Information Quality and Data Quality in Accounting Information System: Implications on the Organization Performance
DOI:
https://doi.org/10.61841/mppag764Keywords:
Data Quality, Information Quality, AIS, Organization PerformanceAbstract
In recent periods, the majority of organizations have recognized the significance of Accounting Information Systems (AIS) in their operational or financial activities towards higher performance. As such, this study investigates the relationship between information quality and data quality in AIS and its effects on organizational performance among commercial and Islamic banks in Jordan. The study adopts proportionate stratified random sampling among users of AIS within sixteen commercial and Islamic banks in Jordan. A total of 600 copies of questionnaires were distributed and self-administered, but only 250 copies among the returned questionnaires were valid, suggesting a valid response ratio of 41.1%. In order to estimate the model, this study applies the partial least squares (Smart PLS 3) approach for further hypothesis testing and data analysis. Findings show that information quality is an important factor that enhances organizational performance, while data quality is negative and insignificant. To become and remain competitive, commercial and Islamic banks need to implement a high-quality AIS, as it helps organizations to obtain better performance. Given the negative and significant coefficient of data quality, it implies that information quality is a strategic factor for an organization’s survival. As a way of recommendations, high priority and more emphasis should be placed on the continuous improvement of AIS among the banks, as that will enable them to keep pace with technological developments within the financial sector. The outcome of this approach will also reflect positively on the bank’s administrative functions, particularly in the areas of planning and decision-making.
Downloads
References
[1] Ahmad, N.A.B. (2015). The Relationship between Innovation and Information Technology on Organizational Performance. School of Business Management (SBM), University Utara Malaysia.
[2] Al-Hiyari, A., AL-Mashre, M.H.H., & Mat, N.K.N. (2013). Factors that Affect Accounting Information System Implementation and Accounting Information Quality: A Survey in University Utara Malaysia. American Journal of Economics, 3(1), 27-31.
[3] Ali, Bakar, R., & Omar, W.A.W. (2016). The Critical Success Factors of Accounting Information System (AIS) and Its Impact on Organizational Performance of Jordanian Commercial Banks. International Journal of Economics, Commerce and Management, United Kingdom, IV (4), 658-677.
[4] Ali, B., Omar, W.A.W., & Bakar, R. (2016). Accounting Information System (AIS) and Organizational Performance: Moderating Effect of Organizational Culture. International Journal of Economics, Commerce and Management, United Kingdom, IV(4), 138-158 .
[5] Ali, B. M., & Younes, B. (2013). The Impact of Information Systems on user Performance: An Exploratory
Study. Journal of Knowledge Management, Economics and Information Technology, 3(2)
[6] Alrayes, A.M. (2015). The Impact of System and Data Quality on Organizational Success in the Kingdom
of Bahrain. World Academy of Science, Engineering and Technology, International Journal of Social,
Behavioral, Educational, Economic, Business and Industrial Engineering, 9(5), 1554-1560 .
[7] AlZwyalif, I.M. (2012). Using Six Sigma Approach to Improve Accounting Information Systems
Performance. European Journal of Economics, Finance and Administrative Sciences (55)
[8] Azemi, N.A., Zaidi, H., & Hussin, N. (2017). Information Quality in Organization for Better Decision-Making. International Journal of Academic Research in Business and Social Sciences, 7(12), 429-437 .
[9] Batini, C., Cappiello, C., Francalanci, C., & Maurino, A. (2009). Methodologies for data quality assessment
and improvement. ACM Computing Surveys (CSUR), 41(3), 16 .
[10] Bazaee, G.A. (2010). Effects of information technology investment on organizational performance in India
and Iran: An empirical study. International Journal of Management, 27(1), 76 .
[11] Bharati, P., & Chaudhury, A. (2015). Product customization on the web: an empirical study of factors
impacting choice board user satisfaction. Information Resources Management Journal, 19(2), 69-81 .
