ACCOUTING INFORMATION SYSTEM AND ORGANISATIONAL PERFORMANCE
IN SELECTED NGOs IN JUBA, SOUTH SUDAN
BY
DANIEL LODINYA STEPHEN
REG 1153-05026-03962
A THESIS REPORT PRESENTED TO THE COLLEGE OF ECONOMICS AND
MANAGEMENT IN PARTIAL FULFILLMENT OF THE REQUIREMENT
FOR THE AWARD OF MASTERS IN BUSINESS ADMINISTRATION
AT KAMPALA INTERNATIONAL UNIVERSITY
(UGANDA)
NOVEMBER 2017 i
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DEDICATION
I dedicate this Thesis Report to my parents Mr. Dickson Wongo and Mrs. Jenity Anite for their spiritual and moral support.
My Sincerely Gratitude’s to my brothers especially; Isaac Aloro for all your guidance, courage in all difficulty moment of my studies and John Lodiong, Amos Bida, Paul Banga, and sisters Esther
Aleko, Eva Araba, Sarah Sadia, Martha Ropani and daughter Julia Konga for every love, questions and advice you all have shown to me over the course of the study.
Sincere gratitude also goes to my fiancée Susan Poni for her endless support and advice for you are gem for my career success.
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ACKNOWLEDGEMENT
Indeed God has been faithful to me. I offer my first and foremost thanks to Godfor his abundant blessings throughout my Master Degree program.
My profound gratitude goes to my able and determined supervisors, Dr.Emenike Kalu O . for the immense contributions, comments, suggestions, mentoring and kindness shown to me over the course of writing this Thesis. Your support was great and May God bless you.
My acknowledgement goes to Dr. Rev. Arkanjelo Lemi Wani for the inspirational message,“Daniel my son go and do your Masters that’s is my gift to you” and without your courage I would not have thought of doing this Master program.
I acknowledge with sincere thanks for the advice and support offered to me throughout this study by especially my Beloved Brother Mr. Isaac Aloro Stephen ,for your tireless contribution, John Lodiong ,
Moses Kenyi , Amos Bida, Paul Banga and Father Dickson Wongo, Stephen Taban, Aunt Suzan Yabu, grandfather Mr. Isaack Labusa, mother Jenity Anite, Cicilia Kadi, and Sisters Betty Akujo, Esther Aleko ,
Florence Talata, Eva Araba, Sarah Sadia and Martha Ropani who have all laid the solid foundation of my education.
I acknowledge with sincere thanks the management of the following selected NGOs who participated in the research study namely; Norwegian People’s Aid, South Sudan Red Cross Committee, Initiative for
Peace and communication Association, Action Africa Help International, Welt Hunger Life, International
Organization for Migration and War child Canada for allowing and granting their staff to be part of study.
To my cherished beloved Fiancée Susan Poni and My brother wife Margret Sadia Isaac your encouragement and hope always gives me confidence that led to this academic achievement.
Finally, I wish to expressed my sincere thanks to all my family members, relatives and friends esp.
Hillary Steven, Jimmy Oja my research assistant and to those whose names I have not mentioned, plus those who helped me in one way or the other through editing and additions; I say may God bless you all. iv
AAHI
AAM
AIS
CVI
DB
ERP
MIS
IT
IS
ISWH
OCAM
OP
NGO
NPA
SQ
ST
SSRC
IOM
IPCA
LIST OF ABBREVIATION
Action African Help International
American Accounting Association
Accounting information System
Content validity index
Database
Enterprise resource planning
Management Information system
Information technology
Information system
Information system warehouse
Organization Commune des Afrique et al Madagascar
Organizational performance
Non-governmental organizations
Norwegian people’s aid
System quality
System threats
South Sudan Red Cross international organization for migration
Initiative for Peace communication Association
UDDEAC Union Douaniere des Economie de l'Afrique Centrale v
LIST OF TABLES
Table 4. 5: The Extent of System Quality Assessment in Selected NGOs in Juba, Republic of
Table 4. 7: The Extent of System Threat Assessmentin Selected NGOs in Juba, Republic of
Table 4. 8:The Extent of Organizational Performance in Selected NGOs in Juba, Republic of
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LIST OF FIGURES
Figure 1: Conceptual framework
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TABLE OF CONTENTS
DECLARATION ..................................................................... Error! Bookmark not defined.
APPROVAL ........................................................................... Error! Bookmark not defined.
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PRESENTATION, ANALYSIS AND INTERPRETATION OF DATA ................................ 42
4.1.2 Extent of Accounting Information System (AIS) andOrganizational Performance in
4.1.3 Relationship between System quality and Organizational performance in Selected
4.2 Effect of accounting information system on Organizational performance in the selected
DISCUSSIONS, CONCLUSIONS AND RECOMMENDATIONS ..................................... 62
5.1.1 Relationship between System quality and Organizational performance in Selected
5.1.3 Relationship between system threats assessment and organizational performance in
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APPENDIX III: TRANSMITTAL LETTER FOR THE RESPONDENTS ..........................VIII
APPENDIX IV: CLEARANCE FROM ETHICS COMMITTEE ........................................... ix
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ABSTRACT
Currently, most organizations continue to increase spending on information system and their budgets continue to rise. Moreover, economic conditions and competition create pressure about costs of information’s.
Therefore, the study aimed to examine accounting information system on organizational performance in the selected non-governmental organizations in Juba, South Sudan. The specific objectives of the study were first, to examine whether there is a relationship between system quality and organizational performance, secondly to establish whether a relationship exists between information quality and organizational performance and thirdly to find out if there is a relationship between system threats and organizational performance in the selected non-governmental organizations in Juba, south Sudan. The study used descriptive survey design with population of the study consisting of 7NGOs selected using random sampling technique. Data were collected from 124 respondents using questionnaires and interview guide. Quantitative data were analyzed by SPSS
16.V.The demographics questionnaires were analyzed by simple descriptive statistic presented in frequency tables and percentages. For objectives, one, two and three relationships testing was done using Pearson linear coefficient correlation and finally effects of accounting information system on organizational performance was analyzed by regression linear analysis at 0.05 significance level. The qualitative data were analyzed using content analysis. Responses from key informants were grouped into recurrent issues. The study found that, for objective one, the results revealed there was a significant positive relationship between system quality and organizational performance in Selected NGOs in Juba, South Sudan. For objective two, the results disclosed that, there was no positive relationship between information quality and organizational performance in selected NGOs in Juba, South Sudan. For objective three, the results unveiled that there exists a significant positive relationship between system threats and organizational performance in selected NGOs in Juba, South
Sudan. For the overall testing of effects of accounting information system on organizational performance, the results articulated that accounting information system in terms of its constructs have an overall significant effect on organizational performance. This means that accounting information system significantly affect organizational performance. The results further show that accounting information system variables such as system quality, information quality and system threat enlightened organizational performance by 21.9%. This inferred that other factor such as employee related among others explains 78.1% of the factors that affect organizational performance. The conclusion of the study was base on the following; for objective one, there is a positive significant relationship between system quality and organizational performance. This clearly denounced the analogy that, there is no significant relationship between system quality and organizational performance is rejected. Similarly, based on the findings of the study, for objective two, the researcher concluded that there is insignificant positive relationship between information quality and organizational performance in the selected NGOs in Juba, South Sudan. This explained the hypothesis that there is no significant relationship between information quality and organizational performance is accepted. For third objective, the study concluded that there is a significant positive relationship between system threat and organizational performance. This submits that the hypothesis that, there is no significant relationship between system threat and organizational performance is rejected. Finally, for overall effect of accounting information system on organizational performance, the study found out that accounting information system significantly affects the organizational performance. Recommendation for the study is that, there is a need to investigate other factors that affect organizational performance other than accounting information system. This is because, accounting information system only accounts for almost 22% of the levels of organizational performance, further accounting information system, have been found to be accurate, reliable but the greatest threat which is manageable is skilled personnel requirement where comprehensive training for staff before any one is permitted to use the system. Contribution to knowledge; the study has provided empirical evidence on the relationship between accounting information system and organizational performance in Juba South Sudan which was hitherto to existence and it provides a useful basis for NGOs, small and medium enterprise, to adopt accounting information system for their daily operation and for improvement of their organizational performances in the Juba, republic of South Sudan. i
CHAPTER ONE:
INTRODUCTION
1.0 Introduction
This chapter presents the background to the study in terms of historical, Theoretical, conceptual and contextual perspectives,statement of problem, purpose, objectives, research questions, research hypothesis, and scope of the study, significance of the study and operational definitions of key terms.
1.1 Back ground to the study
1.1.1 Historical Perspective
In The recent year, most organizations continue to increase spending on information system and their budgets continue to rise. Moreover, economic conditions and competition create pressures about costs of information. Generally, information system is developed using information technology to aid an individual in performing their job.
Therefore, most organizations focus on developing information system in order to support decision system, communication, knowledge management, as well as many others. The key part of information system needed for decision making in organization is accounting information-system.
Accounting information systems (AIS) is one information systems that produce many amounts of data for use by decision makers both within and outside organizations.
Since accounting information is able to measure and present economic events to users financial statements for judgments and decision makings. American accounting
Association (AAA) address accounting information system (AIS) is one part of management information system (MIS) that gather, classify, and comply data for internal and external decision making. Hence, accounting information system has importance and widely use in accounting profession, Marriot and Marriot, (2000);
Riemenschneider and Mykytyn, (2000); and Ismail, (2007). Accounting manager need to exploit accounting information for job success of their organizations, Ismail, 2009;
Dastgir et al., (2003). Therefore, job success must be obtaining reliable, relevant and
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timely accounting information for decision-making Kharuddin et al., (2010). In other words, effectiveness of accounting information system is reliability, relevance, and timeliness. Information technology (IT) is important for accounting information system for proving quality information. It is difficult to obtain competitive advantage without application of accounting information system. However, the antecedents of effectiveness of accounting information system (AIS) have been made to examine in this research. The first antecedent is learning organization and the last antecedent is organizational support.
Technology evolves rapidly as for responding to customers demand (Weib, Leimeister,
2012). From a business perspective, more and more companies acknowledge the fact that technology may support process optimization in terms of costs, lead time and involved resources. The actual market context is driving companies to continuously search for new ways to optimize their processes and increase their financial indicators,
Christauskas and Miseviciene, (2012).
The accounting systems may be seen as aiming to support businesses in collecting, understanding and analyzing the financial data, Chytilova et al., (2011). The evolution of accounting information system generation may be split, according to Phillips (2012) into three major categories:
The 1990’s era, marked by the apparition of the first accounting information system under what is known as ‘the Windows age’; applications were solid, but only supporting basic accounting operations.
2000’s era – ‘integration’ and ‘SaaS’ concepts took birth, bringing along more developed systems that would allow more complex accounting operations and data processing, as well as concurrent access to files and programs.
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2010 – on-going – ‘Mobile’ accounting era, marked by real-time accounting, financial dashboards and other mobile applications supporting financial processing and reporting.
The same author outlines the evolution of communication – if the traditional accounting model was based on e-mail or .ftp files communication, the technological evolution now allows sharing and concurrent access to data, through virtual platforms provided by cloud computing technology. Based on the types of accounting services available on the market, three major categories may be defined:
On-premises accounting: a dedicated accounting system program is purchased by the company and installed using its own infrastructure. Investment in the system and equipment is required for such programs.
Hosted solutions: the logical access is remotely performed through the company’s installed programs; however the data center is physically located in a different place, managed by a dedicated third party. Infrastructure costs was reduced for the company, as hardware is administered and maintained by the service provider.
Cloud computing: the service could proven even more cost efficient for companies, as the data is managed through virtual platforms, and administered by a dedicated third party, allowing multi-tenancy of services in order to split fixed infrastructure costs between companies. Traditional accounting practices used to focus on bookkeeping and financial reporting, having as a final purpose the preparation and presentation of financial statements. The activities were driven by the need of financial information users both internal and external to gain a ‘fair view’ of the company. The technological evolution gave birth in the late 1980s to accounting information systems, used to incorporate and connect various organizational functions (accounting, asset management, operations, procurement, human resources, etc.) Ziemba and Oblak,
(2013). Ustasüleyman and Percin (2010) define the accounting information systems as systems enabling the integration of business processes throughout an organization’, while Salmeron andLopez (2010) see the accounting information system as a system
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allowing complete integration of information flow from all functional areas in companies by means of a single database, and accessible through a unified interface and communication channel’.
In the Africa continent context on adaptation of accounting information system, reference can be made to West African countries.In the West African countries, the
OCAM (Organization Commune des Afrique et al Madagascar) accounting plan and the
UDEAC (Union Douaniere des Economies de l'Afrique Centrale) accounting plan were created in 1970 and 1974 for the member countries. Both plans were designed as a standard for when the local authorities developed their own accounting plans. The
French approach taken to these countries was usually on a regional basis, not a country-to-country basis.
The OCAM accounting plan was modified to the OHADA accounting plan and further study in North African countries, the first Tunisian accounting plan was adopted in
1968, and Morocco published its latest revised accounting plan in 1986. In Lebanon, an accounting plan similar to the French accounting plan of 1982 was adopted in 1981 as well. The regulation framework and its present situation in the emerging countries differ from country to country or region to region. These differences originate from, firstly, the economic and political differences in the countries, and secondly, the lack of ministerial ordinances which enables the accounting plan officials in the recipient countries.
