Evaluation of microcomputer utilization in small- and medium-sized businesses

Ha enga, J. J.D.; B uwe , P. J.S. A icle E alua ion o mic ocompu e u iliza ion in small- and medium-sized businesses Sou h A ican Jou nal o Business Managemen P o ided in Coope a ion wi h: Uni e si y o S ellenbosch Business School (USB), Bell ille, Sou h A ica Sugges ed Ci a ion: Ha enga, J. J.D.; B uwe , P. J.S. (1990) : E alua ion o mic ocompu e u iliza ion in small- and medium-sized businesses, Sou h A ican Jou nal o Business Managemen , ISSN 2078-5976, A ican Online Scien i ic In o ma ion Sys ems (AOSIS), Cape Town, Vol. 21, Iss. 1/2, pp. 27-31, h ps://doi.o g/10.4102/sajbm. 21i1.912 This Ve sion is a ailable a : h ps://hdl.handle.ne /10419/218043 S anda d-Nu zungsbedingungen: Die Dokumen e au EconS o dü en zu eigenen wissenscha lichen Zwecken und zum P i a geb auch gespeiche und kopie we den. Sie dü en die Dokumen e nich ü ö en liche ode komme zielle Zwecke e iel äl igen, ö en lich auss ellen, ö en lich zugänglich machen, e eiben ode ande wei ig nu zen. 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B uwe Facul y o Economics and Managemen Sciences, Po che s oom Uni e si y o CHE, Po che s oom, 2520 Republic o Sou h A ica This pape p esen s he esul o an empi ical s udy on he use o mic ocompu e s by small and medium-sized businesses in Sou h A ica. A numbe o coun ies we e included in he su ey. The pu pose o his s udy was o es ablish, h ough he use o 51 a iables in he p ojec , wha majo p oblems small and medium-sized businesses expe ience in he use o mic ocompu e s in a de eloping egion such as sou he n A ica. Special emphasis was placed on he main easons o pu chasing mic ocompu e s, ypes o so wa e used, as well as aining and expe ience in handling his equipmen in he managemen o a small business. Majo indings · included a g ea e compu e li e acy amongs use s, wi h a s ong endency owa ds compu e applica ion o mo e sophis ica ed pu poses such as dccisi n making means o suppo . Hie die a ikel bicd 'n samc a ing an die esul a e an 'n empi iese s udic oo die geb uik an mik o ekenaa s deu klcin- en mcdiumg oo c sakcondc ncmings in Suid-A ika. Die docl an hie die s udie was om as e s el wa die bclang iks c p obleme is wa klein- en mcdiumg oo e sakconde ncmings c aa by die geb uik an mik o ckcnaa s in 'n on wikkclcnde s eck soos suidelikc A ika. Spcsialc klcm is gcplaas op belang ike edes i die aankoop an mik o ckcnaa s, soo c sag ewa c wa gcb uik wo d sowel as oplciding en e a ing in die han c ing an hic die oe u~ ing in die bcs uu an klcinc sakconde nemings. Die belang iks e be indinge be ondc ande e ingcslui 'n g o e ekcnaa gele c dheid onde gcb uike s me 'n s e k neiging o die benu ing an die ekenaa i mee geso is ikee de doeleindes soos beslui neming. * To whom co espondence should be add essed Since he in oduc ion o he mic ocompu e in he middle 1970s he echnological ad ancemen in i s speed and s o age capaci y has been g ea . G ea e awa eness o he possibili ies o new gene a ion mic ocompu e s as well as lowe cos o ha dwa e ha e caused an inc easing demand among small- and medium-sized businesses o employ mic ocompu e s in hei i ms. Howe e , i does seem as i he g ea e demand o mic ocompu e s has no always esul ed in a mo e e icien u iliza ion he eo . I is sugges ed (Massey, J ., 1986) ha he small business compu e emains unde u ilized and