Effect of digital transformation on organisational performance of SMEs

Abstract

Purpose – The purpose of this paper is to examine the effect of the pilot implementation of an industry-specific web portal as an IT resource on textile SMEs organisational performance. Using a resource-based perspective, portal delivery functionalities, considered as non-physical IT resources, are analysed using the dimensions of portal usefulness, portal interface, and service-oriented portal functions on SMEs users’ perceived outcomes of organisational performance. Design/methodology/approach – Qualitative and quantitative approaches are used to explore the research hypotheses. Data were collected using field interviews and survey from senior executives of small- and medium-sized enterprises (SMEs) in the Taiwanese textile industry. Findings – Results indicate that the service-oriented portal function dimension, consisting of portal maintenance service, B2B function, and cloud computing, significantly influences organisational performance. Unexpected findings, such as the negative impact of greater industry benchmark information on perceived SME performance, deserve further investigation. Research limitations/implications – The study extends the theory and knowledge on the resource-based view and its implications on e-business organisational performance of SMEs. The study also offers findings relevant to the design of portal sites for SME administrators and information service providers. Limitations of the research include a small size and the industry-specific data limiting the generalisability of the findings. Practical implications – Research results practically serve as informative indicators for policy makers, information service providers, and SMEs executives to evaluate feasible elements for web portal design in traditional industry. Findings from this study may help portal service providers in designing better web portal functionalities for SMEs. Originality/value – This study contributes to the IT business value literature by identifying the linkages between industry-specific portal delivery functionalities and perceived organisational performance through the examination of portal usefulness, portal interface, and service-oriented portal function for textile SMEs.