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Author:Shin, I.
Title:Adoption of enterprise application software and firm performance
Journal:Small business economics
2006 : APR, VOL. 26:3, p. 241-256
Index terms:information technology
software
companies
performance appraisal
productivity
resource management
small and medium-sized enterprises (SMEs)
Asia
Freeterms:SME
Language:eng
Abstract:Firm-level adoption of information technology (IT) has shifted from in-house development to purchasing enterprise application (EA) software. This paper analyzes the effects of EA software, that's CRM, EAI, ERP, SCM, Groupware, KM, on SMEs' productivity, using use a formal econometric approach with combined data of SMEs' accounting and IT usage aspects. It is found that Groupware and SCM significantly raise the SMEs' productivity, and the manufacturing sector has stronger effects than the service sector. Following implications as follows: 1. Adoption rate and the real benefits of EA software are not closely related domestically, 2. In SMEs, EA software facilitating the inter-firm relationship is more effective than EA software focusing on the internal efficiency, 3. Easy-to-understand, and relatively long-experienced enterprise applications (as: apps.) are more effective than hard-to-understand and brand-new apps. Finally, the government IT policy on SMEs should focus on the process coordination and standardization of the manufacturing sector with upstream and downstream firms.
SCIMA record nr: 265579
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