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Size matters: the impact of combinations of ICT assets on the performance of Chilean micro, small and medium enterprises

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ABSTRACT This paper studies the effects that different combinations of ICT have on the performance indicators of microenterprises and SMEs (MSMEs) of a developing economy. We focus on two questions:… Click to show full abstract

ABSTRACT This paper studies the effects that different combinations of ICT have on the performance indicators of microenterprises and SMEs (MSMEs) of a developing economy. We focus on two questions: First, whether the impact of ICT differs according to different ICT assets used in companies? Second, whether the effects of these combined ICT change according to the company size, especially for MSME in emerging countries? Based on RBV and TOE, we posit that different combinations of ICT have different effects on performance indicators of MSMEs. To test this hypothesis, we used a survey of 5519 Chilean companies. Three major conclusions can be drawn from our results. Firstly, ICT combination in the MSMEs follows a four-stage maturity model. Secondly, each stage has positive effects on MSMEs’ revenues and profits. Thirdly, the organization’s size moderates the impact of ICT on productivity: the smaller the company, the more significant the benefits of ICT assets.

Keywords: performance; ict assets; combinations ict; matters impact; size matters

Journal Title: Information Technology for Development
Year Published: 2020

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