Effects of IT knowledge and media selection on operational performance of small firms

This study examines the effects of information technology (IT) knowledge and media selection on operational performance, measured by balanced scorecard, in small firms. Small firms generally lag behind medium and large companies in adopting and implementing computerization. This study is based on a survey of 698 small firms. The results show that: (1) individual IT knowledge and both traditional and electronic communication methods significantly contribute to the internal process performance of small firms; (2) internal process performance, organizational IT knowledge, and electronic communication methods affect customer performance; and (3) financial performance is affected by process and customer performance. The findings imply that it is imperative for small firms to adopt computerization to achieve improvements in business performance.