Mediating Role of Competitive Advantage on the Relationship between AIS Implementation and SMEs Performance in Jordan: A Proposed Framework
DOI:
https://doi.org/10.61841/6j9yc880Keywords:
AIS Alignment,, AIS sophistication,, competitive advantage, SMEs performanceAbstract
The study undertakes an extensive review of Accounting Information System (AIS) literature through which it identified a gap on lack of comprehensive framework that integrate AIS, competitive advantage and SMEs performance in a single model. Therefore, through the support of Resource-based View (RBV) Theory, the study proposeda conceptual framework on the influence of AIS dimensions (AIS alignment and AIS sophistication) on the SMEs performance through the mediation effect of competitive advantage. The framework highlights that SME that implemented a well aligned and highly sophisticated AIS would likely gain more competitive advantage and will eventually outperformed SMEs which do not possess such technological attributes. The study not only highlights the need on the validation of the proposed framework for more reliable insights but also highlights the need for future studies to expand on this effort through the identification of other potential mediators within the continuum of AIS-Performance relationship from SMEs perspectives. This is possible considering consistent results in such as a relationship.
Downloads
References
1. Akanbi, T. A., &Adewoye, J. (2018). Effects of Accounting Information System Adoption on the Financial Performance of Commercial Bank in Nigeria. Journal of Accounting & Marketing, 1(6), 1-6.
2. Akesinro, S., &Adetoso, J. (2016). The Effects of Computerized Accounting System on the Performance of Banks in Nigeria. Journal of Economics and Sustainable Development, 7(14), 76-82.
3. Ali, A., Rahman, M, and Ismail, W. (2012). Predicting continuance intention to use accounting information systems amongSMEs in Terengganu, Malaysia. International Journal of Economics and Management 6 (2) 295-320.
4. Alnajjar, M. (2017). Impact of Accounting Information System on Organizational Performance: A Study of SMEs in the UAE. Retrieved from Research Gates: https://www.researchgate.net/publication/324062452
5. Al-Shbiel, S. O., & Al-Olimat, N. H. (2016). Impact of information technology on competitive advantage in Jordanian commercial banks. Accounting information system effectiveness as a mediating variable. International Journal of Academic Research in Accounting, Finance and Management Sciences, 6(3), 202-211.
6. Alshir’ah, A. F., Abdul-Jabbar, H., and Samsudin, R. S. “Determinants of Sales Tax Compliance in Small and Medium Enterprises in Jordan” A Call for Empirical Research 4, no. 1(2016): 41-46.
7. Association of Banks in Jordan (2016). Small and medium enterprises in Jordan, analysis of supplies-side and demand-side focusing on banking financing. “Studies Department”. Retrieved in 2016 from: http:// www.abj.org.jo/ar-jo/
8. Barney, J. (1991). Firm resources and sustained competitive advantage. Journal of management, 17(1), 99- 120.
9. Baron, R. M., & Kenny, D. A. (1986). The moderator–mediator variable distinction in social psychological research: Conceptual, strategic, and statistical considerations. Journal of personality and social psychology, 51(6), 1173.
10. Borhan, O., & Bader, O. (2018). Investigating the Impact of Accounting Information System on the Profitability of Jordanian Banks. Research Journal of Finance and Accounting, 9(18), 110-118.
11. Budiarto, D. S., Prabowo, M. A., Djajanto, L., Widodo, K. P., &Herawan, T. (2018, May). Accounting information system (ais) alignment and non-financial performance in small firm: a contingency perspective. In International Conference on Computational Science and Its Applications (pp. 382-394). Springer, Cham.
12. Bunnoon, P. &Keawlaied, S (2018). Accounting information systems implementation andCompetitive advantage in Thai-food manufacturingFirms, Proceedings of 107th The IRES International Conference, Bangkok, Thailand, 11th-12th March, 2018
13. Cherrington, D.J. (1989). Organizational behavior: The management of individual and organizational performance: Allyn and Bacon.
14. Daoud, H., &Triki, M. (2013). Accounting information systems in an ERP environment and tunisian firm performance. International Journal of Digital Accounting Research, 13.
15. Ditkaew N. and Ussahawanitchakit P. (2010). Success of ERP implementation in Thai industrial firms: An empirical research of its antecedents and consequences. Journal of Academy of Business and Economics, 10(1): 1-23.
