Discussion

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5.2 Discussion

Across the eight cases, we observed different levels of SME resource, IT-enabled collaboration and SME performance. In this chapter, we will discuss the results in comparison to our research framework.

5.2.1 Impact of operand and operant resource on IT-enabled collaboration

Data analysis revealed that the operand resource level is Low for A7; Low to Medium for A1 and A2; Medium for A3, A5, A6 and A8; and High for A4. Moreover, the operant resource levels are Low to Medium for A6 and A8; Medium for A3 and A4;

and Medium to High for A1, A2, A5 and A7. In addition, the level of IT-enabled collaboration with partners is Low in cases A2, A3, A6 and A8 and Medium in cases A1, A4, A5 and A7. In addition, the level of IT-enabled collaboration with customers in Low in cases A3, A6 and A8; Medium in cases A1, A2, A5 and A8; and High in case A4. To easily comprehend relationships between different levels of resources IT- enabled collaboration, we converted range of levels from Low to High to 1 to 5. In the following paragraphs, we will examine hypotheses H1a, H1b, H2a, H2b and H3, which we introduced in the previous chapter.

First, we examine hypothesis H1a, which states that “SMEs with a greater amount of operand resources are able to participate in better IT-enabled collaborations with partners”. The relationships between operand resources and IT-enabled collaboration with partners in 8 cases are shown in Figure 5-1-a. The line shown in all figures is produced by Microsoft Office Excel 2007 based on linear regression which presents the relationship between two factors. According to Figure 5-1-a, we find no significant relationship between these two items, rejecting hypothesis H1a. Next, we examine hypothesis H1b, which proposed a positive relationship between operand resources and IT-enabled collaborations with customers. The results from our case study are shown in Figure 5-1-b. As we can see in Figure 5-1-b, the relationship between operand resources and IT-enabled collaboration with customers is generally positive, except for A3, A6 and A8, which have a Medium rating in operand resources but a Low rating in IT-enabled collaboration with customers. These three cases report a lack of computer skills, managing their customer relationships without the use of IT.

We considered why operand resources support IT-enabled collaboration with customers but not with partners and determined the possible reasons for this phenomenon by analyzing the interview transcripts. When a SME has rich operand resources, it can provide services on its own without collaboration with others; in addition, with rich operand resources, the SME is able to provide better service to its

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customers. Similar comments are made by A1 and A2 as well:

“The SMEs who run their business well won’t collaborate with others. They care about themselves …and it’s enough for them.” (A2)

Figure 5-1-a Figure 5-1-b

Second, we examine hypothesis H2a, which states that “SMEs with a greater amount of operant resources are able to participate in better IT-enabled collaborations with partners”. The relationship between operant resources and IT-enabled collaboration with partners for the 8 case firms is shown in Figure 5-2-a. As we can see in Figure 5-2-a, the relationship between these two items is roughly positive, which supports our hypothesis. Only A2 and A3 diverge from the trend, as they engage in innovative thinking and have good relationships but only engage in non-IT communication with partners. Consequently, we examine hypothesis H2b, which proposes a positive relationship between operand resources and IT-enabled collaborations with customers. The positive relationship based on the case studies, as shown in Figure 5-2-b, supports our hypothesis. A3 represents the only exception, being too busy to manage customer relationships through IT.

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Figure 5-2-a Figure 5-2-b

We then examine hypothesis H3, which states that “operant resources contribute more to IT-enabled collaborations than operand resources.” We combined the results of IT-enabled collaboration with partners and customers to obtain an overall score.

According to Figure 5-3-a and Figure 5-3-b, we find that operand and operant resources both contribute positively to IT-enabled collaboration. Moreover, operant resources contribute more, as shown by the steeper slope of the trend line; this result supports our hypothesis.

Figure 5-3-a Figure 5-3-b

5.2.2 Impact of resource complementarity and similarity on IT-enabled collaboration

We found from analyzing the interviews that the resource complementarity level is Low for A7 and A8; Medium for A1, A5 and A6; and High for A2, A3 and A4. In addition, the resource similarity score is Yes for A4 and A8 and No for the remainder.

To simplify the data analysis and maintain consistency, the answers Yes and No translate to the scores 5 and 1.

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We examine hypotheses H4 and H5, which state that “SMEs with complementary resources/similar resource status are more likely to engage in IT-enabled collaborations with each other.” However, the relationships shown in Figure 5-4-a and Figure 5-4-b indicate that there is no effect of resource complementarity and resource similarity on IT-enabled collaboration with partners.

The results of the case study do not support our hypotheses.

Because of restriction in our data collection, we cannot obtain thorough information about all collaboration partners and SMEs that the firms had interacted and communicated with through IT platforms. Instead, we asked the case firms about their intention to collaborate with SMEs with complementary resources and similar resource levels. Nevertheless, although the firms show a willingness to cooperate with SMEs with complementary resources and similar resource levels, most of their communications do not employ IT. We find clues from interviews such as the following:

“I am not really good at using a computer. But comparing other SMEs in this area, my capability is sort of above average since they are older. Most communication between us mainly takes place by phone calls.” (A5)

Figure 5-4-a Figure 5-4-b

5.2.3 Impact of IT-enabled collaboration on SME performance

In this section, we attempt to determine the relationship between IT-enabled collaboration and performance. Following data analysis, we rank the performance of A2, A3, A6 and A8 as Low; A7 as Low to Medium; A1 and A5 as Medium; and A4 as High.

We first examine hypothesis H6, which states that SMEs that engage in more IT-enabled collaboration with partners are more likely to achieve better performance.

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The relationship between IT-enabled collaboration with partners and performance shown in Figure 5-5-a is positive. In a similar manner, we examine hypothesis H7, which concerns the relationship between IT-enabled collaboration with customers and performance. Figure 5-5-b shows a positive relationship between the two. The only exception is case A2, which is rated Medium in IT-enabled collaboration with customers but Low in performance. Although A2 sometimes replies to customers’

questions on the Internet, it is not clear that it drives sales and relationship building.

The results of our analysis generally support our hypotheses.

Figure 5-5-a Figure 5-5-b