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The Impact of Accounting Information System Quality on Operational Performance


quality if its components operate properly and accurately. This perspective evaluates the components of the IT system as the factors that form the basis for evaluating the quality of the IT system.

The internal and external features of the quality of the IT system are of great importance for measuring the quality of the IT system. Some of the criteria are shown in Table 2.1.

Table 2.1. Evaluation criteria of IT quality




Operating principle of the IT system


Accounting quality process


Scope of IT


Development of IT system


1. Connecting the IT system and the system

1. Quality

1. Quality

1. Quality plan


economic decision

input

accounting software

amount of information technology


business

2. Quality

maths.

2. Quality analysis


2. The only HTTT for

data processing

2. Quality

amount of information technology

The

whole economic system

3. Quality

hardware

3. Quality design

special

business

output

3. Quality

quantity of system

display

3. Consider the benefits and costs


support transmission

maths.

belong to

information fee


through

4. Check and

matter

4. Uniqueness of work


4. Quality

system implementation

quantity

access and classification


work and

accounting system


information.


satisfaction of



5. Feedback information.


user



6. Document information


5. Solution



proof.


quality of



7. Information quality.


organization.



8. Reasonableness of


6. Quality



IT system.


database


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The Impact of Accounting Information System Quality on Operational Performance

Source: Ivana and Ana (2013)

Huynh Thi Hong Hanh and Nguyen Manh Toan (2013) proposed criteria for evaluating the effectiveness of IT systems according to the level of user satisfaction, combining 4 criteria: information quality, system quality, usefulness and user satisfaction. However, the authors' research only stopped at the theory in proposing the model, and did not propose empirical evidence to verify the research model. Therefore, this is also an approach that needs to be developed in future studies.


develop ideas and collect empirical evidence to verify which factors are appropriate in assessing the quality of IT systems.

There are many criteria for evaluating the quality of information systems. Some studies use a single criterion to measure the quality of information systems, such as some studies examining the effects of information systems on improving business results to evaluate the quality of information systems (Sajady et al., 2008; Alzoubi, 2011). Petter (2008) asserts that the selection of criteria for evaluating the quality of information systems depends on the context of the business, such as the characteristics of the nature of the business and the purpose of the system to be evaluated.

System quality is used in the process of evaluating the contributions of information systems to enterprises (Delone and Mc Lean, 1992). System quality measures the information processing of the system itself, evaluates the software and data of the system from a technical perspective (Gorla et al., 2010). System quality is closely related to the absence of “errors” in the system, the consistency of the user interface, ease of use, quality of documentation, quality and maintainability of the program coding (Seddon, 1997). With this criterion, a quality information system must be superior in meeting technical standards, suitable and meeting the requirements of users in the enterprise. Criteria for evaluating system quality according to Gorla et al. (2010) include:

- Easy-to-understand system for users: HTTTKT with easy-to-understand usage and functions helps users quickly access and use the system. Some enterprises use systems with complex applications that cause difficulties for users. Therefore, some enterprises, despite being equipped with modern applications, fail because they are not compatible with the user's level.

- The accounting information system combines information from many different sources to support business decisions: The accounting information system integrates well with other departments and systems to help consolidate information throughout the enterprise. For example, enterprises applying ERP or cloud computing software can integrate data from the sales system, human resources system and accounting system. The human resources system calculates salaries for employees based on sales data and transfers them to the accounting system. The accounting system uses salary data to pay salaries and record transactions into the system. Similarly, other processes will help reduce processing and storage in the accounting information system, support business decisions, and increase the use of shared data throughout the system.


- The system applies modern technology: The 4th industrial revolution has applied many modern technologies and these technologies were born and created trends in modern technology in the IT system such as ERP, cloud computing technology. When the IT system applies these advanced technologies, it will facilitate the process of accounting, sharing, and storing data.

- Accuracy: The function of the accounting information system is accurate from data entry, processing to providing accounting information. A system with accuracy appropriate to the characteristics of the enterprise will help increase the quality of the system.