16. Esmeray, A (2016). The Impact of Accounting Information Systems (AIS) on Firm Performance: Empirical Evidence in Turkish Small and Medium Sized Enterprises.” International Review of Management and Marketing 6 (2) 233-236.
17. Evans, N. (2005). Assessing the balanced scorecard as a management tool for hotels. International Journal of Contemporary Hospitality Management, 17: 376-390.
18. Ganyam, A.I &Ivungu, J.A (2013). Effect of Accounting Information System on Financial Performance of Firms: A Review of Literature, Journal of Business and Management (IOSR-JBM), 21(5-VII), 39-49 DOI: 10.9790/487X-2105073949
19. Georgopoulos, B.S. and A.S. Tannenbaum (1957). A study of organizational effectiveness. American Sociological Review, 22(5): p. 534-540
20. Glautier, M., &Underdoon, B. (2009). Accounting Theory and Practice. England: Pearson Education Limited.
21. Grahovac, J., & Miller, D. J. (2009). Competitive advantage and performance: the impact of value creation and costliness of imitation. Strategic Management Journal, 30(11), 1192-1212.
22. Grande, E. U., Estébanez, 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(2), 25-43.
23. Harash, E. (2015) The Role of Environmental Uncertainty in the Link between Accounting Information System and Performance Small and Medium Enterprises in Iraq. Global Journal of Management and Business Research 15, no. 2, 26-32.
24. Hosam Alden Riyadh, A. A. S., Ahim Abdurahim, Hafiez Sofyani. (2020). THE EFFECT OF IRAQ'S DINAR EXCHANGE RATE AGAINST UK POUND ON IRAQ'S EXPORT TO UK. Journal of critical reviews (JCR), 7(2), 51-55. doi: doi: 10.31838/jcr.07.02.12
25. Ironkwe, U., &Nwaiwu, J. (2018). Accounting Information System on Financial and Non-Financial Measures of Companies in Nigeria. International Journal of Advanced Academic Research | Business Development & Management, 4(2), 39-55.
26. Ismail, N.A., Zin, R.M (2009). Usage of accounting information among Malaysian Bumiputra small and medium nonmanufacturing firms. Journal of Enterprise Resource Planning Studies 1(2) 11-17.
27. Ismail, N.A.; King, M. (2005): Firm performance and AIS alignment in Malaysian SME´s, International Journal of Accounting Information Systems, vol. 6, n.4: 241-259.
http://dx.doi.org/10.1016/j.accinf.2005.09.001
28. Kashif, B. (2018). Impact of Accounting Information System on the Financial Performance of Selected FMCG Companies. Asian Journal of Applied Science and Technology, 2(3), 8-17.
29. Khassawneh, A. A. L. (2014). The influence of organizational factors on Accounting Information Systems (AIS) effectiveness: a study of Jordanian SMEs.” International Journal of Marketing and Technology 4 (10) 36.
30. Lussier, R. N., and Halabi, C. E. (2010). A three-country comparison of the business success versus failure prediction model. Journal of Small Business Management 48, no. 3, 360-377.
31. Lutfi, A. A, Idris, K M., & Mohamad, R (2016). The Influence of Technological, Organizational and Environmental Factors on Accounting Information System Usage among Jordanian Small and Medium-sized Enterprises. International Journal of Economics and Financial Issues 6, no. 7S, 240-248.
32. Lutfi, A. A., Idris, K. M., & Mohamad, R. (2017). AIS usage factors and impact among Jordanian SMEs: The moderating effect of environmental uncertainty. Journal of Advanced Research in Business and Management Studies, 6(1), 24-38.
33. Majeed, S. (2011). The impact of competitive advantage on organizational performance. European Journal of Business and Management, 3(4), 191-196.
34. Ministry of Planning and International Cooperation [MPIC] "Annual report." Retrieved in 2012 from: http://www.mop.gov.jo
35. Nizar, S., Ahmad, F., & Mohamad, M. (2016). Evaluation of Accounting Information Systems in Meeting the Requirements ofFinancial and Managerial Performance: "Field Study in the United Arab Emirates Private Hospitals. International Journal of Humanities and Social Science, 6(4), 170-176.
