The impact of perceived accounting benefits on the enterprise resource planning success: The mediating role of effective system use
DOI:
https://doi.org/10.37380/jisib.v10i3.639Keywords:
Effective system use, enterprise resource planning, enterprise success, fitness for use, perceived accounting benefitsAbstract
In the past decades, enterprise resource planning (ERP) systems have become
increasingly automated, particularly for routine management accounting tasks. However, there
has been little research investigating the accounting benefits of adopting ERP systems. This
study investigates the role of perceived accounting benefits in ERP success. Drawing on Juran’s
principle of ‘fitness for use,’ this study establishes a framework that captures how perceived
accounting benefits influence effective system use, which, in turn, enhances enterprise success.
Using Partial Least Squares – Structural Equation Modelling (PLS-SEM) with survey data
collected from 120 enterprises in Vietnam that have implemented ERP, our findings provide
strong support for the predicted positive effect of perceived accounting benefits on enterprise
success, and for the hypothesis that this relationship is fully mediated by effective system use.
This study is novel for two reasons. First, it is one of the first attempts to provide empirical
evidence that effective system use and enterprise success are valuable outcomes of accounting
benefits perceived to be gained from the use of ERP systems. Second, it discovers and
demonstrates that effective system use is the most appropriate system-use concept in the
present enterprise systems-related context, a topic that remains under discussion in the
literature.
References
Anderson, M. C., Banker, R. D., & Ravindran, S.
(2003). The new productivity paradox.
Communications of the ACM, 46(3), 91-94.
https://doi.org/10.1145/636772.636776
Booth, P., Matolcsy, Z., & Wieder, B. (2000). The
impacts of enterprise resource planning
systems on accounting practice–the
Australian experience. Australian Accounting
Review, 10(22), 4-18.
https://doi.org/10.1111/j.1835-
2000.tb00066.x
Brazel, J. F., & Dang, L. (2008). The effect of ERP
system implementations on the management
of earnings and earnings release dates.
Journal of Information Systems, 22(2), 1-21.
https://doi.org/10.2308/jis.2008.22.2.1
Brislin, R. W. (1970). Back-translation for crosscultural
research. Journal of Cross-cultural
Psychology, 1(3), 185-216.
https://doi.org/10.1177/135910457000100301
Chang, H. H. (2006). Technical and management
perceptions of enterprise information system
importance, implementation and benefits.
Information Systems Journal, 16(3), 263-292.
https://doi.org/10.1111/j.1365-
2006.00217.x
Chang, S.-I., Gable, G., Smythe, E., & Timbrell,
G. (2000). A Delphi examination of public
sector ERP implementation issues. Paper
presented at the Proceedings of the Twenty
First International Conference on Information
Systems.
Colmenares, L. (2009). Benefits of ERP systems
for accounting and financial management.
Proceedings of the Academy of Information
and Management Sciences, 13(1), 3-7.
Davenport, T. H. (1998). Putting the enterprise
into the enterprise system. Harvard Business
Review, 76(4), 121–132.
DeLone, W. H., & McLean, E. R. (1992).
Information systems success: The quest for
the dependent variable. Information Systems
Research, 3(1), 60-95.
https://doi.org/10.1287/isre.3.1.60
DeLone, W. H., & McLean, E. R. (2016).
Information Systems Success Measurement.
Foundations and Trends® in Information
Systems, 2(1), 1-116.
https://doi.org/10.1561/2900000005
Deng, X., Doll, W., & Truong, D. (2004).
Computer self-efficacy in an ongoing use
context. Behaviour & Information Technology,
(6), 395-412.
https://doi.org/10.1080/0144929041000172345
Doll, W. J., & Torkzadeh, G. (1998). Developinga
multidimensional measure of system-use in
an organizational context. Information &
Management, 33(4), 171-185.
https://doi.org/10.1016/S0378-7206(98)00028-
Esteves, J., & Dwivedi, Y. K. (2009). A benefits
realisation road-map framework for ERP
usage in small and medium-sized enterprises.
Journal of Enterprise Information
Management, 22(1/2), 25-35.
https://doi.org/10.1108/17410390910922804
Fornell, C., & Larcker, D. F. (1981). Structural
equation models with unobservable variables
and measurement error: Algebra and
statistics. Journal of Marketing Research,
(3), 382-388.
https://doi.org/10.1177/002224378101800313
Gattiker, T. F., & Goodhue, D. L. (2004).
Understanding the local-level costs and
benefits of ERP through organizational
information processing theory. Information &
Management, 41(4), 431-443.
https://doi.org/10.1016/S0378-7206(03)00082-
X
Grabski, S. V., Leech, S. A., & Schmidt, P. J.
(2011). A review of ERP research: A future
agenda for accounting information systems.
Journal of Information Systems, 25(1), 37-78.
https://doi.org/10.2308/jis.2011.25.1.37
Granlund, M., & Malmi, T. (2002). Moderate
impact of ERPS on management accounting: A
lag or permanent outcome? Management
Accounting Research, 13(3), 299-321.
https://doi.org/10.1006/mare.2002.0189
Grover, V., Seung Ryul, J., & Segars, A. H. (1996).
