Examining AIS Software and Co-operative Performance in Malaysia
Accounting information systems (AIS) is essential to process business data into useful information. Indeed, empirical evidence suggested that the use of AIS has a positive impact on firm performance. Previous studies were concentrating on small and medium-sized enterprises (SMEs) and public listed companies leaving a gap in the co-operative literature. Furthermore, the users of different types of AIS software that contribute towards improving the firm performance were not adequately explored. As such, this paper draws on the resource-based view (RBV) to examine the gap issue. Using mail questionnaire survey, data were collected from 120 co-operatives. Findings from this study suggest that commercial and developed-in-house AIS software are mostly used by co-operatives. Also, the findings suggest that co-operatives performance is not associated with the types of AIS software used by the co-operatives. This study provides valuable insights into the implementation of AIS among Malaysian co-operatives, which has received little attention thus far from academic, governmental and professional bodies.
Aral, S., & Weill, P. (2007). IT assets, organisational capabilities, and firm performance: How resource allocations and organisational differences explain performance variation. Organization Science, 18(5), 763–780.
Barney, J. (1991). Firm resources and sustained competitive advantage. Journal of Management, 17(1), 99–120.
Bartlett, J. E., Kotrlik, J. W., & Higgins, C. (2001). Organizational research: Determining appropriate sample size for survey research. Information Technology, Learning, and Performance Journal, 19(1), 43–50.
Bharadwaj, A. S. (2000). A resource-based perspective on information technology capability and firm performance: An empirical investigation. MIS Quarterly, 24(1), 169–196.
Chen, J.-L. (2012). The synergistic effects of IT-enabled resources on organisational capabilities and firm performance. Information & Management, 49(3–4), 142–150. http://doi.org/10.1016/j.im.2012.01.005
Dess, G. G., & Robinson, R. B. (1984). Measuring organizational performance in the absence of objective measures : The case of the privately-held firm and conglomerate business unit. Strategic Management Journal, 5(3), 265–273. http://doi.org/10.1002/smj.4250050306
Edison, G., Manuere, F., Joseph, M., & Gutu, K. (2012). Evaluation of factors influencing adoption of accounting information system by small to medium enterprises in Chinhoyi. Interdisciplinary Journal Of Contemporary Research In Business, 4(6), 1126–1141.
Elbarrad, S. S. (2012). Rationalizing the Investment Decision in Computerized Accounting Information Systems - An Applied Study on Saudi Arabian Companies. International Journal of Economics and Finance, 4(8), 42–59. http://doi.org/10.5539/ijef.v4n8p42
Grande, E. U., Estébanez, P., & Colomina, 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, 25–43. http://doi.org/10.4192/1577-8517-v11
Harun, M. M. Z., & Mahmood, R. (2012). The relationship between group cohesiveness and performance: An empirical study of cooperatives movement in Malaysia. International Journal of Cooperative Studies, 1(1), 15–20.
Heidhues, E., & Patel, C. (2008). The role of accounting information in decision-making processes in a German dairy cooperative. In Emerging Issues in International Accounting Conference, China, June 2008 (pp. 1–45).
ICA. (2013). Co-operative facts & figures | ICA: International Co-operative Alliance. Retrieved September 9, 2013, from http://ica.coop/en/whats-co-op/co-operative-facts-figures
ICA. (2014). Co-operative identity, values & principles | ICA: International Co-operative Alliance. Retrieved March 31, 2014, from http://ica.coop/en/whats-co-op/co-operative-identity-values-principles
Ismail, N. A., & King, M. (2005a). A model for implementing accounting information systems in small and medium-sized enterprises. Malaysian Management Journal, 9(1 & 2), 71–89.
Ismail, N. A., & King, M. (2005b). Firm performance and AIS alignment in Malaysian SMEs. International Journal of Accounting Information Systems, 6(4), 241–259. http://doi.org/10.1016/j.accinf.2005.09.001
Ismail, N. A., & Zin, R. M. (2009). Usage of Accounting Information among Malaysian Bumiputra Small and Medium Non-Manufacturing Firms. Journal of Enterprise Resource Planning Studies, 2009, 1–7.
Karimi, J., Somers, T. M., & Bhattacherjee, A. (2007). The role of information systems resources in ERP capability building and business process outcomes. Journal of Management Information Systems, 24(2), 221–260. http://doi.org/10.2753/MIS0742-1222240209
Katz, J. P. (1998). Managerial behaviour and strategy choices in agribusiness cooperatives. Agribusiness, 13(5), 483–495.
Kharuddin, S., Ashhari, Z. M., & Nassir, A. M. (2010). Information system and firms’ performance : The Case of Malaysian Small Medium Enterprises. International Business Research, 3(4), 28–35.
King, R. P., & Shuker, I. G. (1991). Information system adoption and use in local cooperatives. Journal of Agricultural Cooperation, 6, 54–65.
