STRATEGY

EDITOR'S NOTE

As the new vocabulary of competition, with its emphasis on agility, holistically, and
synergisticallyresponsive operations begins to shape the way we think about small business,

we are increasingly challenged to find new systems for adapting to change and working along

with employees, customers, suppliers, and competitors. In this issue, we examine the impact

of in formation technology, small business tax legislation and modern valuation while exploring
the ethical orientation of small business owners and their resource allocation decision-making.

In this age of "Information Intensification" where Gateway 2000 is just a label stuck on
other companies'omponents and I-800-FLOWERS floats freely in cyberspace, our lead
article by Albert l.ederer and Donna Maupin provides a foundation for small business use of
the World Wide Web. In the following article,the degree and type of information technologie;
currently accepted and utilized by small retail and service businesses is documented by Dr.

Alev Efendioglu in an exploratory study of sixty-five firms.

In another exploratory study, Professors Patricia Greene, Candida Brush and Terrence

Brown examine the unique distinctions in resource types and usage by small business lirms,

finding physical and organizational resources more critical than the acquisition of financial
resources. An additional preliminarily specific implication showed that human capital is

perceived to be less valuable than what is owned. Such a result may very well be related to the

growing number of ethics violations in the workplace being reported. This is the focus of Drs.
Welsh and Birch's article exploring the ethical orientation of U.S. small business decision-
makers.

Small business managers can gain considerable insight into strategies directed toward

optimizing revenue per employee, growth and investment, from reading Dr. Timothy Wilson's

research study of business service sector profitability. Similarly, Professors Baril, Marshalland
Sartelle help us understand the implications of employing the conceptual foundation of
"Economic Value Added" in small, privately-held firms. Wealth creating strategies are
examined and specific operating, investing and flexible financing actions are clearly described

This focus on profitability and wealth creation has its sequel in the impact of 1996 tax reform
on the small business firm. The technical issues associated with this recent tax legislation are

examined and explained by Drs. James Williamson, Gerald Whittenburg and Howard Toole.

Joe Singer, Ph.D.
Editor