Factors influencing the effectiveness of information system implementation among small and medium manufacturing enterprises in Malaysia

This study examined information system (IS) effectiveness and its influence factors in the specific context of small and medium manufacturing enterprise (SME). The model evaluated the importance of manager participation in IS implementation, manager IS knowledge and accounting knowledge, and external experts (vendors, consultants, government agencies, and accounting firms) for IS effectiveness. The sample included 232 SMEs registered with the Federation of Malaysian Manufacturers. The results showed that manager accounting knowledge, and the effectiveness of vendors and accounting firms, are essential for IS effectiveness. Overall, the results suggested that managers of SMEs need to acquire sufficient accounting knowledge to help them better understand business information requirements. Secondly, SMEs should engage qualified vendors who have experience and understand unique characteristics of SMEs to overcome their lack of IS knowledge. SMEs should also exploit their good relationship with accounting firms to help them implement effective IS. Finally, it is important for SMEs to learn from their IS implementation so that opportunities can be recognised and priority given to initiatives that help IS support their information needs

The extent of e-business usage and perceived cumulative benefits: A survey on small and medium-sized enterprises

Internet-based application (e-business) is well-recognized as a useful mean to extend business efficiency.Owing to the idiosyncratic nature of Small and Medium-sized Enterprises (SMEs), considerable works have been initiated to explain why firms within this sector embrace e-business. Despite extensive research to identify factors that explain the firm’s e-business practice, works are still limited to examining as to what extent the e-business assimilates into business operation. Furthermore, firms would experience varying degrees of benefits by deploying e-business.Therefore, this paper reports intensity of e business usage across various business processes and its relationship with cumulative benefits.A survey of 140 SMEs has revealed the diversity of e-business usage across business processes.A cluster analysis has further proposed three distinct profiles of firms based on the intensity of their e-business usage.Finally, the empirical evidence obtained has also ascertained positive association between the intensity of e-business usage and cumulative e-business benefits. Despite limitations highlighted, this paper provides evidence on the current state of e-business usage across firm operation and its likely impact to the firm operation

Cloud computing: Use and impact of technology

The objectives of this study are to identify the current state of cloud computing use and to examine the impact of its use to the small and medium enterprises (SMEs) in Malaysia.The impact of cloud computing use is examined from three dimensions: strategic benefits, informational benefits, and security enhancement.Data are collected through a survey of senior managers of the SMEs.The findings suggest that all of the cloudbased technologies are currently in use. The use of cloud computing in the organization facilitates informational and strategic benefits, but not security enhancement

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

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

Dimensi pelaporan kewangan menerusi Internet

Purpose – This paper aims to address the issue of internet financial reporting(IFR) index, by carefully reviewing existing literature relating to the topic, and then suggests a suitable dimension of disclosure index to represent IFR. Design/Methodology/Approach – The study was dependent on an extensive review of the literature of IFR.Findings – Many have investigated the extent, mode and quality of IFR over the last decade. Most of early IFR research is descriptive and exploratory in nature,thus unable to explain the item to represent the level of IFR. Furthermore,while many have conceded that a suitable proxy such as an index of disclosure can be used to gain insight into the sophistication of information disclosed by companies, to date, very few attempts have been made to develop such index. Of these few studies, the dimensions used to represent IFR are inconsistent among the researchers. These differences contribute to the variations in the findings and thus are unable to clearly explain factors influencing the behaviour of the IFR. Based on extensive literature review, we can conclude that the level of IFR can be categorised into two dimensions, which are content and presentation. Originality/Value – The paper provides a basis for mapping existing and future studies on IFR and constructing scenarios of future studies in this area. Paper type – Conceptual paper

Striking the right balance

The only business school in Malaysia with a comprehensive pool of faculty members in each and every aspect of business management aims to use this advantage to produce future business leaders with international outlooks,excellent decision­ making abilities, and the capability to execute changes for the betterment of business, society and the environment

Accounting information system: education and research agenda / Noor Azizi Ismail

Revolution of information technology has changed many aspects of accounting practices, which resulted in greater demand for accountants with sufficient information technology (IT) knowledge and skills. Importantly, these changes have provided new and exciting research opportunities for accounting information system (AIS) researchers. This paper aims to address issues relating to both AIS education and research. It also attempts to provide guidance to AIS curriculum design and direction for AIS research. In terms of AIS education, this paper reveals that accounting programmes worldwide have not sufficiently integrated IT knowledge and skills into the curriculum, thus resulting in the inability to produce graduates that meet the current needs of businesses. In terms of research, the paper starts with a discussion on issues relating to definition, scope and category of AIS research. In general, while IT revolution has offered various research opportunities, AIS research has provided very limited contribution to accounting or information system research and practice. Towards this purpose, this paper provides several suggestions to researchers. First, AIS researchers need to view AIS in a broader perspective where the impact of technology on all areas of accounting, auditing, and taxation should be considered within the realm of AIS interest. Second, AIS researchers have to specialise in at least one other accounting area such as financial reporting, managerial accounting, audit or taxation, in addition to AIS domain, to produce high-quality research results. Finally, it is hoped that discussions brought forward by this paper would initiate and encourage debate among accounting professionals and academics and, in particular AIS lecturers, in order to strengthen current AIS curriculum to produce high-quality AIS research that can have a notable impact on the accounting profession and business practice

Information Technology Sophistication, Management Accounting Information Provision and Computer-Based Information Systems Success

The emergence of a knowledge-based economy, consequent to the advancement in information technology (IT), puts more pressure on businesses to generate information to quickly create technologically advanced and customised products at relatively low costs. Firms, particularly small and medium sized enterprises (SMEs), need to understand and rely more on strategic accounting information and recognise the potential that IT has in generating these information. This paper reports the results of a study which offers an explanation for the relationship between IT sophistication and computer-based information systems (CBIS) success of SMEs, by incorporating into the model the provision of management accounting information (MAI provision). Data were collected from 214 SMEs in Malaysia by way of a questionnaire-based survey. The results showed that IT sophistication is a determinant of MAI provision, which in turn, is a determinant of CBIS success. Overall, the results suggested that MAI provision plays a mediating role in the relationship between IT sophistication and CBIS success of SMEs. An interpretation of these results is that those SMES which employ sophisticated IT can generate sufficient management accounting information and thereby improve their CBIS.