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 influence individuals in their decisions to use computer and information technology for management. This paper examines the use of factor analysis to identify qualitative attributes affecting the use of computer information systems 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 orthogonal factor model are compared to those of the oblique model by examining the factor loadings, eigenvalues, and constructs derived from a set of variables obtained from a nation-wide survey of small business enterprises. Both 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 consultants, computer designers, and system developers will also find the results of this study very useful.