Journal of Information Systems and Small Business

Factors influencing the alignment of accounting information systems in small and medium sized Malaysian manufacturing firms

Noor Azizi Ismail — 2014-05-28

The concept of alignment or fit between information technology (IT) and business strategy has been discussed for many years, and strategic alignment is deemed crucial in increasing firm performance. Yet few attempts have been made to investigate the factors that influence alignment, especially in the context of small and medium sized firms (SMEs). This issue is important because results from previous studies suggest that many firms struggle to achieve alignment. Therefore, this study sought to identify different levels of alignment and then investigated the factors that influence alignment. In particular, it focused on the alignment between the requirements for accounting information (AIS requirements) and the capacity of accounting systems (AIS capacity) to generate the information, in the specific context of manufacturing SMEs in Malaysia. Using a mail questionnaire, data from 214 firms was collected on nineteen accounting information characteristics for both requirements and capacity. The fit between these two sets was explored using the moderation approach and evidence was gained that AIS alignment in some firms was high. Cluster analysis was used to find two sets of groups which could be considered more aligned and less aligned. The study then investigated some factors that might be associated with a small firm’s level of AIS alignment. Findings from the study suggest that AIS alignment was related to the firm’s: level of IT maturity; level of owner/manager’s accounting and IT knowledge; use of expertise from government agencies and accounting firms; and existence of internal IT staff.

New directions for research on SME-eBusiness: insights from an analysis of journal articles from 2003 to 2006

Craig M Parker — 2014-05-28

Previous research which consolidates the growing body of academic literature on small and medium enterprises (SMEs) and electronic business (eBusiness) has taken the form of meta-analyses which focus on analysing adoption factors, pre-2000 articles and a small number of journals. This paper makes a valuable contribution to the analysis of SME-eBusiness research by addressing the limitations of past literature analyses because it presents an extensive literature review of 120 SME-eBusiness journal articles published between 2003 and 2006 in 53 journals. This paper is unique, when compared to meta-analyses of adoption factors, because it analyses the SME-eBusiness literature broadly on the basis of the data collection approaches used, countries and eBusiness technologies studied, and the primary research objective of each article. This approach to the analysis revealed a number of limitations in the existing research such as the tendency: to treat SMEs and eBusiness applications homogeneously rather than as highly diverse, complex entities; to repeat adoption factor studies which have now reached saturation point; and to focus on SMEs themselves without considering the complexity of relationships which many SMEs have with family, friends, other businesses and eBusiness solution providers. These limitations highlight the need for new research directions which move beyond identifying and evaluating adoption factors. The paper concludes by outlining a number of broad research directions which might help overcome the limitations with the existing body of SME-eBusiness research.

Business process management for SMEs: an exploratory study of implementation factors for the Australian wine industry

Sandy Chong — 2014-05-28

Gartner EXPPremier (2005) identified Business Process Management (BPM) as the number one business priority and building Business Process Capability as a major challenge for senior executives within the coming
years. The focus of BPM in practice and related research has been its application in large organisations. The general value proposition of BPM, however, is also of significance for small and medium-sized enterprises
(SMEs). SMEs within the wine industry have only recently begun to apply BPM principles to their business. The main motivating factors for this business improvement effort is a need to cope with consolidation trends and the global grape glut, which are forcing wine businesses to increase operational efficiency. The wine industry has been selected as a case study for this research not only due to its local significance, its growth driven by
globalisation and its contribution to the economy, but also the relative immaturity in terms of establishing concepts of a process-oriented organisation. This study aims to explore and structure the major issues of BPM adoption and implementation as the first such research initiative for SMEs in the wine industry. The research was conducted in Western Australia and involved qualitative data collection including interviews and content
analysis of existing documentation. The study shows that the lack of financial resources, time, and knowledge of BPM are the major factors inhibiting BPM implementation for SMEs in the Australian wine industry.