An evaluation of the impact of AIS on the accounting practices implemented in the ERP environment

Abstract

The importance of the application of AIS is crucial for any organizations as they face tough competition due to volatile changes in technology. The important issue is whether ERP implementation increases the Accounting Practices (APs), consequently to achieve the goals of firms. Thus, the main purpose of this study was to examine the effect of ERP System Quality (ERPSQ) and Accounting Information Quality (ACIQ) on APs moderated by User Competency (UC) in an ERP environment. The primary data were collected for this study using self-administered structured questionnaire from 217 accounting practitioners of public listed companies in Sri Lanka. Moreover, structural equation modelling techniques (SEM) were used to construct the model and it showed the good model fit with the identified constructs. The study developed the hypothesis based on the conceptual model that there was a significant relationship between ERPSQ and APs and there was a significant relationship between ACIQ and APs. The study revealed that both ERPSQ and ACIQ were significantly influenced on APs in public listed firms in Sri Lanka. Moreover, the ACIQ had mediating effect between ERPSQ and APs. In addition, it was proved that UC provides a moderating effect between AIS and APs. Moreover, The novelty of this paper was the contribution of both theoretically and empirically to the information system success model through AIS in ERP system. Further, it also contributed to ACIQ to APs.