Apart from these circumstances, common factors seen in these countries is that the
French accounting plan of 1947 or 1957 was already adopted and used for tax purposes before their proper accounting systems were established.It was 1970 when the first version of the General accounting Plan was drawn up for the West and Central African countries. It was called the OCAM Accounting Plan named after the regional economic community, the Organization Commune Africanize eta Mauricienne. This was obviously the overseas version of the French accounting system set by the French accounting
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standards the kind of ideas adopted and how they were expressed in the regulations, the OCAM Accounting Plan provides an interesting research subject. For one reason, only the simplified system, not the whole system used in France, was transported to the region; the minimum essentials of the French ideas, that is the harmonization between the national accounts and the enterprise accounts, was considered useful.
Another reason is that the French accounting standards committee members had to adjust their domestic company laws to the fourth and seventh European Directives, and they had to study how to revise their own Accounting Plan of 1957. As a result, the idea of joining company data to national accounts was brought to the francophone countries, and the enterprise accounting system progressed further in France afterwards. In the French Accounting Plan of 1957, a funds-flow statement was not included.
1.1.2 Theoretical perspective
This study has been based on Garbage in Garbage Out Theory, Contingency Theory and
Behavioral Theory .
The Garbage in garbage out Theory postulated by Xu (2003), holds out that accounting information system output depend on the quality of data, garbage in garbage out. The researcher used this theory to explore the system threats hindering the application of accounting information system on organizational performance.
The Contingency Theory of Gordon and Miller (1970), asserts that an accounting information system should be designed in a flexible manner so as to consider the environment and organizational structure confronting an organization. Accounting information systems also need to be adapting to the specific decisions being considered. In other words, accounting information systems need to be designed within an adaptive framework.
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The behavioral Theory of Kren and Liao (1988), holds that early behavioral theory accounting research explored bivariate relations between control system characteristics
(for example; reliance on accounting performance measures or budget participation) and various criterion variables (e.g., performance or dysfunctional behavior). Behavioral theory in accounting research evolved rather quickly, however, to more complex contingency models of the organization with a richer view of the organization and of individual behavior. The fundamental premise of contingency theory research has been that organizational structure and control system design is related to organizational context. Thus, the effects of control system characteristics are moderated by contextual factors which impact the individual and the organization, (Kren and Liao 1988).
After thorough reviewing of the theories such as Garbage in, garbage out theory, the contingency theory and the behavioral theory, it is Garbage in garbage out theory postulated by Xu (2003) that underpinned the topic under investigation because the quality output of accounting information system depends on quality of data entered into the system by skilled personnel thus according to Xu (2009) inaccurate and incomplete data may damage the information generated by the accounting information system for decision making.
1.1.3 Conceptual perspective
According to (Investopedia), accounting information system is the collection, storage and processing of financial and accounting data used by internal users to report information to external users such as investors, creditors and tax authorities. In managing an organization and implementing an internal control system, the role of accounting information system is very crucial. Normally, the system will process the data and transform them into accounting information during input, processing and output stages that can be used by a variety of users like the internal and external users.
Therefore, if companies are able to adjust their computerized techniques of internal control mechanism according to accounting information system, they will be able to ensure the reliability of financial information processing and boost the control measures of performance of the financial information reliability. When the controls are used
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properly there will be better operating effectiveness and efficiency, which result in better financial information reliability. Managers at various levels need accounting information system to make decisions in internal controls Hoitash and Bedard (2009),
Wilkinson etal (2000), the main function of accounting information system is to assign quantitative value of the past, present, and future economics events.
According to Daft (2009) organizational performance refers to the “degree to which an organization realized its goals”. However, Mondy, (1990) defined it aptly as “the degree to which an organization produce the intended output” As Daft rightly argued.
Organizations pursue multiple goals, and such goals must achieve in the face of competition, limited resources, and disagreement among interest groups. Oguntimehin
(2001) submitted that organizational performance is the ability to produce desire results. Rational perspectives focus on the achievement of previously set goals and on output variables such as quality, productivity and efficiency. Open system perspectives focus on the exchanges with the environment; this includes information processing, profitability, flexibility and adaptability Campbell, (2010). Every employee in a company contributes to organizational performance.
1.1.4 Contextual perspectives
In this view, the study examined or investigates the effect of accounting information system on organizational performance in the selected NGOS in Juba – South Sudan and find out how accounting information systems has contributed to most organizations realizing the following results such as automated reports are generated, easy decision making processes, data storage and retrieval of information, improves production level, efficiency and effectiveness.
In the Republic of South Sudan there are many organizations registered and operating where some have had some hurdleslinks to performance of their organizations.
Although many factors may influence the performance of organization, there can be little doubts that the role of accounting information systems will be one of the most
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critical determinates of ultimate organizational performance and success in NGOs operating in Republic of South Sudan.
1.2. Statement of the problem
There has been remarkable advancement in accounting information systems design for
NGOs, MNCs, public institutions, small and medium enterprises to adapt for their operation. However, despite this recent advancement, little has been done by most
NGOs, MNCs, Public institution, small and medium enterprise, in the Republic of South
Sudan to adopt accounting information system for their operation. Adaption of accounting information systems by organizations can resolve and support automation and procession of large amount of data and produce timely, quality and accurate information’s Oguntimehin (2001) submitted that organizational Performance is the ability to produce desire results.
Therefore, this serious omission particularly as technology is changing, NGOs need to change to adapt information technology than relying on the use of manual approach of book keeping accounting which can be ineffective and inefficient thus, leading to delay in procession of reports, difficulties in retrieving of information, poor data quality and storage, delay in decision making regarding investments and low productivity experienced, (Maureen, 2014).
However, if accounting information systems is not widely adopted by all or many NGOs,
MNCs, public institutions and small and medium enterprise in South Sudan, most of the
NGOs, multi-national cooperation’s, government institutions and small and medium enterprise will have remained behind and be out competed by their rival firms or fail
(Augustine, Maurine and Jian 2014).
This study therefore, intends to examine the effect of accounting information system on organizational performance in selected NGOs in Juba, Republic of South Sudan. The selected NGOs might have or don’t have any accounting information systems to use with the view to improve their organization performance.
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1.3.0 The purpose of the research study
The purpose of this research study is to investigate the effects of accounting information system on organizational performance in selected NGOs in Juba, Republic of
South Sudan.
1.3.1. Specific objectives the research study i.
To examine whether there is a relationship between system quality and organizational performance in selected NGOs in Juba, South Sudan ii.
To establish whether a relationship exists between information quality and organizational performance in the selected NGOs in Juba, South Sudan. iii.
To find out if there is a relationship between system threats and organizational performance in the selected NGOs in Juba, South Sudan.
1.4 Research study questions
I.
Is there any relationship between system quality and organizational performance in the selected NGOs in Juba- South Sudan?
II.
Is there any relationship between the information quality generated by the system and organizational performance in the selected NGOs in Juba south
Sudan?
III.
Is there any relationship that exit between system threats and organizational performance in selected NGOs in Juba South Sudan?
1.5. Hypothesis of the study
The study was guide by the following hypothesis
Ho
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: There is no significant relationship between system quality and organizational performance in the selected NGOs Juba, Republic of South Sudan.
Ho
2
: There is no significant relationship between information quality and organizational performance in the selected NGOs in Juba, Republic of South Sudan.
Ho
3
: There is no significant relationship between system threats and organizational performance in the selected NGOs in Juba, Republic of south Sudan?
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1.6.0 Scope of the research study
1.6.1. Geographic scope of the study
The study was carried out in some selected NGOs in Juba, South Sudan. The researcher selected at least Seven (7) NGOs operating in Juba south Sudan where 124 respondents were be selected for the study.
1.6.2. Content scope of the research study
The study examined accounting information systems and organizational performance and applied both qualitative and quantitative research approaches where 124 study respondents were selected for the study.
1.7. Significance of the research study
I.
The importance of this thesis was carried out as a requirement for partial fulfillment for the award of Master’s degree in Business Administration – Finance and Accounting at Kampala International University - Kampala (Uganda) college of Economics and management studies
II.
This study examined the role of accounting information systems in relation to organizational performance in the selected NGOs so as to give an over view on the general performance of the organizations. The outcome will demonstrate the impact accounting information system have on overall organizational performance as opposed to ordinary booking used long time ago as well as to find out the ways on how to improve organizational productivity by adjusting or adopting accounting information systems.
III.
The study will be significant for future academic scholars and researchers since it will add more literature on the topic “accounting information systems on organization performance in selected NGOs in Juba, South Sudan.
IV.
For top management, chief executive officers, policy makers to adapt accounting information systems for better organization performance
1.8. Operational definition of key terms.
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Accounting information system: refers to the collection, storage and processing of data or information used by internal users to report information to external users such as investors, creditors and tax authorities.
System quality: refers to the quality of service provided by the information system unit, which has been measured using the instrument like, reliability, responsiveness, assurance, and fast performance.
Information quality: refers to the quality of information provided by information system which is measured by relevance, timeliness, accuracy, sufficiency, and the format of information generated by information system.
System threats: refers to the barrier affecting information system operation to produce desired results .
Organizational Performance: refers to the “degree to which an organization realized its goals”.
Organizational goal achievement : refers to when performance reached set objectives of the organization.
Organizational efficiency: refers to the optimal use of available resources in order to achieve value addition in the organization.
Organizational effectiveness: refers to the degree to which organization realized it goals and objectives.
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CHAPTER TWO
LITERATURE REVIEW
2.0 Introduction
This chapter provides the literature review on accounting information system and organizational performance and has been sub-divided into theoretical review, conceptual Framework, review of related studies and research gaps.
2.1 Theoretical perspective
The study was based on the Garbage in Garbage out Theory (Xu 2003), which postulates that accounting information system output depends on the quality of data, garbage in garbage out. The researcher employed this theory to explore the system threats hindering the application of accounting information system on organizational performance. According to Samuel (2014), skilled and competent human resource personnel are required for quality data entry and which further leads to organization performance. All data production processes (data collection, data storage, and data utilization) must work properly in order to achieve high data quality, Lee and strong
(2003) and according to Xu (2009), inaccurate and incomplete data may damage the information’s generated by accounting information system for decision making. This theory is relevant to the obstacles of accounting information systems on organization performance which include factor such as skilled manpower and competent of personnel entering data into the accounting information systems.
Contingency theory postulated by Gordon and Miller (1976)
The contingency theory suggests that an accounting information system should be designed in a flexible manner so as to consider the environment and organizational structure confronting an organization. Accounting information systems also need to be adjusting to the specific decisions being considered. In other words, accounting information systems need to be designed within an adaptive framework. This theory first paper to specifically focus on the contingency view of accounting information systems in the accounting literature was "A Contingency Framework for the Design of
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Accounting Information Systems,"(Gordon and Miller, 1976). This paper laid out the basic framework for considering accounting information systems from a contingency perspective.
Gordon and Narayanan (1984) concluded that environmental uncertainty is a fundamental driver for designing management accounting systems among successful organizations. A key finding in this study was that, as decision makers perceive greater environmental uncertainty, they tend to seek more external, nonfinancial and ex ante information in addition to internal, financial and ex post information. This latter finding has been confirmed by several studies that followed the Gordon and Narayanan paper.
Although extensively studied in the last two decades, contingency theory has been given relatively little consideration in terms of the factors that influence the accounting information systems. Few organizations appear to have systematic processes in place for managing the evolution of their measurement systems and few researchers appear to have explored two of the main questions:
Behavioral theory postulated by Kren and Liao, (1988).
The early behavioral theory of accounting research explored relationship between control system quality (for example; reliance on accounting performance measures or budget participation) and various criterion variables (e.g., performance or dysfunctional behavior). Behavioral theory in accounting research evolved rather quickly, however, to more complex contingency models of the organization with a richer view of the organization and of individual behavior. The fundamental premise of contingency theory research has been that organizational structure and control system design is related to organizational context. Thus, the effects of control system characteristics are moderated by contextual factors which impact the individual and the organization (Kren and Liao, 1988).
Specific characteristics of the control system must be matched to the contextual variables that define the organization’s environment. The (often implicit) assumption is that a better match is positively related to organizational performance (Kren and Liao
1988; Merchant and Simons 1986; Otley 1980). Understanding control system design
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and effectiveness, in general, begins with analyses of the characteristics of specific organizations and their environments and this forms the basis of the researcher.
After thorough reviewing of the following theories such as Garbage in, garbage out theory, the contingency theory and the behavioral theory, it is Garbage in garbage out theory postulated by Xu (2003) that underpinned the topic under investigation because the quality output of accounting information system depends on quality data entered in to the system by skilled personnel thus according to Xu (2009) inaccurate and incomplete data may damage the information generated by the accounting information system for decision making.
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2.2 Conceptual framework
Accounting Information system Organizational Performance
System Quality
-
Organizational Goal achievement
Information Quality
-
Organizational Efficiency
-
Organizational Effectiveness
System Threats
Source : W.H. DeLone, E.R. McLean, DeLone and McLean (2009).
