The efect of ICT and higher‑order capabilities on the performance of Ibero‑American SMEs

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Date
2021Author
Gaviria Marin, Magaly
Matute Vallejo, Jorge
Baier Fuentes, Hugo
Publisher
Computational and Mathematical Organization TheoryDescription
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Information and communication technologies (ICT) has the ability to create value by enabling other frm capabilities. Based on the ICT-enabled capabilities perspective, this study explores the direct and indirect efects between lower- and higher-order capabilities, such as ICT, knowledge management capability (KM) and product innovation fexibility (PIF), on the performance of Ibero-American small- and medium-sized enterprises (SMEs). This paper uses second-order structural equation models to test the research hypotheses with a sample of 130 Ibero-American SMEs. The results contribute to flling the gap in the SME-focused literature on empirical studies examining ICT-enabled capabilities and frm performance. The results show an enabling efect of ICT on higher-order capabilities, such as KM and PIF, which, by acting as mediating variables, create value and improve performance through innovation in frms.