IFIP Advances in Information and Communication Technology 301 IFIP–TheInternationalFederationforInformationProcessing IFIPwasfoundedin1960undertheauspicesofUNESCO,followingtheFirst WorldComputerCongressheldinParisthepreviousyear.Anumbrellaorgani- zation for societies working in information processing, IFIP’s aim is two-fold: tosupportinformationprocessingwithinitsmembercountriesandtoencourage technologytransfertodevelopingnations.Asitsmissionstatementclearlystates, IFIP’s mission is to be the leading, truly international, apolitical organizationwhichencouragesandassistsinthedevelopment,ex- ploitationandapplicationofinformationtechnologyforthebenefit ofallpeople. IFIPisanon-profitmakingorganization,runalmostsolelyby2500volunteers.It operatesthroughanumberoftechnicalcommittees,whichorganizeeventsand publications.IFIP’seventsrangefromaninternationalcongresstolocalseminars, butthemostimportantare: • TheIFIPWorldComputerCongress,heldeverysecondyear; • Openconferences; • Workingconferences. TheflagshipeventistheIFIPWorldComputerCongress,atwhichbothinvited andcontributedpapersarepresented.Contributedpapersarerigorouslyrefereed andtherejectionrateishigh. As with the Congress, participation in the open conferences is open to all and papersmaybeinvitedorsubmitted.Again,submittedpapersarestringentlyref- ereed. The working conferences are structured differently. They are usually run by a workinggroupandattendanceissmallandbyinvitationonly.Theirpurposeis tocreateanatmosphereconducivetoinnovationanddevelopment.Refereeingis lessrigorousandpapersaresubjectedtoextensivegroupdiscussion. Publications arising from IFIP events vary. The papers presented at the IFIP WorldComputerCongressandatopenconferencesarepublishedasconference proceedings,whiletheresultsoftheworkingconferencesareoftenpublishedas collectionsofselectedandeditedpapers. Anynationalsocietywhoseprimaryactivityisininformationmayapplytobe- comeafullmemberofIFIP,althoughfullmembershipisrestrictedtoonesociety percountry.FullmembersareentitledtovoteattheannualGeneralAssembly, Nationalsocietiespreferringalesscommittedinvolvementmayapplyforasso- ciateorcorrespondingmembership.Associatemembersenjoythesamebenefits asfullmembers,butwithoutvotingrights.Correspondingmembersarenotrep- resentedinIFIPbodies.Affiliatedmembershipisopentonon-nationalsocieties, andindividualandhonorarymembershipschemesarealsooffered. Gurpreet Dhillon Bernd Carsten Stahl Richard Baskerville (Eds.) Information Systems – Creativity and Innovation in Small and Medium-Sized Enterprises IFIPWG 8.2 International Conference, CreativeSME 2009 Guimarães, Portugal, June 21-24, 2009 Proceedings 1 3 VolumeEditors GurpreetDhillon VirginiaCommonwealthUniversity,SchoolofBusiness 301W.MainStreet,Richmond,VA23284-4000,USA E-mail:[email protected] BerndCarstenStahl DeMontfortUniversity,DepartmentofInformatics TheGateway,LeicesterLE19BH,UK E-mail:[email protected] RichardBaskerville GeorgiaStateUniversity,DepartmentofComputerInformationSystems Atlanta,GA30302-4015,USA E-mail:[email protected] LibraryofCongressControlNumber:Appliedfor CRSubjectClassification(1998):D.2,D.1,J.1,K.8,K.7.2 ISSN 1868-4238 ISBN-10 3-642-02387-8SpringerBerlinHeidelbergNewYork ISBN-13 978-3-642-02387-3SpringerBerlinHeidelbergNewYork Thisworkissubjecttocopyright.Allrightsarereserved,whetherthewholeorpartofthematerialis concerned,specificallytherightsoftranslation,reprinting,re-useofillustrations,recitation,broadcasting, reproductiononmicrofilmsorinanyotherway,andstorageindatabanks.Duplicationofthispublication orpartsthereofispermittedonlyundertheprovisionsoftheGermanCopyrightLawofSeptember9,1965, initscurrentversion,andpermissionforusemustalwaysbeobtainedfromSpringer.Violationsareliable toprosecutionundertheGermanCopyrightLaw. springer.com ©InternationalFederationforInformationProcessing2009 PrintedinGermany Typesetting:Camera-readybyauthor,dataconversionbyScientificPublishingServices,Chennai,India Printedonacid-freepaper SPIN:12700233 06/3180 543210 Preface This book contains the collection of papers presented at the conference of the International Federation for Information Processing Working Group 8.2 "Information and Organizations." The conference took place during June 21–24, 2009 at the Universidade do Minho in Guimarães, Portugal. The conference entitled "CreativeSME - The