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Causes and consequences of AIS effectiveness

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Causes and consequences of AIS effectiveness
CAUSES AND CONSEQUENCES OF AIS EFFECTIVENESS IN MANUFACTURING FIRMS: EVIDENCE
FROM THAILAND
Wathana Yeunyong
Ph.D. (Accounting)

ABSTRACT
The aim of this study is to investigate causes and consequences of accounting information system
(AIS) effectiveness. Its causes are organization context, organizational coordination and control
(OCC) that affect the quality of information, which is produced from AIS of the firm. The information is obtained from information sharing among subunits, electronic data interchange across organizations.
Next, to investigate the consequences of AIS effectiveness that will influence competitive advantage and firm performance. Besides, there is to test the association between competitive advantage and firm performance. Drawing up on a sample of 95 manufacturing firms in Thailand. The firms use computer-based systems for operating of AIS. Results are that the causes, particularly information interdependence and formalization, are positively and significantly associated with AIS effectiveness, but the linkage between interorganization and AIS effectiveness is not significant. In addition, AIS effectiveness is positively and significantly related to competitive advantage. Moreover, firm performance is also directly affected by AIS effectiveness.
Keywords: AIS Effectiveness, Organizational Coordination and Control, Task Uncertainty, Competitive
Advantage, Firm Performance
INTRODUCTION
Accounting information system (AIS) refers to collecting, recording, classifying, summarizing information to help managers to make planning, controlling and evaluating (Bruggeman and Slagmulder, 1995). Therefore, planning is conducted to state the goals of the firm in the future to create activities that consist of a strategic plan, and then the strategies used to attain the goals (Flamholtz, 1983). Likewise, controlling is one role of
AIS that is important when the manager wants to control employee behavior to obtain increasing
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