A Complex Adaptive Systems View of Digital Ecodynamics for Business Performance among Manufacturing SMEs

Abstract

Taking a complex adaptive systems approach, this paper investigates the different configurations of digital ecodynamics – IT capabilities, dynamic capabilities, and environmental conditions – associated to high levels of business performance in manufacturing SMEs. Results from a fuzzy-set qualitative comparative analysis (fsQCA) of 126 manufacturing SMEs show that, as expected from our theoretical development, these firms attain high business performance when they dispose of at least one IT capability and one dynamic capability. More specifically, IT capabilities for innovation and flexibility along with dynamic capabilities for coordination and integration are necessary for high business performance since they appear in all high-performing configurations. Our study contributes to information systems research by taking a holistic approach to the IT capability-performance link in the specific context of SMEs.