Evaluating the Effectiveness of Information Service for SMEs on Information Orientation and Firm Performance

This study takes a long-term perspective on the relationship between firm performance and the usage of information service for promoting informatization programs and strengthening the competitiveness of small and medium-size enterprises (SMEs) in key industries. We developed a research model and hypotheses using key variables drawn from previous research, such as Information System Success Model, Contingency Theory, Resource-based Theory and other research on the methodology to evaluate the performance of information service.To empirically test the proposed model, we conducted both an internet-based survey and a paper-based survey on the Korean firms using government information service programs. Statistical methods, based on the structural equation modeling method using the LISREL software program, were used for analyzing 186 valid responses.We found that the influence dimensions on service usage, such as ´quality of information service for SMEs´ and ´organizational specific factors´, are statistically significant in increasing the degree of usage and that the usage of information service is statistically significant in increasing firm performance, which includes information orientation and business performance. The results of our analysis also showed that information orientation is statistically significant in increasing business performance. In addition, information orientation mediates the link between information service usage and business performance. Based on the results of this empirical study, we suggest several important implications of government information service programs for researchers, firms and policy makers.