IT Competency Impact on SME Performance
IT Competency Impact on SME Performance
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CHAPTER FOUR
4.1 Introduction
The aim of this study is to explore the effect of Information Technology (IT) competency on
Small Medium Enterprise (SME), to examine the relationships between theorized IT
competency on business performance among SMEs, to develop a conceptual model, to create
and validate the business performance measurement. The current study was conducted to find
out the mediating role of IT competency between strategic planning, financial planning and
resource, employee development, marketing strategy and business performance. Following
are the demographic characteristics of study. Finally, the chapter uses direct hypotheses to
assess moderation of gender, age, business experiences and business development.
The purpose of this positivistic, quantitative, correlational study was to explore and establish
any relationships between the characteristics of the IT competency and organizational
performance in Malaysian SMEs. The specific characteristics studied were IT competency,
Information Security skills, business skills and Education level. In addition, the study was
designed to use these independent variables to predict whether the SMEs for which the IT
worked was likely to have experienced a significant information technology.
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Table 4.1 Demographic characteristics of sample (N=405)
Variables f %
Job Position
Manager 328 81.0
Businessman 77 19.0
Gender
Male 264 65.2
Female 141 34.8
Education
Degree level 72 17.8
Master’s level 306 75.6
DBA 27 6.7
Business Experience
1-5 years 58 14.3
6-10 years 175 43.2
11-15 years 108 26.7
16-20 years 56 13.8
Over 20 years 8 2.0
Income
5k-10k 101 24.9
11k-15k 230 56.8
16k-20k 63 15.6
Over 21k 11 2.7
Total Work Experience
1-5 years 29 7.2
6-10 year 117 28.9
11-15 years 211 52.1
16-20 years 40 9.9
Over 21 years 8 2.0
Age of organization
10 years 33 8.1
15 years 191 47.2
3
20 years 160 39.5
25 years 21 5.2
No. of employees
1-20 20 4.9
21-40 68 16.8
41-60 184 45.4
61-80 113 27.9
Over 100 20 4.9
Current work status
From home 203 50.1
From office 202 49.9
Above table found out the frequency and percentages of categorized demographic variables.
The table shows that in job position manager 328 (81%) in number and businessman are 77
(19%). While if gender is looked upon then it was found out that male was more in number
with the frequency of 264, approximately 65.2 % as compared to females who were less than
half of male i.e., 141 (34.8%). If education is discussed with reference to frequency and
percentage than employees having Degree level were 72 (17.8%), Master’s level were306
(75.6%) and DBA were only 27 (6.7%). Sample having different levels of experience were
categorized as mentioned in table. The first category was from 1-5 years having a frequency
of 58 (14.3%). Second one was from 11-15 years with the frequency of 175 (43.2%).while the
third and fourth categories were 11-15 years and 16-20 years with the frequency of 108
(26.7%) and 56 (13.8%) respectively. Last one was categorized as over 20 years with the
frequency of 8 (2%).
The frequencies and percentages of levels of income were 101 (24.9%), 230 (56.8%), 63
(15.6%) and 11 (2.7%) for levels of 5k-10k, 11k-15k, 16k-20k and over 21k respectively. If
total work experience is discussed with reference to frequency and percentage than employees
having 1-5 years of experience were 29 (7.2%), 6-10 years of experience were 117 (28.9%)
and 11-15 years were 211 (52.1%). Sample having experience of 16-20 years were 40 (9.9%).
Last one was over 21 years of frequency 8 (2%).while the third and fourth categories were
11-15 years and 16-20 years with the frequency of 108 (26.7%) and 56 (13.8%) respectively.
Last one was categorized as over 20 years with the frequency of 8 (2%). Next is age of
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organization. Organizations with 10 years of age are 33 (8.1%), with 15 years of age are 191
(47.2%) and with 20 and 25 years of age are 160 (39.5%) and 21 (5.2%). Employees from 1-
20 have a frequency of 20 (4.9%), with 21-40 have a frequency of 68 (16.8%), with 41-60
have a frequency of 184 (45.4%), with 61-80 have a frequency of 113 (27.9%), and over 100
is 20 (4.9%). Employees working from home are 203 (50.1%) and those working from office
are 202 (49.9%).
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Figure 4.2 Pie chart showing Frequencies of Gender (N = 405).
