Usefulness of accounting information systems for small business profitability in South Africa: A systematic literature review
-
DOIhttp://dx.doi.org/10.21511/afc.05(1).2024.01
-
Article InfoVolume 5 2024, Issue #1, pp. 1-15
- 300 Views
-
94 Downloads
This work is licensed under a
Creative Commons Attribution 4.0 International License
Accounting information systems are an important instrument in the hands of administrators seeking to maintain a competitive edge in the face of fast technological innovation, having the knowledge, and demanding expectations from customers and business owners. The objective of the study is to investigate the empirical literature pertaining to accounting information systems and companies. This study uses a systematic literature review method to provide responses to the research issue, and the bulk of the research was conducted in industrialized economies where computerized accounting system approaches were widely adopted. The selected method of inquiry consists of the following phases: study choice, development of both inclusion and exclusion guidelines, research designation, quality of research assessment, data collection, and data compilation. Based on the paper’s findings, most small businesses fail to implement accounting information systems in their operations, resulting in low-efficiency levels because of the difficulty of preserving company information records. Furthermore, this systematic literature review adds to the prior literature in three ways: (1) it indicates the usefulness of accounting information systems; (2) it expresses the suggestions that might be implemented to boost the accounting information system; and (3) it describes the research gaps that require to be filled to encourage an improved adoption of accounting information systems for small business profitability.
- Keywords
-
JEL Classification (Paper profile tab)M49, L86
-
References49
-
Tables0
-
Figures3
-
- Figure 1. Flowchart of the study
- Figure 2. Studies reviewed from 2008 to 2023
- Figure 3. Study model of AIS
-
- Ahmad, M. A., & Al-Shbiel, S. O. (2019). The effect of accounting information system on organizational performance in Jordanian industrial SMEs: The mediating role of knowledge management. International Journal of Business and Social Science, 10(3), 99-104.
- Al-Fatlawi, Q. A., Al Farttoosi, D. S., & Almagtome, A. H. (2021). Accounting information security and it governance under COBIT 5 framework: A case study. Webology, 18, 294-310.
- Ali, B. J., Oudat, M. S., & Alsmadi, A. A. (2021). Accounting information system and financial sustainability of commercial and Islamic banks: a review of the literature. Journal of Management Information & Decision Sciences, 24(5), 1-20.
- Al-Okaily, M. (2024). Assessing the effectiveness of accounting information systems in the era of COVID-19 pandemic. VINE Journal of Information and Knowledge Management Systems, 54(1), 157-175.
- Bahar, A. R., & Ismaya, S. B. (2022). The influence of the implementation of corporate social responsibility on the profitability of manufacturing companies on the Indonesia stock exchange 2016-2020: Aspects of economic and environmental indicators. Cashflow: Current Advanced Research on Sharia Finance and Economic Worldwide, 1(2), 19-28.
- Beg, K. (2018). Impact of accounting information system on the financial performance of selected FMCG companies. Asian Journal of Applied Science and Technology, 2(3), 08-17.
- Brau, J. C., Fawcett, S. E., & Morgan, L. (2007). An empirical analysis of the financial impact of supply chain management on small firms. The Journal of Entrepreneurial Finance, 12, 55-82.
- Collier, P. M. (2015). Accounting for managers: Interpreting accounting information for decision making (5th ed.). John Wiley & Sons.
- Derila, C. P., Evana, E., & Dewi, F. G. (2020). Effect of environmental performance and environmental costs on financial performance with CSR disclosure as intervening variables. International Journal for Innovation Education and Research, 8(1), 37-43.
- Deyganto, K. O., & Alemu, A. A. (2019). Factors affecting financial performance of insurance companies operating in Hawassa city administration, Ethiopia. Universal Journal of Accounting and Finance, 7(1), 1-10.
- Dirman, A. (2020). Financial distress: the impacts of profitability, liquidity, leverage, firm size, and free cash flow. International Journal of Business, Economics and Law, 22, 17-25.
- Endiana, I., Dicriyani, N. L. G. M., Adiyadnya, M. S. P., & Putra, I. (2020). The effect of green accounting on corporate sustainability and financial performance. The Journal of Asian Finance, Economics and Business, 7(12), 731-738.
