Abstract
Alignment between an entity’s strategic business objectives and its information systems (ISs) has recently received research attention. Currently, small and medium-sized entities (SMEs) still face the challenge of successfully aligning their strategic business objectives with their ISs. Various small generic accounting software packages are available for purchase by SMEs. These accounting packages all have functionalities that enable SMEs to keep proper accounting records. However, due to their generic nature, these accounting packages do not always have sufficient functionalities to drive the SMEs’ strategic business objectives, resulting in IS misalignment. Not selecting the correct accounting software package will result in the accounting software not addressing the strategic business needs of the SME. The purpose of this study is to review and discuss the challenges faced by SMEs when selecting generic accounting packages and to develop a mapping between strategic business objectives commonly found within SMEs and software package functionalities that SMEs can refer to during the selection and implementation of new accounting software packages. This is accomplished on a non-empirical basis through a review of pertinent literature. In order for a SME to select the correct accounting software package, it is important that it invest time and effort in considering the software functionalities provided by the software package and map it against its strategic business imperatives to prevent failure of the package.
Highlights
AND BACKGROUNDI mplementing a new accounting information system (IS) for a business is a costly process that requires considerable time and skills. Hedtke (2007) explains how various small accounting packages have everything that small and medium-sized entities (SMEs) require to operate successfully
In addition to facing challenges similar to those of larger entities with regard to software implementation, SMEs are challenged by other obstacles such as limited skilled staff and resources due to their size (Marcelino-Sádaba et al, 2014), high costs relating to software implementation and competition in the SME market
This study focused on the strategic alignment of ISs within SMEs and identified strategic misalignment as one of the main reasons why SMEs fail to properly implement accounting software
Summary
AND BACKGROUNDI mplementing a new accounting information system (IS) for a business is a costly process that requires considerable time and skills. Hedtke (2007) explains how various small accounting packages have everything that small and medium-sized entities (SMEs) require to operate successfully. Hedtke (2007) explains how various small accounting packages have everything that small and medium-sized entities (SMEs) require to operate successfully. These smaller accounting packages are generally more affordable, easy to set-up and user-friendly. In a survey conducted by Temtime, Chinyoka and Shunda (2003) it was found that word-processing systems are used the most by SMEs, followed by accounting packages and spreadsheets Many authors, such as Davenport (1998), have mentioned the importance of aligning accounting package functionalities with the business objectives, on a strategic level. It might have all the functionalities for a proper accounting system, but may fail to provide functionalities that
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