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

Document Type : Research Paper


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


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.


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