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Comments: go through the chapter, you can see other comments
1). Population and sampling - You must determine whether you are doing a non-probability sampling. The analysis
should be based on non-probability sampling.
2). Presentation of findings - The headings in chapter 4 should be based on the analysis or techniques that you have
used to run your data analysis. For example, Demographic analysis, Mean, SD, Skewness, and Kurtosis analysis,
Correlational analysis, etc. Text should precede its table or figure.
3). Normality tests - Every variable must be tested of their normality. This includes the normality test (histogram,
bell-shaped curve), linearity test, homoscedasticity test, and outlier test.
4). Demographic analysis - If you are doing stratified random sampling, demographic analysis should be based on
the groups of people. Next, under education, the doctorate level, should have DBA only.
5). Mean - Should be based on the variable not on items of variable (delete them all). This is done by adding all the
items together and divide it with the total no. of items.
6). SEM techniques - Do not mix between VB SEM (SmartPLS) and CB SEM (AMOS). If your data is not normal,
use SmartPLS. However, if the data is normal, use AMOS.
7). Correlation analysis - Do not have to correlate between demographic variables
8). Reliability analysis - Do not present it in the form of graph. Table is sufficient.
9). Multiple regression analysis - What software are you using to run MRA? This should be under structural model
analysis if you are doing SEM. However, the measurement model must be assessed first before analysing the
structural model.
10). Confirmatory Factor Analysis (CFA) - The measurement model should be run using CFA including the
assessment of the fit indices, plus reliability and validity.
11). Table for summary of findings - You should have a table summarizing your findings regarding your hypothesis
(whether they are supported or not supported).
12). Discussion of findings -Should be based on each of your results of hypothesis. If it is significant, support it
further withanother previous research. If it is not significant, justify it.
13). Implications - Should be divided into 3 sections: Implications for theory, implications for practice, and
implications for future research
16). Appendix - Should also include the normality tests results, etc.

1
 CHAPTER FOUR
ANALYSIS AND FINDINGS

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.

4.2 Research Analysis

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.

Demographic Analysis.

Below table found out the frequency and percentages of categorized demographic variables.

Job Position

Table 4.1 shows that in job position manager 328 (81%) in number and businessman are 77

(19%). Figure 4.1 shows the positioning of managers and businessperson.

Table 4.1 Job Position

2
 S.NO Position Frequency Percentage

1 Managers 328 81.0%

2 Businessman 77 19.0%

Total 405 100%

Figure 4.1 Pie chart showing Frequencies of Job Position (N = 405).

Respondent Gender
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%). Table 4.2 and figure 4.2 shows the composition of respondent gender.

Table 4.2 Gender

S.NO Gender Frequency Percentage
1 Male 264 65.2%
2 Female 141 34.8%
Total 405 100%

3
 Figure 4.2 Pie chart showing Frequencies of Gender (N = 405).

Respondent Education
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%).

Table 4.3 and figure 4.3 shows the composition of respondent education.

Table 4.3 Education

S.NO Education Frequency Percentage
1 Degree level 72 17.8%
2 Master’s level 306 75.6%
3 DBA 27 6.7%
Total 405 100%

4
 Figure 4.3 Pie chart showing Frequencies of Education (N = 405).

Respondent Experience

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%). Table 4.4 and figure 4.4 shows the

composition of respondent business experience.

Table 4.4 Business Experience

S.NO Business Experience Frequency Percentage
1 1-5 years 58 14.3%
2 6-10 years 175 43.2%
3 11-15 years 108 26.7%
4 16-20 years 56 13.8%
5 Over 20 years 8 2.0%
Total 405 100%

5
 Figure 4.4 Pie chart showing Frequencies of Business Experience (N = 405).

Respondent Level of Income

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 5000-10000, 11000-15000, 16000-20000 and over 21000

respectively. Table 4.5 and figure 4.5 shows the composition of respondent level of income.

