The impact of information technology adoption on internal controls adaptation

Ming-Hsien Yang and Tian-Lih Koo

International Journal of Business and Systems Research, 2014, vol. 8, issue 1, 14-33

Abstract: The adoption of information technology/information systems (IT/IS) makes it possible to automate the tasks of approving, recording, processing and reporting of transactions. To ensure operational performance, financial information reliability and legal compliance, internal control mechanisms should be gradually constructed into the IT systems, according to the computerisation of the organisation, in order to continue to exercise the controls. However, the adoption of new IT systems often results in internal control deficiencies (ICD) and operational risks due to differences in the perceptual frames of different groups, and hence, a failure in internal controls adaptation. Therefore, this study referred to technological frames of reference (TFR) in order to propose an internal control adaptation model (ICAM) for IT systems adoption. This study explored a case of new IT system adoption in a company and gathered the longitudinal data in order to explain the process of internal control adaptation and the improvements of ICDs, as well as validate the propositions developed by this study. The results can serve as a reference in the construction of internal control mechanisms for new IT systems adoption and as a theoretic foundation of further studies.

Keywords: information technology; IT systems; IT adoption; technological frames of reference; TFR; internal control mechanisms; computerised internal controls; internal control adaptation; internal control deficiency; information systems; operational risks. (search for similar items in EconPapers)
Date: 2014
References: Add references at CitEc
Citations:

Downloads: (external link)
http://www.inderscience.com/link.php?id=58006 (text/html)
Access to full text is restricted to subscribers.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ids:ijbsre:v:8:y:2014:i:1:p:14-33

Access Statistics for this article

More articles in International Journal of Business and Systems Research from Inderscience Enterprises Ltd
Bibliographic data for series maintained by Sarah Parker ().