An Investigation on the Relationship Between Strategic Information Systems and Business Strategies in Malaysian Organizations

This paper investigates the nature of business strategies and strategic information system pursued by Malaysian firms and to examine the relationship between the business strategies and the strategic information system used by the firms. The study were analysed using SPSS Win ReI. 6.0 (Statistical Package for Social Science for MS Windows Release 6.0). The empirical results arising from survey research conducted in Malaysia showed that most businesses appear to be competing through the cost leadership strategy. It was found that there is a positive relationship between business strategies and the strategic information system in Malaysian firms. For those firms who used the accounting information system and financial information system, they perceived that cost leadership strategy is highly important followed by differentiation strategy and focus strategy. For those who practised the management information system and general information system in their organizations, they perceived that the cost leadership strategy is highly important as compared to differentiation and focus strategy. However, the finding shows that those firms that used the marketing information system in their organizations· would not differentiate the business strategies that they would adopt in their organizations. Recommendations for further research are also made, which focuses on the potential bias introduced into this type of research where only Klang Valley managers were surveyed. This study has looked at only one model of business strategy and there is a need to extend the analysis at other models of business strategy.

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