Impacts Of Information Technology Capabilities on Small and Medium Enterprises (Smes) and Large Enterprises

Abstract

Generally, this study was conducted to investigate the impacts of information technology capabilities (ITCs) on small and medium enterprises (SMEs) and large enterprises in Malaysia by measuring their competitiveness. A new empirical framework was designed to assist domestic companies to determine appropriate ITCs such as dynamic, integrating, and utility capabilities to attain competitive advantage (CA). A questionnaire is developed, tested in a pilot study, and finally distributed to a sample of 500 domestic companies in Malaysia. A total of 295 respondents have provided their answers to the questionnaire. The dynamic, integrating and utility capabilities account for 60.9% of the variance in the competitive advantage of SMEs and the dynamic and integrating capabilities account for 67.8% of the variance in the CA of large enterprises in Malaysia. This study proposes an empirical research framework that is important for SMEs and large enterprises to reap competitive advantage. Apart from contributing to the literature of knowledge management, this study would assist in developing appropriate recommendations to adopt ITC for domestic companies. This research is one of the limited studies in Asia and Malaysia that examines how to adopt ITC to reap CA in SMEs and large enterprises in Malaysia.