Long Term Survival and Quality Information Systems: A Longitudinal Case Study

Harris, in 1988, studiedfour high-tech entrepreneurial companies to determine whether their cost accounting systems had an impact on the success of the organizations. Nearly twenty years later, this longitudinal study was launched to determine whether the quality of the information systems and its uses had an impact on management decision making and long term survival of the firms. Only one of the original companies studied has remained in business and thrived. This study not only provided evidence of the necessity for an effective information system that provides data for managerial decision making, but it also highlighted the importance of internal systems that enable the effective usage of that information. Both the external and the internal environment seemed to impact the way in which information was obtained, shared and used and this appeared to impact the long term survival of these firms. Factors such as the stability of management, employee turnover, communication patterns, and organizational structures were noted to be significant factors.