Information Technology Capabilities and Competitive Advantage in Small and Medium Enterprises (SMEs) and Large Enterprises

Abstract :

Purpose – This study aims to propose a new competitive advantage (CA) model for small and medium enterprises (SMEs) and large enterprises in Malaysia. This study is conducted to assist domestic companies to determine appropriate information technology capabilities (IICs) such as dynamic, integrating, and utility capabilities to attain CA.Design/methodology/approach – A questionnaire is developed, tested in a pilot study, and finally distributed to a sample of 500 domestic companies in Malaysia. A total of 295 respondents have provided their answers to the questionnaire.Findings – The dynamic, integrating and utility capabilities account for 60.9% of the variance in the competitive advantage of SMEs and the dynamic and integrating capabilities account for 67.8% of the variance in the CA of large enterprises in Malaysia.Research implications – This study proposes a research model that is important for SMEs and large enterprises to reap competitive advantage.