Skip to main content
Log in

The Information Use in a SME: Its Importance and Some Elements of Influence

  • Published:
Small Business Economics Aims and scope Submit manuscript

Abstract

The aim of this study is to gain some insights into the importance of the information use for the success of a SME. Consequently we examine some characteristics of the owner/manager and his firm which determine the extent of this use. The value of the model is examined for 208 Belgian SME owner/managers. Our data suggest there is a positive relation between the extent of information use and the performance of a SME. Moreover, we find that SME owner/managers with a greater strategic awareness, with less firm experience prior to the present position and with a greater desire for growth use more information. Also, smaller family ownership and intervention in strategic management, as well as greater delegation of decision making, lead to a higher information use.

This is a preview of subscription content, log in via an institution to check access.

Access this article

Price excludes VAT (USA)
Tax calculation will be finalised during checkout.

Instant access to the full article PDF.

Similar content being viewed by others

References

  • Birley, S. and F. Westhead, 1990, ‘Growth and Performance Contrasts between “Types” of Small Firms’, Strategic Management Journal 11, 535–557.

    Google Scholar 

  • Bollen, K. A., 1989, Structural Equations with Latent Variables, New York: John Wiley & Sons.

    Google Scholar 

  • Boone, C., 1992, Onderzoek naar het verband tussen de perceptie van controle van bedrijfsleiders en de strategie en de resultaten van ondernemingen in de meubelindustrie, Doctoral dissertation, FTEW, R.U.C. Antwerpen.

    Google Scholar 

  • Bragard, L. et al., 1992, KMO en informatie. Strategische kennis verwerven en gebruiken, Brussel: Koning Boudewijnstichting.

    Google Scholar 

  • Braverman, J. D., 1984, Maximizing Profits in Small and Medium-Sized Businesses, New York: Van Nostrand Reinhold Company.

    Google Scholar 

  • Carsberg, B. V., M. J. Page, A. J. Sindell and I. D. Waring, 1985, Small Company Financial Reporting, London: Prentice-Hall International.

    Google Scholar 

  • Crabtree, R. G. and E. G. Gomolka, 1991, ‘Perceptual Barriers to Consultant Utilization: An Examination of Why Manufacturers Don’t Use Consultants and What Consultants Can Do about It, in D. Bensch and J. Mugler (eds.), Proceedings of the International Council for Small Business, Vienna, June 24–26, Volume 3, pp. 76–84.

  • Cuba, R. C. and G. Milbourn, 1982, ‘Delegating for Small Business Success, American Journal of Small Business 7(2), 33-’41.

    Google Scholar 

  • Davidsson, P., 1989, ‘Entrepreneurship — And After? A Study of Growth Willingness in Small Firms’, Journal of Business Venturing 4, 211–226.

    Google Scholar 

  • Davidsson, P., 1990, ‘Small Business Managers' Willingness to Pursue Growth’, in R. Donckels and A. Miettinen (eds.), New Findings and Perspectives in Entrepreneurship, Aldershot: Avebury, pp. 155–185.

    Google Scholar 

  • Dillon, W. R. and M. Goldstein, 1984, Multivariate Analyis: Methods and Applications, New York: John Wiley & Sons.

    Google Scholar 

  • Docter, H. J. and C. T. M. Stokman, 1987, Innovatie, een kwestie van informatie, Zoetermeer: Economisch Instituut voor het Midden-en Kleinbedrijf.

    Google Scholar 

  • Donckels, R., J. Degadt and F. Uyttebrouk, 1983, KMO en administratieve verplichtingen. Empirisch onderzoek voor Vlaanderen, Brussel: KMO-Studiecentrum UFSAL.

    Google Scholar 

  • Donckels, R., J. Degadt, P. Michel and L. Bragard, 1987a, Financieel beleid en financiering van KMO's in België, Leuven: CERA.

    Google Scholar 

  • Donckels, R., B. Dupont and S. Van Langenhove, 1987b, Succes in je eigen zaak, Tielt: Lannoo.

    Google Scholar 

  • Donckels, R. and K. Hoebeke, 1989, Groeien of niet groeien? De hamvraag voor elke familiale onderneming, Koning Boudewijnstichting, Studiedag van 20 december.

