Information systems investment within high‐growth medium‐sized enterprises

Abstract

IS spending by high‐growth medium‐sized enterprises is at a significantly lower level than that for other companies. However, there was no set pattern or correlation that identified relatively high IS investment with high growth or vice versa. The future forecast for IS investment favours a modest increase in the one to three years planning horizon. Although, given that these are high‐growth companies growing at rates in excess of 15 per cent per annum, the modest increase could represent a real reduction unless the price of technology reduces at a significant rate. The most notable evaluation criteria were “to facilitate change” and “formal financial investment”, but these were closely followed by “act of faith” or “gut feel” approaches. When asked to identify preferred project options, in the past the clear choice of most was medium risk and medium pay off. In the future the preferred options support medium risk and high pay off.

Citation

Tonge, R., Larsen, P. and Roberts, M. (2000), "Information systems investment within high‐growth medium‐sized enterprises", Management Decision, Vol. 38 No. 7, pp. 489-497. https://doi.org/10.1108/00251740010373494