ORGANIZATIONAL EFFECTIVENESS FOR ACCOUNTING IN-FORMATION SYSTEM PRACTICE: A STUDY ON SOME SELECT-ED READY-MADE GARMENTS FACTORIES OF CHATTOGRAM IN BANGLADESH

Abstract

In today's rapidly evolving global business environment, implementing Accounting Information Systems (AIS) effectively is essential for improving financial reporting accuracy and operational efficiency. Despite its importance, the relationship between AIS practices and organizational effectiveness remains insufficiently explored, particularly within Bangladesh's ready-made garments (RMG) industry. This study aims to examine the impact of AIS on organizational effectiveness within the RMG sector of Chattogram, Bangladesh. Data were collected from 400 respondents using a purposive sampling method, with responses measured on a five-point Likert scale. The study evaluated AIS across multiple dimensions, including financial reporting accuracy, timeliness of decision-making, data security, ease of accessibility, regulatory compliance, and user satisfaction. Organizational effectiveness was assessed in terms of cost efficiency, integration with other systems, decision support, adaptability to change, training and support, innovation, and system upgrades. Factor analysis was performed to validate the data, and reliability was tested through Cronbach's Alpha. A structural equation model (SEM) was developed using IBM SPSS AMOS 22 to analyze the relationship between AIS and organizational effectiveness, ensuring that the model met convergent and discriminant validity requirements. The results revealed a significant positive relationship between AIS practices and organizational effectiveness. AIS contributed to improved decision-making, enhanced financial reporting accuracy, streamlined operational processes, and greater overall efficiency. These findings underscore AIS's crucial role in promoting organizational success within the RMG sector, highlighting its potential to boost performance, productivity, and overall effectiveness.