Role of IAS in SME

This paper discusses the role of IAS in SMEs and the challenges faced in establishing an effective IT system. It provides recommendations for improving IT effectiveness and highlights the importance of normative behavior among employees. The study also explores IT governance frameworks and the alignment of IT resources with business objectives.

Accounting Information System
2019Role of IAS in sme
Name of the student
University Name | Australia

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Table of Contents
Introduction.................................................................................................................................................2
Summary – Discussion and Analysis............................................................................................................2
Critique........................................................................................................................................................4
Conclusions and Recommendation.............................................................................................................5
References...................................................................................................................................................6

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Introduction
The present paper offers a review of an research work on “Normative Model for Assessing SME
IT Effectiveness” done by three renowned authors naming M.Curry, B.Marshall and P Kawalek
respectively based on a norms based approach. This review primarily discusses the major
challenges faced by SME’s usually found unable or unwilling in establishing an effective IT
system primarily resulting from the norms adopted by its employees and providing the valuable
recommendations to improve it by adopting a positive approach towards its acceptance. The
paper broadly covers the areas as literary review, discussion on the results obtained through the
process of interview and survey carried out for the research and finally the validation of such
obtained result.
Summary – Discussion and Analysis
The technicality and resource constraint associated with the best IT practices normally found as
major hindrance for ensuring an effective IT system in Small business organizations. Again it is
to be kept in mind that the approach or the attitude adopted by the employees working in these
organizations plays a key role in achieving this objective (Curry, et al., 2017). There are simply
two ways for ensuring that employees are positively contributing in achieving IT effectiveness,
the first being through the implementation of the strict policies and procedures and the second
being creating a positive mindset amongst these employees so that they can willingly accept it
and ensure the compliances as prescribed by those policies and procedures by evaluating their
sustainability by themselves.
While assessing the IT effectiveness in SME’s the term has been defined as a set of activities
carried out so as to manage the Organization’s IT Assets in an optimized way to achieve the
overall business objectives. Achieving IT effectiveness is an intellectual commitment to be
developed through the shared set of values, beliefs and desires amongst the employees (Axelsen,
et al., 2017).
The major reason for seeking the achievement of the IT effectiveness is that it improves the IT
quality by means of improved outcomes in form of cost savings, better organizational efficiency
etc. Further it is the IT effectiveness activities which motivate the behaviors of the employees
with the true spirit for the adoption of the best IT practices (Alexander, 2016).
It further mentions the three principles IT effectiveness activities as suggested by COBIT are the
Risk or control, measure and improve and Business and IT alignment. Keeping it in mind an
attempt has been made through this research work to develop a model suitable for this purpose.
They started the process by identifying the major characteristics of the Small and medium sized
enterprises so that to link it with the establishment of the IT best practices (Bogle, 2018). The
first being the lack of formal management structure or the lack of dedicated IT professionals and

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the second being resource constraint, which is acting as the biggest hurdle to exploit the benefits
of best IT practices. But the informal structure has the positive aspects too associated with it ,
that is it is found highly flexible and innovative due to which it can recognize the benefits of IT
much faster than a large scale organization. At the same time there is the lack of strategic
planning noticed by these organizations.
The next important aspect of the discussion is the IT quality which is the measurement of the
ability to effectively impact the overall organization together meeting with the expectations of
those IT users who are using the IT system. At the same time it has been found that it is norms
that motivate the behavioral pattern adopted by employees working with the organization that is
the major factor in the determination of the IT quality (Werner, 2017).
In the next section the key IT effectiveness norms have been identified in form of IT governance
frameworks like COBIT, ITIL etc.
In order to ensure the IT effectiveness it is of most urgent relevance that Overall IT resources
and capabilities should be aligned in a manner that they ensure the overall business objectives.
This was explained with the help of an example that in case of SME’s it may be expected that the
owner and the managers may have a long term vision and understanding in relation to the
business direction and the It needs, but their employees being less skilled are likely to lack such
norms or giving their acceptance to it, whereas such an alignment is a key driver for determining
the IT quality. But in this context sometimes scholars provide the argument that such an
alignment should be viewed as a continuing process and it demands frequent reevaluation
(Dumay & Baard, 2017). For which the basic thing to be checked is to see whether the SME’s
are putting the necessary effort to make such improvement rather than checking the current status
of their improvement. Then finally it throws light on the It effectiveness subscription constructs
like ISO/IEC38500: 2008 so as measure the IT effectiveness subscription.
In order to justify its conclusions based on its research work a field study in two different sites
has also been carried out. The major purpose of this field study has been identified as to justify
the suitability of the instrument as recommended to measure the IT effectiveness and to collect
the necessary qualitative data for validating such instrument (Choy, 2018).
Further this filed study was conducted on two different section or groups, the first being the
small business group together with the semi-structured interviews of small family business and
the second was on carried through the University students through the help of PLS analysis. The
data collected from small business groups could not provide much support to the three basic
hypotheses of the Research (Linden & Freeman, 2017).

