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In the SME context, IT sophistication is recognised as a multi-dimensional variable, where different researchers
measure the item differently. Raymond & Pare (1992) developed the most comprehensive measure of IT sophistication, which includes all aspects related to technological, informational, functional, and managerial sophistication. They defined IT sophistication as " a construct which refers to the nature, complexity and interdependence of IT usage and management in an organisation" (Raymond & Pare 1992, p.7). Technological sophistication reflects the number or diversity of IT used, while informational sophistication is characterised by the nature of its application portfolio. Functional sophistication relates to the structural aspects of the information systems function and the implementation process, while managerial sophistication refers to the mechanisms employed to plan, control and evaluate present and future applications. This study adopted only two dimensions of IT sophistication (technological and informational sophistication) to represent IT sophistication. Functional and managerial sophistication are considered less relevant because most SMEs do not have separate IT functions and thus lack IT planning and control (Thong 2001). In addition, Hussin et al. (2002) examined the impact of three dimensions of IT sophistication on IT alignment. The study found a significant relationship between IT alignment and technological sophistication but not with functional and managerial sophistication.
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