Table 4.5 Income

S.NO Income Frequency Percentage
1 5000-100000 101 24.9%
2 11000-15000 230 56.8%
3 16000-20000 63 15.6%
4 Over 21000 11 2.7%
Total 405 100%

6
 Figure 4.5 Pie chart showing Frequencies of Income (N = 405).

Total Work Experience

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%). Table 4.6 and figure 4.6 shows

the composition of respondent total work experience.

Table 4.6 Total Work Experience

S.NO Total Work Experience Frequency Percentage
1 1-5 years 29 7.2%
2 6-10 year 117 28.9%
3 11-15 years 211 52.1%
4 16-20 years 40 9.9%
5 Over 21 years 8 2.0%

7
 Total 405 100%

Figure 4.6 Pie chart showing Frequencies of Total Experience (N = 405).

Organization Age
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%). Table 4.7 and figure 4.7 shows different

levels of organizational age.

Table 4.7 Age of organization

S.NO Age of organization Frequency Percentage
1 10 years 33 8.1%
2 15 years 191 47.2%
3 20 years 160 39.5%
4 25 years 21 5.2%
Total 405 100%

8
 Figure 4.7 Pie chart showing Frequencies of Organization Age (N = 405).

Number of Employees

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%). Table 4.8 and figure 4.8 shows the composition of number

of employees.

Table 4.8 Number of Employees

S.NO Number of Employees Frequency Percentage
1 1-20 20 4.9%
2 21-40 68 16.8%
3 41-60 184 45.4%
4 61-80 113 27.9%
Over 100 20 4.9%
Total 405 100%

9
 Figure 4.8 Pie chart showing Frequencies of Number of Employees (N = 405).

Employees Working from Home

Employees working from home are 203 (50.1%) and those working from office are 202 (49.9%).

Table 4.9 and figure 4.9 shows respondents status of work.

Table 4.9 Current work status

S.NO Current work status Frequency Percentage
1 From home 203 50.1%
2 From office 202 49.9%
Total 405 100%

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 Figure 4.9 Pie chart showing Frequencies of Current Work Status (N = 405).

To evaluate the normality of the present data, variance, skewness, and kurtosis have been
computed.

Normality and Suitability of Data

To evaluate the normality of the present data, descriptive statistics have been computed and
presented in Table 4.10. In descriptive statistics, mean values, minimum and maximum values,
standard deviation values, and skewness values for each of six variables of this study have been
calculated. It is found that mean value of each of strategic planning, financial planning and
resource, employee development, marketing strategy, information technology competency, and
business performance is ranging between 3 and 4, and thus falling in the normal data range.
Furthermore, no minimum value of these variables is <1 and no maximum value of these
variables >5 so, it shows that there exists no extreme value in the present data falling beyond the
range. The acceptable values of standard deviation for all variables are also confirming that there
is not too much variation in the data. Hence, the data seems to be adequate for analysis.
Furthermore, Skewness values for each of all variables of this study have been calculated. It is
found that value of all variables is in acceptable ranging and thus falling in the normal data
range. Hence, the normality of the data is confirmed.

Table 4.10 Descriptive Statistic and Normality

Variables Minimum Maximum Mean S. D Skewness Kurtosis

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Strategic Planning 3 5 4.87 .311 -2.871 9.047
Financial Planning and Resource 3 5 4.86 .339 -2.793 8.161
Employee Development 2 5 4.88 .318 -3.889 21.634
Marketing Strategy 3 5 4.86 .349 -3.262 12.283
Information Technology Competency 3 5 4.88 .322 -3.126 10.867
Business Performance 3 5 4.84 .327 -2.197 4.927

Regression Analysis and Discussions

This chapter outlines the result obtained from the previous phase of data collection and discusses

in detail statistical tests, analyses, and the result obtained. The statistical software used in this

study was SPSS V 25 (Statistical package for social science) and AMOS V 25 (Analysis of

Moment Structures. It compromises the following tests, such as reliability test, validity test,

descriptive statics and correlation, regression analysis. After conducting the tests and analysis,

the results along with discussions were presented.

