How Data Intergration Systems Affect Strategic Decision Making in Small Firms
AbstractSmall companies increasingly use computer information systems to gather data to improve decision correctness. Therefore, it is important to determine if a type of information system is effective. We focused on systems which integrate data from multiple sources. Although unquestionably aiding large firm managers, integrated data systems may not help smaller firms. The managers may have better knowledge across functional areas. We, therefore, explore, in a small company context, the relationship among data integration systems, information availability and strategic decision correctness. We collected data from the managing partners of 97 small accounting firms, and found that data integration systems increased information availability, which, in turn, increased the correctness of decisions. The control variables, aligning systems with strategy and technological strength enhanced information availability, but surprisingly, greater investment in systems actually decreased it. Collectively, these findings suggest the type of system is more important than the amount invested.
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