Modelling the interactions among factors that influence successful computerisation of small business

Abstract

Small businesses face many problems if they are to survive the first five years of operation. The increasing complexity of information needed to run a business in the 21st Century has added another obstacle to what is already a tough course. Sooner or later, survivors are faced with the prospect of investing in computer based information systems (CBIS). Properly handled, the investment will improve the competitiveness of the company. Badly handled, the investment will handicap the company and perhaps even lead to its closure. Using survey methodology, the present study collected information from 171 small businesses that had purchased computer systems with a view to finding out what factors contribute to successful implementation of CBIS. The variables studied included background characteristics of the organization, background characteristics of the Chief Executive Officer, decision making processes, and a range of variables relating to the performance of the system itself. The outcome variable was user satisfaction. We developed and tested a CBIS implementation success model based on these variables. Results showed that although the performance of the system was the immediate determinant of satisfaction, the background variables had both direct and indirect (mediated) effects on satisfaction. These findings emphasise the importance of going beyond the immediate surrounds of a computing environment if one wishes to explain the factors that influence CBIS success in small businesses.