Role of IS in Leveraging the Intelligence and Creativity of SME’s" attracted high-quality submissions from across the world. Each paper was reviewed by at least two reviewers in a double-blind review process. In addition to the 19 papers presented at the conference, there were five panels and four workshops, which covered a range of issues relevant to SMEs, creativity and information systems. We would like to show our appreciation of the efforts of our two invited keynote speakers, Michael Dowling of the University of Regensburg, Germany and Carlos Zorrinho, Portuguese coordinator of the Lisbon Strategy and the Technological Plan. The following organizations supported the conference through financial or other contributions and we would like to thank them for their engagement: • International Federation for Information Processing • University of Minho, Portugal • Portuguese Coordinator for the Lisbon Strategy and Technological Plan • Multicert - Serviços de Cerificação Electrónica, S.A • Virginia Commonwealth University, USA • De Montfort University, UK • Georgia State University, USA Finally, we wish to thank a number of individuals who supported the conference in a variety of ways. Isabel Ramos and João Álvaro de Carvalho as local Organizing Chairs made huge efforts in facilitating and preparing the conference. Ravneet Gill helped with copyediting and formatting of the proceedings. May 2009 Gurpreet Dhillon Bernd Carsten Stahl Richard Baskerville Organization Program Committee Carl Adams University of Portsmouth, UK Rosio Alvarez Lawrence Berkeley National Laboratory, USA Liêda Amaral Secretaria da Receita Federal Ministerio da Fazenda, Brazil Olivier Braet Vrije Universiteit Brussel, Belgium Deborah Bunker The University of New South Wales, Australia Kevin Crowston Syracuse University, USA Dirk Deschoolmeester Vlerick Leuven Gent Management School, Belgium Kevin Desouza University of Washington, USA William Dixon Ernst & Young, LLP, USA António Dias Figueiredo Universidade de Coimbra, Portugal José Esteves Instituto de Empresa, Spain Andreas Gadatsch Bonn-Rhein-Sieg University of Applied Sciences, Germany Rui Gomes Instituto Politécnico de Viana do Castelo, Portugal Noriko Hara SLIS Indiana University, USA Juhani Iivari University of Oulo, Finland George M. Kasper Virginia Commonwealth University, US Julie Kendall Rutgers University, USA Kenneth Kendall Rutgers University, USA Frank Land The London School of Economics and Political Science, UK Karl Reiner Lang City University of New York, USA Tors J.Larsen Norwegian School of Management, NO Linda Levine Software Engineering Institute of CMU, USA Filomena Lopes Universidade Portucalense, Portugal Carolina Machado University of Minho, Portugal Paula Morais Universidade Portucalense, Portugal Michael Myers University of Auckland, New Zealand Jan Pries-Heje Roskilde University, Denmark Nancy Russo Northern Illinois University, USA António Lucas Soares Faculdade de Engenharia da Universidade do Porto e INESC Porto, Portugal Dave Wastell Nottingham University, UK Table of Contents Creativity and Innovation Challenges Creativity and Intelligence in Small and Medium Sized Enterprises: The Role of Information Systems .................................. 1 Gurpreet Dhillon, Bernd Carsten Stahl, and Richard Baskerville SMEs, IT, and the Third Space: Colonization and Creativity in the Theatre Industry ................................................ 10 Julie E. Kendall and Kenneth E. Kendall SME 2.0: Roadmap towards Web 2.0-Based Open Innovation in SME-Networks – A Case Study Based Research Framework ........... 28 Nadine Lindermann, Sylvia Valc´arcel, Mario Schaarschmidt, and Harald von Kortzfleisch Conducting Creativity Brainstorming Sessions in Small and Medium-Sized Enterprises Using Computer-Mediated Communication Tools........................................................... 42 Uday S. Murthy AnExaminationoftheDisruptiveInnovationParadox:TheApplication of the Innovators Dilemma to SME’s ............................... 60 Tadhg Nagle and William Golden Two Paths for Innovation: Parvenuor Pariah........................ 73 Antony Bryant Identifying and Addressing Stakeholder Interests in Design Science Research: An Analysis Using Critical Systems Heuristics .............. 