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Figure 4.4 Pie chart showing Frequencies of Business Experience (N = 405).
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Figure 4.6 Pie chart showing Frequencies of Total Experience (N = 405).
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Figure 4.8 Pie chart showing Frequencies of Number of Employees (N = 405).
Figure 4.9 Pie chart showing Frequencies of Current Work Status (N = 405).
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Figure 4.1, figure 4.2, figure 4.3, figure 4.4, figure 4.5, figure 4.6, figure 4.7, figure 4.8, figure
4.9 show the distribution of demographic variables. According to these pie chart diagrams;
manager is more than half of the data with a frequency of 328. Males are more in number as
compared to females. Master’s level sample is more with a frequency of 306. If business
experience is discussed, then employees with 6-10 years of experience is more in number as
compared to other experience levels. 20 years age of organization is more with a frequency of
160. While the number of employees working from home and working from office is almost
same with a percentage of 50.1% and 49.9% respectively for home and office.
Table 4.3 shows the reliability of scales of all the questionnaires used in the study. All the
reliabilities of the scales were very good to be used in study which are >.07. Every
questionnaire had six items except last one, which has seven items. The means and standard
deviation of strategic planning, financial planning and resource, employee development,
marketing strategy, IT competency and business performance were 29.24 (1.86), 29.17 (2.03),
29.28 (1.91), 29.18 (2.09), 29.26 (1.93), 33.86 (2.23). Actual and potential ranges of scales
were also calculated. Potential ranges were calculated manually while actually ranges were
systematic as mentioned in above table. In potential range, the lower value is the number of
items of every scale and upper value is calculated by multiplying number of items with the
Likert scale. In the case, it is multiplied by five because the scales used in this research are 5-
point Likert scale.
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Table 4.2 Correlations among demographics and study variables (N=405)
Variables 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15
1. Job
.214** .268** .004 -.008 .005 .113* .231** .007 -.102* -.082 -.079 -.100* -.064 -.035
Position
2. Gender .158** .044 .055 .060 .125* .178** -.024 -.015 -.065 .003 -.012 -.065 .009
3. Education .200** .224** .181** .113* .141** -.129** .247** .282** .204** .234** .249** .179**
4. Business
.559** .482** .217** .175** .078 .125* .107* .053 .124* .084 .072
Experience
5. Income .542** .235** .170** .124* .170** .146** .092 .134** .109* .125*
6. Total
.494** .422** .105* .114* .113* .087 .130** .065 .036
Experience
7.
Organization .548** .081 .039 .032 .018 .027 -.017 .023
Age
8. No 0f
.209** .043 .056 .005 -.004 -.008 .014
Employees
9. Current
-.034 -.036 -.045 -.021 -.033 -.006
Work Status
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10. Strategic
.818** .742** .812** .755** .721**
planning
11. Financial
.759** .781** .766** .717**
planning
12.
Employee .773** .743** .685**
development
13.
Marketing .768** .673**
strategy
14. IT
.690**
competency
15. Business
performance
Note. *=p<.05, **=p<.01, ***p<.001
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Pearson product moment correlation was conducted to assess the relationship among study
variables. From demographic variables, results of correlation analysis depicted that job
position had a positive relationship with gender, education, organization age while significant
negative relationship with strategic planning and marketing strategy. Gender had a positive
relationship with education, organization age and number of employees. Education had a
significant positive relationship with business experience, income, total experience, number
of employees, strategic planning, financial planning, employee development, marketing
strategy, IT competency and business performance while had a significant negative
relationship with current work status. Business experience had a significant positive
relationship with income, total experience, organization age, number of employees, strategic
planning, financial planning, and marketing strategy. Income had a significant positive
relationship with total experience, organization age, number of employees, current work
experience, strategic planning, and financial planning. Total experience had a significant
positive relationship with organization age, number of employees, current work experience,
strategic planning, and financial planning and marketing strategy. Organization age only had
a significant positive relationship with number of employees. Number of employees only had
a significant positive relationship with current work status.
Related to main variables, strategic planning had a significant positive relationship with
financial planning, employee development, marketing strategy, IT competency and business
performance. Financial planning had a significant positive relationship with employee
development, marketing strategy, IT competency and business performance. Employee
development had a significant positive relationship with marketing strategy, IT competency
and business performance. Marketing strategy had a significant positive relationship with IT
competency and business performance. And IT competency had a significant positive
relationship with business performance.
