Determinants of the Effectiveness of Accounting Information Systems in Districts/Cities in North Sumatera– Indonesia
DETERMINANTS OF THE EFFECTIVENESS OF ACCOUNTING
INFORMATION SYSTEMS IN DISTRICTS/CITIES IN NORTH
SUMATERA– INDONESIA
Nurzaimah
(Universitas Sumatera Utara (USU) /Indonesia/+62618214545
Salbiah
(Universitas Sumatera Utara (USU) /Indonesia/+62618214545
IskandarMuda
(Universitas Sumatera Utara (USU) /Indonesia/+
ABSTRACTThe purpose of this research is to determine the effect of the use of information technology, the service quality of accounting information systems and knowledge on the effectiveness of accounting information systems in Districts/Cities in North Sumatra. The type of this research is causal study. The research location was in several Districts/Cities in North Sumatra consisting of District of Batubara, District of Simalungun, District of Asahan, District of Labura, District of Labusel and City of TanjungBalai with a sample of 78 respondents who were willing to be interviewed of 201 populations using purposive sampling method. Dependent variable was the effectiveness of accounting information system and the independent variables used were the use of information technology, information technology advancement, the service quality of accounting information system and knowledge. Mediating variable used was Habit. This variable was used to analyze using path analysis test in order to obtain direct and indirect causal values. The results showed that the use of information technology, the service quality of accounting information systems and knowledge has effect on the effectiveness of accounting information systems in Districts/Cities in North Sumatra. Habit variable serves as mediating variable for the relationship between the independent variable on the dependent variables.
Keywords :Habit, The Use of Information Technology, Service Quality of Information
System and Knowledge.1. INTRODUCTION
The use of information technology is a supporting/driving means for an organization in achieving the organization objectives. The used of information technology can be done effectively if the members of the organization can use such technology well. The service quality of accounting information system can be defined as the users' perception on whether a service is good or bad and acceptable or not. The service quality of accounting information system is the user's perceptions regarding services provided by the software owner. Knowledge on information systems is also a significant factor in the implementation and development of the effectiveness of accounting information systems. Big responsibility demands an individual to have a high knowledge on the implementation of accounting information systems. The output resulted from accounting information system is in the form of financial statements to be submitted to management and to be used as a decision making tool. Research on the effectiveness of accounting information system has been previously carried out by several researchers. Dirgayusa, Atmadja and Nyoman (2014) found that the knowledge of employees in division of accounting and the use of information technology influenced simultaneously and significantly to the effectiveness of accounting information systems. Istiningsih (2009), in her research found that the service quality of has significant and positive effect on the effectiveness of accounting information systems. Researchers Kouser, et al (2011) found that the knowledge of accounting manager and the manager participation in the implementation and development of accounting information system have a strong relationship with the effectiveness of the accounting information system. Komala (2012) in his research found that knowledge of accounting manager affects the effectiveness of accounting information system and has a significant impact on the quality of information. There are some similarities and differences between this research and the previous researches. The difference is that there are independent variables used namely: the use of information technology, the quality service of accounting information system and knowledge. The differences between this research with the previous researches are on the location, time and number of the population and sample to be studied.
2. LITERATURE REVIEW
2.1. Efficiency and Effectiveness of Accounting Information System
Marshal and Romney (2015) in Hla and Teru (2015) alleged that developing an internal control system requires a thorough understanding of information technology (IT) capabilities and risk s as well as how to use IT to achieve an organizational control objectives. Accountant and systems developers help management achieve their control objectives by (1) designing effective control systems that take a proactive approach to eliminating systems and detect , correct , and recover from threats when they occur .(2) making it easier to build controls into systems at the initial design stage than to add them after the facts. They also alleged that internal control perform the following important functions;Preventive controls: which deter problems before they arise. Examples include hiring qualified personnel, segregating employee duties, and controlling physical access to assets and information.
There are many factors that affects the efficiency and effectiveness of accounting information systems such as qualified human resources, software and hardware and data bases (Ramly, 2011).Thus, the accounting information systems combined from these three factors, if any system has to be effective it should include a combination of well qualified human resources, the best software, and hardware and databases.
2.2. Conceptual Framework
The Use of Information
(X )
Technology 1 Effectiveness of Service Quality
Accounting Habbit (Z)
(X 2 )
Information System
(Y) Knowledge (X 3 )
Fig.1Conceptual Framework
An effective system can provide positive influences to the users' behaviors. Once a system is operated for a period of time, post-implementation shall be reviewed, inter-alia, to determine the extent to which the system achieve the specified objectives and whether or not the system can be reused or continued , and if it can be continued, whether modifications is required in order to achieve the specified objectives better. The correct use of information technology and supported with the personnel expertise in operating it can improve the corporate and the concerned personnel performances.An information system can be said as having good quality if such system is designed to meet users' satisfaction through the ease in using such information system. In addition, the higher the knowledge and the greater experience , the more effective a system will be. All of these can run optimally when it is mediated by daily habits in carrying out activities.