- Timely information feedback system: The IT system always provides information on time or before the prescribed deadline, without delay. In addition to providing timely information within the unit, the IT system must also interact promptly with the systems of tax authorities, insurance, banks, customers, and suppliers.

- Flexibility of the system when converting to a new system: The IT system has the ability to adapt to conditions or changes in the business environment, update and upgrade the system. Therefore, the flexibility of the system when converting to a new system is a standard for evaluating system quality.

- User-friendly system: The criteria for user-friendliness of the IT system reflect intuitive user interfaces and easy-to-use functions.

- The system is equipped with suitable features: Some businesses equip packages of applications and available software without a separate design suitable for business characteristics. This leads to some redundant features during use. Therefore, a system equipped with suitable and useful features for business characteristics will help increase the quality of the system.

- The business process of the IT system has low latency: Enterprises can use a system such as ERP, integrate subsystems or have interactions between subsystems of each department and operate based on the connection of the internal network or the internet. Therefore, the fast business process with low latency is considered a standard to evaluate the quality of the system.

The quality of the IT system in this study is measured by the author in the direction of system quality. System quality represents the synchronous interaction between the system components in the process of processing transactions and is an important criterion in assessing the quality of the IT system.


2.2.3.3. Impact of accounting information system quality on operational efficiency

business action

Samuelson et al. (1989) stated that: “Efficiency is the most effective use of economic resources to satisfy human wants”. According to this view, operational efficiency is often understood as the use of the least economic resources to achieve the desired goals or to achieve the most benefits from the use of certain resources in business. In recent years, operational efficiency has received the attention of researchers and has used different methods for analysis. Petersen and Schoeman (2008) stated that operational efficiency is a measure of how well a business can use its assets from its own business methods and generate revenue. On the other hand, operational efficiency is the result of a business's activities over a certain period of time, completing specific business goals evaluated according to standards. In each stage of enterprise development, there are different goals, but the goal that covers the entire production and business process of the enterprise is ultimately to maximize profits based on optimal use of enterprise resources. HQHĐ is one of the effective tools for administrators to perform their management functions. Some authors such as Elena et al. (2011), Soudani (2012) have demonstrated that the IT system is closely linked to and affects the performance of enterprises.

Lebas and Euske (cited in Hung, 2017) view “efficiency” as a context-dependent construct, equivalent to factors such as efficiency, productivity, competitiveness, cost reduction, value creation, sustainability, and growth. This view holds that efficiency is a driver and not a one-time goal. It can be illustrated using a causal model that describes how current business processes can lead to potential future outcomes. Efficiency is a relative concept and requires judgment and interpretation. On the other hand, efficiency is meaningful as a comparative part and with the key parameters of efficiency being determined by the users of information. Efficiency is meaningful only in the context of decision making and the concept is generalized based on policy makers. Real efficiency occurs when there is a connection between decision makers both inside and outside the organization.

Operational efficiency is used to check and evaluate each input factor within the entire enterprise as well as each component part of the enterprise. On the other hand, operational efficiency checks, evaluates, synthesizes, and analyzes input resources within the entire enterprise. Therefore, operational efficiency plays a very important role in checking, evaluating, and analyzing to provide the most optimal solutions. Managers will choose the best methods to achieve the enterprise's goals. Operational efficiency is essentially the relationship between the results achieved.


and costs incurred, taking into account the goals of the enterprise. So what is the relationship between results and efficiency? Results can be quantities that can be weighed, measured, and counted, such as the number of products consumed, sales revenue, profits, and market share. Results are the basis for calculating operational efficiency and are the goals of the enterprise.

Thus, operational efficiency is the results achieved with new defined goals at the lowest cost in the shortest period of time. The Resolution of the 8th National Party Congress clearly states: "Taking the rate of return on capital as the main criterion for evaluating the efficiency of production and business in business enterprises, taking the results of implementing social policies as the main criterion for evaluating the efficiency of enterprises". Through analyzing different viewpoints on operational efficiency, it can be concluded that: Operational efficiency reflects the results of using the enterprise's resources to achieve the defined goals at the lowest cost or achieve the highest results at the specified cost.