Construct Validity and Reliability

We employed structural equation modelling (SEM) using AMOS to test the reliability and

validity of the hypothesis by following the guidelines of Anderson and Gerbing (1988). First, the

internal reliability reported in Appendix was assessed by using Cronbach’s alpha, ranging

from .919 to .938 , all above the recommended threshold of 0.7 (Hair et al., 2010), exhibiting

satisfactory construct reliability. In statics, the internal consistency of an item measured with

Cronbach’s value. This is generally significant in estimating the psychometric reliability of the

samples. That measure how closely related a set of items as a group. In prior researches, 0.6 to be

an adequate value coefficient for reliability test. This result compared with the aforementioned

variables, i.e., challenge stressors, hindrance stressors, job autonomy, intrinsic motivation, job

12
performance; their Cronbach’s alpha is greater than 0.6. Therefore, the Cronbach value of each

variable is high and passed the standard.

Table 4.11 Reliability Analysis

Variables k α
Strategic Planning 6 .921
Financial Planning and Resource 6 .938
Employee Development 6 .919
Marketing Strategy 6 .941
Information Technology (IT) Competency 6 .928
Business Performance 7 .924
Note. α = Cronbach’s Alpha, k = No. of items

Second, we conducted a confirmatory factor analysis (CFA) to measure the validity of the latent

scales and are reported in Table 4.12. The CFA results show that the comparative fit index (CFI)

of 0.796 and an incremental fit index (IFI) of 0.796 is also good fit since both are above the 0.9

cutoffs (Hu & Bentler, 1999), which indicates a better fit of the model. The value of the degree

of freedom –χ2/df is 1.095, below the advised threshold of 3, indicating that the model has a

satisfactory goodness-of-fit. Good model fit is also suggested by a root mean square

approximation (RMSEA) of 0.019 below the strict 0.059, and standardized root mean square

(SRMR) of 0.097 below the .05 cutoff (Diamantopoulos & Siguaw, 2000). Finally, the Tucker–

Lewis index (TLI) of 0.993, normalized fit index (NFI) of 0.946, and goodness of fit index (GFI)

of 0.960 are well above the suggested threshold of 0.90, hence exhibiting satisfactory model fit

(Hair et al., 1998; McDonald & Ho, 2002). Overall, it can be summarized that the model has an

equitably good model fit.

Table 4.12 Model Fit Indices.

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 Fit Index Recommended Score Observed Score Interpretation

–χ2/df ≥3 1.095 Excellent

GFI ≥ 0.80 0.960 Excellent

IFI ≥0.90 0.796 Excellent

TLI ≥ 0.90 0.993 Excellent

CFI ≥ 0.90 0.796 Excellent

RMSEA ≤ 0.08 0.019 Excellent

SRMR ≤ 0.05 0.097 Excellent

Furthermore, Individual item reliability is measured by investigating the loading of measures

with their respective constructs. As shown in the Table 4.13, all items with individual factor
loadings ranging from .918 to 0.687 are included in the final model, demonstrating high
convergent validity. Items with loadings lower than 0.70 of threshold are reported to avoid the
possible loss of information resulting from their deletion (Comrey & Lee, 1992). For
confirmation of convergent validity of each latent construct, average variance explained (AVE)
is measured by taking the square root of the average variance extracted (AVE) with each latent
construct and the value of AVE for each latent construct was found well above the recommended
threshold of 0.50 (shown with the bold and off-diagonal values in Table 4.15) (Fornell &
Larcker, 1981; Hair et al., 1998). In addition, the composite reliability (CR) of each construct is
above 0.70 (Hair et al., 2010), demonstrating high convergent validity. These results, therefore,
confirm that the reliability and validity of our measures are adequate (Anderson & Kilduff,
2009).