Figure 1: Conceptual framework
The Framework in figure1. Show the relationship between accounting system and organizational performance. According to the framework, Accounting information system independent variables shown were; system quality, information quality and system Threats and organizational performance indicators includes organizational goal achievement, organizational efficiency, organizational effectiveness inthe selected NGOs in Juba, Republic of South Sudan.
2.3 Related literature review
In carrying out the research, related Literature reviewwas done after thorough reviews of Theory (theories) of relevance to the purpose of the study, and development of
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conceptual framework model, researcher reviewed related literature that’s literature related to the respective specific study objectives of the topic under investigation.
Accounting information system
Accounting information system is a computer based system that increases the control and enhances the corporation in an organization. In managing an organization and implementing an internal control system, the role of accounting information system is very crucial Nicolao (2000). (Dibrell et al., 2008; Bhardwaj, et al, 1999; Rai et al.,
1996). These authors argue that, currently, information technology is readily available and using them gives no competitive advantage for achieving improved results Powell and Dent-Micallef, (1997). Similarly, they maintain that many firms have invested in information systems, but they do not succeed in attaining the established performance goals. Although research on the information technology-performance ratio is more abundant in large-sized firms, the analysis of the impact on smaller-sized ones becomes particularly important because investment in these technologies may give them a competitive advantage and the chance to position themselves to achieve better results since they are more flexible and have better response capability (Pérez et al., (2010);
Tanabe and Watanbe, (2005); Larsen and Lomi, (2002).
Other researchers indicate that firm performance drops just after the implementation, taking so many years to realize the benefit from information technology adoptions. In any accounting information system environment, the qualities of internal controls adaptation affect operations and management and in turn influence internal control system. Internal control is run to ensure the achievement of operational goals and performance. Wilkinson etal (2000), the main function of accounting information system is to assign quantitative value of the past, present, and future economics events.
Managers at various levels need accounting information systems to make decisions in internal controls Hoitash.U and Bedard,(2009).
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The study by Topash (2014) also found that the following criteria or indicators are supposed to be present in any accounting information system for it to be efficient in any organization which is, cost effectiveness, good documentation, existence of proper security measures, independent internal and external audit, separation of other operation from accounting, and effective internal control. According to (Xu 2009), inaccurate and incomplete data may damage competitiveness of firms. Poor accounting information system quality may have adverse effect on decision making Huang, Lee, and Wang (1999). Quality of accounting information system can be evaluated by four attribute, Accuracy, timeliness, completeness, and consistency (Xu 2003) they examined critical success factors for accounting information quality , they identified and interviewed four groups namely (information producers ,information custodians, information consumers and information managers . Grande et al., (2011) argued that accounting information system is readily available and using them gives no competitive advantage for achieving improved results.
Accounting literatures argues that strategic success is considered an outcome of accounting information system (AIS) design Langfield –Smith, (1997). Recently, several studies have asserted that accounting information system plays a proactive role in the strategy management, acting as a mechanism that enables organizational strategy
Chenhall, (2003), Gerdin and Greve (2004). Augustine, Maurine, Jian (2014), conducted a research on impact of accounting information on profitability of small scale business in
Kampala city in Uganda east Africa. The major problem found was that, most small scale businesses do not have accounting information system which always results to low performance levels. The research findings revealed that accounting information plays an important role in our economy and social systems especially in its management and a great works it does in facilitating management decision making process.
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System quality assessment
Data storage and retrieval of information’s: In the bibliography many definitions can be found about data warehouse/storage: Inmon (1997) says, that data warehouse is a data collection oriented to a subject, integrated, changeable in time and not volatile, to provide support to the decision making process. Harjinder and Rao (1996) argue, that data warehouse/storage is a running process that agglutinates data from heterogeneous systems, including historic data and external - 28 -data to attend the necessity of structured queries, analytical reports and decision support.
Barquini (1996) defines the data warehouse/storage as a collection of techniques and technologies that together provide a systematic and pragmatic approach to solve the end user problem in accessing information that is distributed in different systems inside organization. Kimball et al. (1998) argue that, data warehouse/storage is a source of an organization data, formed by the union of all corresponding data marts. To better understand the data storage concept it is important to make a comparative study between the traditional concept of database (DB) and information system data warehouse/storage (ISDW).
“A database is a collection of operational data, stored and used by application systemsfrom a specific organization”, (Batini and Lenzerini, 1986). Data kept by an organization is called ‘operational’ or ‘primitive’. Batini and Lenzerini (1986) referred to the data stored in database as ‘operational data’, distinguishing the input, output and other types of data. Based on the Batini and Lenzerini definition of operational data, I can define data storage as a data collection derived from operational data to support the decision making process. “These derived data are most of the time called
‘analytical’, ‘informational’ or ‘managerial’ data” (Inmon, 1997). Accounting information system (AIS) output depend on the quality of data, garbage in garbage out is the result of poor data quality, and therefore data quality is important to accounting information systems (XU, 2003). All data production processes (data collection, data storage, and data utilization) must work properly in order to achieve high data quality (Lee and strong 2003). According to (Xu 2009), inaccurate and incomplete data may damage
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competitiveness of firms. They also found out that that input control and competent employees are important to data quality of accounting information system.
Poor information quality may have adverse effect on decision making (Huang, Lee, and
Wang 1999). Quality of accounting information can be evaluated by four attribute,
Accuracy, timeliness, completeness, and consistency (Xu 2003) they examined critical success factors for accounting information quality, they identified and interviewed four groups namely (information producers, information custodians, information consumers and information managers. they found and suggested that organizational issue, system and human issue, are very much important to accounting information quality.
Considering previous research on dependencies between data quality dimensions, information systems success, and organizational performance, a big picture can be drawn. Sedera and Gable (2004) argued that overall productivity of an organization has an impact on the success of enterprise systems, whereas Fisher et al. (2011: 4) summarize that data quality in organizations has an influence on productivity. One approach for improving data quality in distributed project settings is to apply a Kalman-
Bucy filter to present more accurate data to managers who need to make sourcing decisions (Joggler, Anderson and Shankaranarayanan, 2013).
Xu et al. (2002) report improved information quality as one of the benefits of implementing accounting information systems, whereas Cao and Zhu (2013) viewed it from a different perspective and talk about data quality problems in accounting information system enabled manufacturing. Required, and in generating product, purchase, as well as work orders. The scholars found that adjustments of these data were especially difficult if the Bill of Materials had to be changed frequently.
The first enhancing qualitative quality of information system is understandability, which increase when information is classified, characterized, and presented clearly and concisely. Understandability is referred to, when the quality of information enables
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users to comprehend their meaning (IASB, 2008). Understandability is measured using five items that emphasize the transparency and clearness of the information presented in annual reports (Jonas and Blanchet, 2000; Iu and Clowes, 2004; Courtis, 2005; IASB,
2006).
The system reliability as quality of accounting information system which always assures that information is reasonably free from error and bias, is verifiable and faithfully represents what it purports to represent (FASB, 1980a). In order to be a faithful representation, information system should maintain an agreement between the measure and description and the actual phenomenon which it purports to represent. In order to be verifiable it should be possible to substantiate and confirm the information independently. Neutrality implies on the one hand that the preparer of information is not biased towards a predetermined result and on the other that the information is not reported in such manner that it may unduly influence the decisions of users in a particular direction. Both the primary qualities of relevance and reliability are associated with the secondary quality of comparability. This quality of information requires that transactions and events be measured and reported in a consistent manner to enable users to compare the results of a company from year to year or with the results of different companies.
The final enhancing qualitative characteristic defined in the system quality is timeliness.
“Timeliness means having information available to decision makers before it loses its capacity to influence decisions” (IASB, 2008: 40). Timeliness refers to the time it takes to reveal the information and is related to decision usefulness in general (IASB, 2008).
When examining the quality of information in annual reports, timeliness is measured using the natural logarithm of amount of days between year-end and the signature on the auditors’ report after year end is calculated. Based on the natural logarithm of this amount of days, each company received a score between 1 and 5.
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Information quality assessment
Information quality is referred to as the capability “of making a difference in the decisions made by users in their capacity as capital providers” (IASB, 2008: 35).
Drawing on prior literature, information quality is operationalized using four items referring to predictive and confirmatory value. As discussed earlier, researchers tend to focus on earnings quality instead of on financial reporting quality. This definition is limited in scope because it neglects non-financial information and it excludes ‘future’ financial information already available to the users of the annual report, for example on future transactions (Jonas and Blanchet, 2000; Nichols and Wahlen, 2004).
In order to improve the comprehensiveness of the quality assessing measurement tool, this study will consider a broader perspective on predictive value including both financial and non-financial information. Many researchers have operationalized predictive value as the ability of past earnings to predict future earnings (e.g. Francis et al., 2004; Lipe, 1990; Schipper and Vincent, 2003). Predictive value explicitly refers to information on the firm’s ability to generate future cash flows: “information about an economic phenomenon has predictive value if it has value as an input to predictive processes used by capital providers to form their own expectations about the future”
(IASB, 2008: 36). We consider predictive value as most important indicator of relevance in terms of decision usefulness and measure predictive value using three items.
The author states that “users measure the quality of their data based on the degree of objectivity versus the degree of judgment used in creating it”. Timeliness is referred to as how data is out-of-date. A strategic planner may perceive a data record as timely even if it is years old. The strategic planner might base their decisions on old information whereas a production manager might only value data that is within the hour. According to Sedera and Gable (2004), enterprise systems success is dependent upon attributes within the dimensions of system quality, information quality, individual impact, and organizational impact. In comparison to Wang and Strong’s quality
Framework, which was illustrated before, Sedera and Gable present the following
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attributes for information quality: Availability, usability, understandability, relevance, format, and conciseness. Moreover, system accuracy is mentioned to belong to the category system quality. Decision effectiveness, learning, awareness and recall, as well as individual productivity are classified into individual impact.
Contextual Data Quality This category includes relevancy, completeness, value-added, timeliness, and amount of data (Fisher et al., 2011: 45). Wang and Strong (1996) brought up that the value-added dimension of data quality can be understood as data that adds value to a company’s operations and, thus, gives the organization a competitive edge. Timeliness refers to how old data is. This is a very important attribute of data in manufacturing environments, as Fisher et al. (2011: 45) point out.
Furthermore, some data are affected by age, whereas other data are not. As an example, the authors refer to George Washington, who was the first president of the
United States.
This information is unaffected by age. Incorrect decisions are often the result of financial decisions that are based on old data. The quantity of information is a serious issue in evaluating data quality. A study on the use of graphs to aid decisions and a phenomenon called information overload was once conducted by Chan (2001). The scholar assumed that processing too much information can lead to making poor decisions. An experiment was conducted to show whether business managers would perform differently when treated with different loads of data. One group of subjects was given information with high load, whereas the other group of subjects was given information with nominal load. The results demonstrated that business managers under nominal information load could make higher quality decisions than those under high information load. This demonstrates that having more information is not necessarily better, or, in other words, does not necessarily lead to higher decision making performance. The phenomenon of information overload could be proven in this study
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The information generated by the accounting information system always assures that information is reasonably free from error and bias, is verifiable and faithfully represents what it purports to represent (FASB, 1980a). In order to be a faithful representation, information system should maintain an agreement between the measure and description and the actual phenomenon which it purports to represent. In order to be verifiable it should be possible to substantiate and confirm the information independently. Neutrality implies on the one hand that the preparer of information is not biased towards a predetermined result and on the other that the information is not reported in such manner that it may unduly influence the decisions of users in a particular direction. Both the primary qualities of relevance and reliability are associated with the secondary quality of comparability. This quality of information requires that transactions and events be measured and reported in a consistent manner to enable users to compare the results of a company from year to year or with the results of different companies.
System threats assessment
System threat simply refers to the barrier affecting information system operation of system to produce desired results . One of the most important studies in this area was carried out by Loch et al. (2012). The researchers conducted a survey to explore the perception of Management Information Systems Executives regarding the security threats in microcomputer, mainframe computer, and network environments. The researchers developed a list of twelve security threats and empirically examined. The results indicated that natural disasters; employee accidental actions (entry of bad data and destruction of data); inadequate control over media; and unauthorized access to computer accounting information system by hackers had been ranked among the top security threats. These results confirmed the experts’ claims that the greatest threats come from inside organizations.
Since accounting information system security has become one of the major concerns for information system auditor, Davis (1996) tried to discover the current status of the
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security issue in practice. Davis conducted a survey using the questionnaire, “Threats to
Accounting Information Systems Security Survey” which was adapted from Loch et al.
(1992), in replication of their work. The results of Davis’ survey (1996) indicated that information systems auditors recognized that different computing environments have different relative levels of security risks.
The results of Davis’ (2008) study also reported that employees’ accidental entry of
“bad” data and the accidental destruction of data, as well as the introduction of computer viruses, were considered to be the three top threats in a microcomputer environment. However, unauthorized access to data and/or system by employees, accidental entry of “bad” data by employees and poor segregation of information system duties were rated as the major threats to the minicomputer environment.
Concerning the mainframe computer environment, accidental entry of “bad” data by employees, natural disaster, and unauthorized access to data and/or system by employees were perceived as the main threats, while unauthorized access to data and/or system by both outsider (hackers) and insiders (employees), and technology advances faster than control practice were said to be the most important threats in network computer environment.
