Abstract:

This study examines information systems (IS) effectiveness and its influence factors in the specific context of small and medium manufacturing enterprise (SME) in Malaysia. The model evaluates several potential factors for IS effectiveness such as managers participation in IS implementation, manager IS knowledge, vendors, consultants and government agencies effectiveness. Two new factors, manager accounting knowledge and accounting firms effectiveness, are also included in the model. The sample included 232 SMEs registered with the Federation of Malaysian Manufacturers. Overall, the results suggest that managers of SMEs need to acquire sufficient accounting knowledge to help them better understand business information requirements. Second, SMEs should engage qualified vendors who have experience and understand unique characteristics of SME to overcome their lack of IS knowledge. Finally, SMEs should exploit their good relationship with accounting firms to help them implement effective IS.