Table 4.13 Variable measurement

Strategic planning (AVE=0.719, CR=0.938 ) Factor loading
1 My organization uses strategic planning as a tool to determine the direction of the .734
company
2 My organization conducts strategic planning by getting all relevant information from .806
internal and external sources
3 My organization reviews its strategic planning once a year to ensure its relevancy .898
4 My organization uses strategic planning to improves my business processes and .894
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 ultimately reduces costs of operation
5 My organization involves all important stakeholders when conducting strategic .891
planning
6 My organization uses strategic planning as a tool to evaluate the organizational .850
performance and success.
Financial planning (AVE=0.772, CR= 0.953)
1 The financial planning &amp; resource help my organization to make the right .834
decision and use the available resources effectively
2 I use financial planning &amp; resource in my organization to enhance decision .836
making and managing financial management
3 I use financial planning &amp; resource in my organization to enhance profitability .898
and production
4 Financial planning &amp; resource help my organization in terms of productions. .910
productivity, profitability, social performance, and capital budgeting
5 I use financial planning &amp; resource in my organization for budgeting, accounting, .912
monitoring and analysis of the funding
6 I use financial planning &amp; resource in my organization for time management, .877
organizing and monitoring the performance.
Employee Development ( AVE=0.716, CR=0.938)
1 Development and training employee help my organization to enhance the performance .756
and production
2 Employee development and training will help my organization to avoid waste of time .829
and perform better
3 Investing in employee development helps my organization for long term plans and .905
sustainable progress of employee’s growth and development
4 Employee development helps my organization to increase customer satisfaction and .886
quality of services
5 Employee development helps my organization to increase individual and company .876
performances
6 Employee development helps my organization to enhance the organization .814
performance and productivity.

15
 Marketing Strategy (AVE= 0.774, CR= 0.953)
1 Marketing strategy helps my organization in the market area, the proper allocation of .772
resources to enhance competitive advantage
2 Marketing strategy helps my organization in the development and establish, build, .873
defend and maintain a competitive advantage in global competition
3 Marketing strategy helps my organization to increase sales growth and profitability .906
4 Marketing strategy is important in my organization for coping with environmental .920
ambiguity and uncertainty in strategic marketing and competition
5 A marketing strategy provides an avenue for utilizing the resources in my organization .920
in order to achieve its set goals and objectives
6 Marketing strategy helps my organization in the market development and to set goals .879
and objectives.
IT (AVE= 0.738, CR= 0.944)
1 IT competency enhances current market intelligence information gathering in my .687
organization
2 IT competency helps my organization in the reduction of the overall workload of .863
employees and improved labor/employee relations
3 IT competency reduced operating costs in running the business and increased .897
productivity in business processes in my organization
4 IT competency helps my organization to link to local and global supply chains and .905
outsourcing opportunities
5 IT competency helps my organization to reduced cost of communication and .917
monitoring the performance of competitors
6 IT competency helps my organization to link to local and global market for better .863
market penetration.
Employee Satisfaction (AVE= 0.692 , CR=0.938)
1 Employee satisfaction is important to attain optimal business performance .856
2 The overall performance of an SME is an indicator of SME performance .767
3 Customer satisfaction is my key aim to achieve optimal SME performance .901
4 Innovative ability is required for SMEs to achieve product/service quality and .918
improved performance

16
 5 High performance in organization enhancing productions and sales which enables to .910
compete with other competitors in the global market
6 Most of the organizations investing in employee’s development and training to .892
enhance the business performance for profitability
7 Organizations investing in employee’s development to enhance the business .889
performance and increase the volumes.

Moreover, the varimax rotation method was applied Kaiser normalization for early solution
of factor analysis for deleting or removing uncorrelated items. Results of reliability test also
showed high level of internal consistency which indicates that common method variance is
unlikely to be serious (Podsakoff et al. 2003). The items with less than 0.40–factor loading were
omitted, criteria suggested by Hu and Bentler (1999). However, factor loadings of all items are
ranging between 0.742 and 0.934 that meets the suggested criteria. Appendix Table 4.14 is
demonstrating the results of CFA.

