As part of a larger project studying the impact of infor-and other benefits that are associated with the consemation on development, an investigation was made of quences of making effective use of information.'' To the feasibility of using the LISREL (LInear Structural REdemonstrate these benefits, some questions must be asked.
Lations) model to determine the impact of information,
What is the function of the information? What developrelative to other factors, on development of the small ment need does it attempt to fill? What other factors affect manufacturing business sector in Shanghai, China. Data was collected via questionnaire from 450 businesses in development in the region and the sector of interest? the city. A convergent LISREL model showed that the
Qualitative studies can set the framework for answering major factors affecting business success were, first, these questions, but to determine the impact of any causbusiness environment, and, second, information use. Inative factor such as information on development in a way formal information use was more important to business that can be used to compare its impact with that of other success than use of more formal sources.
factors, we need to assess impact quantitatively, we need to measure it. Unfortunately, measuring the impact of Introduction information is not simple, because the value of information may not accrue at its immediate point of use but at How do we measure the impact of information on the some future time. development of a particular region, or of some sectors in
The study looks at the impact of information on develthe region? This is a question that many policy-makers opment in a particular city, Shanghai, China, and in a and funders are asking in the current economic climate of particular economic sector, small business. The reason increasing accountability, among them the International for these choices, made in consultation with IDRC, is the Development Research Centre (IDRC), a development great interest of Western countries currently in economic assistance agency of the federal Canadian government, developments in China and the increasing role of small which for many years has been funding information serbusiness, both in the West and in China, in contributing vices in developing countries. As its Senior Advisor for to economic development. Shanghai was a natural focus Information Science, Martha Stone, asks: ''Do policy for the study in China, because of the gateway function makers have enough evidence to persuade them that alloit is playing for Western economic investment in China. cating resources to the information infrastructure is a wise An added benefit was the fact that one of the investigators, investment?'' (Menou, 1993). The study reported in this Dr. Vaughan, originally came from Shanghai and had article is an attempt to provide some answers for her professional connections in the area. and for other decision-makers concerned about the most A number of investigators, in the past, have attempted effective use of resources.
to measure the social and economic value of information. Assessment of the impact of information cannot be Some of these are discussed in chapters of the Annual carried out in isolation from the environment in which Review of Information Science and Technology, notably the information is provided. In fact, as those by and . IDRC sponpoints out, impact by definition involves ''demonstrating sored a series of discussions, a computer conference, and the social, cultural, economic, political, environmental, a workshop to address this problem culminating in the publication of the compilation Measuring the Impact of Information on Development (Menou, 1993). A work-