The effect of ICT and higher-order capabilities on the performance of Ibero-American SMEs

Magaly Gaviria-Marin (), Jorge Matute-Vallejo () and Hugo Baier-Fuentes ()
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Magaly Gaviria-Marin: Universidad Católica de La Santísima Concepción
Jorge Matute-Vallejo: IQS School of Managment, Universistat Ramon Llull
Hugo Baier-Fuentes: Universidad Católica de La Santísima Concepción

Computational and Mathematical Organization Theory, 2021, vol. 27, issue 4, No 3, 414-450

Abstract: Abstract Information and communication technologies (ICT) has the ability to create value by enabling other firm capabilities. Based on the ICT-enabled capabilities perspective, this study explores the direct and indirect effects between lower- and higher-order capabilities, such as ICT, knowledge management capability (KM) and product innovation flexibility (PIF), on the performance of Ibero-American small- and medium-sized enterprises (SMEs). This paper uses second-order structural equation models to test the research hypotheses with a sample of 130 Ibero-American SMEs. The results contribute to filling the gap in the SME-focused literature on empirical studies examining ICT-enabled capabilities and firm performance. The results show an enabling effect of ICT on higher-order capabilities, such as KM and PIF, which, by acting as mediating variables, create value and improve performance through innovation in firms.

Keywords: Knowledge management; ICT capabilities; Higher-order capabilities; SMEs performance; PLS-SEM; SmartPLS (search for similar items in EconPapers)
Date: 2021
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Citations: View citations in EconPapers (2)

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DOI: 10.1007/s10588-021-09333-0

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