Higher Ranked Fortune 500 Companies Significantly More Likely to Have Libraries - Special Libraries Association survey - Brief Article

A SLA study reveals that in 1998, corporations that were ranked higher on the Fortune 500 list were significantly more likely than those ranked lower to have a corporate library or information center (r=,257; y.000l; accurate 99 times out of 100). [1]

When examining the Fortune 500 companies by groups of 100, it was found that 85% of those in the top 100 had libraries/information centers. Among companies ranked in the bottom 100, ranks 401 to 500, on the other hand, only 50% of the companies had libraries or information centers. Examining the highest ranked companies more closely revealed that 90% of the top 50 companies, and 93% of the top 15 companies had libraries. Overall, 63% of the Fortune 500 companies had libraries.

How the Study was Conducted

The Fortune 500 list used in the study was presented in the April 27, 1998 issue of Fortune. Subsidiaries of the companies were also included in the study, as assessed by examining America's Corporate Families (1998), since it was considered important to identify libraries in all segments of the company. Several sources were used to determine whether there were libraries or information centers in the Fortune 500 companies or their subsidiaries. The Business Index of Who's Who in Special Libraries, 1998-1999, a directory of members in the Special Libraries Association, was first utilized to assess whether there were any SLA members in the companies. For those Fortune 500 companies in which there were not SLA members, the American Library Directory 1998-99 and the Directory of Special Libraries & Information Centers (1998) were used to ascertain whether the companies had libraries.

It is becoming more frequent for information professionals to hold positions outside traditional libraries. Although SLA may have members working at a particular organization, they may be using their information organizing and research skills in departments other than libraries.

Therefore, a subjective assessment of the departments of SLA members working at Fortune 500 companies was made to determine whether the departments were libraries. It was determined that there were 22 cases where it was unclear, with department names as Marketing Research, Strategic Planning and Research, and Clinical Information and Outcomes. However, since it was a small number of companies (4.4%) and since the individuals in these departments probably were, at a minimum, using their library and information science training in some capacity, these companies were coded as having a library or information center for the purposes of this study.

Analysis by Industry

When examined by the 59 industries used in the Fortune 500 ranking, 37 industries (63%) were more likely to have libraries than not to have libraries, 4 industries (7%) were equally likely to have and not have libraries, and 18 industries (31%) were less likely to have libraries than to not have them. This indicates that the likelihood of Fortune 500 companies having libraries varies by industry, a proposition supported by the data. The Utilities, Gas and Electric industry had the highest number of companies, 36, within the 1998 Fortune 500. Within this industry, 78% of the companies had libraries. However, among Wholesalers, the second most common industry in the Fortune ranking, only 14% of the 28 companies.

Why are some industries more likely than others to have libraries or information centers? The answer is probably partly due to distinctions in the use of data, information and knowledge for growth, diversification and technological innovations. Variations in the proportions of highly educated staff which promote growth to the organizations in these areas may also be factors (Portugal, 2000, forthcoming). Examining some of the other industries prominent in the Fortune 500, more than 75 percent or more of the companies had libraries: 100% in the Pharmaceuticals, 95% in the Chemicals, 92% in the Computers-Office Equipment, 83% in the Motor Vehicles and Parts, 81% in the Electronics-Electrical Equipment, 80% in the Insurance: Life & Health-stock, 80% in the Metals, 79% in the Telecommunications, 77% in the Insurance: Property & Casualty-stock, and 75% in the Petroleum Refining industries. The focus of many of the industries in the Fortune 500 which did not have libraries or information centers had to do with sel ling products, such as Wholesalers, Specialty Retailers, and Food and Drug Stores, which may not have had extensive Research and Development components at their companies.

Conclusions

All companies have a use for data, information and knowledge, as well as for being able to locate the information that is needed in a timely fashion. These are some of the roles at which information professionals are experts. Even companies that do not have considerable R&D being conducted should use the skills of information professionals for locating marketing, financial and technological information which will help them sell their products and services. The majority of Fortune 500 companies have libraries or information centers, especially those closer to the coveted number 1 spot. How does your company rank?

(1.) Portugal, Frank. Forthcoming. (tentative title) Measuring the Return of Investing in Information Services: Evaluating the Bottom Line Contribution of Librarians and Information Professionals. Special Libraries Association.

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