Investigating the Effect of Dynamic Capabilities of Information Technology on the Performance of Small and Medium Companies through the Moderating Relationship of Transformational Leadership and the Mediating role of Innovative Capabilities
Subject Areas : Business Management
Mohsen Rahmani
1
,
Mehdi Zakipour
2
,
Hossein Abedi
3
1 - Ph.D. Candidate, Department of Business Management, Qazvin Branch, Islamic Azad University, Qazvin, Iran.
2 - Assistant Prof., Department of Business Management, Qazvin Branch, Islamic Azad University, Qazvin, Iran.
3 - Assistant Prof., Department of Business Management, Institute of Higher Labor Education, Qazvin, Iran.
Keywords: Transformational Leadership, Small and Medium-Sized Enterprises (SMEs), IT-enabled Dynamic Capability, Innovative Capability,
Abstract :
The purpose of this research is to determine the impact of the IT-enabled dynamic capability on innovative capabilities and to provide scientific solutions in this regard to improve the performance of small and medium-sized enterprises. The data were collected from a sample of 225 employees of small and medium-sized enterprises active in Qazvin province by means of standard questionnaires. Hypotheses were tested using structural equation modeling with the partial least squares method and using Smart PLS and SPSS software. The results of the structural model test for hypotheses with a direct effect showed that the IT-enabled dynamic capability has a direct, positive, and significant effect on the innovative capability and performance of small and medium-sized enterprises, and innovative capability also has a significant effect on the performance of small and medium-sized enterprises. Transformational leadership moderates the relationship between innovative capability and the performance of small and medium-sized enterprises. The results of the structural model test for the mediation hypothesis indicated the confirmation of this hypothesis. In general, the creation and development of innovative capabilities combined with transformational leadership can strengthen the impact of the IT-enabled dynamic capability on the performance of small and medium-sized enterprises.
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Agyapong, F. O., Agyapong, A., & Poku, K. (2017). Nexus between social capital and performance of micro and small firms in an emerging economy: the mediating role of innovation. Cogent Business and Management, 4(2), 1309784.
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Aral, S., & Weill, P. (2007). It assets, organizational capabilities, and firm performance: how resource allocations and organizational differences explain performance variation. Organization Science, 18(5), 763-780.
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Matzler, K., Schwarz, E., Deutinger, N., & Harms, R. (2008). The relationship between transformational leadership, product innovation and performance in SMEs. Journal of Small Business and Entrepreneurship, 21, 139-151.
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Northouse, P. G. (2018). Leadership: Theory and Practice. Sage publications.
Nunnally, J. C., & Bernstein, I. H. (1994). Psychometric theory. New York: McGraw-Hill, Psychology, 4(11), 128-139.
O’Reilly III, C. A., & Tushman, M. L. (2008). Ambidexterity as a dynamic capability: resolving the innovator’s dilemma. Research in Organizational Behavior, 28, 185-206.
Obeng, B. A., Robson, P., & Haugh, H. (2014). Strategic entrepreneurship and small firm growth in Ghana. International Small Business Journal: Researching Entrepreneurship, 32(5), 501-524.
Pavlou, P. A., & El Sawy, O. A. (2006). From it leveraging competence to competitive advantage in turbulent environments: the case of new product development. Information Systems Research, 17(3), 198-227.
Pavlou, P. A., & El Sawy, O. A. (2011). Understanding the elusive black box of dynamic capabilities. Decision Sciences, 42(1), 239-273.
Putri, N. T., & Kurnia, S. (2016). The role of organizational culture and individual towards knowledge management practice in cement industry International Conference on Management of Innovation and Technology (ICMIT),
Ravichandran, T. (2018). Exploring the relationships between it competence, innovation capacity and organizational agility. The Journal of Strategic Information Systems, 27(1), 22-42.
Raymond, L., Uwizeyemungu, S., Fabi, B., & St-Pierre, J. (2018). It capabilities for product innovation in smes: a configurational approach. Information Technology and Management, 19(1), 75-87.
Roberts, N., & Grover, V. (2012). Leveraging information technology infrastructure to facilitate a firm’s customer agility and competitive activity: an empirical investigation. Journal of Management Information Systems, 28(4), 231-270.
Sambamurthy, V., Bharadwaj, A., & Grover, V. (2003). Shaping agility through digital options: reconceptualizing the role of information technology in contemporary firms. MIS Quarterly, 27(2), 237-263.
Sinha, M., & Sheth, J. (2018). Growing the pie in emerging markets: Marketing strategies for increasing the ratio of non-users to users. Journal of Business Research, 86, 217-224.
T., K., Lazic, M., Heinzl, A., & Neff, A. (2018). Achieving it-based synergies through regulation- oriented and consensus-oriented it governance capabilities. Information Systems Journal, 28(5), 765-795.
Tai, J. C., Wang, E. T., & Yeh, H.-Y. (2019). A study of is assets, is ambidexterity, and is alignment: the dynamic managerial capability perspective. Information and Management, 56(1), 55-69.
Teece, D. J. (2007). Explicating dynamic capabilities: the nature and microfoundations of (sustainable) enterprise performance. Strategic Management Journal, 28(1), 1319-1350.
Teece, D. J. (2018). Business models and dynamic capabilities. Long range planning, 51(1), 40-49.
Thornhill, S., & White, R. E. (2007). Strategic purity: a multi-industry evaluation of pure vs. Hybrid business strategies. Strategic Management Journal, 28(5), 553-561.
Werts, C. E., Linn, R. L., & Joreskog, K. G. (1974). Intra class reliability estimates; Testing structural assumptions. Educational and Psychological Measurement, 1(34), 177-183.
Yang, J. (2012). Innovation capability and corporate growth: an empirical investigation in China. Journal of Engineering and Technology Management, 29(1), 34-46.
Zarei, Z., & Heidari, M. (2020). The effect of transformational leadership and credible leadership on organizational innovation by considering the moderating role of knowledge sharing. Initiative and Creativity in the Humanities, 9(4), 161-192. (In Persian)
Zhuang, C., Chen, G., & Wang, L. (2018). Internet Resources and Organizational Knowledge Creation: Role of Environmental Dynamism. J. Oper. Res. Soc. China, 7(11), 337–354.