Performance measurements in the implementation of information systems in small and medium‐sized enterprises: a framework and empirical analysis

Abstract

PurposePerformance measurement in the implementation of information systems is under‐developed for, under‐researched in, small and medium‐sized enterprises (SMEs). This article aims to develop a framework for IS that measures and evaluates IS performance from the following six perspectives: operational efficiency of the IS function, down time of IS, responsiveness of IS, timeliness of information, accuracy of information, overall competitive position.Design/methodology/approachThis research is exploratory in nature, a survey methodology is used for study and the focus of study is cross‐sectional. The objective of the study was to become more familiar through survey and information collected at one point in time. The methodology was based on a questionnaire survey and personal interviews.FindingsEmpirical analysis from 147 Indian SMEs suggests that IS performance measurement framework can be the foundation for SMEs' strategic growth in the era of globalization. These findings provide SMEs the opportunity to compare their IS performance against other firms of similar size.Research limitations/implicationsThe target of the study is the SMEs operational in the western part of India and hence it has the limitation in terms of the scope. However, the overall results are encouraging with 70 percent response rate in the survey and underline the need for more such studies. The results have implications for all managers responsible for IS, in any SME in the era of globalization.Originality/valueThe paper presents a framework for IS performance measurement for SMEs. Findings reported in the paper provide SMEs the utility of IS‐related practices and its performance measurement in day‐to‐day business operations.