ha he bene i s o compu e echnology o small businesses will no be ully ealized un il manage s combine he al eady ecognized cos sa ings wi h he emendous e enue gene a ion capaci ies ha mic ocompu e s o e . Besides he unde -u iliza ion C agg (1986) also no ed ha some s udies ha e indica ed ha a high pe cen age o mic ocompu e s ha e been pu chased unwisely o ha e allen in o non-use. The la e can be he case i no echnological de elopmen o mic ocompu e s occu ed, o due o lack o aining o use s. I does, howe e , seem ha mic ocompu e s a e being engaged o a la ge ex en in mo e a eas han ac ually acknowledged (Lincoln & Wa be g, 1987; C agg, 1987). The pu pose o his s udy •is o asce ain he main easons o pu chasing a mic ocompu e in o de o assess o wha ex en p oblems a e expe ienced, and he con ibu ion o mic ocoompu e u iliza ion o mo e e ec i e manage ial unc ioning in small and medium- sized businesses in sou he n A ica. De ini ion o small- and medium-sized businesses F om he su ey o he li e a u e i is e iden ha con usion s ill exis s on a la ge scale as o wha he co ec de ini ion o a small business should be. The o icial de ini ion o a small business in he U.S.A. was al eady o mula ed in 1953 wi h he in oduc ion o he 'Small Business Ac '. Since hen 24 o he de ini ions we e o mula ed, whils a numbe o a ia ions on he o iginal de ini ion we e coined. This also implies he case wi h he de ini ion o he Bol on Commission in he U.K. Fo he pu poses o his s udy small- and medium- sized businesses we e de ined in e ms o annual u no e as well as cu en alue o capi al in es men being less han RS million; numbe o employees less han 200; and numbe o b anches i e o less. The au ho s p e e ed o classi y he businesses as medium and small, because in some coun ies medium-sized is conside ed o be small and in o he s ice e sa. Th oughou his a icle he e m small business will be used o deno e bo h medium and small. Me hod and sample The me hod o s udy co e ed a e iew o li e a u e as well as an empi ical su ey. A ques ionnai e was de eloped aking in o accoun in o ma ion ga he ed om he li e a u e and discussions wi h people in he small business ield. The ques ionnai e which includes 51 a iables was sc eened ca e ully and p e es ed. In a p e ious esea ch p ojec (B uwe & P e o ius, 1986) a ques ionnai e o limi ed span, 14 a iables, was de eloped. This se ed as a basis o his p ojec . · The se en-poin scale ha has al eady p o en o be e y success ul in esea ch (Lucas, 1975; Bailey & Pea son, 1983) was also used in his p ojec . In o de o ob ain a ep esen a i e sample o small businesses in sou he n A ica using mic ocompu e s, a di ec mail lis was ob ained om he Small Business 28 Table 1 Owne ship o mic ocomplJ e s Wi h own sys em Wi hou own sys em Type o business % % P in ing 2.6 2.4 Manu ac u ing 13.2 7.3 Bu che y 2,1 12.2 Medical and Pha macies 9.4 2,4 Elec ical appliances 15,7 1.8 Elec onic (Radio. TV) 1,0 0.6 Clo hing 2.1 12.2 Fu ni u e 6,3 2.4 Building Ma e ials 2,1 7.3 Gi s 5,2 3.7 Repai Se ices 3,1 6,9 Au omobile Re aile s 10,5 4,9 O he Businesses '2±,,7 35,9 To al 100 100 Ad iso y Bu eau and he Ins i u e o En ep eneu ship and Small Business. These o ganiz.a ions unc ion h oughou sou he n A ica and a e si ua ed a he Uni e si ies o Po che s oom and S ellenbosch, espec i ely. Coun ies included in he andom sample we e Leso ho, Sou h A ica, Namibia, Swaziland, and