The Relationship between Management Accounting Information System Capability and Firm Success: Evidence from Beverage Businesses in Thailand

Authors

  • Supapan Saithong-in
  • Kornchai Phornlaphatrachakorn2
  • Saranya Raksong3

Keywords:

Management Accounting Information System Capability, Strategic Positioning Effectiveness, Cost Management Efficiency, Operational Process Excellence, Firm Success

Abstract

The purpose of this research is to investigate the relationships among the dimensions of management accounting information system capability, strategic positioning effectiveness, cost management efficiency, operational process excellence, and firm success. The questionnaire was used as a research instrument to collect the data from 141 beverage businesses in Thailand. Multiple regression analysis was used to test hypotheses. Results of this research found that business management intelligence focus was the key dimension of management accounting information system capability that had a positive effect on strategic positioning effectiveness, cost management efficiency, operational process excellence, and firm success. Likewise, operational information integration orientation, cost management efficiency, and operational process excellence had a positive influence on firm success. Furthermore, accounting information technology linkage had a positive effect on operational process excellence and management information reporting competency had a positive impact on cost management efficiency.

References

Aaker, D. A., Kumar, V. & Day, G. S. (2001). Marketing research (7th ed.). New York: John Wiley and Sons.

Agbim, K. C. (2013). The relative contribution of management skills to entrepreneurial success: A survey of small and
medium enterprises (SMEs) in the trade sector. International Organization of Scientific Research Journal of
Business and management, 7(1), 08-16.

Armstrong, J. S. & Overton, T. S. (1977). Estimating non-response bias in mail surveys. Journal of Marketing Research,
14(3), 396-402.

Axson, D. (2010). Best Practices in Planning and Performance Management, Radically Rethinking Management for a
Volatile World (3rd ed.). New Jersey: John Wiley and Sons.

Banker, R. V. & Mashruwala, R. (2007). The moderating role of competition in the relationship between nonfinancial
measures and future financial performance. Contemporary Accounting Research, 24(3), 763-793.

Berry, W. D. & Feldman, S. (1985). Multiple Regressions in Practice. Newbury Park (CA): Sage Publications.

Bigelow, M. (2002). How to achieve operational excellence. Quality Progress, 35(10), 70-75.

Chapman, C. C. & Kihn, L. A. (2009). Information system integration, enabling control and performance. Accounting,
Organizations and Society, 34, 151-169.

Chatsuwan, N., Sudsomboon, S & Konthong, K. (2017). Effect of Excellent Accounting Information System Integration
on Strategic Management Efficiency of Electrical and Electronics Businesses in Thailand. Journal of Accountancy
and Management, 9(1), 135-145.

Chenhall, R. H. & Morris, D. (1986). The impact of structure, environment, and interdpendence on the perceived
usefulness of management accounting systems. The Accounting Review, 61, 16-35.

Chew, C. (2003). What factors influence the positioning strategies in Voluntary Non-Profit Organizations? Towards a
conceptual framework. Local Governance, 29(4), 288-323.

Elbashir, M. Z., Collier, P. A., Sutton, S. G., Davern, M. J. & Leech, S. A. (2013). Enhancing the business value of
business intelligence: The role of shared knowledge and assimilation. Journal of Information Systems, 27(2),
87-105.

Ferguson, C. & Seow, P. S. (2011). Accounting information systems research over the past decade: Past and future
trends. Accounting and Finance, 51(1), 235.

Georgantzas, N. C. & Katsamakas, E. G. (2010). Performance effects of information systems integration: A system
dynamics study in a media firm. Business Process Management Journal, 16(5), 822-846.

Grande, E. U., Estebanez, R. P. & Colomina, C. M. (2011). The impact of Accounting Information Systems (AIS) on
performance measures: empirical evidence in Spanish SMEs. The International Journal of Digital accounting
Research, 11(1), 25-43.

GSB Research. (2017). Industry Monitor: Food and Beverage Industry. Retrieved May 12, 2017, from
https://www.gsb.or.th/getattachment/42789d52-1960-4b4a-ac4b-4f0e93d21fb9/IN_food_3_60_ detail.aspx.

Güney, A. (2014). Role of technology in accounting and e-accounting. Procedia - Social and Behavioral Sciences,
152, 852-855.

Hair, J. F., Black, W. C., Babin, B. J. & Anderson, R. E. (2010). Multivariate Data Analysis (7th ed.). Upper Saddle River,
New Jersey: Pearson Education International.

Hansen, D. R. & Mowen, M.M. (2007). Managerial Accounting (8th ed.). USA: Thomson.

Helfat, C. E. & Peterraf, M. A. (2003). The dynamic resource-based view: Capability lifecycles. Strategic Management
Journal, 24, 997-1010.

Ho, S. J. & Mallick, S. K. (2010). The impact of information technology on the banking industry. Journal of the
Operational Research Society, 61(2), 211-221.

Hurt, R. L. (2008). Accounting information system: Basic concepts and current issues. Boston: McGraw-Hill,
Kasikorn Research Center. (2015). Foods and Beverages. KResearch, 1-23.

Kim, Y. J., Song, J. & Koo, C. (2008). Exploring the effect of strategic positioning on firm performance in the e-business
context. International Journal of Information Management, 28, 203-214.

