Computerised Accounting Information Systems and Firm Performance: The Mediating Role of Transparency
Accounting information system (AIS) is central to an organisation, providing valuable data for decision makers. While many studies look into the impact of technology fit and corporate governance (CG) on firm performance, this study investigates how a component of CG (transparency) capability of AIS, executive visions (EV) and information technology (IT) skill impact on firm performance. Using a resource based view (RBV) framework, hypothesised relationships among variables of interest were examined based on data collected from 336 small and medium sized enterprises (SMEs) in Malaysia. Results from partial least square (PLS) analysis suggest that effects of AIS on firm performance were partially moderated by information transparency, a component of CG, while a full moderation effect was found for EV and IT skill on firm performance. The results thus demonstrate the importance of transparency and AIS to a greater height, prompting SMEs to revisit their policies on AIS, staff training and largely transparency to better improve firm performance.