Evaluating information systems in small and medium-sized enterprises: issues and evidence

  • PDF / 249,352 Bytes
  • 11 Pages / 594 x 797 pts Page_size
  • 70 Downloads / 175 Views

DOWNLOAD

REPORT


 1998 Operational Research Society Ltd. All rights reserved 0960-085X/98 $12.00 http://www.stockton-press.co.uk/ejis

Evaluating information systems in small and medium-sized enterprises: issues and evidence* J Ballantine1, M Levy1 and P Powell2 1

Information Systems Research Unit, Warwick Business School, University of Warwick, Coventry CV4 7AL; 2Department of Maths and Computing Sciences, Goldsmiths College, New Cross, London SE14 6NW, UK Much empirical work has investigated the nature of information systems (IS) evaluation in large organizations. However, little work has examined the nature of evaluation in small and medium-sized enterprises (SMEs). This paper discusses IS evaluation in the context of SMEs by identifying a number of issues particularly relevant to such organizations. Drawing on the experiences of four SMEs, the paper identifies the following factors and their implications for evaluation practice: a lack of business and IS/IT strategy; limited access to capital resources; an emphasis on automating; the influence of major customers; and limited information skills. The paper draws on two frameworks of evaluation which are used to help understand evaluation practices in SMEs, and which form a structure within which future research may be placed. The paper concludes with a set of propositions which constitute a research agenda for further examining evaluation practice in SMEs.

Introduction The problematic nature of information systems/ information technology (IS/IT) evaluation is well recognised. However, the majority of empirical work in IS evaluation has been carried out in large organizations. Indeed, many of the techniques of evaluation are predicated upon complex organizations with sub-units competing for organizational funding. What is less researched is whether many of the problems of IS/IT evaluation are atypical of some organizational types (for instance, service and manufacturing) or organizations of varying sizes (for example, small, medium and large companies). This paper discusses the theme of organization size in the context of IS evaluation by identifying the issues surrounding evaluation in small and mediumsized enterprises (SMEs). In doing so, it considers whether contextual factors such as management style and organizational culture constrain or amplify the evaluation problem. The paper first considers the characteristics of SMEs which distinguish them from large companies. It then outlines approaches to evaluation, drawing on evaluation practice. This highlights the expectations for evaluation practices in SMEs. Evidence of the actual evaluation practices of four SMEs in the manufacturing sector of the UK West Midlands is used to illustrate these. In so doing the paper identifies a set of issues which have particular relevance for evaluation practices in such *An earlier version of this paper was presented at the 5th European Conference on Information Systems, Lisbon, Portugal, July 1996.

organizations. This paper draws on two frameworks of evaluation which are used to help under