MEASURING THE IMPACT OF INFORMATION ON DEVELOPMENT - A LISREL-BASED STUDY OF SMALL BUSINESSES IN SHANGHAI

As part of a larger project studying the impact of information on deve lopment, an investigation was made of the feasibility of using the LIS REL (Linear Structural RELations) model to determine the impact of inf ormation, relative to other factors, on development of the small manuf acturing business sector in Shanghai, China. Data was collected via qu estionnaire from 450 businesses in the city. A convergent LiSREL model showed that the major factors affecting business success were, first, business environment, and, second, information use. Informal informat ion use was more important to business success than use of more formal sources.