The primary object of this study is to address the impact of AIS (Accounting Information System) on the organizational performance. Accounting Information System could be a technique that facilitates the organization to manage the information of organization and manage them as it would be imperative for improving the financial condition of the firm in the least time and cost. In addition, it is also found that enhancement in modern techniques could enable the organization to use the accounting information system in the small and medium-sized enterprises (Laudon and Laudon, 2016). In the current business scenario, organization is used accounting information system for improving their business function as it would support to obtain a higher competitive benefit in limited cost and time. It could also support to identify three factors that are main part of any business like the business language and financial data source. Information could be determined from the data that support to make an effective decision in the context of organization (Wu, et al., 2015).
The key aim of this investigation is to aaddress the impact of Accounting Information System (AIS) on the organizational performance. The following research objectives will be accomplished by the researcher to complete the specified aim:
This report helps to gain understanding of research scholar and reader about the impact of Accounting Information System (AIS) on the organizational performance. This project also supports to collect understanding towards the role of AIS in certain sectors like productivity improvement, business efficiency, worker efficiency, and data collection with respect to the business operation. This research project is effective if the investigator is interested to make their professional life in the accounting department. It will enable research scholar to effectively operate the business functions and obtain a reliable outcome.
It can also be summarized that the accounting information system could enable the organization to collect, store, and operate the financial information that could be effective for the decision makers (Tayeh, et al., 2015). The potential and existing leaders, investors, suppliers, creditors, government, and consumers are considered as the decision makers of the organization. It is also stated that AIS (accounting information system) could directly influence success of the business. Hence, the organization should need to gain their understanding towards accounting information system for mitigating organizational issue (Sabherwal and Jeyaraj, 2015). The feasible design of accounting information system could help to the business strategy in many methods wherein it improves the organizational performance. Furthermore, increasing in the accounting information system investment could support to deal with persistent modification in the competitive business atmosphere. This technique could support the business organization for the financial transaction in the enterprise (Van Dooren, et al., 2016). In addition, it is also found that organization could consider accounting techniques for completing many activities of business such as financial statements, tracking transactions, data reporting, external data, and evaluating current market tendency in the business operations. The main benefit of optimal utilization of accounting information system is a support to deal with changing the business atmosphere. Consequently, the organization would be capable to get reliable information with respect to research issue. It could support to improve the situation of the organization by increasing the information flow between many staff levels. Moreover, AIS integration could support to enhance the probability of new network in business (Libby, 2017). It will also support to improve the internal and external relationship with consumers by using their web. The AIS perform many activities of business like data collection, segment data, and recording financial activities for making an effective decision. In addition, it is also analyzed that AIS could be an essential role in making effective strategic management as it would support to obtain a reliable result. Automated Accounting Information System offers financial techniques to the organization that would support to manage financial activities. Consequently, the organization would be capable to improve the effectiveness of the business in the field of global technology advancement (Soto-Acosta, et al., 2016). Moreover, it facilitates to the business to obtain a higher amount of flexibility as it would permits managers to modify the structure of gathering and allocating the financial activities. Moreover, It permits the manager of the organization to develop the flexible business process that supports to obtain reliable information with respect to the finance. It could also support the organization to obtain higher benefit (Lai and Cheng, 2016).
The research methodology helps the researcher to get the feasible instruction with respect to evaluate the findings of research issue. There are many research design that could be considered in the research design for research completion: The following points are considered in the research design:
Chart 1: Qualitative research process
(Sources: Dwivedi, et al., 2015).
In the qualitative research process many phases oculd be considered investigation planning, broadcast criteria and staffing, conversation guide, and ending report. In the initial stage of research, the researcher will try to investigate the information about research concern and make a plan (Dwivedi, et al., 2015). Afterward, broadcast the recruitment criteria for operating the research process. Subsequently, it will support to discuss guide and homework. In last, the researcher has used the focus group strategy for completing their final report at least time and cost.
The inductive approach will be practiced by the researcher to attain their research effectively. The deductive approach will not be practiced by researcher due to the subjective nature of research issue (Gallemore and Labro, 2015).
Sampling and Sample Size
Sampling is the process by which researcher could be capable to select appropriate sample size from the higher amount of population size. The non-probability sampling method will be appropriate to collect an appropriate sample and get a reliable result. The research scholar has selected 5 human resource managers of different companies to evaluate the impact of accounting information system on the organizational performance (Otley, 2016).
An investigator will use primary data collection method in their research process to collect the data. The primary information will be gathered by using survey through questionnaire and interview method (Liu, 2015). Through this technique, researcher will be capable to get valid information from the specified population.
The independent and dependent variables are involved in the research study. In this research study, the independent variable is accounting information system and the dependent variable is organizational performance.
Chart 2: Quantitative research process
(Sources: Valmohammadin and Ahmadi, 2015).
