. Video provided by Newsy
Powered by NewsLook.com
Court Ruling Means Kids' Online Activity Could Be On Parents

Court Ruling Means Kids' Online Activity Could Be On Parents

Newsy (Oct. 17, 2014) — In a ruling attorneys for both sides agreed was a first of its kind, a Georgia appeals court said parents can be held liable for what kids put online. Video provided by Newsy
Powered by NewsLook.com
For Google, Even A $16.5 Billion Earnings Report Is A Miss

For Google, Even A $16.5 Billion Earnings Report Is A Miss

Newsy (Oct. 17, 2014) — Analysts were expecting more, but Google’s ad growth slowed on the quarter and the company is spending more of its money. Video provided by Newsy
Powered by NewsLook.com
Obama Signs Cybersecurity Order, Wants Safer Payments

Obama Signs Cybersecurity Order, Wants Safer Payments

Reuters - US Online Video (Oct. 17, 2014) — President Barack Obama announces details of a new executive order designed to make federal payments safer following recent massive data breaches. Rough Cut (no reporter narration). Video provided by Reuters
Powered by NewsLook.com

Search ScienceDaily

Number of stories in archives: 140,361

Find with keyword(s):
 
Enter a keyword or phrase to search ScienceDaily for related topics and research stories.

Save/Print:
Share:  

Breaking News:

Strange & Offbeat Stories

 

Space & Time

Matter & Energy

Computers & Math

In Other News

... from NewsDaily.com

Science News

Health News

Environment News

Technology News



Save/Print:
Share:  

Free Subscriptions


Get the latest science news with ScienceDaily's free email newsletters, updated daily and weekly. Or view hourly updated newsfeeds in your RSS reader:

Get Social & Mobile


Keep up to date with the latest news from ScienceDaily via social networks and mobile apps:

Have Feedback?


Tell us what you think of ScienceDaily -- we welcome both positive and negative comments. Have any problems using the site? Questions?
Mobile iPhone Android Web
Follow Facebook Twitter Google+
Subscribe RSS Feeds Email Newsletters
Latest Headlines Health & Medicine Mind & Brain Space & Time Matter & Energy Computers & Math Plants & Animals Earth & Climate Fossils & Ruins