Wednesday, May 13, 2015

Small Firms Sales Performance Effectiveness using the ICT Services (Doris M. Shaw, Northern Kentucky University, 2005)

The usefulness of ICT in small businesses today creates a huge impact to the modern human resource and development.  The study of Shaw et al. (2005) portrays the observation of SME companies that utilizes the services of ICT.  As what the general notion reveals that the cost reduction and the maximization of profit accelerate in a manner that SME operation will outperform the mainstream business company operation.  The study further analysis the research of Acs and Arrington (2003) that SME business operation grows rapidly in the sense that creating and starting a market reach is feasible in the sense that ICT services is always at hand to be used and be utilized.  

Consequently, Headd (2001) reveal in his study that SME business survival is hardly possible for decades for the reason that investment capital for example is hardly sustainable and feasible.  But with the utilization of ICT, SME businesses can survive with their day to day operating expenses showing more profit margin than losses.  Brannback (1997) supports the notion of Headd (2001) by creating the research study that by using technologically advanced gadgets in the organization, customer reach is more controllable and easier to reach.  Likewise, Peterson (1999) studied in his research the relevance of sales representatives as the direct contact of the customers and the main level of the organization that will use the ICT program structure to encode the customer’s market activities.  As a relevant concept, Peterson (1999) believes that sales activities with ICT usage will strengthen the customer relation of the organization.  Further readings of Shaw et al. (2005) utilizes the research of Smith and Barclay (1997) as to the after sales support of the organization to the customers.  As most business organization today are reflective with their market operation, after sales services are commonly accommodated by the sales Representatives to create a more personalize relationship between organization and company.  In this manner, Shulman (1992) advances his research inquires in the academic aspect of the personnel as to how the personnel of the organization is capable in accommodating the new business challenges in the market using the modern ICT infrustrature.  Thus, Academic instructions in the Universities must be congruent to the modern business operation of most International organization worldwide. 

Business ICT Maturity and Market Segmentation Explained



The Study concretely utilizes the 5 dimensions to check the scale reliability in relation to sales effectiveness. 1. Resource Management 2. Perceived Usefulness 3. Perceived Ease of Use 4. Comfort level and 5. General attitude.  Out of the five items, the five succeeding items has the cronbach alpha of 0.872, 0.816, 0.793, 0.723, & 0.706 which means that the five point scale are reliable for final market research testing.  Further statistical data revealed using Regression Coefficients, (from the succeeding data) 1. Resource Management has the Coefficients of 0.266 and p value of 0.032 2. Perceived Usefulness Coefficients of 0.241 and p value of 0.040 3. Perceived Ease of Use has the Coefficients of 0.298 and p value 0.026 4. Comfort Level has the Coefficients of 0.219 and p value of 0.043 and lastly, 5 General attitude about technology has the Coefficients of 0.252 and p value of 0.033.

Conclusively, the study of Shaw et al. (2005) reveals that item number two which is the Perceived Usefulness has the highest statistical impact towards the customers and the market at large knowing that the Customer Retention got 0.24(0.02), Customer Loyalty of 0.24(0.02), and Improved Morale of 0.25(0.02).  Basing from the statistical observation, usefulness of technological infrastructure in the organization in SME level has the profit maximization and the marketing operation effectiveness in the modern marketing approach of today using the ICT infrastructures through the personnel management.


MAIN REFERENCE:

Shaw, D. M. (2005). Sales Effectiveness and Firm Performance: A Small Firm Perspective. The Entrepreneurial Executive.

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