Ryan and Bordoloi (2005) explored how companies moving from a mainframe to a client/server environment evaluated and took security measures to protect against potential security threats. The results of Ryan and Bordoloi’s (2011) study revealed that the most significant security threats were: accidental destruction of data by employees; accidental entry of erroneous data by employees; intentional destruction of data by employees; intentional entry of erroneous data by employees; loss due to inadequate backups or log files; natural disaster: fire, flood, loss of power, etc; and single point of failure.
Henry (2010) conducted a survey to determine the nature of the accounting systems and security in use. The results of Henry’s survey indicated that 80.3 percent of the
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companies backed-up their accounting systems. 74.4 percent of the companies secured their accounting system with passwords, but only 42.7 percent utilized protection from viruses. Physical security and authorization for changes to the system were employed by less than 40 percent of the respondents. The survey results also showed that only 15 companies used encryption for their accounting data, which was a surprising result, considering the number of companies utilizing some form of communication hardware.
Almost 45 percent of the sample underwent some sort of audit of data.
Reviewing the nature of security breaches that occurred in different parts of the world,
Dhillon (1999) argued that many of the security losses resulting from computer related fraud could be avoided if organizations adopted a more pragmatic approach in dealing with such incidents as well as adopting a balanced approach of security controls which place equal emphasis on technical, formal and informal interventions to their computerized systems. The results of Dhillon’s study (1999) suggested that implementing controls, as identified in a security policy, would indeed deter computer misuses. Committing computer fraud by insiders is recognized as a severe problem which could be difficult to prevent especially when it blends with legitimate transactions.
Siponen (2000) introduced a conceptual foundation for organizational information security awareness program to minimize the end-user errors and to enhance the effectiveness of implemented security controls. Siponen (2000) argued that information security techniques or procedures would lose their real usefulness if they were misused; misinterpreted; not used or not properly implemented by end-users.
Wright and Wright (2002) conducted an exploratory study to obtain an understanding of unique risks associated with the implementation and operation of accounting information system using a semi-structured interview approach. The research findings reported that the information system initially lacked adequate controls and that data conversion was also poorly executed. The potential for financial statement errors and
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business risks is further intensified as a result of the lack of proper user training. The findings also reported that ongoing risks differ across applications and across vendor packages. Finally, the results suggest that major firms use process audit techniques, as opposed to validation testing (i.e., they do not rely on tests of output) when hired to provide assurance on the risks for accounting information systems.
Hunton et al. (2005) carried out an experiment study to understand, assess and examine the extent to which financial auditors and information systems (IS) audit specialists recognize differences in the nature and unique business and audit risks associated with accounting information systems, as compared to traditional manualaccounting systems. The research findings revealed that financial auditors were significantly less concerned than information system audit specialists with the following heightened risks of the accounting information system environment in the experimental case: business interruption, network security, database security, application security, process interdependency, and overall control risk. Moreover, financial auditors did not recognize the heightened risks of a seeded control weakness as well as reluctance to seek.
A skill is an ability to perform a productive task at certain level of competence. Darren et al. (2012) posit that as a skill is associated with a particular task, a person who does not possess such a skill is unlikely to be able to carry out such task or will be less productive than somebody who does possess this skill. They added that skills are often associated with a qualification and its acquisition through formal and informal training and on-the-job experience. The impact of skilled manpower availability has been sufficiently reported in the literature with the ever increasing pressure on construction contractors to deliver projects of desired quality, cost and on schedule time (Olomolaiye and Ogunlana, 1989; IOMA 2005; Ugheru, 2006, Medugu, 2011).
The importance of more skilled Manpower in the industry cannot be under-rated as they have the potential of eliminating inefficiencies arising from poorly data entry. Bustani
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(2000) opine that the quality and availability of skilled workforce is considered an important factor in the effectiveness of the information communication adoption.
Hence, various research have investigated the existence of unskilled manpower in the
Nigeria industry (Ndibe et al., 2013; Kazaure, 2011; Wogu, 2010). The insufficiency of technically qualified personnel in the face of increased demand has led to a situation where the big organizations are considering investing in training and development.
Darren et al. (2012) consider skill shortage to occur when the demands for workers for a particular occupation is greater than the supply of personnel who are qualified, available and willing to work under existing market conditions, and if the supply is greater than demand then there is a surplus.
Organizational performance
According to Daft (2009) Organizational performance refers to the “degree to which an organization realized its goals”. However, Mondy, (1990) defined it aptly as “the degree to which an organization produce the intended output” As Daft rightly argued.
Organizations pursue multiple goals, and such goals must be achieved in the face of competition, limited resources, and disagreement among interest groups. Oguntimehin
(2001) submitted that organizational performance is the ability to produce desire results. Rational perspectives focus on the achievement of previously set goals and on output variables such as quality, productivity and efficiency. Open system perspectives focus on the exchanges with the environment; this includes information processing, profitability, flexibility and adaptability (Campbell, 2010). Every employee in a company contributes to organizational performance.
Organizational goals achievement
Goal commitment in simple words denotes the acceptance of the goal by the individual.
The acceptance of the goal is the initial step towards the motivation of the individuals.
Rug and Wallace (2012) commented that if the goal is achievable and realistic then the rate of acceptance is high and with the advent of acceptance, the individual applies the required degree of determination and self-efficacy in order to complete the goal.
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However, Lawlor (2012) the rate of commitment may be hampered if the individual does not find the goal to be important. Hence, in order to successful make a goal achievable the organizations must exert the importance of the goal on the employees.
Bazerman (2009) suggested that highly specific goals affect the performance levels.
Vague and abstract goals make it difficult for the employees to decide on the type of performance and quality of performance that the individuals should generate. The goals should thus be clear in terms of the specifications thereby assigning the actual tasks that the organization requires the employees to meet. The major focus of the management of the organization should be on the removal of the ambiguity from within the goals. For instance, the sale persons are given specific monthly targets that they have to achieve and the specification of incentive structures that they might get on achieving more than the monthly targets. According to Sinnema and Robinson (2012) the numerical targets makes the targets more realistic and highly motivates the employees to achieve the same. Further depending upon the skills of the employees the management can enhance the goal challenges and specifications.
According to Vigoda-Gadot and Angert (2007) to encourage high performance levels the organizations should formulate highly difficult goals. However Simões et al., (2012) argued that the difficulty level of the goal should depend upon the human skills present within the organization so that the level is achievable otherwise the goal difficulty can de motivate the employees and reduce their productivity. Ordonez et al. (2009) suggests that the individuals have a tendency to act or respond dishonestly in case the goals become unattainable or difficult compared to their skills. Thus, it is essential for the organization to set the difficulty levels correctly in order to enhance the performance levels. For instance, Ford’s goal to gain market share in the international market forced the company to compromise on the quality standards of the new car
Pinto that resulted in accidental deaths of around 53 consumers. Thus, the example shows that high standard settings are often detrimental to the success of the employees and the organization.
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Organizational efficiency
Avolio, Gilder, and Shleifer (2001) defined efficiency as the optimal use of available resources in order to achieve value added in the organization, value chain. Thus the efficiency means the achievement of the goals at the lowest possible cost Abdullah and
Qattani (2007). While other researchers such as Hassani and Kharabsheh (2000) defined effectiveness as the relationship between achieved goals and planned goals. In other words, it could be quantified as a ratio to show the effectiveness of an entity.
Hafnawi (2001) stated that the accounting information system has to possess the following characteristics to be effective and efficient: Accurate, Timely, provide administration by necessary information to achieve control and evaluation of the economic activities, Provide administration by necessary information that helps them in planning, provide administration by feedback, Flexible to suit the environmental changes.
Organizational effectiveness
Daft (1983) defined organizational effectiveness as the degree to which organization realized it goals. Oguntimehin (2001) said that organizational effectiveness is the ability to produce desired result. Wilkinson (2000) noted that an effective accounting information system performs several key functions such as data collection, data maintenance, data information accounting systems and knowledge management, data control including security and information generation. According to Huse and Bowditch
(2009), an organization is effective and efficient when it has the ability to be integrated and to consider three different perspectives simultaneously: structural design, flow and human factors. Looking into this further, a literature review by Campbell (2002) found that more than 30 different criteria were used for the measurement of organizational
Performance, Praeger, (2001). These measurement criteria ranged from specific aspects of organizational success to a global view. Campbell’s (2011) review also finds some of the measurement criteria to be inconsistent, in that few studies used multivariate
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measures of effectiveness and the same criteria were rarely used across studies
Praeger, (1986).
Relationship between accounting information systems and organizational performance
Accounting information system implementation and success have been comprehensively researched but the contemporary literature shows slight evidences of the relationship between Accounting Information System (AIS) and performance measures. AIS can positively impact on organizations by the following; better adaptation to a changing environment, better management of arm’s length transactions and a high degree of competitiveness. There is also a boost to the dynamic nature with a greater flow of information between different staff levels and the possibility of the new business on the network and improved external relationships for the firm, mainly with the foreign customers accessed through firms web (Elena etal 2010). With the existence of more intercommunication, there are increased chances for diversification of traditional businesses to improve firm’s performance. Ogah (2012) reveals that high level of profitability is not dependent on the use of accounting information. The low explained variability implies that other variables apart from AIS positively impact on the bank’s profitability. This is true as the employment of accounting information system if not supported with necessary and enabling facilities to make it functional becomes monumental, which may affect the bank’s operation process.
Thus, the successful integration of accounting information system will depend on how well other factors are efficiently put in place to facilitate its operation. Similar opinion has been echoed by scholars, for instance, Markus and Pfeffer (2013) asserted that the successful implementation of accounting systems requires a fit between three factors such as perception of the organization concerning the situation, the accounting system must fit when problems are normally solved and the accounting system must fit with the culture, i.e. the norms and value system that characterize the organization. Grande
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et al., (2011) argued that IT is readily available and using them gives no competitive advantage for achieving improved results.
They argued that many firms have invested in information system but they do not succeed in attaining the established performance goals. This therefore implies that AIS can only be useful in organizational operations when appropriate factors are put in place and operated harmoniously.
Kabiru and Abdullahi (2014), asserted that the use of accounting information is relevant in simplifying issues and in the provision of quality information in the Nigerian banking industry, the use of AIS has also led to the timely and accurate preparations of reports, as customers have limitless access to banking service through the aid of internet banking. The information technology has become a critical business resource because its absence could result in poor decision and ultimately business failure.
Onaolapo and Odetayo (2012) believe that accounting information system has a significant effect on organizational effectiveness with a research study carried out in a selected construction companies in Ibadan Nigeria. The study examined the effect of accounting information system on organizational effectiveness specifically on quality of financial report and decision making. Descriptive and inferential statistics tools were used to analyze the data with the aid of statistical package for social sciences
SPSS.ANOVA was used in testing the hypothesis the results showed accounting information system has effect on organizational effectiveness. Recommendations were subsequently made to both the managers of such organizations and government on how to use the AISS known as ‘contract-plus Financial and project accounting’ package
Information system can enhance performance in finance department.
Augustine, Maurine and Jian (2014), conducted a research on impact of accounting information on profitability of small scale business in Kampala city in Uganda east
Africa. Descriptive method was used, where qualitative data were collected. Secondary data was collected to analyze the impact of accounting information system on profitability level of small scale businesses. The major problem found was that, most small scale businesses do not have accounting information system which always results
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to low performance levels. The research findings revealed that accounting information plays an important role in our economy and social systems especially in its management and a great works it does in facilitating management decision making process. They also found out that, most small scale businesses do not apply accounting information systems which results into low profit. More so, the finding shows that there is a positive relationship between accounting information system and profitability level of small scale businesses.
According to Sajady, Dastgir and Hashem(2008), benefit of AIS can be evaluated by its impact on improvement of decision making process, quality of accounting information, performance evaluation,internal controls and facilitating company’s transaction. The effectiveness of organizational performance depend on the five variables above.
2.4. Research gaps
Different research have reviewed literature on accounting information system and small scale business performance, organizational effectiveness in non-governmental organizations, small and medium enterprises, multi-national corporations, government institutions but no empirical research has been done relating to the effect of accounting information system on organizational performance in juba republic of South Sudan.
Most of the scholars studied the variables in western setting, western Africa and East
Africa which calls for a study in South Sudan context. Studies have shown that of the accounting information system research in western Africa samples,Kabiru and Abdullahi
(2014), asserted that the use of accounting information is relevant in simplifying issues and in the provision of quality information in the Nigerian banking industry and
Augustine, Maurine and Jian (2014), conducted a research on impact of accounting information on profitability of small scale business in Kampala city in Uganda East
Africa. However for South Sudan there is a need for such research to enables NGOs,
Public institutions, small and medium, enterprise to adapt Accounting information system for their operations because technology is ever changing if they need to compete.
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CHAPTER THREE
RESEARCH METHODOLOGY
3.0. Introduction
This chapter describes the research methodology used in the study. The research design, population and sampling technique used in the study. The instruments for the data collection were also described in detail. Finally, this chapter highlights the ethical considerations that weretaken into account in conductingresearch study, limitation factors of research and probably solution to the limitation to the research study.
3.1. Research design
The study used descriptive survey research design which aimed at examining the accounting information system and organizational performance in selected NGOs in
Juba, Republic of South Sudan. A descriptive design is usually concerned with describing a population with respect to important variables with the major emphasis being to establish the relationship between the variables. The advantage of this type of research design is that, it is easy to understand as recommended by (Kothari,
2005).This design attempt to collect data from members of the population and describes existing phenomenon with reference to accounting information system.