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Table 4.4 Frequency, Mean, Standard Deviation, Skewness and Kurtosis of Items of Strategic Planning Scale (N = 6)
Ite 1 2 3 4 5
m Items % % % % % M SD Skewness Kurtosis
No.
1 My organization uses strategic planning as a tool to determine .7 11.9 87. .7 11.9 4.89 .35 -3.790 17.363
the direction of the company 4 6
2 My organization conducts strategic planning by getting all .7 11.9 87. .7 11.9 4.88 .37 -4.384 30.290
relevant information from internal and external sources 4 6
3 My organization reviews its strategic planning once a year to .7 11.9 87. .7 11.9 4.87 .37 -2.891 8.154
ensure its relevancy 4 3
4 My organization uses strategic planning to improves my .7 11.9 87. .7 11.9 4.86 .36 -2.549 5.856
business processes and ultimately reduces costs of operation 4 6
5 My organization involves all important stakeholders when .7 11.9 87. .7 11.9 4.87 .37 -2.891 8.154
conducting strategic planning 4 3
6 My organization uses strategic planning as a tool to evaluate the .7 11.9 87. .7 11.9 4.87 .36 -2.628 6.334
organizational performance and success. 4 2
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4.3 Strategic planning
Table 4.4 expresses the Skewness and Kurtosis. Data collected from employees surveyed on
Five-Likert point scale going from 1 for strongly disagree to 5 as strongly agree. Mean and
standard deviations of all the items of strategic planning are given in table. The first item (M
= 4.89, SD = .356) shows a skewness of -3.79 while a kurtosis of 17.36. This item deviates
from the normality of skewness and kurtosis. The second item (M = 4.88, SD = .37) also
deviates from normal with a skewness of -4.38 and kurtosis of 30.29. item number three (M =
4.87, SD = .37), four (M = 4.86, SD = .36), five (M = 4.88, SD = .37), six (M = 4.86, SD
= .36) had a skewness of -2.89 and kurtosis of 8.14; -2.54; 5.85, -2.89, 8.15; -2.62, 6.33
respectively. All other items showed a skewness of <3 and kurtosis <7. Therefore, these
measures are near to normal distribution.
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Table 4.5 Frequency, Mean, Standard Deviation, Skewness and Kurtosis of Items of Financial Planning Scale (N = 6)
Item 1 2 3 4 5
No. Items M SD Skewness Kurtosis
% % % % %
1 The financial planning & resource help my organization to .5 2.0 11.9 85.7 .5 4.89 .316 -2.800 6.779
make the right decision and use the available resources effectively
2 I use financial planning & resource in my organization to .5 2.0 11.9 85.7 .5 4.87 .356 -2.712 6.856
enhance decision making and managing financial management
3 I use financial planning & resource in my organization to .5 2.0 11.9 85.7 .5 4.87 .381 -3.427 13.828
enhance profitability and production
4 Financial planning & resource help my organization in terms .5 2.0 11.9 85.7 .5 4.86 .380 -3.033 11.264
of productions. productivity, profitability, social performance, and
capital budgeting
5 I use financial planning & resource in my organization for .5 2.0 11.9 85.7 .5 4.84 .414 -2.919 9.733
budgeting, accounting, monitoring and analysis of the funding
6 I use financial planning & resource in my organization for .5 2.0 11.9 85.7 .5 4.83 .461 -3.028 10.298
time management, organizing and monitoring the performance.
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4.4 Financial planning
Table 4.5 expresses the Skewness and Kurtosis. Data collected from employees surveyed on
Five-Likert point scale going from 1 for strongly disagree to 5 as strongly agree. Mean and
standard deviations of all the items of strategic planning are given in table. The first item (M
= 24.89, SD = .31) shows a skewness of -2.8 while a kurtosis of 6.7 whereas second item (M
= 4.87, SD = .35) showed a skewness of -2.71 and kurtosis of 6.85. Both items fulfilled
normality test. Item number three (M = 4.87, SD = .38), four (M = 4.86, SD = .38), five (M =
4.84, SD = .41), six (M = 4.83, SD = .46) had a skewness of -3.42 and kurtosis of 13.82; -
3.03; 11.26, -2.91, 9.73; -3.02, 10.29 respectively. All other items showed a skewness of <3
or =3 and kurtosis >7. These measure show skewness of less than or equal to 3 and kurtosis of
greater than 7. Therefore, it can be interpreted that these items are nearly normal to
distribution.
