The mediating role of AIS sophistication on the relationship between the organizational attributes, IT investment, environmental conditions and organizational performance in SMEs of Saudi Arabia

• Main Author: Muthanna, Mohsen Ali
• Format: Thesis
• Language: English; English
• Published: 2018
• Subjects: T58.6-58.62 Management information systems; HF5601-5689 Accounting
• Online Access: https://etd.uum.edu.my/7758/1/s91654_01.pdf; https://etd.uum.edu.my/7758/2/s91654_02.pdf; https://etd.uum.edu.my/7758/; https://sierra.uum.edu.my/record=b1698802~S1

Accounting Information Systems (AIS) sophistication in Saudi Arabia is not well managed, which leads to sub-optimal organizational performance. From the previous studies, it was obvious that the organizational, technological and environmental context limits the AIS sophistication of SMEs. This study investigated the influence of the organizational factors (importance of IT, owner or manager knowledge, owner or manager education, and owner or manager experience), IT investment and environmental conditions on AIS sophistication and the impact of those factors on the organizational performance of SMEs in Saudi Arabia. This study also investigated AIS sophistication as a mediating variable between the independent variables and the organizational performance of SMEs as a dependent variable in Saudi Arabia. Data were collected in a survey in which 384 questionnaires were distributed to the owners or managers of SMEs in Saudi Arabia, with a 59.6% response rate. Multiple regression analysis was carried out to test the relationships between organizational, technological and environmental contexts and the organizational performance of SMEs. The results of multiple regressions between independent variables and organizational performance indicated that the independent variables had a significant impact on organizational performance. Excluding the relationship of importance of IT and the organizational performance, and the relationship between environmental conditions and the organizational performance. The results revealed that AIS sophistication had a partial mediation association between the independent variables i.e. (owner or manager’s knowledge, education and experience), IT investment, and the dependent variable i.e. organizational performance of SMEs in Saudi Arabia. Researchers might adopt future longitudinal studies to investigate and evaluate the extent of the changes at the level of AIS sophistication that influence the organizational performance of SMEs.