The Use of ICT in the Decision Making Process: The Case of Macedonian Entrepreneurial Businesses

The rapid technological development and the growing use of information communication technology (ICT) in business organizations have become the centre of attention in past few years. A bulk of literature has been published on the need of renewing and adjusting the information technology function in business organisations (Guillemette and Pare 2012), the application of ICT in different industries (Francalanci and Galal 1998; Devaraj and Kohli 2000; Rivard 2000), different types of business organizations (Blili and Raymond 1993; Heintze and Bretschneider 2000) and in different areas of business management (Ellram and Zsidisin 2002; Devaraj and Kohli 2003; Croom 2006). Strategic management, precisely decision making process, being an important area of business management, has also been researched to investigate the influence of ICT in different industries, with particular emphasis on strategic decision making. The majority of such studies were conducted in developed countries like UK and USA (Andersen 2001, 2005). On the other hand, in developing countries the link between ICT and strategic management specifically the role of ICT in the strategic decision making (SDM) process is a very new subject of research. More recent studies highlight the need of frequently adapting and aligning their competitive strategies and information systems to compete in a highly dynamic marketplace, and employ high-level measures of the strategic fit of a firm’s overall IS portfolio and the impact of fit on business performance (Mclaren et al. 2011). The present study investigates the use of ICT and their impact on the strategic decision making in three industries (manufacturing, trade and services) of a developing economy such as Macedonia.

This is a preview of subscription content, log in via an institution to check access.

Access this chapter

Subscribe and save

• Get 10 units per month
• Download Article/Chapter or eBook
• 1 Unit = 1 Article or 1 Chapter
• Cancel anytime

Buy Now

eBook EUR 85.59 Price includes VAT (France)

Softcover Book EUR 105.49 Price includes VAT (France)

Hardcover Book EUR 105.49 Price includes VAT (France)

Tax calculation will be finalised at checkout

Purchases are for personal use only

Similar content being viewed by others

The effect of ICT and higher-order capabilities on the performance of Ibero-American SMEs

Impact of Business Intelligence on Firm’s Performance in Cameroon

Strategic IT Alignment and Business Performance in SMEs: An Empirical Investigation

