The Impact of Accounting Information System Flexibility on Firm Performance with Dynamic Capabilities Approach

Document Type : Research Paper

Authors

1 Associate Professor., Faculty of Management & Accounting, Shahid Beheshti University, Tehran, Iran

2 Assistant Prof. in Accounting, University of Sistan & Baluchestan, Zahedan, Iran

3 Assistant Prof in Business Management, University of Shiraz, Shiraz, Iran

4 MSc. Student in Accounting, University of Sistan & Baluchestan, Zahedan, Iran

Abstract

In today’s competitive environment and changing business conditions, the survival and growth of organizations depend on their adaptability to business changes. In these circumstances, Accounting Information Systems (AIS) as the primary information system of most organizations, should be flexible in order to maintain the optimal performance and support management in decision-making, planning and controlling through providing useful information. In this study, based on the dynamic capabilities perspective (Teece, 2007), we examined the flexibility of AIS and evaluated its effects on firm’s performance. The results of interviewing CFOs and accounting professionals of 50 listed companies in Tehran stock exchange and then analyzing the data using structural equations modeling method, show that the flexible accounting information system has significant positive effects on firm financial performance by improving the accounting process performance. The findings of this study, in form of informative guidelines, emphasize the importance and necessity of accounting information system flexibility and its impacts on the organizational performance.

Keywords

References

Ambrosini, V. & Bowman, C. (2009). What are dynamic capabilities and are they a useful construct in strategic management? International journal of management reviews, 11(1), 29-49.‏
Anvary Rostami, A., Khosro Anjom, D., Rajabzadeh, A. & Shayan, A. (2011). Study of the Relationship between Information Systems’ Capabilities and Firms’ Performance Based on Resource Base Attitude Using Fuzzy AHP Techniques. Human Resource Management Research, 1(1),1-21. (in Persian)
Arabmazar, M., Arab, A. & Alipour, M. (2007). Examination of the Relationship between Management Information System and Accounting Information System. Hesabdar, 182, 32-39. (in Persian)
Arabmazar, M. & Nayebi, M. (2007). Information systems and technology: Evaluation the information system investment. Hesabdar, 191, 47-48.
(in Persian)
Barney, J. (1991). Firm resources and sustained competitive advantage. Journal of management, 17(1), 99-120.‏
Carr, N. G. (2003). IT doesn't matter. Educause Review, 38, 24-38.‏
Chin, W. W., Marcolin, B. L. & Newsted, P. R. (2003). A partial least squares latent variable modeling approach for measuring interaction effects: Results from a Monte Carlo simulation study and an electronic-mail emotion/adoption study. Information systems research, 14(2), 189-217.‏
Daneshmand, M. & Sanati, A. (2016). Accounting information system: Challenges in real-time reporting. Applied Studies in Management Science and Development, 1, 23-33. (in Persian)
Dastgir, M., Jamshidian, M. & Jadidi, A. (2003). Examination of the effects of accounting information system characteristics on managers’ decision-making improvement: Case of Bahman group. Quarterly Journal of The Iranian Accounting and Auditing Review, 10(4), 27-50. (in Persian)
Davari, A. & Rezazadeh, A. (2014). Structural equations modeling with PLS. Tehran: Jahad Daneshgahi. (in Persian)
Hair, J. F., Black, W. C., Babin, B. J., Anderson, R. E., & Tatham, R. L. (2006). Multivariate Data Analysis, 6th edition, New Jersey: Prentice Hall.
Hajli, M., Sims, J. M. & Ibragimov, V. (2015). Information technology (IT) productivity paradox in the 21st century. International Journal of Productivity and Performance Management, 64(4), 457-478.‏
Hemmatfar, M., Salehi, M., & Bayat, M. (2010). Competitive advantages and strategic information systems. International Journal of Business and Management, 5(7), 158-169.‏
Jacks, T., Palvia, P., Schilhavy, R. & Wang, L. (2011). A framework for the impact of IT on organizational performance. Business Process Management Journal, 17(5), 846-870.‏
Khajavi, Sh., Etemadi Jooriaby, M. (2010). Study of influencing factors in successful implementation of accounting information system (AIS) on listed companies of Tehran stock exchange (TSE). Financial Accounting Research, 2(2), 1-22. (in Persian)
Kumar, R. L. & Stylianou, A. C. (2014). A process model for analyzing and managing flexibility in information systems. European Journal of Information Systems, 23(2), 151-184.‏
Lee, J., Park, S. Y., Baek, I. & Lee, C. S. (2008). The impact of the brand management system on brand performance in B–B and B–C environments. Industrial marketing management, 37(7), 848-855.‏
Mancini, D., Vaassen, E. H. & Dameri, R. P. (2013). Trends in accounting information systems. In Accounting Information Systems for Decision Making (pp. 1-11). Springer Berlin Heidelberg.‏
Mohammadi, M., Khosravi Jam, M. A. & Makhsousi, A. (2015). The impact of technological readiness and flexibility of information technology on the effectiveness of IT. IT Management Studies, 2(6), 49-57. (in Persian)
Nanath, K., & Pillai, R. R. (2014). Information systems flexibility for green technologies. In organisational flexibility and competitiveness (pp. 181-195). Springer India.‏
Nazaripour, M. (2017). Effect of information systems on management accounting adaptability. Journal of Accounting Knowledge, 7(27), 135-158. (in Persian)
Nekooeezadeh, M., Hosseini, S. M., Ghareche, M., Hajikarimi, A. (2014). A model of dynamic capabilities influence on the firm's performance. Strategic Management Thought, 8(2), 67-98. (in Persian)
Pan, G., & Seow, P. S. (2016). Preparing accounting graduates for digital revolution: A critical review of information technology competencies and skills development. Journal of Education for Business, 91(3), 166-175.‏
Pavlou, P. A., & El Sawy, O. A. (2006). From IT leveraging competence to competitive advantage in turbulent environments: The case of new product development. Information Systems Research, 17(3): 198-227.‏
Prasad, A. & Green, P. (2015). Organizational competencies and dynamic accounting information system capability: Impact on AIS processes and firm performance. Journal of Information Systems, 29(3), 123-149.
Qaemi M. H., Kamyab, R. & Masoumi, J. (2012). Effect of alignment between AIS requirments and AIS capacity on performance of manufacturing companies in Tehran stock exchange. Audit Science, 12(46), 48-61. (in Persian)
Romney, M. B., & Steinbart, P. J. (2015). Accounting Information System. Boston: Pearson.
Sajady, H., Dastgir, M. & Hashem Nejad, H. (2008). Evaluation of the effectiveness of accounting information systems. International journal of information science and technology, 6(2), 49-59.‏
Silvius, A. J., De Waal, B. & Smit, J. (2009). Business and IT alignment; answers and remaining questions. Association for Information Systems (PACIS) 2009 Proceedings, 44.‏
Sohrabi, B., Rayisi Vanani, I. & Farzaneh, M. (2014). Evaluating the Implementation of Financial Module of Enterprise Resource Planning Systems: Assessing the Subsystems of Financial Module. Quarterly Journal of The Iranian Accounting and Auditing Review, 21(3), 271-292. (in Persian)
Teece, D. J. (2007). Explicating dynamic capabilities: The nature and microfoundations of (sustainable) enterprise performance. Strategic management journal, 28(13), 1319-1350.‏
Teece, D. J., Pisano, G. & Shuen, A. (1997). Dynamic capabilities and strategic management. Strategic management journal, 18(7), 509-533.
Accounting and Auditing Review
Volume 24, Issue 2
2017
Pages 221-242

Files

Share

How to cite

Statistics