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1. INTRODUCTION
The ready availability of relatively inexpensive microcomputers has brought information technology within reach of all but the smallest businesses. DeLone (1988) states that properly managed microcomputers contribute to better record keeping, increased levels of customer service, and increased sales revenue. Achieving these advantages by using packaged software is particularly attractive to small business organizations which generally lack the expertise or r sources to develop application software in-house. However, little previous research has addressed the successful acquisition and implementation of microcomputer-based information systems in small businesses (Cragg et al., 1993).
Implementing packaged software gives rise to a unique set of risks (Kleinberger, 1988; Montazemi, 1988; Sharland, 1991; Sherer, 1993). Some standard packaged software features may be incompatible with the organization's information needs and business processes. This problem can be solved by adapting the business processes to the packaged software or by adapting the packaged software to the business processes. Each approach has its drawbacks including increased information systems cost, longer implementation time, and an inability to benefit from the periodic vendor-initiated improvements standard packaged software updates.
Risks arising from implementing off-the-shelf packaged software are serious managerial concerns because small businesses are ill-equipped to absorb the financial losses arising from information systems failure. Small businesses can avoid financial disaster by following well defined packaged software selection policies.
Packaged software selection practices by large organizations with in-house information systems personnel have been reported in the literature. Indeed, several research projects in large organizations have focused on creating and testing software selection models (Lucas et al., 1988; Tauth et al., 1992). These studies demonstrate that the quality of packaged software selection procedures, the expertise of the in-house information systems staff, and vendor support are critical to the success of the software implementation.
One might have expected that software selection policies practiced by large organizations would transfer to the small business firm. Unfortunately, the software selection procedures used by large organizations are much too elaborate and resource intensive to be of much help to small business firms. The problem is compounded by the paucity of research on the acquisition and implementation of microcomputer-based information systems in small business firms (Cragg et al., 1993). Therefore, the present study aims to place packaged software selection by small business firms...