Table 4.14 Factors Loading and Variance Explained*

Information
Strategic Financial Employee Market Business
Indicator Technology
Planning Planning Development Strategy Performance
Competency
0.742 0.633 0.607 0.63 0.578 0.598
0.809 0.629 0.72 0.613 0.601 0.557
Strategic 0.897 0.729 0.629 0.755 0.649 0.604
Planning 0.888 0.707 0.624 0.711 0.594 0.594
0.888 0.7 0.595 0.714 0.653 0.605
0.851 0.76 0.605 0.702 0.639 0.646
0.714 0.833 0.553 0.669 0.632 0.521
0.622 0.832 0.561 0.623 0.585 0.543
Financial 0.742 0.901 0.716 0.717 0.73 0.658
Planning 0.738 0.912 0.73 0.715 0.683 0.647
0.747 0.911 0.706 0.69 0.676 0.644
0.747 0.877 0.716 0.703 0.661 0.654
0.59 0.602 0.764 0.638 0.618 0.459
0.632 0.625 0.829 0.647 0.6 0.535
Employee 0.667 0.682 0.902 0.651 0.646 0.64
Development 0.608 0.624 0.882 0.613 0.626 0.581
0.642 0.661 0.877 0.698 0.652 0.592
0.626 0.655 0.813 0.689 0.613 0.595

17
 0.625 0.606 0.579 0.762 0.56 0.441
0.695 0.668 0.652 0.865 0.6 0.532
Market 0.717 0.68 0.724 0.906 0.647 0.627
Strategy 0.765 0.717 0.69 0.922 0.701 0.617
0.767 0.759 0.739 0.926 0.743 0.659
0.712 0.688 0.698 0.885 0.741 0.587
0.644 0.65 0.577 0.645 0.84 0.505
Information 0.688 0.672 0.685 0.682 0.909 0.613
Technology 0.678 0.715 0.664 0.692 0.906 0.617
Competency 0.681 0.693 0.724 0.715 0.934 0.62
0.588 0.653 0.665 0.678 0.892 0.642
0.702 0.63 0.635 0.673 0.679 0.782
0.642 0.644 0.605 0.602 0.552 0.904
Business 0.603 0.612 0.609 0.559 0.537 0.915
Performance 0.605 0.588 0.586 0.54 0.609 0.911
0.564 0.598 0.509 0.513 0.554 0.889
0.606 0.607 0.588 0.581 0.583 0.895
Extraction Method: Principal Component Analysis
Rotation Method: Varimax with Kaiser Normalization
a. Rotation converged in 6 iterations

Variance Inflation Factors

The presence of multicollinearity in the data was also evaluated with several additional
diagnostic tests and reported in Table 4.15. The variance inflation factors associated with each
regression coefficient were not much larger than 1 and thus were well below the recommended
cutoff of 10 (Neter, Wasserman, & Kutner, 1990), suggesting the absence of multicollinearity
problems. Additionally all correlations are below the threshold of 0.65, suggesting that
multicollinearity problem is not a concern here (Tabachnick and Fidell, 1996).
Table 4.15 VIF dependent variable Information Technology (IT) Competency
Variable VIF 1/VIF
Strategic Planning 4.02 0.248
Financial Planning and Resource 3.75 0.266
Employee Development 3.00 0.333
Marketing Strategy 3.80 0.263
Mean VIF 3.64

Correlational analysis
As shown in Table 4.16, the means and standard deviation of strategic planning, financial
planning and resource, employee development, marketing strategy, IT competency and business
18
performance were 4.87 (.311), 4.86 (.339), 4.88 (.318), 4.86 (.349), 4.88 (.322), 4.84 (3.27).
Actual and potential ranges of scales were also calculated. Potential ranges were calculated
manually while actually, ranges were systematic as mentioned in the above table. In the 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.
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, and 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. A review of correlations among independent variables