2.3. Previous Studies
Maksum et al (2014) This study aims to determine therole of treasurer’s experienceand knowledge on Permendagri (Minister Regulation) No. 55/2008 to create the effectiveness of administration and preparation of the accountability reporting system. The study founds that the experience variable does not affect the effectiveness of the administration and preparation of the accountability reporting system; meanwhile, the knowledge variable has an effect on the effectiveness of the administration and preparation of the accountability reporting system. Rasdianto et al (2014) This study aims to analyze the role of treasurer capacity on human resources and its tenure of services, facilities and infrastructures, the regulation, intensity of training administration and accountability of each of the task forces (SKPD) in North Sumatera on the timeliness of the regional government’s financial report. The result of the study has revealed that simultaneously and partially the variables of treasurer’s human resources and tenure of service, facilities and infrastructure, the regulation and intensity of the training administration and the accountability of the treasurers in North Sumatera are significantly affect to the timeliness of the regional government’s financial report. Rowe et al,. (1995) and Ramdhani (2011) also suggests the measurement of effectiveness consisting of, among others, the achievement level of the following aspects such as market share, growth, and stakeholder expectation. McLeod & Schell, 2007: 16 &Laudon&Laudon (2005) in AdehRatnaKomala (2012) state that the measurement dimension of accounting managerial knowledge is knowledge and experience.Komala (2012) states that accounting manager (controller) is an executive coordinating the participation of management in planning and controlling to achieve the company target, especially to determine the effectiveness of policy implementation and to develop the organizarion structures and procedures. Furthermore, a research was also conducted by Windha and Ida (2013) on the factors that influence the effectiveness of accounting information systems. This research concludes that the education level, training, work experience and incentives has positive and significant influences to the effectiveness of the use of accounting information systems. A research by Ni Putu et al (2015) shows that those two variables have positive and significant influences on the effectiveness of accounting information systems.Muda (2014) and Muda and Dharsuky (2015) finding of this study are expected to be able to give suggestions and recommendation of improvement on SIKD managers in North Sumatera so that they can support good government system. By identifying the management of SIKD, then at least it can obtain unqualified opinion. The result of this study concludes that Quality significantly influences at level of 5% on Precision of Financial Statement of Local Government Presentation. Role Ambiguity significantly influences Precision of Financial Statement of Local Government Presentation and training significantly influences Precision of Financial Statement of Local Government Presentation.
3. METHODOLOGY
The research location was in several Districts/Cities in North Sumatra consisting of District of Batubara, District of Simalungun, District of Asahan, District of Labura, District sample of 78 respondents who were willing to be interviewed of 216 populations using purposive sampling method. Dependent variable was the effectiveness of accounting information system and the independent variables used were the use of information technology, information technology advancement, the service quality of accounting information system and knowledge. Mediating variable used was Habit. This mediating variable was used to analyze using path test in order to obtain direct and indirect causal values:
Y = b
3
1 ɛ
1 X 1 + b
2 X 2 + b
3 X +
Y
2 = b
X
2 + b
4 Z+
2 ɛ
1 X + 1 b2
3 X 3 + b
Where: Y = Effectiveness of accounting information system Z = Habits
X
1 = The use of information technology
X
2 = Service quality of accounting information system
X
3 = Knowledge of accounting staffs
b1,...,b
3 = Regression line coefficient
, = Residuals/ error
ɛ 1 ɛ
2
4. RESULTS
4.1 Research Result
4.1.1. Descriptive Analysis
The description in this research is as follows:
Table 1. Descriptive Statistics
N Minimum Maximum Mean Std. Deviation Y78
3.00 4.58 3.7949 34048
X1
78
3.33 4.75 3.9172 33639
X2
78
3.00 4.57 3.8847 33590
X3
78
3.00 4.40 3.7244 30587 Z
78
3.25 4.75 4.0865 35772 Valid N (listwise)
78 Source : Secondary Data, 2016 (Processed data).
The descriptive results of the variables of the use of information technology for all observation shows an average value of 3.9172. The maximum value is 4.75 and minimum value is 3.33. The descriptive results of the variable of service quality of accounting information system shows an average value of 3.8847 with a minimum value of 3.00 and maximum value of 4.57. Knowledge variable shows descriptive result with an average value of 4.40 with a minimum value of 3.00 and maximum value of 4.40. The descriptive results of variable of the effectiveness of accounting information system shows an average value of 3.7949 with a minimum value of 3.00 and maximum value of 4.58. Habit variable shows an average value of 4.0865. The minimum value is 3.25 and the maximum value is 4.75. The standard deviation obtained is 0.583.