Information systems effectiveness: The
construct space and patters of application.
Information & Management, 31(4), 177-191.
https://doi.org/10.1016/S0378-7206(96)01079-
Guimaraes, T., & Igbaria, M. (1997).
Client/server system success: Exploring the
human side. Decision Sciences, 28(4), 851-876.
https://doi.org/10.1111/j.1540-
1997.tb01334.x
Hair Jr, J. F., Sarstedt, M., Hopkins, L., & G.
Kuppelwieser, V. (2014). Partial least squares
structural equation modeling (PLS-SEM).
European Business Review, 26(2), 106-121.
https://doi.org/10.1108/ebr-10-2013-0128
Hendrickson, A. E., & White, P. O. (1964).
Promax: A quick method for rotation to
oblique simple structure. British Journal of
Statistical Psychology, 17(1), 65-70.
https://doi.org/10.1111/j.2044-
1964.tb00244.x
Hitt, L. M., Wu, D., & Zhou, X. (2002). Investment
in enterprise resource planning: Business
impact and productivity measures. Journal of
Management Information Systems, 19(1), 71-
https://doi.org/10.1080/07421222.2002.110457
Hong, K. K., & Kim, Y. G. (2002). The critical
success factors for ERP implementation: An
organization fit perspective. Information and
Management, 40(1), 25-40.
https://doi.org/10.1016/S0378-7206(01)00134-
Hyvönen, T., Järvinen, J., & Pellinen, J. (2008). A
virtual integration—The management control
system in a multinational enterprise.
Management Accounting Research, 19(1), 45-
https://doi.org/10.1016/j.mar.2007.08.001
Ifinedo, P. (2011). Examining the influences of
external expertise and in-house computer/IT
knowledge on ERP system success. Journal of
Systems and Software, 84(12), 2065-2078.
https://doi.org/10.1016/j.jss.2011.05.017
Järvenpää, M. (2007). Making Business Partners:
A case study on how management accounting
culture was changed. European Accounting
Review, 16(1), 99-142.
https://doi.org/10.1080/09638180701265903
Juran, J. M. (1988). The quality function. JJM &
FM Gryna (Eds.), Juran's Quality Control
Handbook, 2.1-2.13.
Juran, J., & Godfrey, A. B. (1999). Quality
handbook. Republished McGraw-Hill, 173-
Kanellou, A., & Spathis, C. (2011). Auditing in
enterprise system environment: a synthesis.
Journal of Enterprise Information
Management, 24(6), 494-519.
https://doi.org/10.1108/17410391111166549
Kanellou, A., & Spathis, C. (2013). Accounting
benefits and satisfaction in an ERP
environment. International Journal of
Accounting Information Systems, 14(3), 209-
https://doi.org/http://dx.doi.org/10.1016/j.accin
f.2012.12.002
Kronbichler, S. A., Ostermann, H., & Staudinger,
R. (2010). A comparison of ERP-success
measurement approaches. Journal of
Information Systems & Technology
Management, 7, 281-310.
https://doi.org/10.4301/S1807-
Langlois, A., & Chauvel, B. (2017). The impact of
supply chain management on business
intelligence. Journal of Intelligence Studies in
Business, 7(2), 51-61.
https://doi.org/10.37380/jisib.v7i2.239
Laudon, K. C. (1986). Data quality and due
process in large interorganizational record
systems. Communications of the ACM, 29(1),
-11. https://doi.org/10.1145/5465.5466
Markus, M. L., & Tanis, C. (2000). The enterprise
systems experience-from adoption to success.
Framing the domains of IT research:
Glimpsing the future through the past, 173,
-173.
Mukti, S. K., & Rawani, A. M. (2016). ERP system
success models: A literature review. ARPN
Journal of Engineering and Applied Sciences,
(3), 1861-1875.
Newman, M., & Westrup, C. (2005). Making
ERPs work: Accountants and the introduction
of ERP systems. European Journal of
Information Systems, 14(3), 258-272.
https://doi.org/10.1057/palgrave.ejis.3000539
Nicolaou, A. I. (2004). Firm performance effects
in relation to the implementation and use of
enterprise resource planning systems.
Journal of Information Systems, 18(2), 79-105.
https://doi.org/10.2308/jis.2004.18.2.79
Nitzl, C. (2016). The use of partial least squares
structural equation modelling (PLS-SEM) in
management accounting research: Directions
for future theory development. Journal of
Accounting Literature, 37, 19-35.
https://doi.org/10.1016/j.acclit.2016.09.003
O'Leary, D. E. (2004). Enterprise resource
planning (ERP) systems: An empirical
analysis of benefits. Journal of Emerging
Technologies in Accounting, 1(1), 63-72.
https://doi.org/10.2308/jeta.2004.1.1.63
Olhager, J., & Selldin, E. (2003). Enterprise
resource planning survey of Swedish
manufacturing firms. European Journal of
Operational Research, 146(2), 365-373.
https://doi.org/10.1016/S0377-2217(02)00555-
Petter, S., DeLone, W., & McLean, E. (2008).