3.2. Population for the study
The population of the study consisted of the current registered list of 7 organizations selected and are operating in South Sudan. The list was obtained from the NGOs coordination Board, Lodule Luwala, and Deputy Director for operations, relief
Rehabilitation Commission South Sudan (2017). The researcher used random sampling to select the participating organization for the study. The target NGOs varied from those operating locally and globally respectively. This is because most of these NGO’s deal with different activities and functions (Kuada, 2012).
3.3.Respondents Sample Size
The study applied random sampling technique to select the number of respondents at the Selected NGOs in Juba – South Sudan. The number of sample was determined by
Slovene 1970s formula for sample size determination as follows;
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n = N
1+N (e) 2
Where, n= Sample Population
N= Total Population
1 Statistical Constants
E = level of significant (0.05) n = N
1+N (e) 2 n = 180
1+ (180 (0.05) 2) n = 180
180
1.45
N= 1+ (180 X 0.0025) n = 180
N = 124 Respondents
1+ 0.45
Therefore, the 7 NGOs were selected and questionnaires were given out to
124respondents for the study.
The researcher used quantitative approach where random sampling was applied and structured interviews questionaries’ were distributed to the 7 selected NGOs in Juba –
South Sudan in the following department Finance and Accounting, Logistics and
Procurement, Human resource Department and Program.
3.4 Sampling technique and procedure
The staff members who participated in the study wereselected using random sampling technique. Random sampling technique is a technique which gives every element in the population a chance to be selected. A list of employees wasobtained from the Human resources in the following department (Finance and accounting, Human Resource
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Management, Logistic management and program from the selected NGOs in Juba,
South Sudan. The names listed were systematically selected to participate in least bias and ensures generalizability (Sekaran, 2003).
Purposive sampling was used to select the senior and middle level managers because they were believed to be more knowledgeable about the topic under investigation by virtue of the positions they held in the organization.
3.5 Data collection instruments
3.5.1 Self-administered questionnaires
The study used questionnaires to collect data from 124 staff ranging from junior, senior and executive members from the selected NGOs in Juba, Republic of South Sudan for the study. The questionnaires were used because it allows easy collection of data from a large group of respondents (Mugenda and Mugenda, 1999). A questionnaire with the topical issues was designed by the researcher. It comprised of three sections; the first section enlisted the respondents’ General information, the second section focused on the accounting information system variables such as system quality assessment,
Information quality assessment and system threats assessment and the third section on organizational performance measurement. The items on the questionnaire were tapped on a 5-point Likert scale. The Likert Scale is an ordinal psychometric measurement of attitudes, beliefs and opinions. In each question, a statement is presented in which a respondent must indicate a degree of agreement or disagreement in a multiple choice type format.
The advantageous side of the Likert Scale is that they are the most universal method for data collection, therefore they are easily understood. The responses are easily quantifiable and subjective to computation of some mathematical analysis (Gilbert,
2008). Since it does not require the participant to provide a simple and concrete yes or no answer, it does not force the participant to take a stand on a particular topic, but allows them to respond in a degree of agreement; this makes question answering easier on the respondent. Also, the responses presented accommodate neutral or undecided feelings of participants. These responses are very easy to code when
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accumulating data since a single number represents the participant’s response (Gilbert,
2008). Likert scales are also quick, efficient and inexpensive methods for data collection. They have high versatility and can be sent out through mail, over the internet, or given in person.
According to (Jamieson, 2004) the disadvantage of using this type of scale however is that you cannot make statements about some percentage of the population "agreeing" or "disagreeing" with something. The population is not being described in an absolute sense. You can only compare answers across groups or across similar samples over time. Additionally the rankings are dependent on the particular list given.
3.5.2 Interview guide
An unstructured interview guide was used as a tool for collecting in depth information from the key informants who include the 24 keys respondents comparing of senior and executive managers. The guide has a list of topical issues and questions that were explored in the course of conducting the interviews. The guide was drawn with the questions soliciting for the perception of the key informants regarding accounting information system and organizational performance in selected NGOs in Juba, Republic of South Sudan. The interview guide was used to provide in-depth data which may not be possible to obtain when using self-administered questionnaires as suggested by
Mugenda and Mugenda (1999).
3.6 Validity and reliability of the research instruments
According to Amin (2005), validity and reliability are two important concepts in the acceptability of the use of an instrument for research purposes.
3.6.1 Validity
Validity refers to the appropriateness of the instrument (Amin, 2005). To ensure validity, the questionnaire was developed and given to two expert judges from Kampala
International University (KIU) and one expert from NGOs selected in Juba, Republic of
South Sudan that’s Norwegian People’s Aid, Finance and accounting Department in
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order to score the relevance of each question in providing answers to the study. After which a content validity index (C.V.I) was computed using the formula:
CVI = Number of Items declared valid by the judges
Total Number of items on the questionnaire
CVI for expert 1: 40/45= 0.9
CVI for expert 2: 39/45= 0.87
CVI for expert 3: 40/45= 0.9
Overall CVI =0.9
A CVI of 0.9 was obtained which is acceptable as suggested by Amin (2005).
3.6.2 Reliability
Reliability is a measure of the degree to which a research instrument yields consistent results or data after repeated trials (Mugenda and Mugenda, 1999). According to Amin
(2005), an instrument is reliable if it produces the same result whenever it is repeatedly used to measure trait or concept from the same respondents even by other researchers.
A pre-test was done on 20 of the respondents who were not part of the final study.
Data were coded and entered into the computer.
Cronbach’s Alpha Reliability Coefficient was computed using the Statistical Package for
Social Scientists (SPSS.16.V.) computer program to estimate the reliability of the questionnaire. According to Sekaran (2003), a coefficient of 0.6 or more implies that there is a high degree of reliability.
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Table 3. 1: Cronbach Alpha Reliability Coefficients
Item Reliability Coefficients
System Quality
Information Quality
System Threats
0.725
0.762
0.725
Organizational Performance
Overall Reliability
0.707
0.723
According to Table 3.1, the overall reliability tests for the results was 0.716, indicating great internal consistence of the responses on the tool. Specifically all the items scored high reliability results; the responses to the items under accounting information system which includes (System quality assessment scored 0.725, Information quality assessment scored 0.762 and system threats assessment scored 0.725 and items under organization performance scored a reliability coefficient of 0.707, thus the overall reliability was 0.723. All the items on the questionnaire were above 0.6, indicating a great internal consistence. The results of the reliability analysis mean that the items on the tool could be relied on to provide reliable answers to the study questions as suggested by (Sekaran, 2003).
3.7 Data analysis
The data obtained from the field were in raw form and were cleaned, coded, and keypunched into a computer and analyzed.
3.7.1 Analysis of quantitative data
The statistical package which was used for analysis of data in this study was SPSS version 16.0. Different statistical techniques were used namely: descriptive, correlation and regression analyses. The upper level of statistical significance for hypothesis testing was at the 0.05 level of significance.
38
For Section A of the research study which contains demographic questionnaires, descriptive statistics like frequency counts and percentages were computed to document the demographic information of the respondents.
For Research objective one, system quality assessment and organizational performance, object two, information quality assessment and organizational performance and objective three, system threat and organizational performance in the selected NGOs in
Juba South Sudan were analyzed first by finding the preliminary results where descriptive statistic of mean and standard deviation tested to know the degree of effects of the variables and thus can be interpreted as follows:
3.26-4.00 Strongly Agree Very Satisfactory
2.51-3.25
1.76-2.50
1.00-1.75
Agree
Disagree
Strongly Disagree
Satisfactory unsatisfactory
Very Unsatisfactory
And finally relationship test was done using Pearson linear coefficient correlation.
Pearson Linear coefficient correlation (PLCC) analysis technique was used to determine the relationship of each objective one, system quality assessment on organizational performance, object two, information quality assessment on organizational performance and three, the system threats assessment on organizational performance in selected
NGOs in Juba, republic of South Sudan. The upper level of statistical significance for hypothesis testing was at 0.05 level of significance
For examining the effect of accounting information system on organizational performance in selected NGOs in Juba, Republic of South Sudan, Linear Regression analysis was used. The upper level of statistical significance for hypothesis testing was at 0.05 level of significance.
39
3.7.2 Analysis of qualitative data
Qualitative data were analyzed using content analysis. Responses from key informants will be grouped into recurrent issues. The recurrent issues which emerged in relation to each guiding question will be presented in the results, with selected direct quotations from participants offered as illustrations as suggested by Mugenda and Mugenda
(1999).
3.8 Measurement of variable
Data on the respondent’s views and opinions about accounting information system and organization performance were obtained using scaled variables from a self-developed questionnaires developed after review of related literature on the topic under investigation. A five point - Likert scale of 5 = strongly agree, 4 = agree, 3 = not sure,
2 = disagree and 1 = strongly disagree was used to tap respondents’ attitudinal disposition on the study variables as suggested by Mugenda and Mugenda (1999).
According to Mugenda and Mugenda (1999), the Likert type scale is the most commonly used rating scale in questionnaires.
3.9. Ethical considerations
The research process was guided by sound ethical principles which include the followings:-
I.
Voluntarism; the research team ensured that respondents are not coerced or manipulated into participating in the study. Respondents were told the purpose of the study and their consent to participate in the study were sought.
II.
Objectivity; the research team ensured objectivity when carrying out the research any attempt to bias results is considered unethical and should therefore be avoided.
III.
Confidentiality; the respondents were also assured of confidentiality and anonymity. Their names were not written anywhere in the report and the information given will only be used for academic purposes.
40
IV.
Respect; the research team ensured respect for the respondents. Respect was encompassed respecting the opinion of the respondents including the opinion to terminate the interview whenever they felt uncomfortable to continue, questioning style especially for very personal and sensitive questions.
3.10. Limitations to the research study
In conducting the research, the researcher was faced with a number of methodologies and practical impediments which were highlighted below:
1.
Securing key research appointment for the interview may be hard: this is due to employees at the selected NGOs in Juba, Republic of South Sudan were busy throughout with an aim of completing and meeting dateline reports to donors.
2.
Respondents may not be willing to avail the researcher with the required information due to negative attitudes, suspiciousness and speculations. Some respondents may have negative attitude for the study thinking that it put their jobs at risk if they reveal any unnecessary information.
3.
Thus the researcher overcame the above challenges by highlighting the significance of the study to the selected NGOs in Juba South Sudan and has helped the respondents know that the study required little time sacrifice from them. As well, in order to deal with the limitation of unwillingness to provide data, the researcher ensured that the study respondents understand that confidentiality was part of the ethical concerns for the research study.
41
CHAPTER FOUR
PRESENTATION, ANALYSIS AND INTERPRETATION OF DATA
4.0. Introduction
This chapter presents the demographic characteristic of the respondents, and were analyzed using SPSS 16.V. Descriptive statistics of frequency tables and percentages analysis of demographic respondents were done, followed by analysis of accounting information system variables such as (System quality assessment, Information quality assessment, and system Threat assessment) and organizational performance measurement in Juba Republic of South Sudan. The researcher presents descriptive statistic, mean and Standard deviation to do the preliminary analysis and finally Pearson
Linear Coefficient Correlation (PLCC) was used for inferential analysis.
4.1 Demographic traits of respondents
This was based on the gender of respondents, gender, age, education and work experiences status. This was intended to attain a detailed understanding of the respondent’s key characteristics influences the result of the study. The general information has an implication on the study variables. The different demographic characteristics are analyzed and presented in table 1 below;
4.2. Descriptive analysis
The general information data gathered were analyzed by simple descriptive statistics like frequency counts and percentages, Bar Graphs and means and standard deviations.
The frequency counts and percentages were used to illustrate the demographic profile of respondents in terms of gender, organization’s where they worked, experience among other. The results are shown in the tables and figures that follow.
42
4.1.1 Demographic profile of respondents
The demographic profile of respondents were conceptualized in terms of gender, experience, level of education, department of respondents, organization’s used in this study and legal names of organizations. The results are shown in tables 4.1 up to 4.6 and figures 4.1 up to 4.2.
Table 4. 1: Names of the Organization that participated in the research
Organizations Frequency Percentage %
Norwegian People's Aid
South Sudan Red Committee
Action Africa Help International
Initiative for Peace and Communication Action
War Child Canada
Welt Hunger Life
International Organization For Migration
Total
Source: Primary Data (2017)
26
18
12
19
17
22
10
124
21.%
14.5%
9.7%
15.3%
13.7%
17.7%
8.1%
100.%
The results in table 4.1 above shows the names of organizations where data were collected. The results revealed that most of the respondents were from Norwegian
People's Aid with 26 (21%) of the respondents followed by Welt Hunger Life with 22
(17.7%) of the respondents. This was followed by respondents from Initiative for Peace and Communication Action with 19 (15.3%) and then followed by respondents from
South Sudan Red Committee with 18 (14.5%). Those from War Child Canada were 17
(13.7%) and those from Action Africa Help International with 12 (9.7%) and the least of the respondents were from International Organization for Migration with 10 respondents making (8.1%). This implies that, generally, most of the respondents were majorly from international related organizations.