In stage first, the researcher would try to identify the research concern. It will enable the researcher to develop research hypothesis and creates literature review on the basis of research objectives. The research technique will be practiced by research scholar to select appropriate sample size and perform their research activities. Furthermore, ethics norms could be considered by the researcher to attain their research aim and objectives. Afterward, the researcher has executed various data collection method to obtain their research needs and obtain valid and reliable. The researcher would make a budget plan to attain the aim and objectives of research and collect valid information (Valmohammadin and Ahmadi, 2015).
The secondary data collection method will be executed by the researcher to get conceptual knowledge about current research issue. There are certain methods that could be practiced by research scholars such as academic journal, government publication, annual report, and offline and online websites. These techniques could be used by investigator for getting higher benefits. It will also support to obtain the reliable and valid result (Collier, 2015).
Chart 3: Quantitative data analysis process
(Sources: Katzenbach and Smith, 2015).
Data preparation will be prepared by the researcher about research matter. Consequently, a research scholar would be capable to recoding the gathered data. After that, investigator will exercised Ms-excel software to examine collected information by involving many graphs, charts, and tables. Once research scholars examine gathered information then they would interoperate data (Katzenbach and Smith, 2015).
In this, the probability sampling technique will be exercised by investigator to operate their investigation as it would be effective to decline the biases of study (Almajali, et al., 2016). This technique could support research scholar to randomly select the research candidates and obtain a feasible result. The researcher has selected 55 employees who use the accounting information system at the workplace.
Validity technique is effective to define the research feasibility as it would be examined by considering quantitative information. Further, the reliability approach will support to examine the trustworthiness of research result.
Cost, time, and resource are certain components that could influence quality of research study. It is also examined that inappropriate sample size could create the higher possibilities of difficulty in operating the research activities. In addition, the researcher would be responsible for securing the confidential information of the researcher as it would also influence the feasibility of research outcome (Almajali, et al., 2016).
The research time frame could help to evaluate time for the accomplishment of each research action. The following table demonstrates the time frame of current research:
As per the above discussion, it can be concluded that AIS (accounting information system) could influence the business performance. It can also be summarized that accounting information system could support to make an effective decision in many ways like financial transaction, performance measurement, and profitability growth. Appropriate use of accounting information structure could support to attain the business goal and business expansion. But, at the same time, accounting information system could create many risks in the business like data loss and lack of security of financial data.
Almajali, D.A., Masa'deh, R.E. and Tarhini, A., 2016. Antecedents of ERP systems implementation success: a study on Jordanian healthcare sector. Journal of Enterprise Information Management, 29(4), pp.549-565.
Collier, P.M., 2015. Accounting for managers: Interpreting accounting information for decision making. USA: John Wiley & Sons.
Dwivedi, Y.K., Wastell, D., Laumer, S., Henriksen, H.Z., Myers, M.D., Bunker, D., Elbanna, A., Ravishankar, M.N. and Srivastava, S.C., 2015. Research on information systems failures and successes: Status update and future directions. Information Systems Frontiers, 17(1), pp.143-157.
Gallemore, J. and Labor, E., 2015. The importance of the internal information environment for tax avoidance. Journal of Accounting and Economics, 60(1), pp.149-167.
Katzenbach, J.R., and Smith, D.K., 2015. The wisdom of teams: Creating the high-performance organization. USA: Harvard Business Review Press.
Lai, K.H., and Cheng, T.E., 2016. Just-in-time logistics. UK: Routledge.
Laudon, K.C., and Laudon, J.P., 2016. Management information system. Pearson Education India.
Libby, R., 2017. Accounting and human information processing. In The Routledge Companion to Behavioural Accounting Research (pp. 42-54). UK: Routledge.
Liu, S., 2015. Effects of control on the performance of information systems projects: the moderating role of complexity risk. Journal of Operations Management, 36, pp.46-62.
Sabherwal, R. and Jeyaraj, A., 2015. Information technology impacts on firm performance: an extension of Kohli and Devaraj (2003). ISSUES.
Soto-Acosta, P., Popa, S. and Palacios-Marqués, D., 2016. E-business, organizational innovation, and firm performance in manufacturing SMEs: an empirical study in Spain. Technological and Economic Development of Economy, 22(6), pp.885-904.
Tayeh, M., Al-Jarrah, I.M. and Tarhini, A., 2015. Accounting vs. market-based measures of firm performance related to information technology investments.
Valmohammadi, C. and Ahmadi, M., 2015. The impact of knowledge management practices on organizational performance: A balanced scorecard approach. Journal of Enterprise Information management , 28(1), pp.131-159.
Van Dooren, W. and Van de Walle, S. eds., 2016. Performance information in the public sector: How it is used. USA: Springer.
Wu, S.P.J., Straub, D.W. and Liang, T.P., 2015. How information technology governance mechanisms and strategic alignment influence organizational performance: Insights from a matched survey of business and IT managers. Mis Quarterly, 39(2), pp.497-518.
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