References

• Agre GP (1982) The concept of problem. Educ Stud 13:121–41 Google Scholar
• Andersen TJ (2001) Information technology, strategic decision making approaches and organisational performance in different industrial setting. J Strateg Inf Syst 10:101–119 ArticleGoogle Scholar
• Andersen TJ (2005) The performance effect of computer-mediated communications and decentralized strategic decision making. J Bus Res 58:1059–1067 ArticleGoogle Scholar
• Apostolov M (2010) Attributes to corporate governance and enterprise restructuring in the macedonian economy. CEA J Econ 5(2):5–17 Google Scholar
• Ashrafi R, Baghdadi Y (2008) E-business: issues, challenges and architecture. IJBIS 3(4):391–409 ArticleGoogle Scholar
• Bitzenis A, Marangos J, Nuskova V (2007) Motives for foreign direct investment in the manufacturing sector in FYR macedonia. Post-Communist Econ 19(4):505–527 ArticleGoogle Scholar
• Blili S, Raymond L (1993) Information technology: threats and opportunities for small and medium-sized enterprises. Int J Inf Manag 13(6):439–448 ArticleGoogle Scholar
• Brown CV, Ross JW (1996) The information systems balancing act: building partnerships and infrastructure. Inf Technol People 9(1):49–62 ArticleGoogle Scholar
• Brown C, Dehayes D, Hoffer J, Martin W, Perkins W (2012) Managing information systems, 7th edn. Pearson Education, Prentice Hall Google Scholar
• Calvasina E, Ramaswamy M, Calvasina R, Calvasina G (2006) Information requirements for making strategic decisions at the enterprise level. Issues Inf Syst 7(2):97–100 Google Scholar
• Caruth DL, Caruth GD, Humphreys JH (2009) Towards and experiential model of problem initiated decision making. J Manag Res 9(3):123–132 Google Scholar
• Central Intelligence Agency (2010) The CIA world factbook 2010. Sky Horse Publishing, New York Google Scholar
• Cheng Y-H, Yeh Y-J (2011) Exploring radio frequency identification Technology’s application in international distribution centers and adoption rate forecasting. Technol Forecast Soc Change 78:661–673 ArticleGoogle Scholar
• Clemons EK, Reddi SP, Row MC (1993) The impact of information technology on the organization of economic activity: the move to the middle. J Manag Inf Syst 10:9–35 Google Scholar
• Commission for Information Technology (2005) National strategy for information society development and action plan of the republic of macedonia. CIT, Skopje Google Scholar
• Croom SR (2006) The impact of Web-based procurement on the management of operating resource supply. J Supply Chain Manag 36(1):4–13 ArticleGoogle Scholar
• Czerniawska F, Potter G (1998) Business in a virtual world: exploiting information for competitive advantage. MacMillan, London BookGoogle Scholar
• Daft R (2010) Management, 9th edn. South-Western Cengage Learning, Mason, USA Google Scholar
• Dauti B, Bodo H (2009) Economic convergence between Macedonia and European monetary union member states: the five Maastricht criteria (MPRA paper no. 21222). Munich Personal RePEx Archive Google Scholar
• Dauti B, Pollozhani P (2008) Economic challenges for Macedonian economy toward European union integration. SEEU Rev 4(2):141–164 Google Scholar
• Davis D (1984) SMR Forum: will the computer change the job of top management? Sloan Manag Rev (USA), 25(3):57–60 Google Scholar
• Dawson S (1996) Analysing organisations, 3rd edn. Macmillan Business, Oxford Google Scholar
• Devaraj S, Kohli R (2000) Information technology payoff in the health-care industry: a longitudinal study. J Manag Inf Syst 16(4):41–67, ACM Digital Library [Online]. Available at:http://portal.acm.org. Accessed 1 Mar 2011 Google Scholar
• Devaraj S, Kohli R (2003) Performance impacts of information technology: is actual usage the missing link. Manag Sci 49(3):273–289 ArticleGoogle Scholar
• Doing Business (2012) Doing business in a more transparent world. International Bank for Reconstruction and Development/The World Bank, Washington, DC Google Scholar
• Duferco Makstil. What’s new [Online]. Available from: http://www.makstil.com/en/02-Local/news.aspx. Accessed 25 Apr 2011
• Dutta S, Mia I, Lopez‐Claros A (eds) (2006) The global information technology report 2005–2006: leveraging ICT for development. Palgrave Macmillan, New York Google Scholar
• Easterby-Smith M, Thorpe R, Lowe A (1991) Management research. SAGE, London Google Scholar
• Economy Watch (2011a) European Union Economic Statistics and Indicators. Available from: http://www.economywatch.com/economic-statistics/country/European-Union/. Accessed 22 Nov 2011
• Economy Watch (2011b) Macedonia (Former Yugoslav Republic of Macedonia) GDP Growth (Constant Prices, National Currency) Statistics [Online]. Available from: http://www.economywatch.com/economic-statistics/Macedonia/GDP_Growth_Constant_Prices_National_Currency/. Accessed 28 Mar 2011
• Ellram LM, Zsidisin GA (2002) Factors that drive purchasing and supply management’s use of information technology. IEE Trans Eng Manag 49(3):269–281 ArticleGoogle Scholar