4.1.2. Hypothesis Testing Results
Standardized-beta coefficient value in the output table is the regression coefficient value for data that has been standardized and it constitutes path coefficient values as presented in the following table: 2 Table 2. Determination Coefficient Value (R )
Model R R Square Adjusted R Std. Error of the a Square Estimate
1 .635 .403 .379 .26834 Source : Secondary Data, 2016 (Processed data).
The value means that the effect of the use of information technology, the service quality of accounting information systems and knowledge on the effectiveness of accounting information systems together is 40.3%. In other words, the variable of effectiveness of accounting information system that can be described using variables of the use of information technology, service quality of accounting information systems and knowledge is amounted to 40.3%. To test the hypothesis substructure 1, values listed in Table 3 are used.
Table 3.Simultant Test
Model Sum of Squares df Mean Square F Sig. b Regression 3.598 3 1.199 16.655 .0001 Residual 5.328 74 .072 Total 8.926
77
a. Dependent Variable: Y
b. Predictors: (Constant), X3, X2, X1 Source : Secondary Data, 2016 (Processed data).
Table 3 is testing simultaneous with substructure 1. In that anova table, probability value (significant) = 0.000 <0.05 is obtained, thus H a is received. It means that variables of the use of information technology, service quality of accounting information system and knowledge simultaneously affect the effectiveness of accounting information system in North Sumatra.To see the effects in partial, beta numbers are used as shown in Table 4.
Table 4. Partial Test Value
Model Unstandardized Coefficients Standardized t Sig.Coefficients
B Std. Error Beta
(Constant) .175 .514 .340 .735 X1 .215 .098 .212 2.188 .0321 X2 .319 .095 .314 3.353 .001 X3 .414 .105 .372 3.938 .000
a. Dependent Variable: Y Source : Secondary Data, 2016 (Processed data).
Based on the table, the regression equation standardized in this research is Y = 0,175
- 0,212 X + 0,314 X + 0,372 X , thuse it can be interpreted as follows:
1
2
3
a. The effect of the use of information technology on the effectiveness of accounting information systems, it is obtained beta value of 0,212 ≠ 0 and probability (significant) =
0.032 < 0.05. It means that the use of information technology has no significant effect on
2
the effectiveness of accounting information systems. The effect of X
1 on Y is (0.212) × 100% = 4.49%.
b. The effect of the service quality of accounting information system on the effectiveness of accounting information systems, it is obtained beta value of 0,314 ≠ 0 and probability
(significant) = 0.001 < 0.05. It means that the service quality of accounting information system has effect on the effectiveness of accounting information systems. The effect of X
2
2 on Y is (0.314) × 100% = 9.85%.
c. The effect of knowledge on the effectiveness of accounting information systems, it is obtained beta value of 0,212 ≠ 0.372 and probability (significant) = 0.000 < 0.05. It means that knowledge has significant effect on the effectiveness of accounting information systems. The effect of X
3 on Y is (0.372 × 100%) = 13.83%.
4.1.3. Direct and Indirect Effect Testing Result
The calculation of direct and indirect effects of variables of the use of information technology, the service quality of accounting information systems and knowledge on variable of effectiveness of accounting information system can be seen in Table 5.
Table 5.Direct and Indirect Effect
Variables Direct Effects Indirect Effects Total Remarks 2 X to Y (0.212) x 100% 4.5% 28.1% Weak effect 1 2 X to Y (0.314) x 100% 9.8% Weak effect 2 2 X to Y (0.372) x 100% 13.8% Medium effect 3 X to Y 2(0.212 x -0.314 x 0.276)x100% 3.6% 4.5% Weak effect 1 throughX 2 X to Y 2(0.212 x 0.372 x 0.296)x100% 4.6% Weak effect 1 through
X 3 X to Y 2(0.314 x 0.372 x-0.161)x100% -3.7% Weak effect 2 through
X 3 Simultaneous Effect 32.6% Strong Effect Other Variables 67.4% Error term Source : Processed data (2016).
Based on Table 5, it shows that X
1 to Y has weak direct effect of 0.212 or 4.5%, X 2 to
Y also has weak affect of 0.314, or 9.8%, while X
3 to Y has medium effect of 0.372 or
13.8%.The calculation of direct and indirect effects of variables of the use of information technology, the service quality of accounting information systems and knowledge on the effectiveness of accounting information system and the impacts on the habits can be seen in Table 6.