Measuring information systems success:
Models, dimensions, measures, and
interrelationships. European Journal of
Information Systems, 17(3), 236-263.
https://doi.org/10.1057/ejis.2008.15
Redman, T. C. (1995). Improve data quality for
competitive advantage. MIT Sloan
Management Review, 36(2), 99-107.
Rom, A., & Rohde, C. (2006). Enterprise resource
planning systems, strategic enterprise
management systems and management
accounting. Journal of Enterprise Information
Management, 19(1), 50-66.
https://doi.org/10.1108/17410390610636878
Ross, J. W., & Vitale, M. R. (2000). The ERP
revolution: Surviving vs. thriving. Information
Systems Frontiers, 2(2), 233-241.
https://doi.org/10.1023/A:1026500224101
Rouhani, S., & Mehri, M. (2016). Does ERP have
benefits on the business intelligence
readiness? An empirical study. International
Journal of Information Systems and Change
Management, 8(2), 81-105.
https://doi.org/10.1504/IJISCM.2016.079559
Scapens, R. W., & Jazayeri, M. (2003). ERP
systems and management accounting change:
Opportunities or impacts? A research note.
European Accounting Review, 12(1), 201-233.
https://doi.org/10.1080/0963818031000087907
Seddon, P., Staples, S., Patnayakuni, R., &
Bowtell, M. (1999). Dimensions of information
systems success. Communications of the AIS,
(3es), 5.
https://doi.org/10.17705/1CAIS.00220
Sedera, D., & Gable, G. (2004). A factor and
structural equation analysis of the enterprise
systems success measurement model.
In Proceedings of the 10th Americas
Conference on Information Systems (pp. 676-
: Association for Information Systems,
United States of America.
Shang, S., & Seddon, P. B. (2002). Assessing and
managing the benefits of enterprise systems:
The business manager's perspective.
Information Systems Journal, 12(4), 271-299.
https://doi.org/10.1046/j.1365-
2002.00132.x
Søilen, K. S., & Hasslinger, A. (2012). Factors
shaping vendor differentiation in the Business
Intelligence software industry. Journal of
Intelligence Studies in Business, 2(3), 48-54.
https://doi.org/10.37380/jisib.v2i3.48
Spathis, C. (2006). Enterprise systems
implementation and accounting benefits.
Journal of Enterprise Information
Management, 19(1), 67-82.
https://doi.org/10.1108/17410390610636887
Spathis, C., & Ananiadis, J. (2005). Assessing the
benefits of using an enterprise system in
accounting information and management.
Journal of Enterprise Information
Management, 18(1/2), 195-210.
https://doi.org/10.1108/17410390510579918
Spathis, C., & Constantinides, S. (2004).
Enterprise resource planning systems’ impact
on accounting processes. Business Process
Management Journal, 10(2), 234-247.
https://doi.org/10.1108/14637150410530280
Sternad, S., Gradisar, M., & Bobek, S. (2011). The
influence of external factors on routine ERP
usage. Industrial Management & Data
Systems, 111(9), 1511-1530.
https://doi.org/10.1108/02635571111182818
Strong, D. M., Lee, Y. W., & Wang, R. Y. (1997).
Data quality in context. Communications of
the ACM, 40(5), 103-110.
https://doi.org/10.1145/253769.253804
Tenenhaus, M., Amato, S., & Esposito Vinzi, V.
(2004). A global goodness-of-fit index for PLS
structural equation modelling. Paper
presented at the Proceedings of the XLII SIS
scientific meeting.
Thong, J. Y. L., & Yap, C.-S. (1996). Information
systems effectiveness: A user satisfaction
approach. Information Processing &
Management, 32(5), 601-610.
https://doi.org/10.1016/0306-4573(96)00004-0
Velcu, O. (2007). Exploring the effects of ERP
systems on organizational performance:
Evidence from Finnish companies. Industrial
Management & Data Systems, 107(9), 1316-
https://doi.org/10.1108/02635570710833983
Vermeer, B. H. (2000). How important is data
quality for evaluating the impact of EDI on
global supply chains? Paper presented at the
System Sciences, 2000. Proceedings of the
rd Annual Hawaii International
Conference.
Wang, R. Y., & Strong, D. M. (1996). Beyond
accuracy: What data quality means to data
consumers. Journal of Management
Information Systems, 12(4), 5-33.
https://doi.org/10.1080/07421222.1996.115180
Downloads
Published
Issue
Section
License
Authors who publish with this journal agree to the following terms:- Authors retain copyright and grant the journal right of first publication with the work simultaneously licensed under a Creative Commons Attribution License that allows others to share the work with an acknowledgement of the work's authorship and initial publication in this journal.
- Authors are able to enter into separate, additional contractual arrangements for the non-exclusive distribution of the journal's published version of the work (e.g., post it to an institutional repository or publish it in a book), with an acknowledgement of its initial publication in this journal.
- Authors are permitted and encouraged to post their work online (e.g., in institutional repositories or on their website) prior to and during the submission process, as it can lead to productive exchanges, as well as earlier and greater citation of published work (See The Effect of Open Access).