  • Donckels, R. and A. L. Mok, 1990, ‘Innovative Entrepreneurship: The Case of Belgium’, in R. Donckels and A. Miettinen (eds.), New Findings and Perspectives in Entrepreneurship, Aldershot: Avebury, pp. 256–285.

    Google Scholar 

  • Donckels, R. and G. Elshout, 1992, KMO-ers en hun omgeving. Een studie over de netwerkpositie van KMO-ers in Vlaanderen, Brussel: KMO-Studiecentrum K.U.B.

    Google Scholar 

  • Donckels, R. and J. Lambrecht, 1994, ‘Netwerken en KMO-groei: een verklarend model’, Tijdschrift voor Economie en Management 39(2), 155–176.

    Google Scholar 

  • Edmunds, S. W., 1982, Performance Measures for Growing Businesses, New York: Van Nostrand Reinhold Company.

    Google Scholar 

  • Farh, J. L., R. C. Hoffman and W.H. Hegarty, 1984, ‘Assessing Environmental Scanning at the Subunit Level: A Multitrait-Multimethod Analysis’, Decision Sciences 2, 197–220.

    Google Scholar 

  • Finkelstein, S. and D. C. Hambrick, 1990, ‘Top-Management-Team Tenure and Organizational Outcomes: The Moderating Role of Managerial Discretion’, Administrative Science Quarterly 35, 484–503.

    Google Scholar 

  • Flamholtz, E. G., 1986, How to Make the Transition from an Entrepreneurship to a Professionally Managed Firm, San Francisco: Jossey-Bass Publishers.

    Google Scholar 

  • Frank, M. Z., 1988, ‘An Intertemporal Model of Industrial Exit’, The Quarterly Journal of Economics 102, 333–344.

    Google Scholar 

  • Gibb, A. and J. Dyson, 1984, ‘Stimulating the Growth of Owner Managed Firms’, in J. Lewis, J. Stanworth and A. Gibb (eds.), Success and Failure in Small Business, Aldershot: Gower Publishing Company, pp. 249–258.

    Google Scholar 

  • Haahti, A. J., 1989, Entrepreneurs' Strategic Orientation: Modeling Strategic Behavior in Small Industrial Owner-Manager Firms, Doctoral dissertion, The Helsinki School of Economics and Business Administration, Helsinki.

    Google Scholar 

  • Hambrick, D. C., 1979, Environmental Scanning, Organizational Strategy, and Executives' Roles: A Study in Three Industries, Unpublished Doctoral dissertation, Pennsylvania State University.

  • Hambrick, D. C., 1981, ‘Environment, Strategy, and Power within Top Management Teams’, Administrative Science Quarterly 6, 253–276.

    Google Scholar 

  • Hambrick, D. C. and S., Finkelstein., 1987, ‘Managerial Discretion: A Bridge between Polar Views of Organizational Outcomes’, Research in Organizational Behaviour 9, 369–406.

    Google Scholar 

  • Hansen, G. S. and B. Wernerfelt, 1989, ‘Determinants of Firm Performance: The Relative Importance of Economic and Organizational Factors’, Strategic Management Journal 10, 399–411.

    Google Scholar 

  • Holmes, S. and D. Nicholls, 1989, ‘Modelling the Accounting Information Requirements of Small Businesses’, Accounting and Business Research 19(74), 143–150.

    Google Scholar 

  • Holmes, S., G. Kelly, and R. Cunningham, 1991, ‘The Small Firm Information Cycle: A Reappraisal’, International Small Business Journal 4(1), 41–53.

    Google Scholar 

  • Instituut Voor Voortdurende Vorming Van De Middenstand (I.V.V.M.), 1983, Profiel van de geslaagde ondernemer in de KMO, Brussel: I.V.V.M.

    Google Scholar 

  • Jenks, J. M. and J. M. Kelly, 1986, Don‘t Do. Delegate!, New York: Ballantine Books.

    Google Scholar 

  • Jöreskog, K. G. and M. Van Thillo, 1973, LISREL — A General Computer Program for Estimating a Linear Structural Equation System Involving Multiple Indicators of Unmeasured Variables, Research Report 73–5, Statistics Department Uppsala University, Uppsala.

    Google Scholar 

  • Jöreskog, K. G. and D. Sörbom, 1988, PRELIS, A Preprocessor for LISREL (2nd ed), Mooresville: Scientific Software, Inc.