Measuring performance, similar to profit, is one of the important criteria for evaluating the success of a business. However, each study on performance is different because it involves the way of measuring and the number of observed variables affecting performance (Henry, 1975). Accounting information systems are one of the most important systems for measuring the performance of a business. As information technology and communication become more and more widespread and directly affect all areas of a company's operations, accounting information systems are increasingly proving to be directly related to economic and financial performance, or in other words, the performance of a business. Accounting information systems are systems used to record financial transactions of a business or an organization. Therefore, only quality accounting information systems can ensure performance.

Although some previous authors have studied the factors affecting the effectiveness of IT systems in enterprises, there have not been many studies on the quality of IT systems affecting the performance of enterprises. While the issues of IT systems affecting business performance are important questions, it has significance in both research and practice (Nadler and Tushman, 1978). Chan et al. (1997) with research conducted in the US and Canada on the fit between IT strategy and business strategy and effective IT systems will affect business performance. The research results have shown that: enterprises with appropriate investment between IT strategy and business strategy and an effective IT system will have better business performance than enterprises without the above fit. This fit has a positive impact on innovation and market development, reducing negative effects on reputation and financial performance. Authors Ismail and Malcolm (2005) with a study on factors affecting the effectiveness of accounting information systems on 771 enterprises in Malaysia, the results showed that accounting knowledge of managers


management, consulting effectiveness of software vendors and consulting effectiveness of accounting firms have positive influence on the effectiveness of accounting information systems in Malaysian enterprises.

Nowadays, the IT conditions are developing very strongly, affecting more and more deeply the accounting work, so building a quality accounting information system is becoming an urgent need for enterprises. The higher the quality of accounting information system, the more effective the business activities of enterprises are. To improve business efficiency and control business information well, it is necessary to build a suitable accounting information system. However, to achieve that goal, not all enterprises can do it. Most enterprises do not know how to equip accounting systems. Saira et al. (2010) concluded that accounting information systems have been widely used by most enterprises to automate and integrate business activities. Many organizations apply information systems to improve their organizational efficiency and increase competitiveness. Research results show that enterprises using accounting information systems increase the efficiency of business operations. On the other hand, Soudani (2012) pointed out that enterprises that do not use information systems lead to poor performance due to lack of information records of enterprises. At the same time, issues such as fluctuations, demand or changes in customer attitudes towards certain products and services cannot be easily predicted or easily identified. The research results also showed that information systems have a direct impact on the profitability of enterprises, information systems are mainly used by many organizations to improve operational efficiency by automating current activities.

The use of IT helps enterprises save costs and time because a series of transactions can be processed simultaneously. However, Mudashiru et al. (2013), Daw and Peter (2015) argue that further research is needed on the use of IT to measure operational performance and implementation decisions in enterprises. Some previous studies have suggested that the application of information systems increases business performance, profits and operational efficiency in financial institutions, but new studies are focusing on Malaysia, Spain, Finland, Pakistan and Iran (Kharuddin et al. (2010). The purpose of Daw and Peter's (2015) study was to examine the effectiveness of information systems, showing that quality information systems are of great importance to both businesses and organizations, and at the same time support decision making, internal control, quality information systems will improve business performance and reduce costs. Quality information systems will ensure that managers receive complete, relevant and honest information to plan and control business activities of the enterprise.