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Table 4.6. Frequency, Mean, Standard Deviation, Skewness and Kurtosis of Items of Employee Development Scale (N = 6)
Ite 1 2 3 4 5
m Items M SD Skewness Kurtosis
No. % % % % %
1 Development and training employee help my organization to .2 .5 9.6 89.6 .2 4.90 .335 -4.086 20.761
enhance the performance and production
2 Employee development and training will help my .2 .5 9.6 89.6 .2 4.90 .327 -3.562 13.037
organization to avoid waste of time and perform better
3 Investing in employee development helps my organization .2 .5 9.6 89.6 .2 4.88 .376 -3.540 14.770
for long term plans and sustainable progress of employee’s
growth and development
4 Employee development helps my organization to increase .2 .5 9.6 89.6 .2 4.85 .431 -3.950 22.160
customer satisfaction and quality of services
5 Employee development helps my organization to increase .2 .5 9.6 89.6 .2 4.86 .425 -4.117 23.820
individual and company performances
6 Employee development helps my organization to enhance the .2 .5 9.6 89.6 .2 4.89 .355 -3.579 15.885
organization performance and productivity.
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4.5 Employee Development
Table 4.6 expresses the Skewness and Kurtosis of employee development scale. The scale
consisted of total six items. Data collected from employees surveyed on Five-Likert point
scale going from 1 for strongly disagree to 5 as strongly agree. Mean and standard deviations
of all the items of employee development are given in table. The first item (M = 4.90, SD
= .33) shows a skewness of -4.08 while a kurtosis of 20.71 whereas second item (M = 4.90,
SD = .32) showed a skewness of -3.56 and kurtosis of 13.03. Third item (M = 4.88, SD =
3.76) showed a skewness of -3.54 and kurtosis of 14.77. while fourth item (M = 4.85, SD
= .43), showed a skewness of -3.95 and kurtosis of 22.16. Similarly, fifth item (M = 4.84, SD
= .41) and sixth item (M = 4.84, SD = .41), showed a skewness of -4.17; -3.17 and a kurtosis
of 23.82; 17.88 respectively. All of these skewness and kurtosis values deviate from normal.
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Table 4.7. Frequency, Mean, Standard Deviation, Skewness and Kurtosis of Items of Marketing Strategy Scale (N = 6)
Ite 1 2 3 4 5
m Items M SD Skewness Kurtosis
No. % % % % %
1 Marketing strategy helps my organization in the market area, .2 1. 9.6 88.9 .2 4.89 .339 -3.302 11.020
the proper allocation of resources to enhance competitive 2
advantage
2 Marketing strategy helps my organization in the .2 1. 9.6 88.9 .2 4.87 .373 -2.891 8.154
development and establish, build, defend and maintain a 2
competitive advantage in global competition
3 Marketing strategy helps my organization to increase sales .2 1. 9.6 88.9 .2 4.85 .423 -3.807 20.751
growth and profitability 2
4 Marketing strategy is important in my organization for .2 1. 9.6 88.9 .2 4.85 .401 -2.758 7.299
coping with environmental ambiguity and uncertainty in 2
strategic marketing and competition
5 A marketing strategy provides an avenue for utilizing the .2 1. 9.6 88.9 .2 4.84 .445 -3.580 17.654
resources in my organization in order to achieve its set goals 2
and objectives
6 Marketing strategy helps my organization in the market .2 1. 9.6 88.9 .2 4.87 .390 -3.429 13.547
development and to set goals and objectives. 2
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4.6 Marketing Strategy
Table 4.7 expresses the Skewness and Kurtosis of marketing strategy scale. The scale
consisted of total six items. Data collected from employees surveyed on Five-Likert point
scale going from 1 for strongly disagree to 5 as strongly agree. Mean and standard deviations
of all the items of marketing strategy are given in table. The first item (M = 4.89, SD = .34)
shows a skewness of -3.30 while a kurtosis of 11.02 whereas second item (M = 4.87, SD
= .37) showed a skewness of -2.89 and kurtosis of 8.15. Third item (M = 4.85, SD = .42)
showed a skewness of -3.80 and kurtosis of 20.75. While fourth item (M = 4.85, SD = .40),
showed a skewness of -2.75 and kurtosis of 7.29. Similarly, fifth item (M = 4.84, SD = .44)
and sixth item (M = 4.87, SD = .39), showed a skewness of -3.78; -3.42 and a kurtosis of
17.65; 13.54 respectively. All of these skewness and kurtosis values deviate from normal.
