FEATURE
PAPER
An Information
Technology Solution to SME Growth
The
following paper was presented at the 2007 Association of
Small Business and Entrepreneurship (ASBE)
. It was written
by Donald L. Lester and Thuhang T. Tran of Middle Tennessee
State University.
Abstract
The manner
in which small-to-medium-sized (SMEs) organizations grow
and develop
has been a focused interest of management
researchers for decades. Categorizing this development into
a life cycle of organizations has become a commonly accepted
method for understanding the problems and opportunities associated
with growth. Although several researchers have identified critical
problems to overcome at each stage of the life cycle model
if an organization is to progress, Kazanjian’s organizational
life cycle model (1988) is used as an adequate representation
of the construct and a particularly accurate example of the
crises or critical problems faced in each stage. This paper
explores the importance of information technology (IT) in solving
the critical problems of each life cycle stage to facilitate
continued growth and development.
Introduction
The concept
of organizational development has been an important research
agenda for decades. At issue is why some entities grow and
even flourish while others muddle along, falter then surge,
or completely go out of existence? Categorizing organizational
development into a life cycle of organizations has become
a commonly accepted method for understanding the problems
and opportunities associated with growth. Essential to this
life cycle construct is the identification of critical problems
to overcome during each stage if an organization is to continue
to grow, rather than stagnate or regress.
Such a
life cycle model that not only describes discrete stages
of development
but also identifies the critical problem to
overcome during each stage has been put forth by Kanzanjian
(1988) which is particularly important because of its emphasis
on early development issues involving small to medium sized
enterprises (SMEs). A key component of SME operation in today’s
competitive environments is information technology (IT). We
propose that IT can be instrumental in solving the crises of
growth at each stage of Kanzanjian’s organizational life
cycle, allowing small businesses to grow larger.
A literature review is presented that briefly explores the
organizational life cycle construct and a discussion of information
technology. Next a set of propositions is developed pertaining
to the relationship between stages of organizational development
and information technology. A new model is discussed concerning
this relationship and future research is proposed.
Read
the Entire Paper...
TIP
OF THE WEEK
Focus on Research: Following Your Passion Will Probably Lead
to the Most Successful Business
Although
your needs are not important to potential investors, lenders,
and partners, your love for the work
you want to do
and your ability to attract each others who have a similar
sense of devotion is important to your venture’s success.
Professor Teresa M. Amabile of Harvard University has studied
creativity and has come to the conclusion that people are most
creative when they love what they do. Intrinsic motivation is love of work, in contrast to extrinsic
motivation, which
includes financial rewards, competition, and directives from
an employer. Laboratory studies have provided strong evidence
of the greater power of intrinsic motivation. For example,
students who expressed more interest in the creative activity
of making collages did better than those who expressed less
interest, or those who performed the task for financial rewards
only.
Amabile has concluded through her research that three components are essential
to individual creativity:
1. Expertise. Knowledge, experience, or technical skills are the foundation from
which one searches for answers. People with greater expertise simply have more
options to explore and an enhanced ability to sort the feasible ideas from the
impossible ones.
2. Creative Thinking. Some people, because of their personalities, backgrounds,
or experience, have a greater ability to engage in creative thinking. Research
shows that characteristics such as independence, self-discipline, perseverance,
and the ability to tolerate ambiguity correlate with engagement in creative thinking.
3. Intrinsic Motivation. Amabile
describes people with high intrinsic motivation as “driven
by deep interest and involvement in the work, by curiosity,
enjoyment, or a personal sense of challenge.”
Amabile has found that a strong focus on and support for creativity is essential
for organizations that need to be innovative in order to survive. This implies
that entrepreneurs should concentrate their efforts in areas of their own expertise
and interest. As managers of ventures that need to foster creativity in order
to maintain their competitive edge and cope with rapidly changing environments,
entrepreneurs must establish a culture and management
style that supports creative thinking in others.
SMALL BUSINESS MANAGEMENT
Bankable Business Plans for Entrepreneurial Ventures
By Edward G. Rogoff. Foreword by: Jeff Bezos, Founder and CEO, Amazon.com. Pages
31-32
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