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Information and the Small Firm

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  • Gavin C Reid

Abstract

This paper provides a critical survey of theory and evidence on information system (IS) development within the SME. It proceeds under five headings. First, the information needs of the SME are identified. Second, the use of information to guide decisions is considered. Third, the management accounting system (MAS) is examined as an example of operational IS within the SME. Fourth, the link between SME performance and IS development is considered, Fifth, methods of statistically estimating the performance link are examined. It is concluded that the MAS perspective is useful in that it both helps to formalise the characteristics of an IS, and suggests ways in which its design can best be directed at those monitoring and control functions which enhance performance.

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Bibliographic Info

Paper provided by Centre for Research into Industry, Enterprise, Finance and the Firm in its series CRIEFF Discussion Papers with number 9911.

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Date of creation: Oct 1999
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Handle: RePEc:san:crieff:9911

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Related research

Keywords: Small firms; information systems; management accounting; monitoring;

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References

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  1. Levy, Margi & Powell, Philip, 1998. " SME Flexibility and the Role of Information Systems," Small Business Economics, Springer, vol. 11(2), pages 183-96, September.
  2. Gavin C Reid & Lowell R Jacobsen., . "The Small Entrepreneurial Firm," Hume Papers 8, David Hume Institute.
  3. Arulampalam, W. & Robin A. Naylor & Jeremy P. Smith, 2002. "University of Warwick," Royal Economic Society Annual Conference 2002 9, Royal Economic Society.
  4. Gavin C Reid & Falconer Mitchell & Julia A. Smith, 1999. "A Framework for Addressing Hypotheses Concerning Information System Development in Small Firms," CRIEFF Discussion Papers 9908, Centre for Research into Industry, Enterprise, Finance and the Firm.
  5. Jordan, J S, 1989. "The Economics of Accounting Information Systems," American Economic Review, American Economic Association, vol. 79(2), pages 140-45, May.
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