The Impact of Contingencies on Information System Development
AbstractThree tests of contingency theory are presented. The central hypothesis is that information system development is determined by contingencies. Data relate to the period 1994-98 for a sample of new Scottish micro firms. Contingency theory is tested by correlation, cluster and regression analysis. First, correlation analysis is applied to the timing of information system development and the timing of: severe cashflow crises; severe shortfalls of finance which seriously restrict strategic investment; and significant innovations. Second, cluster analysis is used to test the morphology suggested by contingency theory, of adaptive, running blind, and stagnant small firms. Third, regression analysis is used to test contingency theory in two forms. One explains a new weighted headcount measure of organizational form, and the other explains information system complexity. The three statistical methods used are generally supportive of contingency theory, suitably modified to a small firm context.
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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 9918.
Date of creation: Oct 1999
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More information through EDIRC
Information Systems; Contingency Theory; Small Firms;
Find related papers by JEL classification:
- D21 - Microeconomics - - Production and Organizations - - - Firm Behavior: Theory
- G33 - Financial Economics - - Corporate Finance and Governance - - - Bankruptcy; Liquidation
- L2 - Industrial Organization - - Firm Objectives, Organization, and Behavior
- M21 - Business Administration and Business Economics; Marketing; Accounting - - Business Economics - - - Business Economics
- M41 - Business Administration and Business Economics; Marketing; Accounting - - Accounting - - - Accounting
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