Information Systems Effectiveness in Small Businesses: Extending a Singaporean Model in Canada

Abstract

In this study, a model of information systems (IS)effectiveness is tested. Developed by James Y. L. Thong and Chee-Sing Yap andtested originally in Singapore, the model is evaluated in the context ofCanadian small businesses. The other aim of this study is to extend theSingaporean model by introducing the additional construct of intention of ISexpansion. Following a discussion of Thong's and Yap's study, the new researchmodel is presented, and several hypotheses are proposed. Data from a cross-sectional survey of 105 Canadian small businesses, all ofwhich used IS, are used to test the hypotheses. These data reveal that theSingaporean model is, on the whole, applicable to small businesses in Canada.In both models, managerial and vendor support are predictors of ISeffectiveness. A few differences do exist between the Singaporean and Canadianstudies, however: unlike the original study, the new model does not support thepositive relation between consultant effectiveness and IS effectiveness.Finally, the Canadian data support only one of the hypotheses regarding theintention of IS expansion. (SAA)

Keywords: Growth strategies, Firm performance, Firm survival, Information systems, Vendors, Managers, User needs, Satisfaction, Firm management, Growth strategies