The complexity and sophistication of information system depends upon the in
formation processing needs at the firm level. Agribusinesses tend to be het
erogeneous in terms of firm size, operator characteristics, and opportuniti
es for strategic behavior. Thus, information system hardware and software s
ophistication is expected to differ significantly even within similar indus
tries. This study employs survey data from US agribusiness firms in order t
o determine the factors that contribute to hardware and software sophistica
tion. Sophistication levels relative to hardware and software many times ar
e a function of firm size and sales. It is also shown that a manager needs
to recognize the level of sophistication in order to gauge competitive posi
tioning against firm rivals. To be competitive within specific agribusiness
sectors a firm must maintain or acquire the requisite information technolo
gy of its rivals. (C) 2000 Elsevier Science B.V. All rights reserved.