19
suggests that multicollinearity is not a major concern, as confirmed by the variance of inflation
factor (VIF). VIF value does not exceed 10.
Table 4.16 Correlations Matrix
Variables 1 2 3 4 5 6
1 Strategic Planning 0.847
2 Financial Planning and Resource 0.818*** 0.878
3 Employee Development 0.742*** 0.759*** 0.846
4 Marketing Strategy 0.812*** 0.781*** 0.773*** 0.879
5 Information Technology (IT) 0.755*** 0.766*** 0.743*** 0.768*** 0.859
6 Business Performance 0.721*** 0.717*** 0.685*** 0.673*** 0.690*** 0.831

Note. *=p<.05, **=p<.01, ***p<.001

Table 4.16 Multiple Regression Analysis: Effect of Variables on IT competency (N=405)

Effect Estimate SE 95% CI p
LL UL
Strategic planning .179 .058 .065 .293 .002
Financial planning .243 .051 .141 .344 .000
Employee
.225 .049 .129 .322 .000
development
Marketing strategy .236 .050 .138 .335 .000
Note. CI = Confidence Interval; LL = Lower limit; UL = Upper limit

Main effect testing

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:

20
 Figure 4.10 Reliability of IT competency with other variables.
Results in Table 4.17 model 1 show that there is a relationship between strategic planning and
information technology competency is positive because β=.781, p<0.001, thus Hypothesis 1 has
been accepted. Model 2 show that the association between financial planning and resource and
information technology competency is positive and significant β=.728, p<0. 001, thus
Hypothesis 2 has been supported. Model 3 show that there is a positive relationship between
employee development and information technology competency is positive and significant
β=.752, p<0. 001, thus Hypothesis 3 has been accepted. Model 4 show that there is a positive
relationship between marketing strategy and information technology competency is positive and
significant β=.709, p<0. 001, thus Hypothesis 4 has been accepted. Model 5 is a full model.

Table 4.17 Regression analysis dependent variable Information Technology (IT) Competency
Variable Model 1 Model 2 Model 3 Model 4 Model5
Strategic Planning .781*** .179***
(.034) (.058)
Financial Planning and Resource .728*** .243***
(.03) (.051)
Employee Development .752*** .225***
(.034) (.049)
Marketing Strategy .709*** .236***
(.029) (.05)

21
 Constant 1.069*** 1.337*** 1.207*** 1.426*** .575***
(.165) (.148) (.165) (.144) (.15)
Observations 405 405 405 405 405
R2 .57 .586 .551 .59 .688
Adjusted R2 0.5687 0.585 0.550 0.588 0.684
F-stat / Sig 533.72*** 571.03*** 495.37*** 579.09*** 220.26***
Standard errors are in parentheses
*** p<.01, ** p<.05, * p<.1

Mediating effect testing

Results in Table 4.18 model 1 show that there is a relationship between strategic planning and
business performance is positive because (β=.758, p<0.001), thus Hypothesis 5 has been
accepted. Model 2 shows that the association between financial planning and resource and
business performance is positive and significant (β=.692, p<0.001), thus Hypothesis 6 has been
supported. Model 3 shows that there is a positive relationship between employee development
and business performance is positive and significant (β=.704, p<0.001), thus Hypothesis 7 has
been accepted. Model 4 shows that there is a positive relationship between marketing strategy
and business performance is positive and significant (β=.631, p<0.001), thus Hypothesis 8 has
been accepted. Model 5 shows that there is a positive relationship between information
technology competency and business performance is positive and significant (β=.700, p<0.001),
thus Hypothesis 9 has been accepted. Results in Table 4.8 model 6 show that there is a
relationship between strategic planning and business performance is mediated by information
technology competency (β=.343, p<0.001), thus Hypothesis 10 has been accepted. Model 7
shows that the association between financial planning and resource and business performance is
positive and significant (β=.345, p<0. 001), thus Hypothesis 11 has been supported. Model 8
shows that there is a positive relationship between employee development and business
performance is positive and significant (β=.41, p<0. 001), thus Hypothesis 12 has been accepted.
Model 4 shows that there is a positive relationship between marketing strategy and business
performance is mediated by information technology competency (β=.327, p<0.001), thus
Hypothesis 13 has been accepted.

