Information System Development in the Small Firm

Abstract

Summary· Sets out three modern theories of how information systems enhance performance: contingency theory; markets and hierarchies; principal-agent analysis· Considers the management accounting information system (MAS) as an exemplar of such a system in the small firm· Provides the latest evidence on the link between performance and information system development· Shows how in practice both struggling and successful small firms use information for improved decision-making and control· Reports on how small firms cope with the complexity and reliability of information· Statistically estimates the effects of markets, strategy, production and technology on the best organisation of the small firm· Shows which factors determine the complexity of MAS· Presents practical case studies of how information systems can be adapted to changed circumstances. This work is grounded in contemporary evidence on current practice in small firms. Such evidence was gathered by face-to-face interviews within the firms over a four-year period. It covers all aspects of operations and strategy, with particularly detailed attention being given to the development and handling of accounting information