he independen s a es o T anskei and Bophu ha swana. F om a lis o 4613 names he au ho s elimina ed 791 i ms which we e ei he known, suspec ed, o could be. deduced o be la ge businesses. A andom sample o 1000 names was d awn. A o al o 391 ques ionnai es (39, l % esponse) we e sen back o which 11 we e disca ded as unusable. F om his esponse i was es ablished ha 216 businesses had hei own mic ocompu e s, ep esen ing 56,8%. Howe e , i can no be gene alized because he au ho s belie e ha qui e a numbe o small businesses ha do no own mic ocompu e s, did no espond. Table 2 Mic ocompu e s in use 1984 1987 Miaocompu e % % Commodo e 25,7 9,9 Apple 18,0 3,1 IBM-PC 8,0 17,3 Sha p 6,0 2,1 Oli e i 5,3 12.0 BBC 1,0 1,0 Spe y 1,0 4,2 ICL 1,0 6,3 Cannon 1,0 1,6 Hewle Packa d 1,0 1,0 Epson 1,0 1,0 O he IBM-compa ibles 24,6 O hen 16,2 S. -A . Tydsk .Bed y iil .1990,21( I) Table 3 Main easons o pu chasing a mic "OOOl'Tl)U e Coo sa ing Reduc ion admins a i e wo kload Pe sonnel sa ing ( educ ion) Adminis a i e con ol Agen 's p esen a ion Be e planning/decision making Be e con ol O he S a is ical analysis o da a ]',184 % 6,0 51.4 0.9 17,8 2,',1 11.0 ]',187 % 5,2 14.1 1.6 28.3 23.0 22.0 5.8 The BMDP-p og ammes (Dixon & B own, 1981) we e mainly used o he p ocessing and analyzing o he s a is ical da a. Va iables used in he p ojec Appendix A con ains he names and meanings o each o he a iables se in he ques ionnai e. Fo he a e age esponse and s anda d de ia ion ega ding ce ain a iables as s a ed in Table 5 one has o e e l-iack o appendix A. Su ey esul s Owne ship o mic ocompu e s In Table 1 an indica ion is gi en o he a ious kinds o businesses ep esen ed in he s udy as well as he pe cen age esponden s ha ha e hei own mic ocompu e sys ems. The esponden s who do no own mic ocompu e s a e o compa a i e easons also included in his able. The a e age u no e o he o al popula ion o businesses in he s udy lies be ween R500 001 and Rl million. The a e age p esen alue o capi al in es ed can be placed in he same ca ego y. Businesses ha ha e mic ocompu e sys ems on a e age employ be ween 11 and 50 pe sons whils 61 % o he non-use s employ be ween one and 10 pe sons. In so a as numbe o b anches is conce ned, 62,3% o he businesses ha e no b anches and 33% bew een one and i e. In he case o non-use s he pe cen ages a e 67,7% and 29,9% espec i ely. Table 4 Time-lapse and p oblem expe ience 1984 1987 Time % % ~2 Weeks 55.0 29,3 2-4 Weeks 14,0 7,9 1-3 Mon hs 11,0 17.3 Mo e han 3 mon hs 20,0 45,5 S.A .J.Bus.Mgm .1990,21(1) A compa ison be ween 1984 igu es (B uwe & P e o ius, 1986) and he p esen s udy ega ding ype o mic ocompu e s in use, e eal de ini e changes in ma ke -sha e o he a ious ypes. I can be seen in he pe iod 1984-1987 (Table 2) ha he Apple sys em has nea ly disappea ed om he sou he n A ican ma ke - scene, whils he e has nea ly been a 100% inc ease in IBM-PC's. Oli e i had a p ecen age g ow h om 5,3% o 12% and Commodo e a decline om 25% o 9,9%. In 1987 IBM-compa ible compu e s, manu ac u ed mainly in Taiwan, Hong Kong, and locally, accoun ed o 24,6% o he ma ke . The la ges pe cen age o businesses (27 ,2%) pu chased hei mic ocompu e s in a p ice- ange R10001-Rl5000. Mo e sophis ica ed sys ems cos ing R30 000 and upwa d we e acqui ed by 14,1 % o he businesses. Main easons o pu chasing mic ocompu e s Table 3 supplies he main easons o pu chasing mic ocompu