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SME Flexibility and the Role of Information Systems
Small and medium-size enterprises (SMEs) are a major component of all economies and are generally considered to be flexible,adaptive organisations.Although lagging behind their larger counterparts,SMEs are beginning to invest in information systems.Using data derived from a set of manufacturing SMEs located in the U.K.,this paper investigates whether SMEs really do exhibit flexibility and if their use of information technology enhances or inhibits such flexibility.
Lefebvre and Lefebvre (1992) argue that SMEs can be more innovative than large organisations because they are less bound by bureaucracy and cumbersome organisational systems.They sugges that innovation is driven by information,particularly about the external environment.Use of IT makes small production runs easier and,hence SMEs will be able to be more competitive as they can introduce new manufacturing technologies quickly.These new technologies,it is argued enable SMEs to be more flexible and able to respond to customer needs.Quality and variety of products is also seen as being improved by the introduction of new production technologies.
All the SMEs studied have data processing systems which provided them with information about day-to-day operations.Evidence here supports the findings of Blili and Raymond (1993)that SMEs are only in the Initiation stage of Nolan’s Stages of Growth model.It is clear that investment had been made in automated production systems before considering information systems.As is common,the four SMEs have invested in basic systems such as word processing,accounting and stock control but these systems are not usually linked.Meredith and Hill (1987)develop a framework to analyse the impact of advanced manufacturing techniques on organisations.They show that the focus on standalone systems provides an emphasis on efficiency and tangible benefits.However,the impact of the systems is likely to be local,with minimal organisational-wide impact.The risk involved in implementing these systems is slight.They contrast this with integrated systems which emphasise effectiveness across the whole system,where intangible benefits are more important and there is likely to be considerable organisational impact.None of the companies have integrated their systems and are therefore unlikely to achieve the full benefits of those systems.
Author:Margi Levy,Philip Powell
Nationality:The U.K.
Originate form:Journal of Accounting – Business & Management 13 (2006) 39-6
SME Flexibility and the Role of Information Systems
Small and medium-size enterprises (SMEs) are a major component of all economies and are generally considered to be flexible,adaptive organisations.Although lagging behind their larger counterparts,SMEs are beginning to invest in information systems.Using data derived from a set of manufacturing SMEs located in the U.K.,this paper investigates whether SMEs really do exhibit flexibility and if their use of information technology enhances or inhibits such flexibility.
Lefebvre and Lefebvre (1992) argue that SMEs can be more innovative than large organisations because they are less bound by bureaucracy and cumbersome organisational systems.They sugges that innovation is driven by information,particularly about the external environment.Use of IT makes small production runs easier and,hence SMEs will be able to be more competitive as they can introduce new manufacturing technologies quickly.These new technologies,it is argued enable SMEs to be more flexible and able to respond to customer needs.Quality and variety of products is also seen as being improved by the introduction of new production technologies.
All the SMEs studied have data processing systems which provided them with information about day-to-day operations.Evidence here supports the findings of Blili and Raymond (1993)that SMEs are only in the Initiation stage of Nolan’s Stages of Growth model.It is clear that investment had been made in automated production systems before considering information systems.As is common,the four SMEs have invested in basic systems such as word processing,accounting and stock control but these systems are not usually linked.Meredith and Hill (1987)develop a framework to analyse the impact of advanced manufacturing techniques on organisations.They show that the focus on standalone systems provides an emphasis on efficiency and tangible benefits.However,the impact of the systems is likely to be local,with minimal organisational-wide impact.The risk involved in implementing these systems is slight.They contrast this with integrated systems which emphasise effectiveness across the whole system,where intangible benefits are more important and there is likely to be considerable organisational impact.None of the companies have integrated their systems and are therefore unlikely to achieve the full benefits of those systems.
Author:Margi Levy,Philip Powell
Nationality:The U.K.
Originate form:Journal of Accounting – Business & Management 13 (2006) 39-6
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