Abstract
It is widely recognized that Small and Medium-Sized Enterprises play a significant role in the economic vitality of local and national economies in Denmark. Over the years, these sectors are faced with an increasingly unstable marketplace and stiff competition from large firms. It is believed that the advancement of internet and its related communication technologies have the ability to give these firms the potential advantage to reach wider geographical markets and compete with larger organizations for customers’ attraction, market share, and sustainable growth. As a result, the Danish government has over the years collaborated with industry and commercial associations to bolster the integration of Information Technology and diffusion of e-commerce among SMEs.
This thesis used quantitative survey questionnaire and qualitative interview approaches to assess how SMEs in Denmark are using the internet as a business strategy to enhance growth and sustainability. In accordance with the theoretical model developed by synthesizing existing internet adoption and business growth models, three key determinants such as: the level of internet adoption, growth strategy, and competitive environment were investigated. Result indicates that SMEs have a considerable integration of internet particularly at the lower level which includes e-mail and website. While more than half of the firms who have fully integrated internet as part of their growth strategy have experienced exponential growth by developing new product and reaching new markets. Competitively, these firms are also able to offer high and unique value of proposition mainly through niches.
Table of Contents
CHAPTER ONE
INTRODUCTION AND PROBLEM FORMULATION
1.1 Introduction
1.2 Research Question
1.3 Definition of Terms
1.4 Delimitation
1.5 Structure of the Study
CHAPTER 2
Literature Review and Conceptual framework
2.1 Introduction
2.2 How do we define Small and Medium-sized Enterprises (SMEs)
2.3 SMEs Growth and Performance context
2.4 SMEs Growth Strategy
2.5 Product Development
2.5.1 Innovation
2.6 Market Development
2.7 SMEs and Internet Adoption Growth Strategies
2.7.1 Teo and Pian Model
2.7.2 Afuah and Tucci model
2.8 Conceptual framework
2.9 Categorisation of firm Growth
CHAPTER THREE
METHOD
3.1 Introduction
3.2 Survey Research
3.3.1 Sampling
3.2.2 Questionnaire Development
2.2.3 Question Formulation
3.2.4 Questionnaire design
3.2.5 Software for Questionnaire Design and implementation
3.2.6 Pretesting
3.2.7 Data Collection
3.2.8 E-mail Questionnaire
3.2.9 Quantitative data management and analytical approach
3.3 Qualitative method
3.3.1 Qualitative method as complimentary to quantitative method
3.3.2 Interview and data collection
CHAPTER FOUR
OVERVIEW OF THE ROLE OF SMALL AND MEDIUM-SIZED BUSINESSES IN DANISH ECONOMY
4.1 Introduction
4.2 Brief overview of Denmark Economy
4.3 Role of SMEs in Denmark Economy
4.4 Role of Danish Government in SMEs development
CHAPTER FIVE
QUANTITATIVE AND QUALITATIVE DATA ANALYSIS
5.1 Quantitative data analysis
5.1.1 Firms Demographic
5.1.2 Internet Adoption
5.1.3 Purpose of Internet Adopting
5.1.4 Internet adoption and Firm efficiency
5.2 Product and Market Development
5.2.1 How Internet facilitates Product or service development
5.3 Competitive Advantage
5.3.1 Value Proposition
5.4 Qualitative Results
5.4.1 Characteristics of the Firms
5.4.2 General-use internet purposes
5.4.3 Market-oriented internet purposes
5.4.4 Internet- adoption for innovation and production purposes
CHAPTER SIX
DISCUSSION AND CONCLUSION
6.1 Introduction
6.2 Internet adoption
6.2.1 High Growth Quadrants: Business Integration and Business Transformation
6.2.2 Low Growth Quadrants: prospecting and brochureware
6.3 Competitive Advantage
6.4 Market development
6.4.1 Internet websites and market development
6.4.2 Internet Ubiquity on market development and communication
6.5 Product development
6.6 Final Conclusion
Research Objectives and Themes
The primary research objective is to examine how Small and Medium-sized Enterprises (SMEs) in Denmark utilize the internet as a business strategy to foster organizational growth and long-term sustainability. The research addresses the question of how internet adoption impacts performance, particularly in relation to product development, market expansion, and maintaining a competitive edge.
- Analysis of internet adoption levels among Danish SMEs.
- Evaluation of growth strategies (product and market development) facilitated by internet technologies.
- Assessment of the role of internet in creating and maintaining competitive advantage.
- Examination of the interplay between business models, the competitive environment, and technological integration.
- Investigation into how the Danish government's policy and economic environment influence SME digital transformation.