e s. F om his able i is e iden ha educing he adminis a i e wo kload in 1984 was he main eason. In 1987 he esponden s ga e be e planning, con ol, and decision making as main easons. I does seem ha he small businessman is accep ing he alue o managemen in o ma ion sys ems and he ex en o which mic ocompu e s can be used. Time-lapse and p oblem expe iencing The au ho s also ied o es ablish wha he ime-lapse is be o e small businesses expe ience hei i s p oblems Table 5 A e age esponse ega ding ce ain a iables Va iable A e age S anda d de ia ion PROB 3,1 0,11 PROG 3,2 0,13 APP 2,4 0,09 POWER 2,6 0,12 IGNO 3,2 0,12 SERV 2,6 0,13 EXPROB 2,4 0,11 MANAGE 5,0 0,12 DMIN 5,6 0,09 DEC 4,1 0,14 PLAN 2,9 0,14 PROD 4,5 0,11 AGENT 4,4 0,13 AGENTR 5,0 0,11 REDAD 4,8 0,12 COSTR 4,2 0,12 PERS 3,0 0,13 CONTR 5,3 0,11 DECPLAN 4,4 0,13 ACON 5,1 0,11 SUFF 3,9 0,12 FAM 5,1 0.10 succ 5,4 0.08 Table 6 Types o so wa e p og ams used So wa e p og ams Gene al sales ledge Deb o s C edi o s S ock con ol Sala ies and wages Wo d p ocessing Planning O he s (Sp eadshee s, salc:s analysis, e c.) Pe cen age use s % 00,7 81,7 52,9 42,9 32,5 36,1 24,1 22,0 29 wi h mic ocompu e s. F om Table 4, aking he pe iod 1984-1987 in o accoun , i bel:ame e iden ha a change has occu ed in he p oblems expe ienced. A p esen 45,5% o he p oblems a e expe iended a e mo e han h ee mon hs. Du ing he 1984-su ey 55% o he p oblems we e encoun e ed wi hin he i s wo weeks. Response on se en-poin scale ques ions Table 5 con ains he abb e ia ions o aspec s ha had o be e alua ed on a se en-poin scale. These esul s will be discussed oge he wi h hose o Tables 6 and 7. These ables con ain in o ma ion ega ding he so wa e p og ammes being used, as well as aining and expe ience. Discussion o esul s Sc u inizing he esul s p esen ed abo e e eal ha p incipal use s o mic ocompu e s a e small businesses in Table 7 T aining and expe ience o use s A: Fo mal aining Pe cen age None 57,1 School 4,7 Technicon 1,6 Uni e si y 7,9 Compu e cou ses 28,8 B: T aining on p esen compu e sys em One day o less 25,1 1-5 Days 38,7 6-10 Days 11,5 11 Days o mo e 24,6 C: Expe ience P esen sys em In o al 1 Day- I Mon h 1,0 4,2 1-2 Mon hs 4,7 2,1 + 1--6 Mon hs 11,0 9,9 +6-12 Mon hs 14,1 8,4 + 1-2 Yea s 24,6 19,9 +2-5 Yea s 37,2 40,8 + 5 Yea s and longe 7,3 14,7 30 he manu ac u ing, elec ical, au omobile, and medical ields. Signi ican changes ha e also occu ed in he ype o compu e s used wi h majo shi s owa d p oduc s o coun ies om he Eas . The decline in he Apple and possible decline in o he USA-compu e s in he nea u u e may be he esul o he wi hd awal o hese companies om he ma ke o he Republic o Sou h A ica. F om he s udy i also became e iden ha unde - a e age p oblems a e expe ienced ( e e Table 5). Fu he mo e, he mic ocompu e sys em also con ibu es o a la ge ex en o ease managemen , planning, and decision-making p oblems. Adminis a i e wo k is also simpli ied by he mic ocompu e s and i con ibu es o an inc ease in o e all p oduc i i y. A s udy conduc ed by C agg showed ha bene i s gained om compu e iza ion we e: ime-sa ing/ease; be e in o ma ion, and cos sa ing (C agg, 1986). Whe e small businesses employed less han 20 pe sons, Gun he Riihl (1982) saw he main bene i s in he ields o p oduc ion and sales. In businesses wi h mo e han 20 employees he bene i s also ex ended o adminis a i e asks. The p oblems expe ienced also