Relationship between organizational capabilities and new information technologies

An instrument to assess organizational capabilities fostering the adoption of new information technologies (NIT) was developed and tested in approximately 100 small and medium-sized enterprises (SMEs) in the manufacturing sector: Capabilities were assessed on the basis of three main dimensions: technological, managerial, and external coordination. Eleven measures were derived and related to the level of technological penetration of each of the participating SMEs. Results show that firms that attained a higher level of NIT penetration have implemented specific management and external coordination capabilities. Their management practices are based more on employee participation and their organizational culture reflects values such as trust and employee empowerment rather than control and authority. In addition, they perform technological scanning activities and have developed a large business network. Finally, it was demonstrated that the size of an SME influences the organizational-capability profile that fosters the adoption of NIT.