[12] Borthick, A., Bowen, P., Liew, S., & Rohde, F. (2001). The effects of normalization on end-user query
errors: An experimental evaluation. International Journal of Accounting Information Systems, 2(4), 195-
221.
[13] Bukenya, M. (2014). Quality of Accounting Information and Financial Performance of Uganda’s Public
Sector. American Journal of Research Communication, 2(5), 183--203 .
[14] Chong, V.K., & Eggleton, I.R. (2007). The impact of reliance on incentive-based compensation schemes,
information asymmetry and organizational commitment on managerial performance. Management
Accounting Research, 18(3), 312-342.
[15] Daoud, H. A. T., Mohamed. (2013). Accounting Information Systems in an ERP Environment and Tunisian
Firm Performance. The International Journal of Digital Accounting Research, 13, 1-35.
[16] DeLone, W.H., & McLean, E.R. (1992). Information systems success: The quest for the dependent
variable. Information systems research, 3, 95-61 ,(1)
[17] Delone, W. H., & McLean, E. R. (2003). The DeLone and McLean model of information systems success:
a ten-year update. Journal of Management Information Systems, 19(4), 9-30.
[18] Elsharif, T. A. (2019). The Elements of Accounting Information Systems and the Impact of Their Use on
The Relevance of Financial Information in Wahda Bank—Benghazi, Libya. Open Journal of Business and
Management, 7(3), 1429-1450.
[19] Hamdan, M.N.M. (2013). Improving the performance of accounting information systems of commercial
banks in Jordan by using the balanced scorecard approach.
[20] Hilman, H.A. (2011). Strategic Management (3rd ed.). Pearson-Prentice Hall.
[21] Huang, K.T., Lee, Y.W., & Wang, R.Y. (1998). Quality information and knowledge: Prentice
[22] Hall PTR. Huh, Y., Keller, F., Redman, T., & Watkins, A. (1990). Data quality. Information and Software SoftwareTechnology, 32(8), 559-565.
[23] Hurt, R.L., & Zhen, F. (2008). Accounting information systems: Basic concepts and current issues: McGraw-Hill Irwin.
[24] Hussein, A.M. (2011). Use the Accounting Information System as a Strategic Tool to Improve SMEs' Performance in Iraqi Manufacturing Firms. Universiti Utara Malaysia.
[25] Kalu, U.C., & Campus, E. (2011). Critical Success Factors for Accounting Information Systems Data
Quality. University of Nigeria, Enugu Campus.
[26] Kariuki, M., & Nzuki, D. (2019). Management information systems capabilities and organizational
performance of supermarkets in Nairobi City County, Kenya. International Journal of Education and
Research, 7(6), 77-88.
[27] Kharuddin, S., Ashhari, Z.M., & Nassir, A.M. (2010). Information systems and firms' performance: The
case of Malaysian small and medium enterprises. International Business Research, 3(4), 28.
[28] Louadi, M. E. (1998). The relationship among organization structure, information technology and
information processing in small Canadian firms. Canadian Journal of Administrative Sciences/Revue
Canadienne des Sciences de l'Administration, 15(2), 180-199.
[29] Mahmood, M.A., Mann, G.J., & Zwass, V. (2000). Special issue: impacts of information technology
investment on organizational performance. Journal of Management Information Systems, 16(4), 3-10.
[30] Mitchell, Reid, G., & Smith, J. (2000). Information system development in the small firm: The use of
management accounting: Chartered Institute of Management Accountants.
[31] Moges, H.T., Dejaeger, K., Lemahieu, W., & Baesens, B. (2013). A multidimensional analysis of data
Quality for credit risk management: New insights and challenges. Information & Management, 50(1), 43-
58.
[32] Noori, M.S. (2010). Quality of Information as a Strategic Factors in AIS towards Better Organizational
Performance: A Field Study of Iraq. Universiti Utara Malaysia.