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This research work finally depicts the fact that we need to be less technical while evaluation the
IT effectiveness as even a novice it user can suggest something much valuable to use the IT
effectively.
Finally it has been suggested through the research work that in order to ensure the IT
effectiveness in small business the major thing to be noted is that the employees which are
actually operating such system should not view it as an imposition of technical standard o that
they cannot view it as a burden rather the motive should be to encourage the normative behavior
so that they can willingly accept the same (Goldmann, 2016).
Critique
The most important positive aspect as it could be noticed in this research work is that it has
adopted a very simplistic approach to ensure the very common problem now a day’s faced by the
SME’s especially in this computer era. At the same time it reveals the basic reason for such
failure along with the necessary recommendation to solve this problem. At the same time it did
not forget to mention the various limitations that are associated with their study too. They have
clearly mentioned that still they are collecting the data to justify their claim and anybody who
wishes to take the help of their research work should carefully evaluate such limitation (Guragai,
et al., 2017).
Their research work is primarily helpful for the Top level managers too that generally the Top
down approach of policy framing may be proved to be successful in the large scale organization,
but it not the case in case of small scale or medium size organization.
It further helps them to find out the ways how to inculcate the normative behavior amongst the
employees of the small or medium size organizations so that it could encourage them to willingly
comply with the IT compliances as prescribed by its management (Vieira, et al., 2017).
This study is based on the field study carried out in two different segments of people who are not
only the small businessmen group but also the University students too so that to maintain a
proper balance between the results obtained and such result should be completely unbiased.
Again it talks about a basic fact that often we have the tendency to evaluate the current status
prevailing in the SME in terms of its IT effectiveness, but we often ignore the fact that it is
equally important to see that whether the organization is putting some effort to achieve it or not.
This is the reason it has been suggested by the researchers that it is actually a continuous process.
That means it is never ending or should not be evaluated on a particular date rather is required to
be evaluated frequently.
It throws light to the basic nature of the employees working in these SME’s who always consider
it a burden because of the various technical terms associated with the IT. Hence a sort of fear
works in their mind that is required to be removed (Mubako & O'Donnell, 2018).

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One most important thing in this research work is that it is found quite organized and the
vocabulary used is as simple as it can be to convey the real message amongst the big mass to
which it is intended too.
Further the blame game that is a common phenomenon in the SME’s or even by showing the
resource constraint as a reason for the failure in achieving the IT objectives is said to be a simple
excuse in these types of organization (Kew & Stredwick, 2017).
The model developed by the research work seems to be highly helpful to the future users of this
study and the model is quite realistic too having seen the current scenario of SME’s.
But there are some improvements that is expected in this study too. The first being the way
survey results have been presented it makes it bit complicated to understand the real intention of
the research worker. Hence a much easier presentation would have been better (Raghupathi &
Wu, 2018).
Further it is to be noted that this model clearly suggests that IT objectives of the organization
should align with the overall organizational objectives. It is because if both move in opposite
direction then the objective of achieving the IT effectiveness shall be completely baseless.
And actually it is the duty of the owners and managers in these organizations who has to play a
major role in this behalf. Because these organizations are having less formal organizational
structure that make them highly flexible due to which any positive communication can easily
reach to the employees working in this organization (Sithole, et al., 2017).
But in order to make the effective use of such flexibility a long term strategic planning is
required to be developed which is undoubtedly the responsibility of its top management.
In these organizations the employees who are even new they too can play a significant role in
achieving this IT effectiveness objective for which the major thing that is required is to generate
the sense of beliefs and shared values in them that does not seem to be difficult?
This research work provide a new dimension to the SME’s to ensure their IT effectiveness by
changing their basic mind set .Imposition of technical burden on these employees can never
ensure their positive commitment in achieving this objective (Bailey, et al., 2017).
Conclusions and Recommendation
From the above discussion it is to be concluded that SME”s organizations in spite of the various
limitations associated with them but still there is prospect that they can achieve the significant IT
effectiveness objective provided they should get ready to adopt the model developed by the
aforesaid research workers. Again the policy framing by these organization s in this behalf can
never ensure the true objective of achieving IT effectiveness, but the effort should be made to

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change the normative behavior of this employee. As it shall motivate them to provide their full
hearted support in form of intellectual commitment to these objectives. Again now it is the time
when these organizations need to redesign their thought process to ensure the sustainability in
future. As adopting the traditional approach cannot help them anymore. As without bringing
such change cannot help them to motivate their employees in a positive way for whom IT is just
like any other technical jargon. There is actually a great fear working in the minds of the people
working in SME’s for the IT which is required to be removed through a holistic positive
approach.
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