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Table 4.8 Frequency, Mean, Standard Deviation, Skewness and Kurtosis of Items of IT Competency Scale (N = 6)
Ite 1 2 3 4 5
m Items M SD Skewness Kurtosis
No. % % % % %
4 IT competency helps my organization to link to local and 0 .2 1.5 10.9 87.4 4.85 .411 -3.137 11.079
global supply chains and outsourcing opportunities
5 IT competency helps my organization to reduced cost of .2 0 .7 11.1 87.9 4.86 .403 -4.009 24.135
communication and monitoring the performance of
competitors
6 IT competency helps my organization to link to local and 0 .2 .5 10.4 88.9 4.88 .362 -3.397 14.271
global market for better market penetration.
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4.7 IT Competency
Table 4.7 expresses the Skewness and Kurtosis of IT competency scale. The scale consisted
of total six items. Data collected from employees surveyed on Five-Likert point scale going
from 1 for strongly disagree to 5 as strongly agree. Mean and standard deviations of all the
items of IT competency are given in table. The first item (M = 4.91, SD = .340) shows a
skewness of -3.29 while a kurtosis of 10.67 whereas second item (M = 4.88, SD = .35)
showed a skewness of -3.18 and kurtosis of 10.19. Third item (M = 4.87, SD = .39) showed a
skewness of -4.13 and kurtosis of 24.18. While fourth item (M = 4.85, SD = .41), showed a
skewness of -3.13 and kurtosis of 11.07. Similarly, fifth item (M = 4.86, SD = .40) and sixth
item (M = 4.88, SD = .36), showed a skewness of -4.40; -3.39 and a kurtosis of 24.13; 14.27
respectively. All these skewness and kurtosis values deviate from normal.
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Table 4.9 Frequency, Mean, Standard Deviation, Skewness and Kurtosis of Items of Employee Satisfaction Scale (N = 7)
Ite 1 2 3 4 5
m Items M SD Skewness Kurtosis
No. % % % % %
1 Employee satisfaction is important to attain optimal 0 0 .2 6.9 92.8 4.93 .271 -3.632 12.862
business performance
2 The overall performance of an SME is an indicator of SME 0 .2 .5 14.3 84.9 4.84 .400 -2.657 8.480
performance
3 Customer satisfaction is my key aim to achieve optimal 0 .2 1.0 17.8 81.0 4.80 .445 -2.212 5.431
SME performance
4 Innovative ability is required for SMEs to achieve 0 0 .5 16.5 83.0 4.82 .393 -1.957 2.582
product/service quality and improved performance
5 High performance in organization enhancing productions 0 .2 .2 15.3 84.2 4.83 .398 -2.508 7.639
and sales which enables to compete with other competitors
in the global market
6 Most of the organizations investing in employee’s 0 .5 1.0 15.3 83.7 4.83 .404 -2.180 3.956
development and training to enhance the business
performance for profitability
7 Organizations investing in employee’s development to .2 .2 .2 15.3 84.2 4.82 .424 -2.416 6.742
enhance the business performance and increase the
volumes.
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4.8 Employee Satisfaction
Table 4.7 expresses the Skewness and Kurtosis of employee satisfaction scale. The scale
consisted of total six items. Data collected from employees surveyed on Five-Likert point scale
going from 1 for strongly disagree to 5 as strongly agree. Mean and standard deviations of all the
items of employee satisfaction are given in table. The first item (M = 4.93, SD = .27) shows a
skewness of -3.63 while a kurtosis of 12.86 whereas second item (M = 4.84, SD = .40) showed a
skewness of -2.65 and kurtosis of 8.48. Third item (M = 4.80, SD = .44) showed a skewness of -
2.21 and kurtosis of 5.43. While fourth item (M = 4.82, SD = .43), showed a skewness of -1.95
and kurtosis of 2.58. Similarly, fifth item (M = 4.83, SD = .39) and sixth item (M = 4.83, SD
= .40), showed a skewness of -2.50; -2.18 and a kurtosis of 7.63; 3.19 respectively. While the
seventh item (M = 4.82, SD = .42) showed a skewness of -2.41; kurtosis of 6.74, All of these
skewness and kurtosis values fall under the criteria of normality.
