Effect of Information System Artifacts on Organizational Resilience: A Study among Malaysian SMEs

Abstract

Conducting business nowadays has become much more challenging, and the importance of collective behavioral capacity is paramount regarding the behavior of employees along with internal information systems that form the backbone of many organizations in terms of competitiveness and survivability. This study, therefore, examined the effect of commitment, communication, competency, community, connection, consideration, and coordination on information system artifacts and the effect of information system artifacts on organizational resilience among Malaysian SMEs. To verify these statements and positioning, a sample of employees from registered organizations of the Malaysian Digital Economic Corporation Sdn Bhd (MDEC), participated in this study to examine a number of aspects. Quantitative data were collected from a total of 252 respondents through a questionnaire survey and data were analyzed using PLS-SEM. We performed the endogeniety assessment for the all the seven input variables and confirmed lack of endogeniety issues. The findings of this study constitute essential results that the commitment, communication, competency, community, connection, consideration, and coordination positively influenced the ISA. Furthermore, the mediating effect of ISA on the relationships of organizational resilience with commitment, communication, competency, community, connection, consideration, and coordination, had been revealed. The study concluded that a positive set of behavioral capital, if it exists inside organizations, enables the organizations to prosper and survive. Similarly, policymakers need to address the issue surrounding resilience in SMEs by establishing the correct benchmarking mechanism by introducing it as a formal activity to be undertaken regularly within the SMEs. Given the vast majority of employment in Malaysia and globally is provided through SMEs, if they become more resilient to change and to unforeseen events, then the employment of the vast majority of the working class can be secured across different nations.