43
Table 4. 2: Showing Legal status of the Organization
Legal Status of Organizations Frequency Valid Percent
National organization
International organization
Un - Affiliated organization
Total
Source: Primary Data (2017)
37
77
10
124
29.8%
62.1%
8.1%
100.%
The results in table 4.2 above shows the legal status of organization’s where data were collected. The results show that most of the organizations are internationals with 77
(62.1%) followed by national organizations with 37 respondents making (29.8%) and the least of the respondents were from un-affiliated organizations with 10 (8.1%).
Table 4. 3: Numbers of year’s staff have been working for the organization
Experience in Organization Frequenc Valid
Less Than 5 Years y
83
Percent
66.9%
6 - 10 Years
11-15 Years
16 above
Total
Source: Primary Data (2017)
24
10
7
124
19.4%
8.1%
4.8%
100.%
The results in table 4.3 shows the experience of staff working in the same work setting but in different organization’s expressed in years. The results shows that 83 of respondents representing (66.9%) of staff have worked for less than 5 years with the same organization, followed by those who have worked for 6 – 10 years with 24
(19.4%). Those who have worked for 11-15 years with the same organization were 10
(8.1%) and those with 16 above with 7 (4.8%). Generally, 107 (86.3%) had an experience of 10 years and below.
44
Table 4. 4: Department of Respondents
Department Frequency Valid Percent
Finance and Accounting
Logistics and Procurement
Human Resource Management
52
25
21
41.9%
20.2%
16.9%
ICT
Program
Total
6
20
124
4.8%
16.1%
100.%
Source: Primary Data (2017)
The results in table 4. shows the results concerning the department where the respondents were from. The results revealed that, most of the respondents were from finance and accounting with 52 (41.9%) followed by those who were in logistics and procurement with 25 (20.2%). These were followed up by those from human resource management with 21 (16.9%), followed by those in program with 20 (16.1%) and the least were those form ICT department with 6 (4.8%).
45
4.1.2 Extent of Accounting Information System (AIS) and Organizational
Performance in Selected NGOs in Juba, Republic of South Sudan
The extent of AIS in selected NGOs in Juba, Republic of South Sudan was obtained by using the means and standard deviations of the responses of items under each construct of AIS, that is system quality, information quality and system threat assessment as well the dependent variable, which is organizational performance. The mean responses are shown in tables 4.5 to 4.8. The mean responses were ranked and the results are shown below.
Table 4. 5: The Extent of System Quality Assessment in Selected NGOs in
Juba, Republic of South Sudan
Items Mean Std.
Dev.
Rank Interpretation
The AIS has safe data storage and retrieval 4.4758 .63070 1 Very Satisfactory
The AIS is always updated 4.3629 .84905 2
The AIS is align to the organizational objectives 4.1532 .95462 3
The AIS is users Friendly/ Understandable 4.1371 .75799 4
The AIS has users Verifiability
The AIS is reliable
The AIS is Fast
4.0403 .82046 5
4.0242 .90584 6
3.8952 .96119 7
Very Satisfactory
Satisfactory
Satisfactory
Satisfactory
Satisfactory
Satisfactory
The AIS is robust in data processing
The AIS is compliance conscious
The AIS can do online Transaction
The AIS is cost effective
Mean
Source: Primary Data (2017)
3.8790 1.15887 8
3.8710 .86455 9
3.8226 1.18971 10
3.8065 1.02551 11
4.042
Satisfactory
Satisfactory
Satisfactory
Satisfactory
Satisfactory
The result in table 4.5 above reveals the mean responses of items concerning the extent of System Quality Assessment in Selected NGOs in Juba, Republic of South
46
Sudan. The results reveals that concerning whether respondents regard AIS as a safe data storage and retrieval, this was ranked the highest under this construct with (mean
= 4.4758, std. dev. = 0.63070) interpreted as very satisfactory. This implies that AIS is viewed as very good in terms of keeping information safe and retrieval of such information. Regarding whether AIS is always updated, this was ranked 2 nd under this construct with (mean = 4.3629, std. dev. = 0.84905) interpreted as very satisfactory.
In terms of whether the AIS align to the organizational objectives, the results reveals that this was ranked the 3 rd under this construct with (mean = 4.1532, std. dev. =
0.95462) interpreted as satisfactory. In terms of whether the AIS is users Friendly/
Understandable, this was ranked fourth with (mean = 4.1371, std. dev. = 0.75799) interpreted as satisfactory. On the other hand, concerning with whether the AIS has users verifiability, this was ranked fifth with (mean = 4.0403, std. dev. = 0.82046) interpreted as satisfactory. In terms of whether AIS is reliable in NGOs in Juba, Republic of South Sudan, this was ranked 6 th with (mean = 4.0242, std. dev. = 0.90584) interpreted as satisfactory. In terms of whether AIS is considered faster, this was ranked 7 th with (mean = 3.8952, std. dev. = 0.96119) interpreted as satisfactory.
Regarding whether the AIS is robust in data processing, this was ranked 8 th with (mean
= 3.8790, std. dev. = 1.15887) interpreted as satisfactory. Terms of whether the AIS is compliance conscious, this was ranked 9 th with (mean = 3.8710, std. Dev. = 0.86455) interpreted as satisfactory. Regarding whether respondents regard AIS capable to do online Transaction, this was ranked 10 th with (mean = 3.8226, std. dev. = 1.18971) interpreted as satisfactory. The least ranked item under this construct was concerned with whether AIS is cost effective, with (mean = 3.8065, std. dev. = 1.02551) interpreted as satisfactory. Overall, the level of system quality assessment was satisfactory with (mean = 4.042). This implies that generally, the selected NGOs in
Juba, Republic of South Sudan regard AIS as faster, flexible, easy to understand, safe among others.
47
Table 4. 6: The Extent of Information Quality Assessment in Selected NGOs in
Juba, Republic of South Sudan
Items Mean Std.
Dev.
Ran k
Interpretation
The AIS produces Accurate Information's 4.4435 .69026 1
The AIS produces Reliable information's 4.2419 .76902 2
Very Satisfactory
Very Satisfactory
The AIS produces relevant Information's 4.1613 1.01523 3
The AIS produces complete information's 4.0806 .93354 4
The AIS produces Timeliness Report 3.9677 .89202 5
The AIS produces up to date information 3.9516 .87285 6
The AIS produces comparable information's 3.8065 .84273 7
The AIS produces free virus document 3.2258 1.23525 8
Satisfactory
Satisfactory
Satisfactory
Satisfactory
Satisfactory
Moderate
The AIS produce Untrue Reports
Mean
2.1210 1.13046 9
3.778
Unsatisfactory
High
Source: Primary Data (2017)
The results in table 4.6 above reveals the mean responses of items regarding
Information Quality Assessment in Selected NGOs in Juba, Republic of South Sudan.
The results reveals that concerning whether AIS produces accurate Information, this was ranked the highest with (mean = 4.4435, std. dev. = 0.69026) interpreted as very satisfactory. This means that NGOs in Juba regard accounting information system as to have the ability to produce accurate information. In terms of whether NGOs regard accounting information system to produce reliable information, this was ranked 2 nd with
(mean = 4.2419, std. dev. = 0.7690) interpreted as very satisfactory. Regarding whether accounting information system produces relevant information, this was ranked
3 rd with (mean = 4.1613, std. dev. = 1.01523) interpreted as satisfactory. In terms of whether accounting information system produces complete information, this was ranked
4 th with (mean = 4.0806, std. dev. = 0.93354) interpreted as satisfactory. In terms of whether accounting information system produces timeless report, this was ranked was ranked 5 th with (mean = 3.9677, std. dev. = 0.89202) interpreted as satisfactory.
48
Regarding whether NGOs believe that AIS produces up to date information, this was ranked 6 th with (mean = 3.9516, std. dev. = 0.87285) interpreted as satisfactory.
Regarding whether the AIS produces comparable information, this was ranked 7 th with
(mean = 3.8065, std. dev. = 0.84273) interpreted as satisfactory. In terms of whether
NGOs believe that AIS produces free virus document, this was ranked 8 th item under this construct with (mean = 3.2258, std. dev. = 1.23525) interpreted as moderate. The last ranked item under this construct, that is information quality was concerned with whether accounting information system produce Untrue Reports with (mean = 2.1210, std. dev. = 1.13046) interpreted as unsatisfactory. Overall, the level of information quality was high satisfactory with (mean = 3.77). This implies that NGOs in Juba,
Republic of South Sudan viewed accounting information system as accurate, reliable, and able to produce quality and correct information, among others.
49
Table 4. 7: The Extent of System Threat Assessment in Selected NGOs in
Juba, Republic of South Sudan
Items Mean Std.
Dev.
Ran k
Interpretation
The AIS requires skilled personnel
The AIS requires 24/7 internet
The AIS often experiences System failure
The AIS Experiences interception of data from remote areas
4.3065 .88508 1
4.1694 1.07991 2
3.0502 .94380 3
2.6855 1.14314 4
Very Satisfactory
Satisfactory
Undecided
Undecided
Unsatisfactory The AIS experiences unauthorized access into the system by employees of the organization
2.3710 1.18574 5
The AIS experiences intentional destruction of data by employees
2.3548 1.32022 6
The AIS users in the organization uses the same passwords
2.3145 1.10701 7
Unsatisfactory
Unsatisfactory
The AIS experiences untheorized access into the system by outsiders (Hackers)
2.0968 1.06244 8 Unsatisfactory
The AIS always creates fictious reports
Mean
General mean
1.9758 .89682 9
2.812
Unsatisfactory
Undecided
Source: Primary Data (2017)
The results in table 4.7 above reveals the mean responses of items concerning System
Threat Assessment in Selected NGOs in Juba, Republic of South Sudan. The results show that in terms of whether AIS requires skilled personnel, this was ranked the highest with (mean = 4.3065, std. dev. = 0.88508) interpreted as very satisfactory.
This further means accounting information system without skilled human resource is nothing but wasting of resources. In terms of whether NGOs believe that AIS requires
24/7 internet, this was ranked 2 nd under this construct with (mean = 4.1694, std. dev.
= 1.07991) interpreted as satisfactory. Regarding whether AIS often experiences
50
system failure, this was ranked 3 rd with (mean = 3.0502, std. dev. = 0.94380) interpreted as undecided or moderate. Concerning whether AIS experiences interception of data from remote areas, this was ranked 4 th with (mean = 2.6855, std. dev. = 1.14314) interpreted as undecided or moderate. In terms of whether AIS experiences unauthorized access into the system by employees of the organization, this was ranked 5 th with (mean = 2.3710, std. dev. = 1.18574) interpreted as unsatisfactory. Regarding whether AIS experiences intentional destruction of data by employees, this was ranked 6 th with (mean = 2.3548, std. dev. = 1.32022) interpreted as unsatisfactory. In terms of whether the AIS users in the organization uses the same passwords, this was ranked 7 th with (mean = 2.3145, sd. Dev. = 1.10701) interpreted as unsatisfactory. In terms of whether AIS experiences untheorized access into the system by outsiders (Hackers), this was ranked 8 th under this construct, with (mean =
2.0968, std. dev. = 1.06244) interpreted as unsatisfactory. The least ranked item under this construct was concerned with whether AIS always creates factious reports with
(mean = 1.9758, std. dev. = 0.89682) interpreted as unsatisfactory. Overall, the generals mean for system threat was (mean = 2.812) interpreted as moderate or undecided.
51
Table 4. 8: The Extent of Organizational Performance in Selected NGOs in
Juba, Republic of South Sudan
Items Mean Std.
Dev.
Ran k
Interpreta tion
The Organization achieves effectiveness
The Organization achieves Improvement in
4.3306 .64671
4.3145 .80007
1
2 decision making
The Organization achieves efficiency 4.2823 .66943 3
The Organization achieves Financial Performance 4.2742 .62909 4
Very High
Very High
Very High
Very High
High The Organization achieves internal budgetary control
4.1855 .97419 5
The Organization Achieves automated reports
The Organization realizes improved internal and
4.0242 .84067 6
4.0000 .68669 7 external communication
The Organization realizes employees learning 3.9839 .76492 8 knowledge and expertise skills
The Organization Realizes Cost Saving
The Organization achieves high productivity
3.9758 .86920
3.6935 .88508
9
10
High
High
High
High
High
Mean
Source: Primary Data (2017)
4.106 High
The results in table 4.8 are mean responses of items regarding organizational performance (OP). The results reveal that concerning whether the NGOs achieve effectiveness, this was ranked the highest with (mean = 4.3306, std. dev. = 0.64671) interpreted as very high. This implies that organizational are achieving the intended objectives and goals. Regarding whether NGOs achieve Improvement in decision making, this was ranked 2 nd with (mean = 4.3145, std. dev. = 0.80007) interpreted as very high. Regarding whether the organization achieve efficiency, this was ranked 3 rd with (mean = 4.2823, std. dev. = 0.66943) interpreted as very high. In terms of whether organization’s achieve financial performance, this was ranked 4 th with (mean =
52
4.2742, std. dev. = 0.62909) interpreted as very high. Regarding whether NGOs achieve internal budgetary control, this was ranked 5 th with (mean = 4.1855, std. dev.
= 0.97419) interpreted as high. Regarding whether NGOs achieve automated reports, this was ranked 6 th with (mean = 4.0242, std. dev. = 0.84067) interpreted as high.
