Determinants of contingency factors of AIS in ERP system

Abstract

During the last decade, implementation of AIS in ERP to improve the performance of the organization has dramatically increased, in Sri Lanka. However, very little empirical research has been carried out in Sri Lanka to investigate the situation. Therefore, this study is to evaluate the factors that influence the AIS in ERP environment of the listed companies which implement the ERP system in Sri Lanka. Therefore,this study was aimed to investigate four closely related contingency factors (Top Management Support, External Expert Support, User Competency, and Internal Control System) that influence on AIS.The primary data were collected for this study using a self-administered questionnaire from 214 accounting professionalsfrom public listed companies. Statistical confirmation of the conceptual model was ensured using Structural Equation Modeling (AMOS 23). This study revealed that Top Management Support, External Expert Support, and User Competency were significantly influenced on ERP System Quality. Similarly, only two factors: Top Management Support and External Expert Support were influenced on AIQ. However, Internal Control System was not influenced on ERP System Quality and AIQ. Meanwhile, User Competency was not influenced on AIQ. Moreover, ERP System Quality has an impact on AIQ.This study concludes that Top management, External Expert Support and User Competency were significantly influenced on AIS in ERP Environment. In addition, the result revealed that there was a mediating effect of ERP system Quality between Contingency factor and AIQ.Therefore, an organization need to pay more attention on Top Management Support, External Expert Support, User Competency in implementing AIS. This, in turn, will facilitate the public listed companies to contribute to the growth of the country as a whole.