Modelling the interactions among factors that influence successful computerisation of small business

Identification of factors that contribute to computer-based information systems success is of crucial importance to the small business sector. Central to this process is the task of building conceptual models of interacting variables that contribute to success. The present study used structural equation modeling to test a model that embraced four broad groups of variables, including background characteristics of the organization, background characteristics of the Chief Executive Officer, decision making processes, and a cluster of variables relating to the performance of the system itself. The outcome variable was user satisfaction. A self-report instrument called the Implementation Survey for Computer Based Information Systems (IS-CBIS) was used to collect data from 171 regional small businesses located on the East Coast of Australia. Results showed that, although the performance of the system was the immediate determinant of satisfaction, the background variables had both direct and indirect (mediated) effects on user satisfaction. These findings emphasise the importance of going beyond the immediate surrounds of a computing environment if one wishes to explain the factors that influence CBIS success in small businesses.