LL UL
Strategic planning .179 .058 .065 .293 .002
Financial planning .243 .051 .141 .344 .000
Employee development .225 .049 .129 .322 .000
Marketing strategy .236 .050 .138 .335 .000
Note. CI = Confidence Interval; LL = Lower limit; UL = Upper limit
A multiple regression was used to predict IT competency from strategic planning, financial
planning and resource, employee development, marketing strategy. These variables
statistically significantly predicted IT competency, F(4, 400) = 220.28, p < .0005, R2 = .688.
All four variables added statistically significantly to the prediction, p < .05. Following figure
show graph of regression of IT competence:
26
Figure 4.10 Reliability of IT competency with other variables.
LL UL
Strategic planning .364 .078 .210 .518 .000
Employee
.269 .066 .138 .399 .000
development
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A multiple regression was used to predict business performance from strategic planning,
financial planning and resource, employee development, marketing strategy. These variables
statistically significantly predicted IT competency, F(4, 400) = 144.98, p < .0005, R2 = .592. All
four variables added statistically significantly to the prediction, p < .05. Following figure show
regression of business performance:
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Table 4.12 Goodness of Fit Indices for Strategic Planning, Financial Planning, Employee
Development, Marketing Strategy, IT Competency & Business Performance
(N=405).
Table 4.6 indicate that the relationship between strategic planning, financial planning and
resource, employee development, marketing strategy and business performance was mediated
by IT competency as shown from the above table the insignificant value of chi-square and
various fit indices provide a comprehensive indication of excellent fit of the data with the
tested model B. The co-variances drawn in model B are strategic planning; financial planning,
strategic planning; employee development, strategic planning; marketing strategy, financial
planning; employee development, financial planning; marketing strategy, employee
development; marketing strategy. The paths drawn in the model B are shown in figure 4.10.
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Figure 4.10 Reliability of IT competency with other variables.
LL UL
Strategic planning .364 .078 .210 .518 .000
Employee
.269 .066 .138 .399 .000
development
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A multiple regression was used to predict business performance from strategic planning,
financial planning and resource, employee development, marketing strategy. These variables
statistically significantly predicted IT competency, F(4, 400) = 144.98, p < .0005, R2 = .592.
All four variables added statistically significantly to the prediction, p < .05. Following figure
show regression of business performance:
31
Table 4.12 Goodness of Fit Indices for Strategic Planning, Financial Planning, Employee
Development, Marketing Strategy, IT Competency & Business Performance (N=405).
Table 4.6 indicate that the relationship between strategic planning, financial planning and
resource, employee development, marketing strategy and business performance was mediated
by IT competency as shown from the above table the insignificant value of chi-square and
various fit indices provide a comprehensive indication of excellent fit of the data with the
tested model B. The co-variances drawn in model B are strategic planning; financial planning,
strategic planning; employee development, strategic planning; marketing strategy, financial
planning; employee development, financial planning; marketing strategy, employee
development; marketing strategy. The paths drawn in the model B are shown in figure 4.12.
Empirical Results from a Complex Multivariate Model Mediating the Effect of Mindfulness
between Maladaptive Perfectionism and Psychological Distress
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Figure 12. Empirical Results before adding covariance.
Empirical Results from a Complex Multivariate Model Mediating the Effect of Mindfulness
between Maladaptive Perfectionism and Psychological Distress.
33
Table 4.13 Direct, indirect, and total effects from Structural Equation Modeling for Strategic
Planning, Financial Planning and Resource, Employee Development, Marketing Strategy, IT
Competency and Business Performance. (N=405).
Furthermore, the paths were analyzed through direct, indirect, and total effects. Strategic
Planning positively predicted business performance. Financial Planning, Employee
Development, Marketing strategy positively predicted IT Competence. A direct relationship
was found between Strategic Planning, Financial Planning, and business performance while
an indirect effect was found between Strategic Planning, Financial Planning, Employee
Development, Marketing strategy and business performance which showed that mediation has
an effect between independent variables and dependent variables. IT competence in general
mediated between Strategic Planning, Financial Planning, Employee Development,
Marketing strategy and business performance to assess mediation effect of IT competence,
“joint significance test” was used (MacKinnon et al., 2002; Fritz & MacKinnon, 2007).
