Sistemas informacion

Journal of Strategic Information Systems 9 (2000) 63±84

www.elsevier.com/locate/jsis

Information systems strategy for small and medium sized enterprises: an organisational perspective
M. Levy a,*, P. Powell b
b a Warwick Business School, University of Warwick, Coventry CV4 7AL, UK School of Management, University of Bath, Claverton Down, Bath BA2 7AY, UK

Received 21 October 1999;accepted 14 July 2000

Abstract Information systems strategy (ISS) use is under-developed for, and under-researched in, small and medium sized enterprises (SMEs). This paper reviews existing approaches to ISS for SMEs, ®nding them now out-dated and technology-focussed. The paper develops an approach that re¯ects on the role of information as a strategic resource. It argues that ISS recommendations insmall ®rms need to take account of organisational change issues as much as information system implementation. The revised approach to ISS for SMEs is demonstrated through its application to over 40 cases in the UK West Midlands. The in¯uences from the processes on outcomes are discussed and the effectiveness of tools and techniques recommended is assessed. q 2000 Elsevier Science B.V. All rightsreserved.
Keywords: Information systems strategy; Competitiveness; Small and medium sized enterprises

1. Introduction The need for, and usefulness of, information systems strategies (ISS) in small and medium sized enterprises (SMEs) has been identi®ed (Blili and Raymond, 1993). Blili and Raymond propose an ISS method for SMEs developed from the then prevailing perspectives on ISS, based onexperiences from large ®rms. They recognise SMEs have characteristics that impact on their ability to develop an ISS, but they do not pursue these. Additionally, they focus on the introduction of information technology into SMEs to create strategic advantage. However, according to Hagmann and McCahon (1993) SMEs do not, for a variety of reasons, develop ISS. This paper furthers the approach to ISSdevelopment for SMEs. The Blili and Raymond
* Corresponding author. Tel.: 144-24-765-24460; fax: 144-1203-524539. E-mail address: orsml@rapier.warwick.ac.uk (M. Levy). 0963-8687/00/$ - see front matter q 2000 Elsevier Science B.V. All rights reserved. PII: S 0963-868 7(00)00028-7

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M. Levy, P. Powell / Journal of Strategic Information Systems 9 (2000) 63±84

method is advanced in twoways. First, the issues raised by Blili and Raymond that are likely to impact on SMEs development of ISS are analysed and incorporated. An ISS approach from an organisational and cultural perspective is developed as a means of addressing these. Second, the suitability of available analytical tools for ISS in the SME environment is discussed. The method described has been used in over 40 cases in theUK West Midlands to develop ISS for SMEs. Data from these cases are used to demonstrate the strengths of the method and to indicate further re®nements that may be made. This paper ®rst reviews ISS development in SMEs. It then critiques current tools and techniques. The use of corporate ISS models in SMEs is synthesised which leads on to re¯ection on the nature of ISS. This highlights the need for amulti-paradigm approach to ISS for SMEs. Such an approach is then developed based on theory extension and case research. 2. ISS in SMEs Blili and Raymond (1993) show that planning information systems (IS) in SMEs becomes more critical as technology becomes more central to the SMEs' products and processes, and that planning needs to be integrated with business strategy. Yet, few SMEs plan their IS(Hagmann and McCahon, 1993). The limited planning that is undertaken tends to focus on operational systems to improve ef®ciency and effectiveness, and there is little concern with competitiveness. Premkumar and King (1991) argue that ®rms should re¯ect on the role of IS and adjust their IS planning process to match. One reason for SMEs' limited view of planning is that most invest in IS...