IngentaConnect Information systems strategies in knowledge-based SMEs: the role ...

Authors: Duhan S.¹; Levy M.²; Powell P.³

Source: European Journal of Information Systems, Volume 10, Number 1, 1 March 2001 , pp. 25-40(16)

Abstract:

Research into the sources of competitive advantage identifies two competing views. The first concerns industry structure, and the role of information systems (IS) in enabling competitive advantage is to lower cost, build barriers to entry and tie in customers and suppliers. The second view is resource-based. This argues that competitive advantage arises from the ability to accumulate resources and capabilities that are rare, valuable, non-substitutable and difficult to imitate. This paper discusses the role of IS as firm resources and the role of such resources in small firms (SMEs). It uses as a vehicle, the identification and development of an information systems strategy (ISS) in a knowledge-based SME. The use of core competencies or capabilities, a key aspect of resources, as a basis for an ISS is contrasted with the use of a structural approach exemplified here by the value chain. Using participant observation research in a not-for-profit organisation that provides consultancy in social housing, this paper investigates these approaches. The paper concludes by identifying a number of areas for further research including the operationalisation of the core competence perspective in developing an ISS. European Journal of Information Systems (2001) 10 , 25–40.

Document Type: Original article

Affiliations: 1: School of Business, Oxford Brookes University, Wheatley Campus, Oxford OX33 1HX, sduhan@brookes.ac.uk 2: Warwick Business School, University of Warwick, Coventry CV4 7AL, orsml@wbs.warwick.ac.uk 3: School of Management, University of Bath, Claverton Down, Bath BA2 7AY, UK, mnspp@management.bath.ac.uk

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Information systems strategies in knowledge-based SMEs: the role of core competencies