Leong, L. & Jarmoszko, A. T. (2010). Analyzing capabilities and enterprises Strategy: a value proposition framework.
International Journal of Management and Information Systems, 14, 53-59.

Malmi, T. & Brown, D A. (2008). Management control systems as a package opportunities, challenges and research
directions. Management Accounting Research, 19, 287-300.

Mary, O. E., Enyinna, U. K. & Franca, N. C. (2015). Evaluation of operations management and its impact on improved
logistics control. International Journal of Economics, Commerce and Management, 3(5), 590-604.

Mohrman, S. A., Finegold, D. & Mohrman, A. M. (2003). An empirical model of the organization knowledge system in
new product development firms. Journal of Engineering and Technology Management, 20(1-2), 7-38.

Napitupulu, I. H. (2015). Antecedence of user satisfaction in management accounting information systems quality: user
involvement and user competency (survey of Indonesia manufacture company managers). International Journal of
Applied Business and Economic Research, 13(2), 561-577.

Napitupulu, I. H., Mahyuni, S. & Sibarani, J. L. (2016). The impact of internal control effectiveness to the quality of
management accounting information system: the survey on state-owned enterprises (SOEs). Journal of Theoretical
and Applied Information Technology, 88(2), 358-366.

Nita, B. (2015). Methodological issues of management reporting systems design. Quantitative Methods in Accounting
and Finance, 105-116.

Nnenna, O. M., (2012). The Use accounting information as an aid to management in decision making. British Journal
of Science, 5(1), 52-62.

Nunnally, J. C. & Bernstein, I. H. (1994). Theory (3rd ed.). New York: McGraw-Hill.

O’Brien, J. A. (2004). Management Information System: Managing Information Technology in the Business Enterprise
(6th ed.). New York. Mc: Graw-Hill.

O’Brien, J. A. & Marakas G. M. (2010). Management information systems: Managing information technology in the
business enterprise (15th ed.). New York: McGraw-Hill.

Pananto, S., Sudsomboon, S. & Ninlaphay, S. (2014). Relationships between Accounting Information Preparation
Quality and Decision Making Efficiency of Electrical Appliances and Electronics Businesses in Thailand. Journal of
Accountancy and Management, 6(3), 22-33.

Petrini M. & Pozzebon, M. (2009). Managing sustainability with the support of business intelligence: Integrating socio-
environmental, indicators and organizational context. Journal of Strategic Information Systems, 18, 178-191.

Pilat, D. (2004). The ICT productivity paradox: Insights from micro data. OECD Economic Studies, 38, 37-65.

Ponklang, P., Pratoom, K. & Raksong, S. (2014). Cost allocation effectiveness and organizational survival: An empirical
assessment of textile manufacturing businesses in Thailand. Ph.D. Dissertation, Mahasarakham Business School,
Mahasarakham University. Thailand.

Robert, T. L. (2006). Effective cost management: Back to basics. Cost Engineering, 48(3), 27-33.

Roodposhti, F. R., Nikoomaram, H. & Mahmoodi, M. (2012). Management accounting information system based on
decision support and business intelligence on ROI and ROE. International Journal of Asian Social Science, 2(5),
730-738.

Salehi M., Rostami V. & Mogadam, A. (2010). A usefulness of accounting information system in emerging economy:
Empirical evidence of Iran. International Journal of Economics and Finance, 2(2), 186-195.

Schroeder, D. M., Congden, S. W. & Gopinath, C. (1995). Linking Competitive Strategy and Manufacturing Process
Technology. Journal of Management Studies, 32(29), 163-189.

Singjanusong, J., Tangpinyoputtikhun, Y. & Nachairit, I. (2016). Effects of Strategic Accounting Information System on
Organizational Success of Beverage Businesses in Thailand. Journal of Accountancy and Management, 8(4),
170-180.

Suzuki Y. (2000). The effect of airline positioning on profit. Transportation Journal, 39(3), 44–54.

Tontiset, N. & Ussahawanitchakit, P. (2009). Effects of cost management effectiveness on cost information usefulness,
corporate competitiveness, and firm success: An empirical study of Thai manufacturing firms. Journal of Academy
of Business and Economics, 9(2), 91-102.

Wier, B., Hunton, J. & Hassab, E.H.R. (2007). Enterprise resource planning systems and non-financial performance
incentives: The joint impact on corporate performance. International Journal of Accounting Information Systems,
8(3) , 165-90.

Winch, G. & Carr, B. (2001). Process, maps and protocols: Understanding the shape of the construction process.
Journal of Construction Management and Economics, 19, 519-531.

Wixom, B. H. & Watson, H. J. (2010). The BI-based organization. International Journal of Business Intelligence
Research, 1(1), 13-28.

Downloads

Published

07-10-2019

How to Cite

Saithong-in, S., Phornlaphatrachakorn2, K., & Raksong3, S. (2019). The Relationship between Management Accounting Information System Capability and Firm Success: Evidence from Beverage Businesses in Thailand. Journal of Accountancy and Management, 11(1), 76–90. Retrieved from https://so02.tci-thaijo.org/index.php/mbs/article/view/220116

Issue

Section

Research Articles