- Esmeray, A. (2016). The impact of accounting information systems (AIS) on firm performance: empirical evidence in Turkish small and medium sized enterprises. International Review of Management and Marketing, 6(2), 233-236.
- Fisch, C., & Block, J. (2018). Six tips for your (systematic) literature review in business and management research. Management Review Quarterly, 68, 103-106.
- Galdeano, D., Ahmed, U., Fati, M., Rehan, R., & Ahmed, A. (2019). Financial performance and corporate social responsibility in the banking sector of Bahrain: Can engagement moderate? Management Science Letters, 9, 1529-1542.
- Gee, J., Marquez, P., Su, J., Calvert, G. M., Liu, R., Myers, T., Nair, N., Martin, S., Clark, T., Markowitz, L., Lindsey, N., Zhang, B., Licata, C., Jazwam A., Sotir, M., & Shimabukuro, T. (2021). First month of COVID-19 vaccine safety monitoring – United States, December 14, 2020-January 13, 2021. Morbidity and Mortality Weekly Report, 70(6), 283-288.
- Gibbons, M. J., Fan, M. D., Rowhani-Rahbar, A., & Rivara, F. P. (2020). Legal liability for returning firearms to suicidal persons who voluntarily surrender them in 50 US states. American Journal of Public Health, 110, 685-688.
- Gichaaga, P. M. (2014). Effects of management accounting practices on financial performance of manufacturing companies in Kenya (Master’s Thesis). University of Nairobi.
- Gofwan, H. (2022). Effect of accounting information system on financial performance of firms: A review of literature. Department of Accounting (Bingham University). 2nd Departmental Seminar Series with the Theme-History of Accounting Thoughts: A Methodological Approach, 2(1), 57-60.
- Ha, V. D. (2020). Impact of organizational culture on the accounting information system and operational performance of small and medium sized enterprises in Ho Chi Minh City. The Journal of Asian Finance, Economics and Business, 7, 301-308.
- Hammitt, L. L., Dagan, R., Yuan, Y., Baca Cots, M., Bosheva, M., Madhi, S. A., Muller, W. J., Zar, H. J., Brooks, D., & Grenham, A. (2022). Nirsevimab for prevention of RSV in healthy late-preterm and term infants. New England Journal of Medicine, 386, 837-846.
- Hansen, E. G., & Schaltegger, S. (2016). The sustainability balanced scorecard: A systematic review of architectures. Journal of Business Ethics, 133, 193-221.
- Hapsoro, D., & Sulistyarini, R. D. (2019). The effect of profitability and liquidity on CSR disclosure and its implication to economic consequences. The Indonesian Accounting Review, 9(2), 143-154.
- Harjito, Y., Pratiwi, E. A. B., & Sugiarti, S. (2022). Profit growth review from the financial performance analysis and inflation rate with corporate social responsibility as a moderation. Accruals (Accounting Research Journal of Sutaatmadja), 6.
- Hashem, F., & Alqatamin, R. (2021). Role of artificial intelligence in enhancing efficiency of accounting information system and non-financial performance of the manufacturing companies. International Business Research, 14(12), 1-65.
- Hermawan, A., & Gunardi, A. (2019). Motivation for disclosure of corporate social responsibility: Evidence from banking industry in Indonesia. Entrepreneurship and Sustainability Issues, 6, 1297-1306.
- Hidayah, N. F., & Khasanah, U. (2022). The influence of liquidity and profitability on firm value with corporate social responsibility (CSR) as a mediation variable. Jurnal Ekonomi Manajemen, 7(1), 63-80.
- Hill, M. D., Kelly, G. W., & Highfield, M. J. (2010). Net operating working capital behavior: a first look. Financial Management, 39(2), 783-805.
- Hutahayan, B. (2020). The mediating role of human capital and management accounting information system in the relationship between innovation strategy and internal process performance and the impact on corporate financial performance. Benchmarking: An International Journal, 27(4), 1289-1318.
- Islam, M. M., Bhuiyan, M. N. K., & Harun, M. Y. (2012). Development of value chain: an effective way of profitable duck farming in haor areas of Bangladesh. INFPD Good Practices of Family Poultry Production Note, 4.