[33] Radlovački, V., Beker, I., Kamberović, B., Pečujlija, M., & Delić, M. (2111). Organization performance
measurement and quality information system in Serbia—quality managers’ estimates. International Journal
of Industrial Engineering and Management, 2(1), 13-20.
[34] Rai, A., Patnayakuni, R., & Patnayakuni, N. (1997). Technology investment and business performance.
Communications of the ACM, 40(7), 89-97.
[35] Rahmi, N.U., Sari, W., & Wulandari, B. (2019, July). The effect of information technology, quality of
accounting information and understanding of students on accounting software users. In Journal of Physics:
Conference Series (Vol. 1230, No. 1, p. 012080). IOP Publishing.
[36] Romney, M.B., & Steinbart, P. J. (2009). Accounting Information Systems (Pearson Prentice Hall).
[37] Saleh, F.M. (2013). Critical success factors and data quality in accounting information systems in
Indonesian cooperative enterprises: An empirical examination. Interdisciplinary Journal of Contemporary
Research in Business, 5(3), 321-338.
[38] Sami, M. (2011). Quality of Information as Strategic Factor in Accounting Information System (AIS)
Towards Better Organizational Performance. Jurnal Riset Manajemen Sains Indonesia (JRMSI), 2(2), 1-17.
[39] Seddon, P. B. (1997). A respecification and extension of the DeLone and McLean model of IS success.
Information systems research, 8(3), 240-253.
[40] Sori, Z.M. (2009). Accounting information systems (AIS) and knowledge management: a case study.
American Journal of Scientific Research, 4(4), 36-44.
[41] Patterson, A. (2005) Information Systems - Using Information, Learning and Teaching Scotland.
[42] Trabulsi, R.U. (2018). The Impact of Accounting Information Systems on Organizational Performance:
The Context of Saudi’s SMEs. International Review of Management and Marketing, 8(2), 69-73.
[43] Argyropoulou, Maria, Reid, Iain, Wilkins, Peter, and Loannou, George (2015) nformation Quality, Reporting and Organizational Performance. In: 22ND EurOMA Conference 2015, 26th June - 1st July 2015, Neuchâtel, Switzerland. (13) (PDF) Information Quality, Reporting and Organisational Performance. Available
[44] Al-Mamary, Y.H., Shamsuddin, A., Hamid, A., & Aziati, N. (2014). The relationship between system quality, information quality, and organizational performance. International Journal of Knowledge and Research in Management & E-Commerce, 4(3).
[45] Ali, Basel J.A, 2019. Information quality and the organizational effectiveness: the moderating effects of organizational culture among conventional and Islamic banks Australian Journal of Business and Management Research. 5 (10), 01-10
[46] Soudani, S. N. (2012). The usefulness of an accounting information system for effective organizational performance. International Journal of Economics and Finance, 4(5), 136.
[47] Urquía Grande, E., Pérez Estébanez, R., & Muñoz Colomina, C. (2011). The impact of Accounting Information Systems (AIS) on performance measures: empirical evidence in Spanish SMEs.
Downloads
Published
Issue
Section
License
Copyright (c) 2020 AUTHOR
This work is licensed under a Creative Commons Attribution 4.0 International License.
You are free to:
- Share — copy and redistribute the material in any medium or format for any purpose, even commercially.
- Adapt — remix, transform, and build upon the material for any purpose, even commercially.
- The licensor cannot revoke these freedoms as long as you follow the license terms.
Under the following terms:
- Attribution — You must give appropriate credit , provide a link to the license, and indicate if changes were made . You may do so in any reasonable manner, but not in any way that suggests the licensor endorses you or your use.
- No additional restrictions — You may not apply legal terms or technological measures that legally restrict others from doing anything the license permits.
Notices:
You do not have to comply with the license for elements of the material in the public domain or where your use is permitted by an applicable exception or limitation .
No warranties are given. The license may not give you all of the permissions necessary for your intended use. For example, other rights such as publicity, privacy, or moral rights may limit how you use the material.
