The Impact of Decentralization, Environmental Uncertainty, and Information Technology on Managerial Performance with Management Accounting System as a Mediator

Abstract

This study aims to examine the effect of decentralization, environmental uncertainty, and information technology on managerial performance through a management accounting system. This research is conducted using a quantitative approach, namely research using research instruments and quantitative data analysis with the aim of testing the predetermined hypothesis. The data used in this study is primary data, the sampling technique used is purposive sampling, and the number of samples is 200 respondents who are processed with the PLS-SEM application. The results showed that the direct effect of decentralization and environmental uncertainty has a positive effect on the accounting management system, while the direct effect of information technology has a negative effect. Then, the indirect effect of decentralization and environmental uncertainty has a positive effect on managerial performance through management accounting systems, while the indirect effect of information technology has a negative effect on managerial performance through management accounting systems. This study uses contingency theory, where all organizational components must be compatible with each other. The contingency approach to management accounting is based on the premise that there is no universal management system in every organization that is always suitable for all and in every situation that occurs, but this system also depends on situational factors that occur in the organization. In general, the more complex the level of technology used, the higher the performance, but in this study, it was found that the more complex the technology used, the more the management accounting system is disrupted and can affect performance. So, this study has a purpose, namely to examine the effect of decentralization, environmental uncertainty, and information technology on managerial performance with the management accounting system as a mediator. The limitation of this study is that the data was obtained only through questionnaires, so further research can be added with direct interview methods to obtain more detailed information from respondents. Besides that, the research sample was expanded with a wider scope to get results that can be generalized.