changed signi ican ly. This can be a ibu ed mainly o he echnological ad ancemen in ha dwa e and expansion o so wa e o e he pas ew yea s. Al hough aining in he use o mic ocompu e s is s ill no adequa e, i can be deduced ha he e has been a d ama ic imp o emen which also con ibu es o less p oblems being expe ienced. The applica ion o he mic ocompu e by small businessmen shows ha i is mainly used o deb o sys ems (81,7%). Gene al sales leJge sys ems (60,7%) a e also used qui e ex ensi ely. The 24, 1 % esponden s who use i o planning pu poses indica e ha small businesses ealize he alue o managemen in o ma ion and i s gene a ion h ough mic ocompu e s. The da a ega ding o mal aining, p esen ed in Table 7, may di ec ly ela e o his. In he pas ew yea s since he mic ocompu e was in oduced o he small business sec o a easonable pe cen age (55,5%) o employe s and employees gained expe ience o wo yea s and longe . This ac , oge he wi h he ac ha 38,3% use s had o mal aining beyond school le el, mainly con ibu ed o he ex en o success achie ed wi h mic ocompu e s in he small business sec o . F om Table 5 i can be seen ha an a e age esponse o 5,4 on he se en-poin scale was eco ded in so a as he ' o al success' o mic ocompu e s is conce ned. Conclusions The le el o mic ocompu e usage in sou he n A ica is inc easing apidly and mic ocompu e s a e being used mo e and mo e as a decision making means o suppo . Due o la ge en olmen in compu e cou ses use s a e also becoming mo e compu e li e a e. Small businessmen expe ience less p oblems wi h hei S.-A . Tydsk . Bed y sl.1990,21(1) mic ocompu e sys ems han a ew yea s ago and mic ocompu e s a e being used o mo e sophis ica ed pu poses han p e iously. Taking in o accoun he g ea e complexi y o he ma ke and he inc easing and oughe compe i ion, he ques o mo e sophis ica ed managemen wi h he suppo o mic ocompu e s is becoming g ea e . This si ua ion in u n necessi a es u he esea ch on aspec s such as s uc u e o in o ma ion se ices, end use - compu ing, in o ma ion sys ems planning, and decision suppo sys ems o small businesses (Cooley, Walz & Walz, 1987). Re e ences Bailey, E.J. & Pea son, S.W. 1988. A ool o compu e use sa is ac ion. Manage. Sci., ol.29, 530. Bol on, J.E. 1971. Small i ms. Repo o he Commi ee o Enqui y on Small Fi ms. London, G.B. He Majes y's S a iona y. Bulloch, J.F .. & He z, L. 1982. An in e na ional accep able small business de ini ion. In e n. Small Business Con e ., Mad id. B uwe , P.J.S. 1984a. A desc ip i e model o success o compu e based in o ma ion sys ems. In o m. Manage., ol.7, Ams e dam; No h Holland Publ. Co. B uwe , P.J.S. 1984b. Use sa is ac ion, use a i udes and he success o a compu e -based in o ma ion sys em. P oc. In e n. Compu e Symp., ol. 1, Tamkang Uni e si y, Taipei, Taiwan, p. 189. B uwe , P.J.S. & P e o ius, C.E. 1986. 'n Onde soek na die aanwending an Mik o ekenaa s elsels in klein sakeonde nemings an Suid-A ika. S. A . Tydsk . Bed y 5l., ol.17, 125-129. Cooley, P.L., Walz, T. & Walz, B. 1987. A esea ch agenda o compu e s and small business. Am. J. Small Bus., ol.I , 31----42. C agg, P. 1986. Mic ocompu e s and small i ms in New Zealand. In e n. Small Bus.]., ol.5, 41----46. Dixon, W.J. & B own, M.D. 1981. BMDP-81 Biomedical Compu e P og ams, P-se ies. Be keley, Los Angeles. Uni e si y o Cali o nia P ess. Lincoln, D.J. & Wa be g, W.B. 1987. The ole o mic ocompu e s in small business ma ke ing. J. Small Bus. Manage., ol.25, 8-17. Lucas, H.C., J . 