• EUCommerz (n.d.) Macedonia business environment. Retrieved 28 March 2011 from http://www.eucommerz.com/business/macedonia
• Evans T (2009) Macedonia, 3rd edn. Bradt Travel Guides Ltd, Bucks Google Scholar
• Feldman JA. (2004) Computational cognitive linguistics. In: Proceedings of 20th international conference on computational linguistics. Association for Computational Linguistics, Morristown, pp 1114–1118 Google Scholar
• Fernald J, Ramnath S (2004) The acceleration in US total factor productivity after 1995: the role of information technology. Econ Perspect 28(1):52–68 Google Scholar
• Fletcher PD (1999) Strategic planning for public sector information management. In: Garson D (ed) Information technology and computer application in public administration. Idea Group Publishing, London Google Scholar
• Francalanci C, Galal H (1998) Information technology and worker composition: determinants of productivity in the life insurance industry. MIS Q 22(2):227–241 ArticleGoogle Scholar
• Frishammar J (2003) Information use in strategic decision making. Manag Decis 41(4):318–326 ArticleGoogle Scholar
• Galbraith JK (1967) The new industrial state. Princeton University Press, Oxfordshire, Princeton University, edition Google Scholar
• Gallupe RB, Dennis AR, Cooper WH, Nunamaker JF (1992) Electronic brainstorming and group size. Acad Manag J 35:350–369 ArticleGoogle Scholar
• Garten JE (1998) Why the global economy is here to stay. Bus Week 23:2 Google Scholar
• Gibson R (1997) Rethinking the future. Nicholas Brealey Publishing, London Google Scholar
• Global Trade (n.d.) The Miniportal for Macedonia [Online]. Available from: http://www.globaltrade.net/international-trade-import-exports/m/c/Macedonia.html. Accessed 25 Apr 2011
• Greengard S (1998) How technology will change the workplace. Work 77:78–84 Google Scholar
• Guillemette MG, Pare G (2012) Toward a new theory of the contribution of the IT function in organizations. MIS Q 36(2):529–551 Google Scholar
• Hassan NR (2006) New approaches to studying information technology: escaping the organizational straightjacket. Informing Sci J 9:243–160 Google Scholar
• Hedelin L, Allwood CM (2002) IT and strategic decision making. Ind Manag Data Syst 102(3):125–139 ArticleGoogle Scholar
• Heintze T, Bretschneider S (2000) Information technology and restructuring in public organizations: does adoption of information technology affect organizational structures, communications, and decision making? J Publ Adm Res Theory 10(4):801–830 ArticleGoogle Scholar
• Hicks MJ (2004) Problem solving and decision making: hard, soft and creative approaches, 2nd edn. Thomson Learning, London Google Scholar
• Huber GP (1990) A theory of effects of advanced information technologies on organizational design, intelligence, and decision making. Acad Manage Rev 15(1):47–71 Google Scholar
• Huitt W (1992) Problem solving and decision making: consideration of individual differences using the myers-briggs type indicator. J Psychol Type 24:33–44 Google Scholar
• Iansiti M (1998) Technology integration: making critical choices in a dynamic world. Harvard Business School Press, Boston Google Scholar
• International Monetary Fund (2010) Data and Statistics [Online]. Available from: Jagdev SH, Brennan A, Browne J (2004) Strategic decision making in modern manufacturing. Kluwer, Dordrecht BookGoogle Scholar
• Jarvenpaa SL, Ives B (1991) Executive involvement and participation in the management of information technology. MIS Q 15(2):205–227 ArticleGoogle Scholar
• Karatnycky A, Motyl A, Schnetzer A (eds) (2001) Nations in transit 2001: civil society, democracy and market in east central europe and the newly independent states. Freedom House, New Brunswick Google Scholar
• King WR (1985) Editors comment: CEOs and their PCs. MIS Q 9(3):x–xii Google Scholar
• Kumar BP, Selvam J, Meenakshi VS, Kanthi K, Suseela AL, Kumar VL (2007) Business decision making, management and information technology. http://pdfcast.org/pdf/business-decision-making-management-and-information-technology. Accessed 26 Apr 2011
• Lee J (2011) Macedonian steel industry set for rise according to vice PM. The Friary group [Online]. Available from: http://www.thefriarygroup.co.uk/blog/?p=138. Accessed 26 Apr 2011
• Leidner DE, Elam JJ (1995) The impact of executive information systems on organizational design, intelligence, and decision making. Organ Sci 6(6):645–664 ArticleGoogle Scholar
• Maps of the world (n.d.) Economy and business: Macedonia industry [Online]. Available from: http://www.mapsofworld.com/macedonia/economy-and-business/industry.html. Accessed 25 Apr 2011
• Martinez ME (1998) What is problem solving? Phi Delta Kappan 79(8):605 Google Scholar
• Mclaren TS, Head MM, Yuan Y, Chan YE (2011) A multilevel model for measuring fit between a firm’s competitive strategies and information systems capabilities. MIS Q 35(4):909–929 Google Scholar
