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|Title: ||AIS alignment in small and medium sized firms|
|Authors: ||Ismail, Noor Azizi|
|Issue Date: ||2004|
|Publisher: ||© Noor Azizi Ismail|
|Abstract: ||The concept of alignment orfit has been discussed in the literature, both in accounting and
information systems (IS). Most of prior studies either focused on the alignment between
accounting information systems (AIS) and contingency factors or information technology
(IT) and contingency factors. However, none has attempted to investigate the alignment
between organisational information requirements and information processing capacity. This
study helps to fill this gap by exploring the alignment of AIS requirement and AIS capacity
among Malaysian manufacturing SMEs with less than 250 employees, and examining its
impact on performance. Using a mail survey, datafrom 310firms was collected on nineteen
AIS characteristics so that AIS requirement and AIS capacity could be compared. Data was
also collected on firm performance, information systems (IS) success, various contingency
factors and standard demographics.
Based on the nineteen AIS characteristics, the measurement of AIS alignment was
explored visually and using two analytic measurement methods: (1) the 'moderation'
approach and (2) the 'matching' approach. Using cluster analysis, three distinct groups of
SMEs were identified for both approaches. The results indicated that a significant
proportion of Malaysian SMEs had achieved high AIS alignment. The group of SMEs which
has a higher degree of AIS alignment was found to achieve greater IS success and better
organisational performance than the group of SMEs with a lower degree of AIS alignment.
Interestingly, the findings of this study also indicate that AIS alignment is positively related
to the level of IT sophistication, CEO commitment to IT, and internal expertise, AIS capacity
is positively related to the level of IT sophistication, but there was little evidence of the
contingency factors affecting AIS requirement. Further, the findings of this study also
provide support for past observation that the 'moderation' approach of measuring fit is
more meaningful than the 'matching' approach when performance criterion is included in
the research model.
In summary, this study has deepened current understanding of AIS alignment, and
has provided useful insights for CEOs of SMEs in planning their IS implementation. More
importantly, it opens up possibilities for further study of AIS alignment in SMEs, both in
Malaysia and on a global basis.|
|Description: ||A Doctoral Thesis. Submitted in partial fulfillment of the requirements for the award of Doctor of Philosophy of Loughborough University.|
|Appears in Collections:||PhD Theses (Business)|
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