Information Systems and Financial Performance

This study investigated the relationship between information systems and financial performance in small firms. Prior studies have reported mixed results, so this study adopted a critical, exploratory perspective which looked for evidence of both positive and negative relationships between the use of information systems and organisational performance. Positive and negative effects of information systems were identified. However, few had a substantial influence on performance, other than the process of information systems growth absorbing excessive managerial time. Two further factors were identified which could simultaneously promote information systems growth and influence performance: market conditions, and the owner's wish for firm growth.