• Ministry of Information Society and Administration (2008) ICT usage in the enterprises, year 2008 Available from: http://www.mio.gov.mk/?q=node/2157. Accessed 28 Mar 2011
• Ministry of Information Society and Administration (2009) Usage of information – communication technologies in households, first quarter, year 2009. Available from: http://www.mio.gov.mk/?q=node/2191. Accessed 28 Mar 2011
• Molloy S, Schwenk CR (1995) The effects of information technology on strategic decision making. J Manag Stud 32(3):283–311 ArticleGoogle Scholar
• Morone J (1989) Strategic use of technology. Calif Manage Rev 31:91–110 Google Scholar
• Nolan V (1989) The skills of innovative management: problem solving, communication, and teamwork. Penguin, London Google Scholar
• Olalla MF (2000) Information technology in business process reengineering. Int J Adv Econ Res 6(3):581–589 ArticleGoogle Scholar
• Parker PM (2007) Executive report on strategies in Macedonia. ICON Group International, Sand Diego, USA Google Scholar
• Patterson KA, Grimm CM, Corsi TM (2003) Adopting new technologies for supply chain management. Transp Res Part E 39:95–121 ArticleGoogle Scholar
• Petkov F, Mojososka S (2008) Foreign trade of the Republic of Macedonia: exports and import in 1997–2007. In Petkov F, Efremov K (eds). Report on foreign trade of Macedonia 2008 (Trans: by L Arsovska, N Kolekvska, S Gramatova, I Kacarski). Retrieved from http://www.investinmacedonia.com/files/recources_files/607/Izvestaj%202008_EN.pdf. Accessed 25 Apr 2011
• Porter ME (1983) The technological dimensions of competitive strategy. In: Rosenbloom RS, Burgelman RA (eds) Research on technological innovation, management and policy, vol 1. JAI Press, London, pp 1–33 Google Scholar
• Risteska M, Daskalovski Z (2008) Internationalization of SMEs: the case of the the former Yugoslav Republic of Macedonia. In: Dana L-P, Welpe IM, Han M, Ratten V (eds) Handbook of research on european business and entrepreneurship: toward a theory of internationalization. Edward Elgar, Skopje, Massachusetts Google Scholar
• Rivard H (2000) A survey on the impact of information technology on the canadian architecture, engineering and construction industry. ITcon 5:37–56 Google Scholar
• Santa R, Ferrer M, Bretherton P, Hyland P (2009) The necessary alignment between technology innovation effectiveness and operational effectiveness. J Manag Organ 15(2):155–169 ArticleGoogle Scholar
• Saunders M, Lewis P, Thornhill A (2000) Research methods for business students. Pearson Education, London Google Scholar
• Segars AH, Grover V, Teng TC (1998) Strategic information systems planning: planning system dimensions, internal coalignment, and implications for planning effectiveness. Decis Sci 29(2):303–345 ArticleGoogle Scholar
• Shim JK, Siegel JG (2005) The vest pocket guide to information technology, 2nd edn. John Wiley and Sons Inc. Hoboken, New Jersey Google Scholar
• Small Business Organisations Archieves (2010) http://technorati.com/archive/2010/09/?channel=small-business. [Downloaded 03rd of Feb 2011]
• Smith KG, Gannon MJ, Grimm C, Mitchell TR (1988) Decision making behavior in smaller entrepreneurial and larger professionally managed firms. J Bus Ventur 3:223–232 ArticleGoogle Scholar
• Sobhani A (2008) The impact of information technology in production. Master thesis, Lulea University of Technology Google Scholar
• Tallman I, Gray LN (1990) Choices, decisions, and problem-solving. Annu Rev Sociol 16:405–433 ArticleGoogle Scholar
• Unevska D, Jovanovic B (2010) Sustainability of the Macedonian current account. Retrieved 28 March, 2011 from http://www.whu.edu/cms/fileadmin/redaktion/Z-CEUS/CEUS_Workshop_2010/Paper/Jovanovic_Unevska.pdf
• US Department of State (2011) Background note: Macedonia. Retrieved from http://www.state.gov/r/pa/ei/bgn/26759.htm. Accessed 25 Apr 2011
• Van Gundy AB Jr (1988) Techniques of structured problem solving. Van Nostrand Reinhold, New York Google Scholar
• Walters BA, Jiang JJ, Klein G (2003) Strategic information and strategic decision making: the EIS/CEO interface in smaller manufacturing companies. Inf Manag Syst 40(6):487–495 ArticleGoogle Scholar
• World Bank (2011) GDP growth (annual %nn. Retrieved from http://data.worldbank.org/indicator/NY.GDP.MKTP.KD.ZG. Accessed 3 Mar 2011
• Zain M, Rose RC, Abdullah I, Masrom M (2005) The relationship between information technology acceptance and organizational agility in Malaysia. Inf Manage 42:829–839 ArticleGoogle Scholar

Author information

Authors and Affiliations

1. Faculty of Business and Economics, South East European University, Tetovo, Macedonia Shqipe Gërguri-Rashiti & Hyrije Abazi-Alili
2. Faculty of Contemporary Sciences and Technologies, South-East European University, Tetovo, Macedonia Zamir Dika

1. Shqipe Gërguri-Rashiti