Aligning Business Strategies and IS Resources in Japanese SMEs: A Resource-Based View

Abstract

The alignment between business strategies and IS resources is widely believed to aid firm performance. In this research, we review the historical development and current technological status of small and medium size enterprises (SMEs) in Japan over the past 50 to 60 years. Through the lens of the Resource-Based View of the Firm (RBV), we explored the role of information systems in Japanese SMEs and found that the adoption of information systems in Japanese SMEs consisted of extensive subcontracting networks which formed the basis of the Japanese production system and was an essential resource for contributing to successful implementation of global business strategies. This research also found that Japanese SMEs formulated and enacted strategies which leveraged information systems resources to enhance operations and strategic relationships and to establish dynamic capabilities.