The effects of accounting information system quality on financial performance

Abstract

Decision-making by management is supported by quality accounting information, which is produced by a quality accounting the current research is to determine empirically the impact of organizational framework on the accounting information systems quality and their effects on the financial status. In this study, we use structural equation modeling with the PLS approach to analyze 72 respondents who come from star hotels in the city of Bandung, West Java, Indonesia. The results show that the overall organizational framework has a dominant impact on the application of quality accounting information systems and directly and indirectly supports the production of quality accounting information. In addition, a quality accounting information system has a strong influence in producing quality accounting information.

Accounting Information System and Organizational Effectiveness: Evidence From SMEs Manufacturing Companies

“…The findings indicate a significant positive association of system quality towards organizational effectiveness in the SMEs (manufacturing companies). This might be because the accounting information system is well designed and implemented, thus, leading to relevant, accurate, complete and timely information (Anggraeni & Winarningsih, 2021). The results are also consistent with Gorla et al (2010), that found significant positive influence of system quality towards acceptance of the system, leading to a positive impact on organizational effectiveness.…”

“…Thus, the acceptance leads to an increase in the efficiency and effectiveness of organizational performance. Anggraeni and Winarningsih (2021) stated that quality of a well-designed accounting information system can produce quality accounting information. A good quality system that is better integrated, accessible, and flexible, tends to produce relevant, accurate, complete, and timely information.…”