The Role of Business Information Systems in Thai SMEs' Market Knowledge Construction

Business information system (BIS) plays a substantial part in the process of knowledge construction and implementation of knowledge management in an organization. BIS helps constructing new knowledge and positively affect organizational learning, performance and knowledge management practices. However, majority of small and medium size enterprises (SMEs) assume that employing BIS is the implementation of knowledge construction. The paper aims to investigate the role of business information system as a mediating factor in market knowledge construction. The study was conducted on 209 SMEs in Thailand using questionnaires to collect the data. Sequential Equation Modelling (SEM) using Partial Least Square (PLS) for analysis. The result shows that business information system becomes a mediator between customer along with supplier and creating products (CP), innovative process (IP), identifying a new market (INM) and changing organizational behaviour (COB). However, business information system (BIS) does not become a mediator between market environment (ME) and identifying a new market (INM). The analysis also shows that the model has a predictive power.