- Jahari, C., Kilama, B., Dube, S., & Paremoer, T. (2017). Regional industrialisation and the development of agro-processing value chains in Tanzania and South Africa: Oilseeds-to-edible oils. ACER III Conference.
- Kafuku, G., & Mbarawa, M. (2010). Effects of biodiesel blending with fossil fuel on flow properties of biodiesel produced from non-edible oils. International Journal of Green Energy, 7(4), 434-444.
- Karrer, D., & Fleck, D. (2015). Organizing for ambidexterity: A paradox-based typology of ambidexterity-related organizational states. BAR-Brazilian Administration Review, 12(4), 365-383.
- Khaghaany, M., Kbelah, S., & Almagtome, A. (2019). Value relevance of sustainability reporting under an accounting information system: Evidence from the tourism industry. African Journal of Hospitality, Tourism and Leisure, 8, 1-12.
- Khalid, B., & Kot, M. (2021). The impact of accounting information systems on performance management in the banking sector. IBIMA Business Review, 578902.
- Kopparthi, M. S., & Kagabo, N. (2012). Is value chain financing a solution to the problems and challenges of access to finance of small-scale farmers in Rwanda? Managerial Finance, 38(10), 993-1004.
- Kusmuriyanto, Cantika, A. A., Arief, S., & Kardiyem. (2023). The Effect of Liquidity, Profitability, Inventory Intensity and Corporate Social Responsibility (CSR) on Tax Aggressiveness. Unima International Conference on Social Sciences and Humanities (UNICSSH 2022) (pp. 1040-1048). Atlantis Press.
- Meeks, G., & Swann, G. P. (2009). Accounting standards and the economics of standards. Accounting and Business Research, 39(3), 191-210.
- Monteiro, A. P., Vale, J., Leite, E., Lis, M., & Kurowska-Pysz, J. (2022). The impact of information systems and non-financial information on company success. International Journal of Accounting Information Systems, 45, 100557.
- Nguyen, T., Chen, J. V., & Nguyen, T. P. H. (2021). Appropriation of accounting information system use under the new IFRS: Impacts on accounting process performance. Information & Management, 58(8), 103534.
- Nosella, A., Cantarello, S., & Filippini, R. (2012). The intellectual structure of organizational ambidexterity: A bibliographic investigation into the state of the art. Strategic Organization, 10(4), 450-465.
- Pertusa-Ortega, E. M., Molina- Azorín, J. F., Tarí, J. J., Pereira- Moliner, J., & López-Gamero, M. D. (2021). The micro foundations of organizational ambidexterity: A systematic review of individual ambidexterity through a multilevel framework. BRQ Business Research Quarterly, 24(4), 355-371.
- Raisch, S., Birkinshaw, J., Probst, G., & Tushman, M. L. (2009). Organizational ambidexterity: Balancing exploitation and exploration for sustained performance. Organization Science, 20(4), 685-695.
- Schaltegger, S., Hansen, E. G., & Lüdeke-Freund, F. (2016). Business models for sustainability: Origins, present research, and future avenues. Organization & Environment, 29(1), 3-10.
- Simsek, Z. (2009). Organizational ambidexterity: Towards a multilevel understanding. Journal of Management Studies, 46(4), 597-624.
- Tarba, S. Y., Jansen, J. J., Mom, T. J., Raisch, S., & Lawton, T. C. (2020). A micro foundational perspective of organizational ambidexterity: Critical review and research directions. Long Range Planning, 53(6), 102048.
- Úbeda-García, M., Claver-Cortés, E., Marco-Lajara, B., & Zaragoza-Sáez, P. (2020). Toward a dynamic construction of organizational ambidexterity: Exploring the synergies between structural differentiation, organizational context, and interorganizational relations. Journal of Business Research, 112, 363-372.
- Viskari, S., Pirttilä, M., & Kärri, T. (2011). Improving profitability by managing working capital in the value chain of pulp and paper industry. International Journal of Managerial and Financial Accounting, 3, 348-366.
- Weiss, L., & Kanbach, D. (2022). Toward an integrated framework of corporate venturing for organizational ambidexterity as a dynamic capability. Management Review Quarterly, 72, 1129-1170.