2.2.4. Fundamental theories

2.2.4.1. Information processing theory

Since mid-1973, information processing theory has been built by Galbraith (Raldolph and Richard, 2005). Information processing theory revolves around three concepts including information processing capacity, information processing requirements and the compatibility between requirements and


information processing capabilities to achieve optimal business performance. Organizations need to regulate information to overcome environmental uncertainties to improve their decision making. Information processing theory suggests that the adequacy of information processing capabilities will have a significant impact on the performance of the organization (Galbraith, 1973). Organizations can adopt two strategies to cope with environmental uncertainty and increased information requirements. The first strategy is to develop factors to reduce the impact of this uncertainty; the second strategy is to increase information processing capabilities to increase the effectiveness of information and thereby reduce the impact of this uncertainty (Premkumar et al., 2005). To effectively implement the above strategies, organizations need to create a connection between information requirements and capabilities.

Information processing theory was identified by researchers Tan (1996), Li and Ye (1999) as a positive relationship between corporate strategy and IT strategy. The compatibility between IT and corporate strategy will have a positive impact on business performance (Cragg et al., 2002). Dorociak (2007) studied the impact of alignment between corporate strategy and corporate performance and found a positive impact between organizational strategy, IT strategy and business performance. In addition, studies by El. Louadi (1998); Ismail and King (2005) showed the importance of IT in supporting information for decision making.

Previously, when they were funded by the State Budget, construction enterprises did not really pay attention to the issue of using information to serve the decision-making of managers, because all activities of these enterprises had to comply with the regulations on the use of allocated budget sources. Nowadays, when the State gradually grants autonomy, most of the enterprises that have been equitized must take responsibility for themselves, especially partial or complete financial autonomy, requiring managers to decide on a series of issues, including financial management. Therefore, the need to use useful accounting information, especially quality accounting information systems to serve decision-making is of primary concern. For the above reason, the theory of information processing has been the foundation for the thesis on designing the quality content of accounting information systems, when the accounting information systems are of quality, it will impact the performance of the construction enterprises.

In addition, the content of information processing theory mentions the issue of data processing techniques, which has created the premise for the author to choose the information technology factor as a factor affecting the quality of the technical information system at traffic construction enterprises, because IT plays an important role in the process of data processing and information provision of the technical information system.


2.2.4.2. Management behavior theory

The behavioral theory of management was invented by Simon in 1947 - The author received the Nobel Prize in 1978 for his contributions to the science of decision-making in economic organizations through his research (Jesper, 1994). Simon emphasized that the important issue in management is to make appropriate decisions which the author called management decisions including: "planning, choosing a method of action, establishing an organizational structure, assigning responsibilities and authorities, comparing the actual situation with the plan, choosing a control method, understanding the plans, organizing and controlling for all levels of management and all aspects of the management process".

The theory of management behavior is mainly the necessary change in the behavior of managers to make important decisions in accordance with actual conditions. The theory of management behavior is the foundation for the author to choose the factors of Employee commitment to the enterprise, Support from the senior management board, and Manager's knowledge as factors affecting the quality of the IT system at Vietnamese construction enterprises. The behavior of the manager will make decisions related to the quality of the IT system. Specifically, what attitude and specific actions will the manager have in providing useful information for the decision-making process of investors. On the other hand, the important contribution to promoting business development is the knowledge and skills of the manager.

2.2.4.3. Diffusion of Innovation Theory

Rogers' (1995) diffusion of innovation theory is a classic work on the diffusion of new ideas, studying the diffusion and adoption of innovations. Innovation is typically conceptualized as new technology or new products, however innovation theory can also be applied to the diffusion of new ideas, methods and concepts. Rogers synthesized research from over 508 diffusion studies and proposed a diffusion of innovation theory for the adoption of innovations among individuals and organizations. This theory explains the process by which an innovation is communicated through certain channels over time among members of a social system.

Rogers believes that innovation is the application of new systems, policies, programs, and processes, which can be created inside or outside the organization. Each member of the organization must decide for themselves to accept innovation in 5 steps: (1) Knowledge: is the process of perceiving, learning, and absorbing new ideas; (2) Persuasion: is the process of analyzing, considering, and examining the advantages and disadvantages of innovation; (3) Decision: clearly expressing acceptance or choosing to refuse to accept

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