The Impact of Information Technology (IT) Risk Management on Strategic Agility and Organizational Performance: A Study on Small and Medium-Sized Enterprises (SMEs) in Penang, Malaysia
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Date
2014
Authors
Sim, Poo Beng
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Journal ISSN
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Publisher
Universiti Sains Malaysia
Abstract
Purpose of this research is to investigate the effect of information technology (IT) risk management in predicting organizational performance. In addition, strategic agility had been explored as a mediating factor and environmental uncertainty as a moderating factor in this research. The survey was conducted among 163 small and medium-sized enterprises (SMEs) in the State of Penang, Malaysia. In essence, this research had built a framework based on resource based view theory. The collected data was analyzed by using SPSS and SmartPLS statistical tool. The result proved that information technology (IT) risk management was significantly related with organizational performance. Moreover, the moderator, environmental uncertainty was justified has significant relationship between information technology (IT) risk management and organizational performance. Similarly, environmental uncertainty was also found that had moderating effect between the relationship of strategic agility and organizational performance. Lastly, strategic agility was justified has significant relationship between information technology (IT) risk management and organizational performance. Every SME depend on IT in the fast changing business environment as IT assets are able to increase their productivity and operational efficiency. Hence, IT risk management play a major role in protecting the IT assets from any internal or external threats. In summary, it is crucial for small and medium-sized enterprises (SMEs) to understand the importance of information technology (IT) risk management that would transform them, and eventually make them more competitive and successful in the industry.
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Keywords
Effect of information technology risk management , predicting organizational performance