    Google Scholar 

  • Jöreskog, K. G. and D. Sörbom, 1989, LISREL 7 User's Reference Guide (1st ed), Mooresville: Scientific Software, Inc.

    Google Scholar 

  • Jöreskog, K. G. and D. Sörbom, 1993a, New Features in PRELIS 2, Chicago: Scientific Software International, Inc.

    Google Scholar 

  • Jöreskog, K. G. and D. Sörbom, 1993b, New Features in LISREL 8, Chicago: Scientific Software International, Inc.

    Google Scholar 

  • Jovanovic, B., 1982, ‘Selection and the Evolution of Industry’, Econometrica 50(2), 649–670.

    Google Scholar 

  • Keasey, K. and R. Watson, 1987, ‘Qualitative Information and Small Company Failure Prediction: A Test of Argenti’s Hypotheses‘, Journal of Business Finance and Accounting 3.

  • Khan, A. M. and V. Manopichetwattana, 1989, ‘Innovative and Noninnovative Small Firms: Types and Characteristics’, Management Science 35, 597–606.

    Google Scholar 

  • Lewin, A. Y. and J. W. Minton, 1986, ‘Determining Organizational Effectiveness: Another Look, and an Agenda for Research’, Management Science 5, 514–538.

    Google Scholar 

  • Lybaert, N., 1995, Informatie als determinant voor lange termijn succes in industriële KMO's, Doctoral dissertation, FTEW, K.U. Brussel.

    Google Scholar 

  • McNally, G. M. and L. H., Eng, 1980, ‘Management Accounting Practices and Company Characteristics’, Abacus, 142–150.

  • Miller, D., K. M. R. De Vries and J.M. Toulouse, 1982, ‘Top Executive Locus of Control and Its Relationship to Strategy-Making, Structure, and Environment’, Academy of Management Journal 25, 237–253.

    Google Scholar 

  • Oi, W. Y., 1983, ‘Heterogeneous Firms and the Organization of Production’, Economic Inquiry, 147–171.

  • O'Reilly, C. A., 1982, ‘Variations in Decision Makers' Use of Information Sources: The Impact of Quality and Accessibility of Information’, Academy of Management Journal 25, 756–771.

    Google Scholar 

  • Poppel, H. L. and B. Goldstein, 1987, Information Technology. The Trillion-Dollar Opportunity, New York: McGraw-Hill Book Company.

    Google Scholar 

  • Punset, P. and G. Sweeney, 1989, Information Resources and Corporate Growth, New York: Pinter Publishers.

    Google Scholar 

  • Raymond, L. and N. Magnetat-Thalmann, 1982, ‘Information Systems in Small Business: Are They Used in Managerial Decisions?’, American Journal of Small Business 3, 20–26.

    Google Scholar 

  • Schilit, W. K. and F. T. Paine, 1987, ‘An Examination of the Underlying Dynamics of Strategic Decisions Subject to Upward Influence Activity’, Journal of Management Studies 2, 161–187.

    Google Scholar 

  • STRATOS, 1987, Strategic Orientations of Small and Medium-Sized Enterprises: A Summary of First Descriptive Results, Institute Report 87–01, EIASM, Brussels.

    Google Scholar 

  • Thomas, J. B., S. M. Clark and D. A. Gioia, 1993, ‘Strategic Sensemaking and Organizational Performance: Linkages among Scanning, Interpretation, and Outcomes’, Academy of Management Journal 2, 239–270.

    Google Scholar 

  • Van Hootegem, F., 1985, Scholing en marktsucces voor de KMO, Brussel: I.V.V.M.

    Google Scholar 

  • Welsch, H. P. and E. C. Young, 1982, ‘The Information Source Selection Decision: The Role of Entrepreneurial Personality Characteristics’, Journal of Small Business Management 20, 49–57.

    Google Scholar 

  • Whittred, G. and I. Zimmer, 1984, ‘Timeliness of Financial Reporting and Financial Distress’, The Accounting Review 59.

Download references

Author information

Authors and Affiliations

Authors

Rights and permissions

Reprints and permissions

About this article

Cite this article

Lybaert, N. The Information Use in a SME: Its Importance and Some Elements of Influence. Small Business Economics 10, 171–191 (1998). https://doi.org/10.1023/A:1007967721235

Download citation

  • Issue Date:

  • DOI: https://doi.org/10.1023/A:1007967721235

Keywords

Navigation