pondents in a pilot test to establish validity and reliability.
Response variations between the managers of small and medium sized businesses were analyzed through the application of chi square analysis to the appropriate data. Statistical significance was established in relation to variances between the business size classifications at the p<.05 level of probability.
FINDINGS. The research found that small business owners and managers do not, on the whole, view outsourcing as a viable option for the acquisition of computer technology. The research also found that, in relation to trade-offs, small business owners and managers are willing to sacrifice performance, flexibility, ease of learning and use, and expandability to gain preferential costs in the acquisition of computer technology.
Importantly, the research found that the great preponderance of the managers of small and medium sized businesses do not favor the outsourcing of the research design function of IS. Significantly, the key decision factor in this equation is the high cost of outsourcing in relation to the development of an in-house capability.
1 - INTRODUCTION ..................................... 1
Statement of the Problem ......................... 1
Significance of the Study ........................ 4
Definition of Terms .............................. 5
Limitations of the Study ......................... 6
2 - REVIEW OF RELATED LITERATURE ..................... 7
Description of Sources ........................... 7
Literature Review ................................ 7
Role of Technology ........................... 7
Business Value Considerations ................ 12
Role of Information Systems .................. 21
Link Between IS and Performance .............. 42
The Outsourcing Issue ........................ 47
3 - METHODOLOGY ...................................... 66
Research...