Abstract
Data quality is critical to adequately perform management accounting (MA) tasks, and information systems (IS) provide the data for the MA domain. However, IS can vary vastly across firms, which may influence the basis for rational decision making (i.e., data quality). This study therefore aims to investigate the impact of IS quality on data quality in MA and to analyze the determinants that can influence IS quality in MA. We conduct a cross-sectional survey among 143 medium-sized and large firms. Based on a structural equation model, we predict and find that IS quality significantly affects management accounting data quality (MADQ). Company’s IT investments, internal and external IT knowledge, innovative technologies, and data source variety are significantly associated with IS quality in MA and in turn indirectly affect MADQ. This study highlights the importance of IS quality for management accountants’ practice and simultaneously provides new insights regarding the efficacy of selected determinants of IS quality.
Highlights
Data are the foundation of management accountants’ practice
To assess the number of innovative technologies used within companies, we ask respondents to identify which of the following modern technologies they use in management accounting (MA): online analytical processing (OLAP), cloud computing, in-memory technology, self-service reporting, and mobile device apps for reporting
The results show that SYSQUAL is positively associated with management accounting data quality (MADQ) (β = 0.33, p < 0.01), which is in line with our prediction
Summary
Data are the foundation of management accountants’ practice. Traditionally, the role of management accounting (MA) in organizations has been limited to providing information to support decision-making (Scapens and Arnold 1986). While prior literature tends to neglect the role of automation, our study adds this dimension to the IS quality construct due to its assistance in supplying data of constant quality and relieving the burden on employees (Bravo et al 2016). Our results provide evidence that increasing IS quality in MA leads to higher data quality necessary for management accountants’ tasks. While prior literature sheds some light on the effects of IS quality on data quality (e.g., Gorla et al 2010), less attention has been paid to the determinants of IS in MA and MADQ. We address Taipaleenmäki and Ikäheimo’s (2013) call to report on changes in accounting attributable to technological developments by incorporating innovative technologies and new data sources in our model.
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