The Impact of Firm Size on Internet Use in Small Businesses

Abstract

Several studies about small business information systems (SBIS) have indicated that firm size is a factor in SBIS adoption. This study is the first to compare adoption patterns across specific size categories among only small businesses. One benefit of this type of approach is a better understanding of potential points of change in SBIS requirements as firm size increases. The sample size examined here (n = 750) is considerably larger than in any prior study. Moreover, with business' increasing reliance on various Internet‐based technologies, such as email and websites, this study examines the relationship between size and use patterns regarding these timely aspects of SBIS, a correlation left largely unexamined by prior research. Findings here suggest that slight differences in firm size generate different patterns of adoption for several types of SBIS. For example, smaller sized firms are less likely to report Internet use, website use, and non‐Internet‐related computer use than even incrementally larger businesses. Additionally, results presented here suggest that size accounts for significantly more predictive power in SBIS adoption than CEO or industry factors. Implications for researchers and managers are discussed.

Keywords:

• small business
• information systems
• IS adoption
• Internet commerce

Notes

Kelly Burke

([email protected]) is an Associate Professor of Management Information Systems at the University of Hawaii at Hilo. His research interests include collaborative information technologies and small business information systems. He has published articles in MIS Quarterly, Information Technology and People, the Journal of Systems and Information Technology, Small Group Research, Group Decision and Negotiation, and Industrial Management and Data Systems.

Additional information

Notes on contributors

Kelly Burke

Kelly Burke ([email protected]) is an Associate Professor of Management Information Systems at the University of Hawaii at Hilo. His research interests include collaborative information technologies and small business information systems. He has published articles in MIS Quarterly, Information Technology and People, the Journal of Systems and Information Technology, Small Group Research, Group Decision and Negotiation, and Industrial Management and Data Systems.