93 John R. Venable Architecture for a Creative Information System ...................... 113 Henrique Sa˜o Mamede and Vitor Santos Creativity in Agile Systems Development: A Literature Review ........ 122 Kieran Conboy, Xiaofeng Wang, and Brian Fitzgerald Challenges in Ensuring Effective Governance IT Governance in SMEs: Trust or Control?.......................... 135 Jan Devos, Hendrik Van Landeghem, and Dirk Deschoolmeester A Methodology for Electronic Business Initiatives Implementation in SME ........................................................... 150 Henrique S. Mamede and Lu´ıs Amaral VIII Table of Contents IT Governance Practices in Small and Medium-Sized Enterprises: Recommendations from an Empirical Study ......................... 158 Rui Huang, Robert W. Zmud, and R. Leon Price Life Cycle Model for IT PerformanceMeasurement:A Reference Model for Small and Medium Enterprises (SME)........................... 180 Can Adam Albayrak, Andreas Gadatsch, and Dirk Olufs Challenges in Managing Knowledge Knowledge Management in Small Firms ............................ 192 Jessada Panyasorn, Niki Panteli, and Philip Powell An Action Research on Open Knowledge and Technology Transfer ..... 211 Isabel Ramos, Margarida Cardoso, Joa˜o Vidal Carvalho, and Jos´e Ismael Grac¸a Services Supporting Knowledge Maturing in Small and Medium-Sized Enterprises...................................................... 224 Ronald Maier Organizational Challenges, Power and Politics The Emergence of ‘Power with’: The Case of a Born Global Organization .................................................... 239 Lin Yan and Niki Panteli The Chiasmus of Design: Paradoxical Outcomes in the e-Government Reform of UK Children’s Services.................................. 257 David Wastell, Sue White, and Karen Broadhurst How and Why Do IT Entrepreneurs Leave Their Salaried Employment to Start a SME? A Mixed Methods Research Design.................. 273 Ga¨etan Mourmant Towards a Model of Technology Adoption: A Conceptual Model Proposition ..................................................... 287 Pat Costello and Rob Moreton Author Index.................................................. 307 Creativity and Intelligence in Small and Medium Sized Enterprises: The Role of Information Systems Gurpreet Dhillon1, Bernd Carsten Stahl2, and Richard Baskerville3 1 Virginia Commonwealth University, USA 2 De Montfort University, UK 3 Georgia State University, USA 1 Introduction The work in this volume examines the real-world confluence of several concepts that are too often studied in isolation from each other. Research into creativity too rarely considers the presumed ability of smaller organisations to contribute a large propor- tion of the innovations introduced into the practical information systems field. There is also far too little research that addresses the notion that smaller organisations more intelligently manage their creativity and innovation, not only in the organisational signal products, but also in structures and processes found in smaller organisations. Because organisational design itself benefits from creativity and innovation (Coo- per, 2000), smaller organisations have an inbuilt advantage purely in terms of the smaller scope required to reorganise in innovative ways to match their projects and products. This smallness in scope also applies to the information systems of smaller organisations. Quite simply, innovations in smaller organisations do not have to dif- fuse their innovations as far as in larger organisations. The diffusion can happen faster, and without the need for complex knowledge management structures and agencies needed to make innovation happen in larger organisations (Datta, 2007). This difference in scope means that many of the innovation diffusion principles so important to larger organisations and markets, such as those of Rogers (Rogers, 2003), are less critical for the internal creativity of smaller organisations. There are many good reasons for paying attention to small and medium sized en- terprises (SMEs). They constitute the majority of organisations, they are a main source of employment, they are flexible, and they are often creative and innovative. Despite their economic and theoretical relevance, business-oriented research tends to concentrate on large and