1975. Why i,1 o ma ion sys ems ail. New Yo k, Columbia Uni e si y P ess. Massey, T.K., J . 1986. Compu e s in small business: a case o unde u iliza ion. Am. J. Small Bus., ol.11, 51-59. Nickell, G.S. & Seado, P.C. 1986. The impac o a i udes and expe ience on small business compu e use. Am. J. Small Bus., ol. o, 37----48. Ruhl, G. 1982. The ole o he mic ocompu e in small i ms. P oc. o he Rencon es de S Gall, S Gallen, Swi ze land, RE23, 1----4. Schweize isches Ins i u ii Gewe bliche Wi shca 1982. Bc ich iibe die diskussion zu ak andum 23: Kleincompu e im Gcwe be. P oc. o he Rencon es de S Gall, S Gallen, Swi ze land, RE23, 1-6. S.A .J .Bus.Mgm .1990,21(1) Appendix 1 Va iables used in he p ojec Va iable BRANCH COMP WHO TYPE WHY TIME BEFORE PROB LONG PROG APP POWER IGNO SERV EXPROB FISRT PREY REASON MANAGE ADMIN DEC PLAN SPROGI SPROG2 SPROG3 SPROG4 Meaning Numbe o b ancbcs Does he i m ha e a compu e sys em o no ? Who wo ks wi h he compu e sys em? Type o compu e sys em Main eason o buying he compu e sys em How long he compu e sys em has been in use How was he wo k p esen ly done by compu e p e ious- ly done To wha ex en ha e p oblems been encoun e ed How long a e pu chase we e he i s p oblems ex- pe ienced? To wha ex en we e so wa e p oblems expe ienced? To wha ex en we e ha dwa e p oblems expe ienced? P oblems as a esul o powe ailu es P oblems as a esul o igno ance P oblems as a esul o poo se ice by he supplie o agen To wha ex en a c p oblems s ill being expe ienced? Is i he i s compu e sys em pu chased? I i is no he i s sys em, wha sys em was used p e- iously? Main easons o he eplac.emen o a compu e sys em To wha ex en he compu e sys em simpli ies mana- ge ial, planning, and decision-making asks To wha ex en adminis a i e wo k is simpli ied To wha ex en compu e ou pu is u ilized o decision- making pu poses To wha ex en planning so wa e is used I he i m uses a gene al ledge sys em I a dcbbo 's sys em is used I a c edi o 's sys em is used I a s ock con o& sys em is used SPROG5 SPROC6 SPROG7 SPROG8 PROD AGENT AGENTR REDAD COSTR PERS CONTR DECPLAN ADCON PER TRAIN EXPER PRES SUFF FAM succ BUS TURN INVEST EMP COSTS I a sala y o wages sys em is used I a wo d p ocessing package is used I planning packages a c used Any o he applica ions 31 To wha ex en p oduc i i y is inc eased by he compu e sys em To wha ex en he se ice ende ed by he agen o sup- plie was sa is ac o y To wha ex en he compu e li ed up o agen 's ep e- sen a ions To wha ex en he compu e sys em educed adminis a i e wo k To wha ex en cos educ ion was achie ed by he compu e sys em To wha ex en pe sonnel educ ion was achie ed by he compu e sys em To wha ex en be e con ol esul ed om he compu e sys em To wha ex en be e decision-making and planning esul ed om use o he compu e sys em To wha ex en be e adminis a i e con ol is possible wi h he compu e sys em How long he p esen compu e sys em has been in use Fo mal compu e aining ecei ed by employee using he compu e sys em Expe ience o he pe son using he compu e Amoun o aining ecei ed o ope a e p esen compu e To wha ex en he aining was su icien Familia i y wi h he compu e sys em E alua ion o he o al success o he p esen compu e sys em Type o business Annual u no e Capi al in es men in business Numbe o employees To al cos o compu e and so wa e