Concerning whether NGOs realizes improved internal and external communication, this was ranked 7 th with (mean = 4.0000, std. dev. = 0.68669) interpreted as high.
Regarding whether NGOs realizes employees learning knowledge and expertise skills, this was ranked 8 th with (mean = 3.9839, std. dev. = 0.76492) interpreted as high. On the other hand, in terms of whether NGOs realizes cost saving, this was ranked 9 th with
(mean = 3.9758, std. dev. = 0.86920) interpreted as high. In terms of whether NGOs achieve high productivity, this was ranked the least with (mean = 3.6935, std. dev. =
0.88508) interpreted as high. Overall, the level of OP was high with (mean = 4.106).
Bivariate Analysis
The bivariate analysis was carried out in order to investigate the relationship between the construct of AIS that is system quality, information quality and system threats and organizational performance. These investigations were carried out to also achieve the objectives of the study. The results are shown in sections 4.2.1, 4.2.2 and 4.2.3 below.
4.1.3 Relationship between System quality and Organizational performance in Selected NGOs in Juba, Republic of South Sudan.
The first objective of the study was to examine whether there is a relationship between
System quality and Organizational performance in Selected NGOs in Juba, Republic of
South Sudan. To achieve this objective, the researcher applied Pearson’s Linear
Correlation Coefficient (PLCC), denoted as r, and used the results to test the null hypothesis that there is no significant relationship between System quality assessment and organizational performance in Selected NGOs in Juba, Republic of South Sudan.
The hypothesis was tested at 0.05 level of significance and rejected when sig. value is greater than 0.005. The results from correlation analysis are shown in table 4.11 below
53
Table 4. 9: Pearson Linear Coefficient Correlations (PLCC) - System quality assessment and organizational performance in Selected NGOs in Juba, South
Sudan
System Quality
Assessment
System Quality
Assessment
Pearson
Correlation
1
Sig. (2-tailed)
Organizational
Performance
Measurement
N
Pearson
Correlation
Sig. (2-tailed)
124
.443
**
.000
N 124
**. Correlation is significant at the 0.01 level (2-tailed).
Source: Primary Data (2017)
Organizational Performance
Measurement
.443
**
.000
Results in table 4.9 reveals the results from correlation analysis between system quality assessment and organizational performance in Selected NGOs in Juba, Republic of
South Sudan. The results reveal that there exists a significant positive relationship
124
124
1 between System quality assessment and organizational performance in Selected NGOs in Juba, Republic of South Sudan with (r = 0.443, sig. value = 0.000 < 0.05). The results reveal that as system quality assessment and organizational performance moves in the same direction. The results also reveals that in the hypothesis, the hypothesis one which states that there is no significant relationship between system quality assessment and organizational performance was rejected since significance value of
0.000 is less than 0.05, the standard level of significance.
54
4.1.4 Relationship between information quality assessment and organizational performance in the selected NGOs in Juba, Republic of South
Sudan
The second objective of the study was to establish whether a relationship exists between information quality and organizational performance in the selected NGOs in
Juba, Republic of South Sudan. To achieve this objective, the researcher applied
Pearson’s Linear Correlation Coefficient (PLCC), denoted as r, and used the results to test the null hypothesis that there is no significant relationship between information quality assessment and organizational performance in the selected NGOs in Juba,
Republic of South Sudan. The hypothesis was tested at 0.05 level of significance and rejected when sig. value is greater than 0.005. The results from correlation analysis are shown in table 4.10 below
Table 4. 10: Pearson Linear Coefficient Correlation (PLCC) analysis information quality assessment and organizational performance in Selected
NGOs in Juba, South Sudan
Information Quality
Assessment
Information Quality
Assessment
Pearson
Correlation
1
Sig. (2-tailed)
Organizational
Performance
Measurement
N
Pearson
Correlation
124
.132
Sig. (2-tailed)
N
**. Correlation is significant at the 0.01 level (2-tailed).
.143
124
Source: Primary Data (2017)
Organizational Performance
Measurement
.132
.143
124
1
124
Results in table 4.10 reveals the results from correlation analysis between information quality assessment and Organizational performance in Selected NGOs in Juba, Republic
55
of South Sudan. The results reveal that there was no positive relationship between information quality assessment and Organizational performance in Selected NGOs in
Juba, Republic of South Sudan with (r = 0.132, sig. value = 0.143 > 0.05). The results reveals that as information quality assessment and organizational performance moves in the same direction but the relationship is not big enough (significant). The results also reveals that the hypothesis that there is no significant relationship between information quality assessment and organizational performance was accepted since significance value of 0.143 is greater than 0.05, the standard level of significance.
4.1.5 Relationship between system threats assessment and Organizational performance in the selected NGOs in Juba, Republic of South Sudan.
The third objective of the study was to find out if there is a relationship between system threats and Organizational performance in the selected NGOs in Juba, Republic of South Sudan. To achieve this objective, the researcher applied Pearson’s Linear
Correlation Coefficient (PLCC), denoted as r, and used the results to test the null hypothesis that there is no significant relationship between system threats and organizational performance in the selected NGOs in Juba, Republic of South Sudan. The hypothesis was tested at 0.05 level of significance and rejected when sig. value is greater than 0.005. The results from correlation analysis are shown in table 4.11 below
56
Table 4. 11: Pearson Linear Coefficient Correlation (PLCC) Analysis - system threats assessment and Organizational performance in Selected NGOs in
Juba, South Sudan
System Threat
Assessment
System Threat
Assessment
Pearson
Correlation
Sig. (2-tailed)
1
Organizational
Performance
Measurement
N
Pearson
Correlation
Sig. (2-tailed)
124
.261
**
.003
N 124
**. Correlation is significant at the 0.01 level (2-tailed).
Source: Primary Data (2017)
Organizational Performance
Measurement
.261
**
.003
124
124
1
Results in table 4.11 reveals the results from correlation analysis between system threats assessment and Organizational performance in Selected NGOs in Juba, Republic of South Sudan. The results reveal that there exists a significant positive relationship between system threats assessment and Organizational performance in Selected NGOs in Juba, Republic of South Sudan with (r = 0.261, sig. value = 0.003 < 0.05). The results reveal that as system threats assessment and organizational performance moves in the same direction. The results also reveals that the hypothesis that there is no significant relationship between system threats assessment and organizational performance was rejected since significance value of 0.003 is less than 0.05, the standard level of significance.
Multivariate Analysis
The multivariate analysis is regarded as the highest level of analysis. This was carried to achieve objective the overall purpose of the study that required regression analysis.
The multiple regression analysis was carried out to determine independent variables
57
constructs of accounting information system and the dependent variable wasorganizational performance. The results are shown in section 4.3.1 below
4.2 Effect of accounting information system on Organizational performance in the selected NGOs in Juba, Republic of South Sudan.
To evaluate overall effect of accounting information system on organizational performance in the selected NGOs in Juba, Republic of South Sudan. To achieve this, the researcher used regression analysis to identify the general effect of accounting information system on organizational performance, also to identify the effect of each of the constructs of accounting information system (system quality, information quality and system threat) on organizational performance. The results were also used to test whether accounting information system have no significant effect on organizational performance in the selected NGOs in Juba, Republic of South Sudan. The result was tested at 0.05 level of significance. The results were shown in table 4.12 below.
Table 4. 12: Regression Analysis between accounting information system on
Organizational performance in the selected NGOs in Juba, Republic of South
Sudan
Regression Linear Correlation - Effect of accounting information system on organizational performance
System Quality
Assessment
Information Quality
Assessment
Pearson
Correlation
Sig. (2-tailed)
N
Pearson
Correlation
Sig. (2-tailed)
N
System
Quality
Assessment
1
124
.394
**
.000
124
Information
Quality
Assessment
.394
**
.000
124
1
124
System
Threat
Assessment
Organizational
Performance
Measurement
.140
.121
124
.009
.922
124
.443
**
.000
124
.132
.143
124
58
System Threat
Assessment
Pearson
Correlation
Sig. (2-tailed)
N
.140
.121
124
Organizational
Performance
Measurement
Pearson
Correlation
Sig. (2-tailed)
.443
**
.000
N 124
**. Correlation is significant at the 0.01 level (2-tailed).
.009
.922
124
.132
.143
124
Model Summary
Model R R Square
Adjusted R
Square
Std. Error of the Estimate
1 .488
a .238 .219 a. Predictors: (Constant), System Threat
Assessment, Information Quality Assessment,
System Quality Assessment
ANOVA b
.39624
Model
Sum of
Squares Df
Mean
Square F Sig.
1 Regression
Residual
5.894
18.841
3
120
1.965 12.513 .000
a
.157
Total 24.735 123 a. Predictors: (Constant), System Threat Assessment, Information
Quality Assessment, System Quality Assessment b. Dependent Variable: Organizational Performance
Measurement
1
124
.261
**
.003
124
59
.261
**
.003
124
1
124
Model
1 (Constant)
System Quality
Assessment
Coefficients
Unstandardized
Coefficients
B Std. Error
Standardized
Coefficients
Beta
2.692
.258
.326
.052 .431 t
8.245
4.915
Sig.
.000
.000
Information Quality
Assessment
-.033 .072 -.039 -.454 .651
System Threat
Assessment
.173 .069 .201 a. Dependent Variable: Organizational Performance Measurement
2.494 .014
Source: Primary Data (2017)
The results in table 4.12 revealed the regression analysis between AIS and organizational performance. The results revealed that AIS in terms of its constructs have an overall significant effect on organizational performance (F = 12.513, sig. =
0.000). This is because the significance value (sig. value = 0.000 < 0.05). This implied that AIS significantly affect organizational performance. The results further shows that
AIS variables (system quality, information quality and system threat) describes organizational performance by 21.9% (adjusted R square = 0.219). This implied that other factors such as employee related, among others expounds 78.1% of the other factors that affect organizational performance. The results further shows that system quality assessment significantly affect organizational performance with (beta = 0.258, t
= 4.915, sig. = 0.000). The rate of change of organizational performance to change in system quality is (beta = 0.258). This explains that a unit change in system quality assessment affects organizational performance by 0.258. The results also reveals that information quality assessment does not have a significant effect on organizational performance with (beta = -0.033, t = -0.454, sig. = 0.651). In terms of system threat, the results reveal that it has a significant effect on organizational performance with
60
(beta = 0.173, t = 2.494, sig. = 0.014). The rate of organizational performance irrespective of system quality, system threat and information quality is 2.692.
61
CHAPTER FIVE
DISCUSSIONS, CONCLUSIONS AND RECOMMENDATIONS
5.0 Introduction
This chapter presents the demographic characteristic of the respondents, and was analysis using SPSS 16.V. Descriptive frequency analysis of demographic respondents was done, followed by analysis of accounting information system variables that includes
(System quality, Information quality and system Threat) and organizational performance indicators in Juba Republic of South Sudan. The researcher presents used
Descriptive statistic mean and Standard deviation to do the preliminary analysis and finally Pearson Linear Coefficient Correlation (PLCC). The findings of the study based on the objectives of the study. The researcher then makes data analysis and interpretation of the data.
5.1 Discussions
The study was guided by Three objectives, that is to examine whether there is a relationship between system quality and organizational performance in Selected NGOs in Juba, Republic of South Sudan, to establish whether a relationship exists between information quality and organizational performance in the selected NGOs in Juba,
Republic of South Sudan, to find out if there is a relationship between system threats and organizational performance in the selected NGOs in Juba, Republic of South Sudan and to evaluate effect of accounting information system on organizational performance in the selected NGOs in Juba, Republic of South Sudan. The findings are as below.
5.1.1 Relationship between System quality and Organizational performance in Selected NGOs in Juba, Republic of South Sudan
The study found out that there exists a positive significant relations between System quality and Organizational performance in Selected NGOs in Juba, Republic of South
Sudan, shown by (r = 0.443, sig. value = 0.000 < 0.05). This implied that system quality and organizational performance move in the same direction. As system quality is
62
improving, also organizational performance is improving. This also led to the rejection of the null hypothesis that there is no significant relation between system quality and organizational performance in Selected NGOs in Juba, Republic of South Sudan.
5.1.2 Relationship between information quality and organizational performance in the selected NGOs in Juba, Republic of South Sudan
Regarding this objective, the study found out that there was a positive but not significant to the relationship between information quality and organizational performance in selected NGOs in Juba, Republic of South Sudan. In this case, this led to acceptance of the null hypothesis that there no significant relationship between information quality and organizational performance.
Emmanuel Khemish Peter (2017) of Initiative for peace and communication action juba, further expressed that the recent advancement of information technology has made the accounting field easy where non accountants can be trained on the use the system and becomes information communication technology accountants professional with little knowledge of accounting thus at the end the system generates accurate, reliable information for decision making and improves the internal communication in the organization.
This aligned with Huber, (1990) agrees that automated accounting information system aids decision making for management of organizations. Benefits of accounting information system can be evaluated by its impacts on improvement of decision-making process, quality of accounting information, performance evaluation, internal controls and facilitating company’s transactions. Regarding the above five characteristics, the effectiveness of accounting information system is highly important for all the firms.
