Abstract

Prior research has extensively investigated and confirmed the substantial and growing role that information systems (IS) have for the success of organizations. However, relatively little studies yet address the particular situation of small and medium enterprises (SMEs), as they are often too small and financially restricted to invest in large out-of-the-box enterprise systems. With this article we add to our understanding of how young SMEs (entrepreneurs) utilize the benefits of IS and deal with the challenges that come along. We use a process study and build on punctuated-equilibrium theory to understand the different interactions between the growth of an organization and the development of an enterprise IS. Our empirical setting is based on a rich single case study of the Norwegian SME Forskerfabrikken and its growth processes over 13 years. As a result of our analysis, we identify strategic drivers, external resources, organizational structure, process optimization, and stakeholder expectations as the main growth constituents of the organization. Our findings reveal the complex set of changes and interactions taking place within and across these categories of change, and demonstrate how IS are both influencing and influenced by the growth of the organization.

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