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

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

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Article ID: iaor20021088
Country: United Kingdom
Volume: 10
Issue: 1
Start Page Number: 25
End Page Number: 40
Publication Date: Mar 2001
Journal: European Journal of Information Systems
Authors: , ,
Keywords: computers: information
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 and medium-sized enterprises (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.

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