THEMED PAPER Digital business ecosystem prototyping for SMEs Miklo ´s Herdon, La ´szlo ´ Va ´rallyai and A ´ da ´m Pe ´ntek Institute of Economic Analytical Methodology and Applied Informatics, University of Debrecen, Debrecen, Hungary Abstract Purpose – The purpose of this paper is to survey, systemize and analyse the e-readiness of small and medium-sized enterprises (SMEs) and determine which new technologies can be applied to build a digital business ecosystem (DBE) for SMEs. Based on the results of a survey, the authors’ objectives are to propose an adequate solution system that uses open source solutions for the SME through the development of a prototype based on a DBE concept. Design/methodology/approach – On the resulting principal components, the authors applied the variance analysis and built two LISREL (a linear structural equation system involving multiple indicators of unmeasured variables) models. LISREL can handle a wide array of problems and models. Based on a survey, an open source prototype solution was developed based on DBE philosophy. Findings – The authors defined different clusters. An SME can then find within the clusters further methods that could be important for their business. The authors developed two LISREL models, aiming to examine the factors that impact the use of the community applications and how they impact them, as well as the factors that impact the increase of the on-line sales. Based on the survey, a prototype system was designed and created that can be used for the set-up of digital business networks. Practical implications – The paper proposes an adequate solution system that uses open source solutions for the SMEs through the development of a prototype based on a DBE concept. Originality/value – Building DBEs helps to create and operate value chains that help enterprises to extend their markets. Through their help, the inquirers and buyers get to know the elements of the value chain, and can therefore make decisions much easier. The paper shows how to define e-attributes of SMEs and clusters to build and use a DBE system for them. Keywords Small to medium-sized enterprises, Open source, Information systems, LISREL model, Computer software, Business ecosystem, Interoperability, Digital business ecosystem Paper type Research paper 1. Introduction Information and communication technologies (ICTs) are present in every area of life. They have become important production resources for enterprises. In this aspect, the situation of the small- and medium-sized enterprises (SMEs) is difficult, as the utilisation of these technologies does not reach the desired level – either in Hungary or in the European Union (EU) as a whole. SMEs have a difficult time adjusting to the integrated corporate information systems developed for the use by large enterprises. Moreover, the systems developed for the SME market (especially systems produced by developers) do not make it possible to manage inexpensive and flexible inter-operational business relationships between small enterprises. As SMEs are decisive factors for the economy of every country, many enterprises spotted the potential market in this segment. Unfortunately, these systems cover primarily the internal processes within an enterprise and therefore do not provide enough support for the relationships and processes between enterprises. The current issue and full text archive of this journal is available at www.emeraldinsight.com/1328-7265.htm JSIT 14,4 286 Journal of Systems and Information Technology Vol. 14 No. 4, 2012 pp. 286-301 q Emerald Group Publishing Limited 1328-7265 DOI 10.1108/13287261211279026