Abstract

The study aims to understand the influence of social information systems (SIS) on absorptive capacity (AC) and innovation in Austrian small and medium-sized enterprises (SMEs). For this purpose, a framework was developed and empirically tested using a nationwide, mixed-mode survey on a random sample of 138 SMEs of knowledge-intensive industries. The results show that the backbone of SIS utilization is SIS governance. SIS capabilities mediate the positive effects of SIS utilization on AC components, which build on each other and mediate the positive effects of SIS capabilities on innovation. Our findings provide a number of useful implications for research and industry.

Introduction

The rapid adoption of social information systems (SIS) in recent years has given rise to new capabilities that have changed the way organizations act, interact, communicate, collaborate, and conduct their businesses [4,119]. SIS are information systems (IS) based on social technologies and open collaboration [109]. As such they contribute differently to firm value creation than to traditional business IS. As economies become increasingly knowledge based, firms strive to develop new capabilities in an effort to outperform their competitors [65]. The consensus view seems to be that these technologies have the potential to become a key instrument for creating business value [3,88]. However, a recent article suggests that the impact of these technologies on organizations is rather unclear [72]. A key aspect is the complex dynamics that arise from the combination of new features that these technologies bring and the existing firm resources and capabilities. The subsequent rise of novel capabilities is important, particularly for small and mediumsized enterprises (SMEs) that have limited resources, constrained opportunities, and face mere survival challenges [67,92]. Understanding the value of this new class of information technologies for absorptive capacity (AC) and innovation purposes is crucial in grasping the dynamic and discontinuous environments in which firms must strategically develop and sustain a competitive advantage [110].