Kouser, R., Awan, A., Gul-e-Rana, & Shahzad, F. A. (2011). Firm size, leverage and profitability: Overriding impact of accounting information system. Business and Management Review, 1(10), 58–64. Retrieved from http://www.businessjournalz.org/bmr
Kouser, R., Rana, G. e, & Shahzad, F. A. (2011). Determinants of AIS Effectiveness: Assessment thereof in Pakistan. International Journal of Contemporary Business Studies, 2(12), 6–21. Retrieved from http://www.akpinsight.webs.com
MCSC. (2013). Official Portal Suruhanjaya Koperasi Malaysia. Retrieved August 21, 2013, from http://www.skm.gov.my/en/sejarah-gerakan-koperasi1
Mollanazari, M., & Abdolkarimi, E. (2012). The Effects of Task, Organization and Accounting Information Systems Characteristics on the Accounting Information Systems Performance in Tehran Stock Exchange. International Journal of Innovation, Management and Technology, 3(4).
Nicolaou, A. I. (2000). A contingency model of perceived effectiveness in accounting information systems : Organizational coordination and control effects. International Journal of Accounting Information Systems, 1(2), 91–105.
Othman, A., & Kari, F. (2008). Enhancing co-operative movement to achieve Malaysia ’ s development goals. Paper Presented at the ICA Research Conference: “The Role of Co-Operatives in Sustaining Development and Fostering Social Responsibility,” Riva Del Garda, Trento, Italy, 1–39.
Othman, A., Kari, F., Jani, R., & Hamdan, R. (2012). Factors Influencing Cooperative Membership and Share Increment : An Application of the Logistic Regression Analysis in the Malaysian Cooperatives. World Review of Business Research, 2(5), 24–35.
Ravichandran, T., & Lertwongsatien, C. (2005). Effect of information systems resources and capabilities on firm performance: A resource-based perspective. Journal of Management Information Systems, 21(4), 237–276.
Salehi, M., Abedini, B., & Rasouli, A. (2012). Association of accounting information system and companies’ performance: Iranian evidence. Archives Des Sciences, 65(7), 93–103.
Soudani, S. N. (2012). The Usefulness of an Accounting Information System for Effective Organizational Performance. International Journal of Economics and Finance, 4(5), 136–145. http://doi.org/10.5539/ijef.v4n5p136
Venkatraman, A. N., & Ramanujam, V. (1986). Measurement of business performance in strategy research : A comparison of approaches. The Academy of Management Review, 11(4), 801–814.
Wade, M., & Hulland, J. (2004). Review: The resource-based view and information systems research: review, extension, and suggestions for future research. MIS Quarterly, 28(1), 107–142.
Zhang, M. J. (2007). Assessing the performance impacts of information systems from the resource-based perspective: An empirical test of the indirect effect of the IS. Journal of Business Strategies, 24(2), 141–164.
Copyright (c) 2017 Indian-Pacific Journal of Accounting and Finance
This work is licensed under a Creative Commons Attribution 4.0 International License.
Copyright of all articles published in the Indian Pacific Journal of Accounting and Finance (IPJAF) belongs to their respective authors. Site users are permitted to download and print the articles for personal use. Further reproduction and/or distribution is not permitted, except for brief excerpts or quotations intended for inclusion in some other original works. In this case, proper attribution must be made to the author/copyright holder, and the place of publication must be acknowledged. Altering, editing or otherwise modifying the content of information obtained from the Indian Pacific Journal of Accounting and Finance (IPJAF) is a breach of copyright.
While you retain the copyright of your original material, by publishing in the Indian Pacific Journal of Accounting and Finance (IPJAF) , you will have agreed to the following contractual terms:
- The article is the original work of the stated author(s).
- The work has not been published previously.
- If the Article contains copyright material owned by others, written permission has been obtained from the copyright owner(s) to republish such material in any print or electronic medium and that you have included appropriate acknowledgement of such rights in the Article.
- The author agrees to grant a non-exclusive license to the Indian Pacific Journal of Accounting and Finance (IPJAF) to communicate the work to the public.
- The Indian Pacific Journal of Accounting and Finance (IPJAF) may use the article for publicity purposes.
- The Indian Pacific Journal of Accounting and Finance (IPJAF) may publish the article on third-party sites.
- Any subsequent publication of the article by the authors will carry the acknowledgement: First published in the Indian Pacific Journal of Accounting and Finance (IPJAF) [http://ipjaf.omjpalpha.com]
The Indian Pacific Journal of Accounting and Finance (IPJAF) has taken all reasonable measures to ensure that material contained in this website is the original work of the author(s). However, the Journal gives no warranty and accepts no responsibility for the accuracy or the completeness of the material; no reliance should be made by any user on the material. The user should check with the authors for confirmation.
Articles published in the Indian Pacific Journal of Accounting and Finance (IPJAF) do not represent the views held by the editors and members of the editorial board. Authors are responsible for all aspects of their articles except the editorial screen design.