Information systems effectiveness among small businesses

Abstract

This study examines the validity of the Thong et al. (1996) model of Information Systems effectiveness in Canadian small businesses. The model evaluates the importance of managerial support and external expertise (vendors and consultants) for Information Systems effectiveness. This project extends the model by adding two constructs: intention of expansion for adopters and intention of adoption for non-adopters. The sample included 105 adopters and eight non-adopters of a mid-size city in Western Canada. Partial Least Squares was used to statistically test the model. The results showed that managerial and vendor support are essential for effective Information Systems in small businesses, and supported part of the relations between Information Systems effectiveness and intention of expansion for adopters. Descriptive statistics revealed that non-adopters lacked knowledge and resources to purchase technology. Overall, the results suggested managers should engage quality vendors to obtain Information Systems that contribute to achieve the small businesses’ goals.