multinational organisations. This is true in business studies in general as well as in the field of information systems. That state of affairs is unfor- tunate because SMEs hold the potential to develop novel uses of technology and integrate them in interesting ways in their business processes. At the same time, in- formation systems have the potential to make uniquely important contributions to SMEs, for example by extending markets or providing resources that individual SMEs typically do not have. These IFIP WG 8.2 proceedings aim to address the la- cuna in the literature and provide a current discussion of the relationship between SMEs, creativity and innovation, and information systems. The 8.2 working group is known for its innovative use of theory and its successful attempts to overcome the weaknesses of established approaches. The 2009 conference G. Dhillon, B.C. Stahl, and R. Baskerville (Eds.): CreativeSME 2009, IFIP AICT 301, pp. 1–9, 2009. © IFIP International Federation for Information Processing 2009 2 G. Dhillon, B.C. Stahl, and R. Baskerville in Portugal aimed at applying those non-conventional ideas to the area of SMEs. The organisers and chairs were curious to find out how the IFIP WG 8.2 community would take to a set of concrete business challenges that emerge from the context of IS use in SMEs. These proceedings show that the community has been successful in in- corporating extant literature and developing it in new and interesting ways. In order to discuss the contributions of the authors in a coherent way, we have identified key challenges related to SME research. The papers pertaining to these have been grouped into the sections outlined below. In each section some novel ideas emerged, as we will show in this introduction. • Creativity and innovation challenges. While many SMEs are creative and innovate partly because of their need to remain competitive, effective use of information and communication technologies helps in defining newer opportunities and sustainabil- ity in a marketplace. • Challenges in ensuring effective governance. While it is easy for many SMEs to overlook the need for effective governance, the importance and need for good in- ternal controls cannot be overstated. Often in the race to achieve high growth, in- ternal control mechanisms get overlooked. • Challenges in managing knowledge. Because of the very nature of SMEs, knowl- edge management is a challenge. The owner-manager structure of most SMEs in- troduces a lot of variance in managing knowledge and in satisfactory sharing of experiences. • Organizational challenges, power and politics. Cultural differences amongst SMEs and power and politics of managing small firms pose numerous challenges. Fore- most of these is the inter-organizational relationship and the role information sys- tems play in facilitating or hindering progress. 2 Creativity and Innovation Challenges It is a cliché that big organizations are bureaucratic and cumbersome, whereas smaller ones are more agile and flexible. There is nevertheless some truth in the observation that small companies can quickly react to changes in their environment and they can easily be redirected to take advantage of changing markets. This flexibility and ma- neuverability allows them to profit from creativity and be innovative. These views are probably not contentious. They nevertheless leave open a range of questions. What do we mean by these concepts? The definition of an SME is unproblematic because there are political views on this that are relatively straightforward, even if they may leave shades of grey. The situation is significantly different for the other terms involved. What happens if we undertake an analysis of terms such as creativity or innovation? Can one really allude to creativity with regard to an organization? And what does this have to do with technology? Boden (2000) suggests that the core of creativity is always an idea. If creativity is linked to ideas then one can reasonably argue that the bearers and originators of ideas, namely human beings, can also be creative. It is much less simple to argue, however, that organizations can be the originators of ideas. Creativity of organizations is there- fore presumably something different than creativity of individuals. It may be a property