A factor analysis of attributes affecting computing and information technology usage for decision making in small business

A wide variety of cognitive and technical variables have been found to infl uence individuals in their decisions to use computer and information techno logy for management. This paper examines the use of factor analysis to iden tify qualitative attributes affecting the use of computer information syste ms for decision support by managers of small businesses. Specifically, this paper offers a comparison of two commonly used data summarizing models for condensing variables into a smaller set of factors. The results of the ort hogonal factor model are compared to those of the oblique model by examinin g the factor loadings, eigenvalues, and constructs derived from a set of va riables obtained from a nation-wide survey of small business enterprises. B oth the models produced an equal number of factors. However, the orthogonal extraction is shown to produce a more meaningful and representative set of factors. In addition to statisticians and data analysts, business consulta nts, computer designers, and system developers will also find the results o f this study very useful.