5.1.3 Relationship between system threats assessment and organizational performance in Selected NGOs in Juba, Republic of South Sudan
Concerning the third objective, the study found out that there exists a significant positive relationship between system threats assessment and organizational performance in Selected NGOs in Juba, Republic of South Sudan. The results revealed
63
that as system threats assessment and organizational performance moves in the same direction. The results also led to the rejection of the null hypothesis that there is no significant relationship between system threats assessment and organizational performance since significance value of 0.003 is less than 0.05, the standard level of significance.
Hillary Steven (2017) of South Sudan Red Cross Committee, Said that one of the greatest threat that the system is experiencing was that it requires skilled personnel to use because untrained or unskilled personnel will not input data and operate it as required. Jenike (2017) of Norwegian People’s Aid, said that the accounting information system they are using requires stable internet for it to operate successful meaning without stable internet running it will not work. She further stressed other related threats to system was that it requires skilled personnel that’s why Norwegian people’s
Aid recruits staff who are qualified and trained before using the system to produce accurate, relevant information that can enhance the organization operation.
This aligns with Darren et al. (2012) posit that as a skill is associated with a particular task, a person who does not possess such a skill is unlikely to be able to carry out such task or will be less productive than somebody who does possess this skill. According to
Bustani (2011), the quality and availability of skilled workforce is considered an important factor towards the effectiveness of any industrial sector. However, various reports have indicated the existence of shortages and poor quality of manpower in the
Nigerian industries (Dantong et al. 2011; Long et al., 2012a: Long et al., 2012b). Some reasons attributed for such shortages includes; aging of skilled manpower workers in the industry, decline in the number of new entrants into skilled trades, poor finding and ineffective state of information technology education and training / retraining system in the country. According to (Jalobeanu, 2003), information system that runs online will indeed become even more accessible, more convenient, and therefore requires constant internet and speed to enable access to the system for it operation to take place.
64
5.1.4 Effect of accounting information system and organizational performance in the selected NGOs in Juba, Republic of South Sudan.
To evaluate effect of accounting information system on organizational performance in the selected NGOs in Juba, Republic of south Sudan. The study found out that the overall effect of AIS on organizational performance was significant since. The results further showed that accounting information system (system quality, info ration quality and system threat) explains organizational performance by 21.9% (adjusted R square =
0.219). The results further showed that system quality assessment significantly affectsorganizational performance and that information quality assessment does not have a significant effect on organizational performance and lastly that system threat, the results reveal that it has a significant effect on organizational performance. The rate of organizational performance irrespective of system quality, system threat and information quality.
According to Juma Calvans O. (2017) of war child Canada Juba, he posited that information’s quality enhances organizational performance because the system produces accurate, reliable, complete and up to date information which provide the organization management with automated financial reports on daily basis, weekly and monthly, improves the decision making process and better internal budgetary control of resource, and increased productivity has been realized but, all this depends on garbage in garbage out, meaning for quality of information generated by the accounting information system, skilled personnel is required to do the data entry into to the system.
This aligned with (Xu 2009), inaccurate and incomplete data may damage competitiveness of firms. They also found out that that input control and competent employees are important to data quality of accounting information system. Poor information quality may have adverse effect on decision-making (Huang, Lee, and
Wang 1999). Quality of accounting information can be evaluated by four attribute,
Accuracy, timeliness, completeness, and consistency (Xu 2003) they examined critical success factors for accounting information quality, they identified and interviewed four
65
groups namely (information producers, information custodians, information consumers and information managers. They found and suggested that organizational issue, system and human issue, are very much important to accounting information quality.
Considering previous research on dependencies between data quality dimensions, information systems success, and organizational performance, a big picture can be drawn. Sedera and Gable (2004) argued that overall productivity of an organization has an impact on the success of enterprise systems, whereas Fisher et al. (2011: 4) summarize that data quality in organizations has an influence on productivity.
5.2 Conclusion
The conclusions of the study were based on the findings of the study. Based on the findings of the study, the researcher made the following conclusions.
There is a positive significant relationship between system quality and organizational performance. This implies that as system quality is improving, also the organizational performance is improving. This also means that the analogy that there is no significant relationship between system quality and organizational performance is rejected.
Similarly, based on the findings of the study, the researcher also concluded that there is insignificant positive relationship between information quality and organizational performance. This implies that the relationship exists and is positive but is not big enough. This meant the hypothesis that there is no significant relationship between information quality and organizational performance is accepted.
Again, based on the findings, the study concluded that there is a significant positive relationship between system threat and organizational performance. This implies that system threat and organizational Performance move in the same direction. This also meant that the hypothesis that there is no significant relationship between system threat and organizational performance is rejected.
Regarding the effect of accounting information system on organizational performance, the study found out that accounting information system significantly affects the
66
organizational performance. The combined constructs of AIS significantly affect organizational performance. However, these constructs considered individually, system quality and system threat have significant effect on organizational performance while information quality has insignificant effect on organizational performance.
5.3 Recommendations
Based on the findings, the researcher made the following recommendations.
1.
There is a need to investigate other factors that affect organizational performance other than accounting information system. This is because, accounting information system only accounts for almost 22% of the levels of organizational performance.
2.
Also, accounting information system, have been found to be accurate, reliable but the greatest threat which is manageable that’s skilled personnel requirement where comprehensive training for workers before any one is permitted to use the system because quality of data depends on garbage in garbage out Xu (2003).
3.
Further Recommendation is that some organization needs to get accounting information system that comprises of the entire structure of organization other than adapting a system for department which is very expensive thus incurring a lot of expenses on maintenance.
4.
Before acquiring accounting information system, management need to budget for cost of running and maintaining stable internet, because system failure as a threat has been always associated with low or poor internet instability experienced by organizations using online accounting information system.
67
5.4 Areas for Further Research
The researcher thought the following to be the areas that require further research
1.
There is need for research to be conducted on accounting information system and in government institution, privates companies to assess whether they are adapting information technology to reap the benefit of organizational performance in south Sudan because it was found out that all the NGOs selected are using accounting information system and have realized significant performance.
2.
Assessment of information communication technology readiness among the stakeholders in organization is in Juba South Sudan.
5.5 Contribution to knowledge
I.
The study has provided empirical evidence on the relationship between accounting information system and organizational performance in Juba south
Sudan, which was hitherto to existence.
II.
It provides a useful basis for NGOs, small and medium enterprise, Multinational
Corporations and government institutions to adopt accounting information system for their daily operation and for improvement of their organizational performances in the Juba, republic of South Sudan.
68
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APPENDIX I: QUESTONNAIRE
FOR FINANCE/ACCOUNTING, HUMAN RESOURCE AND LOGISTIC, PROGRAME
DEPARTMENTS
Dear Respondent;
The researcher is a graduate student pursuing a Master of Business Administration of
Kampala International University (Uganda). I am conducting a research study on accounting information System and Organizational performance in selected
NGOs in Juba, South Sudan . You are kindly requested to answer the questions below in good faith. The study is purely for academic purpose and all information provided will be treated confidential. Your prompt response will be highly appreciated.
Section A ; GENERAL INFORMATION
(Tick the appropriate box)
Qn1. The Legal name of the organization you are working with
………………………………………………………………………………………………..
Qn2. Organizational legal status a) National organization
c). UN affiliated Organization
b) International Organization
3. How long have you been in this organization? a) Less 5 Years d) 15 Years above b) b) 6 – 10 Years c). 11 – 15 Years
4. Which department are you working in the organization? a) Finance and Accounting Department c). Human Resource Department
e). Program Department b) Logistic Department d) ICT Department f) Others
I
OBJECTIVE ONE: SYSTEM QUALITY ASSESSMENT
Please respond to the following statements by indicating the extent to which you agree or disagree as per the given choices
5 4 3 2 1
SYSTEM QUALITY ASSESSMENT
1 The Accounting information system has safe data storage and retrieval
2 The Accounting information system is has users verifiability
3 The Accounting information system is user friendly/Understandable
4 The Accounting information system is compliance conscious
5 The Accounting information system is robust in data processing
6 The Accounting information system align to organizational objectives
7 The Accounting information system is cost effective
8 The Accounting information system is always updated
9 The Accounting Information system is reliable
10 The Accounting information system is Fast
11 The Accounting information system can do online transaction
II
OBJECTIVES TWO: INFORMATION QUALITY ASSESSMENT
Please respond to the following statements by indicating the extent to which you agree or disagree as per the given choices.
5 4 3 2 1
INFORMATION QUALITY
1 The Accounting Information System produces relevance information
2 The accounting information system produces accurate information’s
3 The accounting information system produces complete information’s
4 The Accounting information system produces reliable information’s
5 The Accounting information system produces comparable information’s
6 The Accounting information systems produces up to date information
7 The Accounting information system produces timeliness report
8 The Accounting Information system always creates untrue reports
9 The Accounting information system produces free virus documents
III
OBJECTIVE THREE: ACCOUNTING INFORMATION SYSTEM THREATS
Please respond to the following statements by indicating the extent to which you agree or disagree as per the given choices
5 4 3 2 1
ACCOUNTING INFORMATION SYSTEM THREATS
1 The Accounting information system often experience system failure
2 The Accounting Information system requires 24/7 internet
3 The Accounting information requires Skilled Personnel
4 The Accounting Information system experience unauthorized access into the system by employees of the organization
5 The Accounting information system experience unauthorized access into the system by outsiders (hackers)
6 The Accounting information systems users in the Organization uses the same passwords
7 The Accounting information systems experiences intentional destruction of data by employees of organization
8 The Accounting information system experience interception of data transmission from remote location
9 The Accounting Information system always creates fictitious reports
IV
MEASURING ORGANIZATIONAL PERFORMANCE
Please respond to the following statements by indicating the extent to which you agree or disagree as per the given choices
5 4 3 2 1
Measuring Organizational Performance
1 The organization realizes cost saving
2 The organization achieves automated reports
3 The Organization realizes employees knowledge and learning experts skills
4 The organization realizes improves internal and external communication
5
6
7
The organization achieves financial performance
The organization achieves effectiveness
The Organization achieves efficiency
8 The organization achieves internal budgetary control
9 The organization achieves high productivity
10 The organization achieves improvement in decision making
Thank you for Cooperation
V
APPENDIX II: INTERVIEW GUIDE
a) Independent Variable (Accounting Information System)
1.
Name of your organization
………………………………………………………………………………………………
2.
Which accounting information system do your organization use?
…………………………………………………………………………………………………………………
3.
Which department are you attached in your organization?
………………………………………………………………………………………………………………… b) Independents Variables (Accounting Information system)
4.
What do you think makes your Organization’s accounting information system very effective?
……………………………………………………………………………………………………………………
……………………………………………………………………………………………………………………
5.
Outline the impacts of accounting information system on your organization performance?
……………………………………………………………………………………………………………………
……………………………………………………………………………………………………………………
……………………………………………………………………………………………………………………
C) Relationship between accounting information systems and organization performance in the selected NGOs in Juba South Sudan.
6.
Is there any relationship between accounting information system and organization performance since you have been using some system in your organization?
VI
……………………………………………………………………………………………………………………
…………………………………………………………………………………………………………………… c) Intervening Variables (Obstacles of Accounting Information System)
7.
Outline shortcomings do you find in using the Accounting information system your organization has adopted
……………………………………………………………………………………………………………………
……………………………………………………………………………………………………………………
Thank you
VII
APPENDIX III: TRANSMITTAL LETTER FOR THE RESPONDENTS
Dear Sir/Madam,
Greetings!
I am a candidate for a Masters of Business Administration Finance and Accounting at
Kampala International University with a thesis on “Accounting information systems and Organization performance in selected NGOs in a Juba South Sudan”.
As I pursue this academic requirement, may I request your assistance by being part of this study? Kindly provide the most appropriate information as indicated in the questionnaires and please do not leave any item unanswered. Any data from you shall be for academic purposes only and will be kept with utmost confidentiality.
May I retrieve the questionnaires 4 days after you receive them?
Thank you very much in advance.
Yours faithfully
____________________
DANIEL LODINYA STEPHEN
VIII
APPENDIX IV: CLEARANCE FROM ETHICS COMMITTEE
Date______________
Candidate’s Data
Name_____________________________________________________________
Reg. # ____________________________________________________________
Course ___________________________________________________________
Title of Study ______________________________________________________
Ethical Review Checklist
The study reviewed considered the following:
________ Physical Safety of Human Subjects
________ Psychological Safety
________ Emotional Security
________ Privacy
________Written Request for Author of Standardized Instrument
________ Coding of Questionnaires/Anonymity/Confidentiality
________ Permission to Conduct the Study
________ Informed Consent
_________ Citations/Authors Recognized
Results of Ethical Review
--------------- Approved
----------------Conditional (to provide the Ethics Committee with corrections)
---------------- Disapproved/ Resubmit Proposal
Ethics Committee (Name and Signature )
Chairperson ___________________________
Member ____________________________ ix
APPENDIX V:INFORMED CONSENT
I am giving my consent to be part of the research study of Mr.
Daniel Lodinya
Stephen that will focus on Accounting Information system and Organization
Performance, in selected NGOs in Juba South Sudan.
I shall be assured of privacy, anonymity and confidentiality and that I will be given the option to refuse participation and right to withdraw my participation anytime.
I have been informed that the research is voluntary and that the results will be given to me if I ask for it.
Initials: ____________________________
Date______________________________ x
