SMEs reporting
Introduction
What Kind of study is this? Please make sure you address the type of research and why you think was used in this paper
This is a quantitative study using the tailored design method mail survey methodology to research the benefits a business gets from being a member of a rural business cluster, the benefits it gets from adopting ICT in its operations, and the overall success of the company. This specific study methodology was used to save on travel costs and to reach the dispersedly located business. Some SMEs in Northern lower Michigan with the following properties were selected for the study; had been in business for the past 19 years, averaged 13 employees, derived 56% of their total revenue from the local region, 20% from elsewhere in Michigan, 19% from other states, and 2% from outside the United States with two-thirds of the SMEs reporting annual revenues of $500,000 or less. A total of 333 SMEs out of 1079 selected provided data for this study, and the rest were disqualified due to a myriad of factors including incomplete data, wrong addresses, and being out of business, etc.
How is this paper related to the topics in this course
This paper quantitatively analyses the assumptions that business being in a rural cluster and the adoption of ICT is beneficial for its bottom-line and profits. In most cases, this is true whereby SMEs trigger a positive growth cycle enhancing technology diffusion into the rest of the community, thereby increasing demand, which attracts infrastructure investment, which in turn plays in reducing the digital divide. We learn in this paper that the overall success is derived from a myriad of other interrelated factors, e.g., companies located in well-developed clusters are likely to benefit more from cluster membership than those in less-developed groups. In contrast, Stronger groups are more likely to attract a more qualified labor force, enhancing the quality of the information that flows in knowledge spillovers and social capital from their shared proximity.
Do you agree with the author’s conclusion?
Yes, I agree with the author’s conclusion, it is strongly evidenced in the paper that the adoption of ICTs among rural SMEs is positively correlated with the benefits derived from business clusters, supported by decades of research on ICT use in businesses. However, these companies located in well-developed groups are likely to benefit more from cluster membership than those in less-developed clusters. Stronger clusters are more likely to attract a more qualified labor force, enhancing the quality of the information that flows in knowledge spillovers. The benefits derived from cluster membership are positively correlated with the strength of the business cluster.