This study demonstrates that alignment between AIS requirement and AIS capacity is clearly linked to organisational. performance. The findings imply that either high performing firms are good at aligning IT with their information needs, or that AIS alignment influences organisational performance. The latter possibility, that is, AIS alignment influences performance, suggests that SMEs can benefit from AIS alignment. Therefore, SMEs need to spent more time on analysing and scrutinising environmental changes to identify their accounting information requirement, and then give high priority to IT projects that could support their information needs. For example, growing firms operating in a dynamic and competitive environment would require more broad scope and strategic accounting information, and therefore more sophisticated IT to generate the information. On the other hand, mature firms operating in a stable environment would require less sophisticated IT, as they need less information. Misalignment between information needs and information processing capacity would only hamper performance.
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