Strategic Information Moderated By Effectiveness Management Accounting Information Systems: Business Strategy Approach

Lilis Puspitawati

doi:10.24912/ja.v25i1.727

Abstract

The industrial revolution 4.0 increases business competition and the increasing need for accounting information for strategic decision making. Accounting information is financial information needed by managers to predict and determine the company's strategic policies in the future, however, the current condition of many companies has not been able to produce quality accounting information which has an impact on the production of inappropriate financial policies. This study aims to determine how much the business strategy affects the effectiveness of the use of accounting software and how much the effectiveness of accounting software affects the quality of accounting information. The population in this study were 472 managers of state-owned companies and a total sample of 312 managers of BUMN which were determined by simple random sampling technique. Testing data using covariance-based structural equation modeling (SEM) with Lisrell software. The results of this study prove that State-Owned Enterprises in Indonesia effective application software affects quality accounting information, as well as the company's business strategy affects the effectiveness of accounting software.

Highlights

Organizations need strategic information to achieve competitive advantage, which used to plan the objectives of the organization and to assess whether those objectives are being achieved in practice
The results of the study illustrate the condition of business strategy policy has not been applied to Management Accounting Information System (MAIS) application that is used in State Owned Enterprises (SOEs) in Indonesia, It means that MAIS applications used have not provided features that can be used in support of cost leadership, differentiation, and focus strategies
The result of hypothesis testing of Business Strategies effect on Efectiveness of MAIS shows that p-value is lower than 0.05, which means that Business Strategies has a significant effect on Efectiveness of MAIS Information Systems (IS) in SOEs in Indonesia

Summary

Introduction

Organizations need strategic information to achieve competitive advantage, which used to plan the objectives of the organization and to assess whether those objectives are being achieved in practice. Management Accounting Information System (MAIS) is one type of Strategic Information Systems that can be used manager in several company to identify and to understand the strategic issues as the requirements for changes in Business Strategies to survive in a competitive environment. Interpret, and control the flow of information from the company environment so that they are not surprised by these threats and even prepares for a wide range of possibilities that will happen to deal with the strategic issues. In a competitive business environment, managers must take information from internal and external environment. Business Strategies of an organization provides the information from internal and external environment of their organization to the managers who need it (Heidmann, 2008)

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Conclusion