Excerpt from the Book
Internet
The Internet as defined by Afuah and Tucci refers to a vast collection of networks of computers that are interconnected both physically and through their ability to encode and decode certain specialised communications protocols called the Internet Protocol (IP) and Transmission Control Protocol (TCP). The concept of Internet started in the USA as way to curb the persistent military threat emanating from the soviet bloc in the early 1960s by dismantling the centralised forms of communications and introducing a network like communication system that linked computers together. The suggestion came during the late 1960s to early 1970s by USA Defence Ministry based on feared that reliant on centralised forms of communication through very few and large computers may jeopardise their information systems in case there is damage to these computers and the resultant effect may lead to increasing vulnerability to nuclear attach from their opponent. Therefore, “there was a need to link computers together in such a way that was not dependent on any single machine for integrity of the whole network” (Stroud 1998:3). In response to this suggestion, a technological development project called the Advanced Research Projects Agency Network (ARPANet) was initiated and developed (Stroud, 1998; Afuah and Tucci, 2003). From this point the number of computers connected to the network continues to grow until 1983 when all the computers connected to ARPANet were converted to using one set of protocols (TCP/IP) for communicating with each other. TCP and IP are transmission control protocols over the internet that provide the basic standards by which network functioned. According Stroud (1998), it was from this period the term ‘internet’ became more widely used refer to a collection of networks that specifically used TCP/IP protocols to communicate.
Summary of Chapters
CHAPTER ONE: This chapter introduces the study's focus on SMEs in Denmark, defining the problem formulation and the significance of internet adoption for business strategy and sustainable growth.
CHAPTER 2: This chapter reviews existing literature and establishes a conceptual framework, emphasizing how internet technology influences business models, product development, and market strategies.
CHAPTER THREE: This chapter details the methodological approach, explaining the use of a quantitative survey and qualitative interviews to gather data from Danish SMEs.
CHAPTER FOUR: This chapter provides an overview of the Danish economy and the role of SMEs, including a discussion of government policies supporting ICT and e-commerce integration.
CHAPTER FIVE: This chapter presents the analysis of both quantitative survey data and qualitative interview findings regarding internet adoption, efficiency, and market development.
CHAPTER SIX: This chapter provides a final discussion and conclusion, synthesizing the findings and evaluating how internet adoption impacts SME performance and sustainable growth.
Keywords
SMEs, Denmark, Internet Adoption, Business Strategy, Firm Performance, Sustainable Growth, E-commerce, Product Development, Market Development, Competitive Advantage, Digital Transformation, Business Models, Information Technology, Survey Research, Qualitative Interview.
Frequently Asked Questions
What is the core focus of this study?
The study investigates how Small and Medium-sized Enterprises (SMEs) in Denmark use the internet as a business strategy to enhance their growth, sustainability, and competitive position.
What are the primary themes discussed in the work?
The central themes include the levels of internet adoption, growth strategies specifically in product and market development, the competitive business environment, and the impact of the internet on organizational efficiency and business models.
What is the main research question of the thesis?
The main research question is: How has the adoption of internet as a business strategy impacted on SME performance and sustainable growth?
Which research methodology does the author employ?
The thesis adopts a mixed-methods approach, utilizing quantitative questionnaire surveys for broad data collection and qualitative in-depth interviews to gain deeper insights into the experiences and strategies of the selected SMEs.
What does the main body of the work cover?
The body covers a literature review and conceptual framework, an overview of the Danish economy and government support, detailed data analysis from both survey and interviews, and a comprehensive discussion of findings regarding internet usage, product/market development, and competitive advantage.
Which keywords best characterize this research?
Key terms include SMEs, Denmark, Internet Adoption, Business Strategy, Firm Performance, E-commerce, Competitive Advantage, and Business Models.
How do Danish SMEs typically approach internet usage?
The study finds that while most SMEs have achieved a base level of internet adoption (e-mail and websites), those that achieve high growth are more likely to integrate the internet into more complex areas like B2B e-commerce, business transformation, and digital marketing strategies.
What role does the Danish government play in this context?
The Danish government actively supports SMEs through policy initiatives like 'IT for All,' emphasizing infrastructure, regulatory simplification, and promoting the diffusion of information technology and e-commerce to ensure competitiveness.
How does internet usage contribute to product development?
The research indicates that the internet facilitates decentralized product development by allowing multi-disciplinary teams to collaborate remotely, thus accelerating development cycles and allowing firms to tailor products more effectively to specific market niches.
What is the significance of the "quadrants" model presented?
The quadrants model classifies SMEs based on their level of internet adoption and their resulting growth potential, helping distinguish between firms using the internet purely for communication and those using it as a sophisticated, strategic tool for business transformation.
- Quote paper
- Steven Sam (Author), Jared Makor (Author), 2011, Strategic Internet Business Management - An Assessment of Internet Business Growth Strategies, Munich, GRIN Verlag, https://www.hausarbeiten.de/document/179587