22
 Table 4.18 Regression analysis dependent variable Business Performance (mediation effect)
Variable Model 1 Model Model 3 Model 4 Model 5 Model 6 Model 7 Model 8 Mode 9
2
Strategic .758*** .49***
Planning (.036) (.052)
Financial .692** .441***
Planning and * (.05)
Resource (.033)
Employee .704*** .396***
Development (.037) (.052)
Marketing .631*** .327***
Strategy (.035) (.050)
Information .7*** .343*** .345*** .41*** .428***
Technology (.037) (.051) (.052) (.051) (.054)
(IT)
Competency
Constant 1.145*** 1.473* 1.402*** 1.77*** 1.424*** .779*** 1.012*** .907*** 1.159**
(.177) ** (.182) (.168) (.179) (.176) (.17) (.18) *
(.163) (.175)
Observations 405 405 405 405 405 405 405 405 405
R 2
.52 .514 .469 .453 .476 .569 .562 .542 .526
Adjusted R 2
0.519 0.513 0.468 0.451 0.474 0.567 0.560 0.540 .523
F-stat / Sig 437.18*** 426.77 356.34*** 333.33*** 365.75*** 265.78*** 258.05*** 238.22*** .226***

4.20 VIF dependent variable Business performance

Variable VIF 1/VIF
Strategic Planning 4.11 0.2431
Financial Planning and Resource 3.96 0.252
Employee Development 3.16 0.316
Marketing Strategy 4.01 0.249
Information Technology (IT) Competency 3.20 0.312
Mean VIF 3.69
VIF value does not exceed 10 in any model

Table 4.21 Summary of findings

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 Hypothesis Results
H1 There is a positive relationship between strategic planning and IT Supported
competency.
H2 There is a positive relationship between financial planning & resource and IT Supported
competency
H3 There is a positive relationship between employee development and IT Supported
competency.
H4 There is a positive relationship between marketing strategy and IT Supported
competency.
H5 There is a positive relationship between strategic planning and business Supported
performance.
H6 There is a positive relationship between financial planning & resource and Supported
business performance.
H7 There is a positive relationship between employee development and business Supported
performance.
H8 There is a positive relationship between marketing strategy and business Supported
performance.
H9 There is a positive relationship between IT competency and business Supported
performance.
H1 IT competency will significantly mediate the relationship between strategic Supported
0 planning and business performance.
H1 IT competency will significantly mediate the relationship between financial Supported
1 planning & resource and business performance.
H1 IT competency will significantly mediate the relationship between employee Supported
2 development and business performance.
H1 IT competency will significantly mediate the relationship between marketing Supported
3 strategy and business performance
4.10 Summary of the Chapter
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

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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
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 3rd mediate
value also less than alpha level 0.05 conclude that IT competency will significantly mediate the
relationship between marketing strategy and business performance.
The regression analysis also in findings of regression is the Coefficients provides with the
necessary information to predict Level of Income from my organization reviews its strategic
planning once a year to ensure its relevancy, my organization uses strategic planning as a tool to
determine the direction of the company, my organization conducts strategic planning by getting
all relevant information from internal and external sources as well as determine whether my
organization reviews its strategic planning once a year to ensure its relevancy. My organization
uses strategic planning as a tool to determine the direction of the company and My organization
conducts strategic planning by getting all relevant information from internal and external sources
that contributes statistically significantly to the model. Furthermore, the values in the "B" column
under the "Unstandardized Coefficients" column, show the reliability analysis. However,
Cronbach's alpha value is 0.801, which indicates a high level of internal consistency for our scale

25
with this specific sample. Furthermore, this research also adopted several objectives to identify
factors that influence organizations to enhance the level of productivity, sales volume, and
organizational performance.

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