Information Systems Effectiveness in Small Businesses

Abstract

This study examines the applicability of the Thong, Yap, and Raman (1996) model of information systems (IS) effectiveness tested among Singaporean small businesses in a Canadian context. The model evaluates the importance of managerial support and external expertise (vendors and consultants) for IS effectiveness. This study extends the Thong et al. model by adding an intention of expansion construct. The sample included 105 small business users of IS in a small city in western Canada. The results show that both managerial and vendor support are essential for effective IS in Canadian small businesses, and supported part of the relations between IS effectiveness and intention of expansion. Overall, the results suggest that managers should engage quality vendors to obtain IS that contribute to the specific goals of the small business. The results of the Canadian study were, for the most part, similar to the results reported in the Singaporean study; however, a few notable differences appear to exist.

Factors Influencing AIS Effectiveness Among Manufacturing SMEs: Evidence From Malaysia

“…In fact, many studies have found that firm size is directly associated with AIS effectiveness (de Guinea et al, 2005). The concept of "resource poverty" could provide an explanation for this uniqueness.…”

“…As a knowledge-based economy emerges, information is considered crucial for the survival of any organization, including a SME (de Guinea et al, 2005). The globalization of products, services, markets, and competition has increased the need for flexibility, quality, cost effectiveness, and timeliness (Hunter et al, 2002).…”

“…The globalization of products, services, markets, and competition has increased the need for flexibility, quality, cost effectiveness, and timeliness (Hunter et al, 2002). A key resource for attaining these requirements is effective information systems (de Guinea et al, 2005), particularly accounting information systems (AIS) (Mitchell et al, 2000). The reason is that accounting information can help SMEs manage short-term problems in the areas such as costs, expenditure and cash flow, by providing information to support monitoring and control.…”

“…Similarly, Marriot and Marriot (2000) found that financial awareness among managers of SMEs in the United Kingdom varies considerably which then leads to ineffective AIS implementation. In these circumstances, scholars (Thong et al, 1996, Thong, 2001Yap and Thong, 1997;de Guinea et al, 2005) argued that mediating entities, such as vendors, consultants and government agencies, could play a vital role in the diffusion of AIS. While business managers could provide the expertise in their areas of operation (de Guinea et al, 2005), a combination of advices from several external experts could provide relevant information for an effective AIS implementation.…”

“…Both theories have been adopted by previous researchers as a theoretical foundation to investigate the roles of managerial commitment and external AIS experts to overcome the lack of knowledge and resources that SMEs face in the implementation of AIS and, therefore, could influence the effectiveness of AIS (Thong et al, 1996;Thong, 1999Thong, , 2001de Guinea et al, 2005).…”