According to the method used, IT competence was found to mediate the relationship between
Strategic Planning, Financial Planning, Employee Development, Marketing strategy and
business performance.
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Table 4.14 Dependent Variable: 34. IT competency enhances current market intelligence
information gathering in my organization
Coefficientsa
Unstandardized Standardized
Coefficients Coefficients
35
H6. There is a positive relationship between financial planning & resource and business
performance. The financial planning & resource and business performance is positively
correlated that conclude the hypothesis is true which evidence that shows there is a positive
relationship between financial planning & resource and business performance.
H7. There is a positive relationship between employee development and business
performance. The employee development and business performance are positively correlated
that conclude the hypothesis is true which have evidence that shows there is a positive
relationship between employee development and business performance.
H8. There is a positive relationship between marketing strategy and business performance.
The marketing strategy and business performance is positively correlated that conclude the
hypothesis is true which have evidence that shows there is a positive relationship between
marketing strategy and business performance.
H9. There is a positive relationship between IT competency and business performance. IT
competency and business performance is positively correlated that conclude the hypothesis is
true which have evidence that shows there is a positive relationship between IT competency
and business performance.
H10. IT competency will significantly mediate the relationship between strategic planning
and business performance. Based on the analysis in chapter four, there is strong evidence that
IT competency will significantly mediate the relationship between strategic planning and
business performance
H11. IT competency will significantly mediate the relationship between financial planning &
resource and business performance.
H12. IT competency will significantly mediate the relationship between employee
development and business performance.
H13. IT competency will significantly mediate the relationship between marketing strategy
and business performance
The P-value of first mediate is greater than 0.05 which cannot accept the null hypothesis that
concludes IT competency will not-significantly mediate the relationship between financial
planning & resource and business performance. The 2nd mediate the P-value is less than 0.05
which concludes IT competency will significantly mediate the relationship between employee
development and business performance. The 3rd mediate value also less than alpha level 0.05
which concludes IT competency will significantly mediate the relationship between
marketing strategy and business performance.
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In this diagram the covariances have been replaced by correlations. The correlation between
the variable’s indicator and the measure in the same value shown in the SPSS Correlations
table above. Standardized regression coefficients now link the predictors to the dependent
variable, and the R2 value for the dependent variable appears above its rectangle on the
diagram. The standardized regression weights represent the amount of change in the
dependent variable that is attributable to a single standard deviation unit’s worth of change in
the predictor variable. These values are same that are include in regression table 4.14.
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The graph shows the normality for data. The above graph shows that there are no outliers,
therefore it can be concluded the data is normally distributed.
The study found a stronger correlation between business managers support and the sub-
dimension of information technology success referred to as information security. It seems that
the management support aids the human element in the information technology' success process
by providing the necessary motivational, logistical, training, and financial support to the team
who is involved in implementing information technology as a tool. For instance, the
management in organizations can update the necessary technology, provide advanced training in
information security, increase compliance with information security policies and map out the
evaluation process for information technology implementation.
This section addresses the study results through a discussion of research hypothesis acceptance
or rejection and how the research questions were handled. In this research correlation and
mediation analyse the research hypothesis. It runs the correlation analysis the correlation
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hypothesis that all hypotheses are true because there is a positive correlation between the
variables based on the findings. The correlation shows between given variables. The correlation
value is negative in gender pairs it means gender is negatively correlated with other variables.
The remaining all pair values are positive means remaining all pairs are positively correlated
with each other. Mostly there is a moderate correlation between all pairs. The moderation
analysis in mediation analysis concludes the P-value of the first mediate is greater than 0.05 that
cannot accept the null hypothesis which concludes that IT competency will non-significantly
mediate the relationship between financial planning & resource and business performance. The
2nd mediate the P-value is less than 0.05 conclude that IT competency will significantly mediate
the relationship between employee development and business performance. The 3 rd mediate
value also less than alpha level 0.05 conclude that IT competency will significantly mediate the
relationship between marketing strategy and business performance.
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