Information System Development in the Small Firm

This paper argues that the informational requirements for good decision making in small and medium sized enterprises (SMEs) are complex and adaptive. It identifies the basic information needs of the SME, and considers how information is used to guide decisions. It argues that accounting information systems (AIS) and, in particular, management accounting systems (MAS), best characterise successful information systems implementation in the SME. The paper examines the relationship between AIS development and SME performance. It shows that the extant evidence suggests that greater information use in the SME is associated with better performance.