Table 6. Resume of Testing Result
Variables Direct Effects Indirect Effects Total Remarks
2 X to Y (0.015) x 100% 0.02% 0.7% Weak effect 1 2 X to Y (-0.057) x 100% 0.3% Weak effect 2 2 X to Y (0.050) x 100% 0.25% Weak effect 3 2 Y to Z (0.045) x 100%0.2 Weak effect
X to Y 2(0.045x 0.050 x0.409)x100% 0.18% 1.5% Weak effect
1 Through YX to Z 2(0.015 x0.050 x0.433)x100% 0.06% Weak effect
2 through YX to Z 2(-0.057 x0.050 x0.485)x100% -0.27% Weak effect
3 through Y
X to Z 2(0.045 x 0.015 x 0.276)x100% 0.03% Weak effect
1 through X 2 X to Z 2(0.045 x -0.057 x 0.296)x100% -0.15% Weak effect 1 through X 3 X to Z 2(0.015x -0.057 x0.161)x100% -0.02% Weak effect 2 through X 3 Simultaneous Effect 5.5% Weak effect Other Variables 94.5% Error term Source : Processed data (2016).Based on the table, it shows that :
a. The use of information technology (X
1 ) has weak effect on habits (Z), it is obtained direct
value of 0.015 or 0.2% and indirect weak effect through Y of 0.18%. This condition is fully mediated where independent variables affect the dependent variables only through mediation. Indirectly, the use of information technology has greater effects compared to the direct effects. b. The service quality of accounting information system (X
2 ) has weak effect on habits (Z), it is obtained direct value of -0.057 or 0.3% and indirect weak effect through Y of 0.06%.
This condition is fully mediated where independent variables affect the dependent variables only through mediation. Indirectly, the service quality of accounting information system has greater effects compared to the direct effects.
c. Knowledge (X
3 ) has weak effect on habits (Z), it is obtained direct value of 0.050 or
0.25% and indirect weak effect of -0.27%. This condition is fully mediated where independent variables affect the dependent variables only through mediation. Indirectly, knowledge has greater effects compared to the direct effects.
Based on the aforementioned explanation, the result of path analysis obtained from data processing is shown in the path diagram in Figure 2.
1
2 (X 1 )
0.268 0.366 ρ =0.015 (sig.0.911)
ρ = 0.446 (sig.0.000) (X
2 ) (Y) (Z)
ρ = -0.196 (sig.0.000) ρ = 0.177 (sig.0.004) ρ = 0.082 (sig.0.079)ρ = 0.045 (sig.0.769) (X 3 )
ρ = 0.050 (sig.0.712)
Fig.2 Flow Diagram Result
5. DISCUSSION
Based on the calculation results in Table 6, it can be concluded that there are indirect effects between the use of information technology on habits with the effectiveness of accounting information system as intervening variable of 0.18% and positive effect. Indirectly, the use of information technology has positive effect on habit by taking into account the effectiveness of accounting information system as mediating variable that also has effect of 0.18% which is greater than the effect obtained directly i.e 0.02%. The effect given through variable of effectiveness of accounting information systems is weak effect.Based on the calculation results in Table 6, it can be concluded that there are indirect effects between the service quality of accounting information system on habits with the effectiveness of accounting information system as intervening variable of 0.06% and positive effect. Indirectly, the service quality of accounting information system has positive affects on habit by taking into account the effectiveness of accounting information systems as intervening variable. Effects obtained indirectly greater is greater than effects obtained directly, i.e 0.3%. The effect given through variable of effectiveness of accounting information systems is weak effect. Based on the calculation results, the indirect effects between the knowledge on habits with the effectiveness of accounting information system as intervening variable is -0.27% and negative effect. Indirectly, knowledge has negative affects on habit by taking into account the effectiveness of accounting information systems as intervening variable.
6. CONCLUSION
6.1 Conclusion
The results showed that the use of information technology, the service quality of accounting information systems and knowledge has effect on the effectiveness of accounting information systems in Districts/Cities in North Sumatra. Habit variable served as mediating variable for the relationship between the independent variable on the dependent variables.
6.2.Limitation
The limitations in this research are the limited previous researches, especially for habit variable are used mediating variable. It is because this research is a recent research performed to see to what extend habit variable can be used as mediating variable.
6.3. Suggestion
1. According to the results of this research, it is expected that government, especially Government of North Sumatra Indonesia Countries pay attention to their performance quality in terms of financial management.
2. This research was only performed on the local work unit in North Sumatra, therefore, further research can be conducted in other sectors because it allows the difference in results and conclusions if it is performed to the different subjects.
3. It is expected that future research add some other factors that can affect habits.
4. This research only used internal indicators of effectiveness factors. It is suggested that the future researches uses external indicators in order to obtain good conclusions.
7. ACKNOWLEDGEMENTS
This study is dedicated to the University of North Sumatra that has been providing assistance funding for this research.
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