A study of the effects of local area networks in a small business environment

Local area networks (LANs) provide links between computing devices, such as workstations, file servers, and printers, over a relatively small geographic area (usually within a single building or organization). While computer networks have existed for almost thirty years, networking technology has only recently become available to small organizations. In the late 1980\u27s the use of LANs has begun to mushroom, and presumably has begun to affect the organizations which use LANs. A review of the literature reveals many technical and product-oriented articles about LANs, but no previous research into the organizational effects of LANs. However, a strong tradition of studying the effects of technology on social structures exists. This dissertation describes a study which builds from this tradition. The research described herein is an exploratory study of the effects of LANs on a small business environment. The particular environment chosen, the auto parts industry, is representative of many inventory-intensive, transaction-oriented small businesses. Forty-six respondents, all auto parts retailers, were asked about their reasons for acquiring their LANs and about their level of satisfaction with their LANs. Growth trends, employment trends, and regional differences in LAN usage were also studied. In brief, the major findings of the research are the following: Acquisition and satisfaction. (1) Three clusters of factors stand out among the reasons why auto parts firms have made the investment in networking technology: financial controls, managerial controls, and external factors impinging on the firm. The financial controls cluster is the most important. (2) A high level of satisfaction with computer networks exists in the auto parts user community. (3) The reasons for the high level of user satisfaction reported in Finding 2 were examined. Users report being most satisfied with financial objectives, followed closely by managerial objectives. As a group they are less satisfied with external objectives. Growth. (4) Auto parts companies which have purchased computer networks have shown significant growth, as reflected in increases in the total number of employees since the purchase. (5) Auto parts companies which have purchased computer networks have not experienced significant changes in the number of office employees since the purchase. Employment trends. (6) In the auto parts industry, the use of unskilled, or lesser-skilled, employees on the auto parts counter is increasing and is likely to continue to increase. (7) In the auto parts industry, the number of women in non-traditional positions (such as working on the parts counter or in management) has increased in the last decade. Regional differences. (8) The proportion of stores in the metropolitan Boston area which have computer networks is significantly lower than the proportion in all other areas contacted during the interview process