Background

SMEs are the backbone of the economies across the world, and the different markets they function in have been globalized in recent years. This has resulted even greater demands on SMEs different capabilities to give them the competitive edge they need to stay in front of competition. Some identified capabilities that can give them superior advantage to competition are information technology, business process management and customer relationship management. These capabilities have been studied in different context and on different levels. However, in this study the focus is on the different dimensions of IT and CRM in relation to BPM. More specifically the dimension of IT being IT knowledge and IT operations and the dimension of CRM being Customer interaction management.

Objectives

The goals of this study are to give further understanding into the characteristics of the SMEs IT knowledge, IT operations, Customer interaction management and Business process management. And the interrelationship between these capabilities.

Methods

Structural equation modelling was used for the analysis of the answers received on a questionnaire sent out to different SMEs performing in different sectors on the Swedish market.

Results

The study resulted in 195 gathered answers, whereof 169 were used, from SMEs working in 9 different sectors, the predominant sector was the manufacturing sector. The results suggest that the CIM capabilities is the strongest one, followed up by ITK, BPM and the lowest being ITO. The analysis suggested rejected the hypothesis of a positive direct impact between ITK and CIM and ITO and CIM. But it accepted the hypothesis of a positive direct impact of BPM on CIM.

Conclusions

The findings suggest that SMEs must rethink their BPM and ITK capabilities as negative correlations were found between ITK and BPM. Additionally, it was found that BPM mediated a negative effect between ITK and CIM. Future research should be done to understand where the misfits between BPM and IT lies in SMEs in different sectors.