Table of Contents

Abbreviations v Executive Summary vii 1 The Research Setting 1 1.1 Introduction 1 1.2 The small firm 1 1.3 Contingency theory 4 1.4 Agency theory 6 1.5 Markets v. hierarchies 9 1.6 Applying the theories 11 1.7 Conclusion 13 2 Information and the Small Firm 15 2.1 Introduction 15 2.2 Information needs 16 2.3 The use of information to guide decisions 18 2.4 The management accounting perspective 21 2.5 Performance and AIS development 26 2.6 Statistical analyses of AIS and performance 31 2.7 Conclusion 34 3 Fieldwork: Sampling and Questionnaire 37 3.1 Introduction 37 3.2 Sampling 37 3.3 The administered questionnaire 40 3.4 Database construction 42 3.5 Case selection 42 3.6 Conclusion 43 4 Summary Statistics 4.1 Introduction 45 4.2 Preparing information 45 4.3 Capital investment 47 4.4 Managing costs 49 4.5 Information handling 50 4.6 Complexity of information 55 4.7 Reliability of information 58 4.8 Using information 59 4.9 Conclusion 60 5 Statistical Analysis 61 5.1 Introduction 61 5.2 Small-firm performance: an overview 61 5.3 The contingency approach 63 5.4 Agency and markets v. hierarchies approaches 71 5.5 Conclusion 74 6 Case Studies 75 6.1 Introduction 75 6.2 Case Study A: Computer software design 76 6.2.1 The environment 77 6.2.2 Technological advances 79 6.2.3 Principal or agent? 79 6.2.4 Organisational change 81 6.2.5 Management accounting system 82 6.2.6 Conclusions for Case Study A 84 6.3 Case Study B: Cable and electromechanical assemblies 84 6.3.1 Technological conditions 86 6.3.2 Organisation 86 6.3.3 Management accounting 87 6.3.4 Conclusions for Case Study B 88 6.4 Case Study C: Contract joinery (carpentry) specialists 89 6.4.1 Dynamics of growth and change 89 6.4.2 External information 90 6.4.3 Internal information 91 6.4.4 Accounting information system 92 6.4.5 Use of hierarchy for monitoring and control 93 6.4.6 Agency effects 93 6.4.7 Conclusions for Case Study C 94 6.5 Overall conclusions from case studies 95 7 Conclusion 97 7.1 Overview 97 7.2 Significance 98 7.3 Variation 98 7.4 Explanatory factors 99 7.5 Prescription and policy implications 100 7.6 Future research possibilities 100 Appendix: Administered Questionnaire 103 References 109