36. Pandey, I. (2004). Financial management. New Delhi: Vikas Publishing.
37. Potjanajaruwit, P. (2018). Competitive advantage effects on firm performance: A Case study of startups in Thailand. Journal of International Studies, 11(3), 104-111.
38. Raed, K. (2017). The Impact of Accounting Information Systems on the Banks Success: Evidence from Jordan. Research Journal of Finance and Accounting, 8(17), 1-14.
39. Riyadh, H. A., Alfaiza, S. A., & Sultan, A. A. (2019). THE EFFECTS OF TECHNOLOGY, ORGANISATIONAL, BEHAVIOURAL FACTORS TOWARDS UTILIZATION OF E-GOVERNMENT
ADOPTION MODEL BY MODERATING CULTURAL FACTORS. Journal of Theoretical and Applied Information Technology, 97(8).
40. Robbins, S.P. (1987), Organizational Theory: Structure, Design, andApplication, San Diego: Prentice-Hall.
41. Rosli, M. M. (2012). Competitive strategy of Malaysian small and medium enterprises: an exploratory investigation. American International Journal of Contemporary Research, 2(1), 93-105.
42. Saeidi, H. (2014). The impact of accounting information systems on financial performance – a case study of TCS – India. Indian Journal of Fundamental and Applied Life Sciences, 4(4), 412-417.
43. Samer, M. (2016). The Impact of The Effectiveness of Accounting Information Systems on Operational Performance in Public Listed Industrial Companies in Jordan. Journal of Social Sciences, 5(3), 263-276.
44. Smirat, B. Y. A (2013). The use of accounting information by small and medium enterprises in south district of Jordan, (An empirical study). Research Journal of Finance and Accounting 4, no. 6 (2013): 169-175.
45. Sohail Imran Khan, A. A. S., Hosam Alden Riyadh. (2019). Academic Performance, Social Media Effects, and Leaning of College Students: Evidence of Positive Influence in Erbil City. Journal of Research on the Lepidoptera, 50(4).
46. Sonnentag, S., &Frese, M. (2002). Performance concepts and performance theory. Psychological management of individual performance, 23(1), 3-25.
47. Sultan, A. A., & Noor, S. M. (2017). Absorptive Capacity, Civil Conflict and E-Commerce Adoption Among Iraqi Firms. Advanced Science Letters, 23(8), 7992-7995.
48. Susanto, A., &Meiryani, M. (2019). The impact of Environmental Accounting Information System Alignment on Firm Performance and Environmental Performance: A case of Small and Medium Enterprises s of Indonesia. International Journal of Energy Economics and Policy, 9(2), 229.
49. Taiwo, J. (2016). Effect of ICT on accounting information system and organizational performance: The application of information and communication technology on accounting information system. European Journal of Business and Social Sciences, 5(2), 1-15.
50. Van Dung, H. A. (2020). Impact of Organizational Culture on the Accounting Information System and Operational Performance of Small and Medium Sized Enterprises in Ho Chi Minh City. The Journal of Asian Finance, Economics and Business (JAFEB), 7(2), 301-308.
51. Wan Ismail, W.N. and Mokhtar, M.Z. (2016). Application of TOE Framework in Examining the Factors Influencing Pre- and Post-Adoption of CAS in Malaysian SMEs. International Journal of Information Technology and BusinessManagement 49, no. 1, 26-37.
Downloads
Published
Issue
Section
License
This work is licensed under a Creative Commons Attribution 4.0 International License.
You are free to:
- Share — copy and redistribute the material in any medium or format for any purpose, even commercially.
- Adapt — remix, transform, and build upon the material for any purpose, even commercially.
- The licensor cannot revoke these freedoms as long as you follow the license terms.
Under the following terms:
- Attribution — You must give appropriate credit , provide a link to the license, and indicate if changes were made . You may do so in any reasonable manner, but not in any way that suggests the licensor endorses you or your use.
- No additional restrictions — You may not apply legal terms or technological measures that legally restrict others from doing anything the license permits.
Notices:
You do not have to comply with the license for elements of the material in the public domain or where your use is permitted by an applicable exception or limitation .
No warranties are given. The license may not give you all of the permissions necessary for your intended use. For example, other rights such as publicity, privacy, or moral rights may limit how you use the material.
