Flexible work practices and the firm’s need for external orientation: An empirical study of SMEs

Literature on small and medium enterprises (SMEs) has so far produced limited evidence on how these firms pursue their organizational flexibility with information and communication technology (ICT) and ad hoc work practices. The purpose of this paper is to contribute to the extant literature by focusing on how SMEs use flexible work practices that provide latitude with respect to when employees work, where they work and via which communication medium. Specifically, the authors analyze how such practices are related to the conditions that SMEs face in reference to their competitive environment and their patterns of ICT usage.

A survey was conducted on 304 Italian SMEs, with the aim of identifying the contextual dimensions where flexible work is chosen and the different typologies of flexible work implemented by companies.

Flexible work in SMEs is chosen for different reasons associated to different conditions in the competitive environments and in ICT usage where SMEs operate. In general, SMEs use flexible work when they are more capable of improving their external orientation toward suppliers, customers, and the entrance in new markets with ICT. This duality is more likely in the competitive environments where external orientation and information processing is more needed, namely, environments that are uncertain and complex for product and breadth of the geographical complexity (scope) covered.

In this paper, the authors offer an analysis on the contextual characterizations of flexible work practices. Future studies should disentangle more in depth the ways these characterizations are related to different ICT usages.

In uncertain and complex environments, SMEs should increase their external information processing with ICT and organizational practices that support the latitude of employees involved in boundary spanning with respect to where, when, and how they work.

This paper offers an interpretation of flexible work as an organizational mechanism used to cope with uncertain and complex environments where more external orientation is needed. This paper also shows that there are four different typologies of flexible work implemented by companies, namely, flexible work for cheaper input costs, flexible work for operational drivers, flexible work for strategic drivers, and flexible work for individual motivations, and that in some cases the conditions under which they are chosen are different.