Information System Development in the Small Firm: tests of contingency, agency and markets & hierarchies approaches
AbstractThis paper is designed to explore the nature of information system development in small and medium sized enterprises (SMEs), by appeal to three theories: contingency, agency and markets vs hierarchies. To address these theories empirically, use is made of new data which have been gathered from a sample of Scottish SMEs over a five-year period, 1994-1998. The structrue of this paper is as follows. First, the three theories under examination, contingency, agency and markets vs hierarchies, are briefly described. Second, an overview of the methodology is presented, looking at sampling, the database and summary statisics. Third, the contingency theory approach is explored on the data, both taxonomically (using cluster analysis) and inferentially (using regression analysis). Fourth, the agency approach is tested, using regression analysis. Finally, the markets vs hierarchies approach is tested, using regression analysis. The paper ends by concluding that the contingency approach is not a rival approach to the agency or markets vs hierarchies approaches, but may rather be regarded as incorporating, and supporting, elements of both.
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Bibliographic InfoPaper provided by Centre for Research into Industry, Enterprise, Finance and the Firm in its series CRIEFF Discussion Papers with number 9905.
Date of creation: Oct 1999
Date of revision:
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More information through EDIRC
Information; Contingency; Agency; Markets and Hierarchy; Small Firms;
Find related papers by JEL classification:
- D21 - Microeconomics - - Production and Organizations - - - Firm Behavior: Theory
- D82 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Asymmetric and Private Information; Mechanism Design
- L21 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Business Objectives of the Firm
- L22 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Organization and Market Structure
- M41 - Business Administration and Business Economics; Marketing; Accounting - - Accounting - - - Accounting
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Gordon, Lawrence A. & Miller, Danny, 1976. "A contingency framework for the design of accounting information systems," Accounting, Organizations and Society, Elsevier, vol. 1(1), pages 59-69, January.
- Coase, Ronald H., 1990. "Accounting and the theory of the firm," Journal of Accounting and Economics, Elsevier, Elsevier, vol. 12(1-3), pages 3-13, January.
- Chapman, Christopher S., 1997. "Reflections on a contingent view of accounting," Accounting, Organizations and Society, Elsevier, vol. 22(2), pages 189-205, February.
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