Impact of Quality of Accounting Information Systems on Organizational Effectiveness of Automobile Companies in Sri Lanka

Abstract

Accounting Information System (AIS) is adopted as one of strategies to improve decision making process in the turbulent business environment. However, to enhance organizational effectiveness, which dimension of quality of AIS should be highly prioritized is still skepticism. Therefore, the study has three objectives, firstly, to identify the extent of quality of AIS of Automobile Companies in Sri Lanka. Secondly, to identify the extent of organizational effectiveness of automobile companies in Sri Lanka. Thirdly, to examine the impact of quality of AIS on organizational effectiveness of Automobile Companies in Sri Lanka. The Conceptual model has been developed by using three independent variables (system quality, information quality and service quality) and organizational effectiveness is the dependent variable. Accordingly, primary data has been collected by distributing questionnaires to 120 AIS users who were working in head office and branches as a sample from 30 automobile companies in Sri Lanka by using convenient sampling method. The collected data has been analysed by using descriptive statistics, correlation analysis, and regression analysis. The results of the study reveal that overall quality of AIS as well as organizational effectiveness is at high level in Automobile Companies in Sri Lanka. Further, the quality of AIS is showing statistically significant positive impacts on organizational effectiveness of automobile companies in Sri Lanka. The system quality as well as service quality of AIS is highly impacted on organizational effectiveness than information quality of AIS. Findings of the study are beneficial to mangers and financial executives not only to automobile companies but also it is useful to other sectors to plan for designing excellent AIS to achieve the organizational effectiveness.

Keywords: Accounting Information System, System Quality, Information Quality, Service Quality, Organizational effectiveness