Computerised accounting information systems and firm performance: The mediating role of transparency
Place of Publication
School of Business and Law
Accounting information system (AIS) is central to an organisation, providing valuable data for decision-makers. While many studies look into the impact of technology fit and corporate governance (CG) on firm performance, this study investigates how a component of CG (transparency), capability of AIS, executive visions (EV) and information technology (IT) skill impact on firm performance. Using a resource-based view (RBV) framework, hypothesised relationships among variables of interest were examined based on data collected from 336 small and medium-sized enterprises (SMEs) in Malaysia. Results from partial least square (PLS) analysis suggest that effects of AIS on firm performance were partially moderated by information transparency, a component of CG, while a full moderation effect was found for EV and IT skill on firm performance. The results thus demonstrate the importance of transparency and AIS to a greater height, prompting SMEs to revisit their policies on AIS, staff training and largely transparency to better improve firm performance.